Thesis (MPhil)--Stellenbosch University, 2005. / ENGLISH ABSTRACT: HIV-positive employees that receive treatment for HIV/AIDS by having their employers
pay for the treatment are being taxed on their lifesaving HIV benefits paid by their
employer.
This comes after the Commissioner of Inland Revenue (CIR) or South African Revenue
Service (SARS) identified the provision of treatment by employers as a “fringe benefit”
in terms of paragraphs 2(e), 2(h) and 2(i) of the Seventh Schedule to the Income Tax Act1
and as such is taxable if the treatment is given from the work place.
The treatment contribution is included in an employee’s remuneration package as a fringe
benefit. Pay-as-you-earn (PAYE) and other assessed taxes are calculated from that. The
taxable benefit is included on the employees’ annual IRP5 certificates. In order for the
employer’s Human Resources department to affect this on the IRP 5 certificates the
affected employee has to disclose his HIV/AIDS status and accordingly pay the PAYE on
the fringe benefit.
In terms of paragraph 2(e) of the Seventh Schedule to the Income Tax Act No. 58 of
1962, any service rendered at the expense of the employer to the employee, whether by
the employer or by some other person, which has been utilised by the employee for
private or domestic use, such value of the service must be included in the employee’s
consideration for remuneration.
Paragraph 2(h)2 taxes the employees on debts paid by the employer on behalf of the
employees and paragraph 2(i)3 taxes a one third contribution benefit back in the hand of
an employee for contributions to medical aids. If the employee were to receive chronic
medication from a medical aid for HIV/AIDS treatment this will be included in the fringe
benefit tax as a medical contribution.The Employment Equity Act No. 55 of 19984 promotes the elimination of unfair
discrimination in the work place and ensures the implementation of Employment Equity
to redress the effects of discrimination. Above all it also promotes the constitutional right
to equality. In terms of confidentiality of the employees HIV/AIDS status; the Income
Tax Act No. 58 of 1962 (Income Tax Act)5 as interpreted seems to be in conflict with the
Employment Equity Act No. 55 of 1998.
A solution therefore has to be sought where:
- The anonymity of an employee in terms of his/her HIV/AIDS status is protected as
envisaged by the Employment Equity Act6.
- It is also necessary to understand whether there is in fact conflict between the Income
Tax Act7 and the Employment Equity Act8.
- It is also necessary to establish whether there are any misconceptions in the
interpretation of the legislation and
- Try to find the best possible solution to minimise the impact of Income Tax and yet
protect the confidentiality of the employees concerned. / AFRIKAANSE OPSOMMING: MIV-positiewe werknemers wat behandeling vir MIV/VIGS ontvang by hul werkgewers
word belas op hul lewensreddende MIV voordele wat deur hul werkgewers betaal word.
Hierdie word bepaal nadat die Kommisaris van Binnelandse Inkomste (KBI) of die Suid-
Afrikaanse Belastingsdiens (SAB) die voorsiening van behandeling deur werkgewers ag
as ‘n belastingbyvoordeel in terme van paragrawe 2(e), 2(h) en 2(i) van die Sewende
Skedule van die Inkomste belastingwet9 indien die diens gelewer word buite die
werksplek.
Die bydrae tot behandeling word ingesluit in die werknemer se vergoedingspakket as ‘n
belasbare byvoordeel. Werknemersbelasting of LBS en ander aangeslaande belastings
word hiervandaan bereken. Die byvoordeel word op die werknemer se IRP5 sertifikaat
aangedui. Om hierdie aan te dui op die IRP5 sertifikaat van die geaffekteerde werknemer
moet die werknemer se MIV status aan die werkgewer se Menslike Hulpbron
departement bekend wees om die nodige byvoordeel te bereken.
In terme van paragraaf 2(e)10 van die Sewende Skedule van die Inkomste Belastingwet
nr. 58 van 1962, word enige diens gelewer deur die werkgewer namens die werknemer,
of deur die werkgewer of deur sekere ander persone, wat gebruik word deur die
werknemer vir privaat en huishoudelike gebruik geag as vergoeding te wees en die diens
moet ingesluit wees in die vergoedingspakket.
Paragraaf 2(h)11 belas die werknemers op skuld betaal namens die werknemer deur die
werkgewer en paragraaf 2(i)12 belas een derde van die bydrae terug in die hand van die
werknemer vir bydraes betaal deur die werkgewer aan mediese fondse. Indien die werknemer kroniese medikasie ontvang van die mediese fonds vir MIV/VIGS
behandeling sal dié belas word as ‘n belasbare byvoordeel.
Die Gelyke Indiensnemingwet nr 55 van 199813 bevorder die eliminasie van
ongeregmatige diskriminasie in die werksplek en verseker dat die implementasie van die
wetgewing die impak van diskrimasie reg aanspreek. Die wetgewing bevorder die
konstitisionele reg tot gelykheid. In terme van die vertroulikheid van die MIV/VIGS
status van werknemers bleik die Inkomstebelastingwet in konflik te wees met die Gelyke
Indiensnemingswetgewing.
‘n Oplossing moet dus gevind word, waar:
- Die anonimiteit van die werknemers in terme van hul MIV/VIGS status beskerm
word soos veronderstel word in die Indiensnemingsekwiteitswetgewing
- Dit is ook nodig om te verstaan of daar inderdaad konflik is tussen die onderskeie
wetgewings, naamlik die Inkomstebelastingwet en die
Indiensnemingsekwiteitswetgewing.
- Dit is ook belangrik om te bepaal of daar enige miskonspesies in die interpretasie van
die wetgewing is en
- Om te probeer om die bes moontlike oplossing te vind om die impak van
Inkomstebelasting te verminder en terselfdertyd die konfidensialiteit van die
werknemers te verseker.
| Identifer | oai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:sun/oai:scholar.sun.ac.za:10019.1/50358 |
| Date | 04 1900 |
| Creators | Bokelman, Elizabeth Johanna |
| Contributors | Du Toit, J. B., Van Schalkwyk, C. J., Stellenbosch University. Faculty of Economic and Management Science. Dept. of Industrial Psychology. Africa Centre for HIV/AIDS Management. |
| Publisher | Stellenbosch : Stellenbosch University |
| Source Sets | South African National ETD Portal |
| Language | en_ZA |
| Detected Language | English |
| Type | Thesis |
| Rights | Stellenbosch University |
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