S.L. 123.202 Art. 5Eligibility to tax exemption.

(1) Subject to the other provisions of these rules, a person who makes a transfer to which these rules apply shall be entitled to an exemption from tax in accordance with these rules if a payment is made against his relevant tax arrears when all the following conditions are satisfied:

(a) that person has submitted all returns that he was required to submit in terms of article 10 of the Income Tax

Management Act, rules 20, 21 and 22 of the Final Settlement

System (FSS) Rules and articles 27 and 30 of the Value Added Tax Act;

(b) the gross tax and the duty on documents and transfers chargeable in respect of that transfer have been remitted to the Commissioner as required by the Income Tax

Act and the Duty on Documents and Transfers Act;

(c) that person gives notice to the Commissioner of his claim for an exemption under these rules, which notice:

(i) shall be given to the Commissioner by not later than fifteen (15) months after the date of the said transfer but not later than 31st March 2023;

(ii) shall be given on such form and in such manner as the Commissioner may approve and contain all the information and particulars required by that form;

(d) that person provides such further information and produces such documents and evidence as the Commissioner may consider necessary for the proper application of these rules;

(e) the payment against relevant tax arrears is made (SET-OFF OF TAX ARREARS)

on or after the date of that transfer and, when the Commissioner issues a request for payment for the purpose of these rules, not later than the time allowed in that request:

Provided that the time for payment that may be allowed in such a request shall not be less than thirty days.

(2) The payment that shall be taken into account for the purpose of these rules shall not exceed the net transfer value.

(3) When the gross transfer value exceeds the relevant tax arrears of the transferor, the payment that shall be taken into account for the purpose of these rules shall not exceed that part of the net transfer value which, when added to the amount of the exemption allowed under these rules, is equivalent to the relevant tax arrears, which part shall be calculated as follows:

net transfer value x relevant tax arrears/gross transfer value.