Interest in Estate Duty
o Estate Duty is due within 1 (One) year from the date of death, or 30 (Thirty) days from the date of assessment, if an assessment is issued within 1(One) year from the date of death.
o Currently, interest is levied at 6% per annum on late payments.
o An extension will be considered if the Executor applies in writing for an extension within the prescribed period and pay a reasonable deposit.
o The Commissioner may grant an extension under Section 10(2) of the Estate Duty Act for late payments of Estate Duty without interest.
o If no request for the Interest-Free extension was received by SARS before the issuing of the REV250 assessment, interest remain payable.
o Estate Duty is payable by the Executor of the Estate.
o In terms of Section 12 of the Estate Duty Act “notwithstanding anything to the contrary contained in Section 11, any Duty payable under this Act shall be payable and recoverable from the Executor of the Estate subject to the duty, to the extent contemplated in Chapters 10 and 11 of the Tax Administration Act”.
o In terms of Section 13 of the Estate Duty Act, the duty may be recovered from the person liable therefor in respect of the duty attributable to such property that person received.
The Executor’s Nightmare.
The request for the Interest-Free extension may be declined if the conditions are not met.
The Executor may apply for reasons for arriving at the decision from SARS, but neither the Estate Duty Act nor the Tax Administration Act provides for an objection against the decision or an Appeal against the decision not to grant the extension.
In terms of Section 10(2) of the Estate Duty Act, no request for remission of interest is permissible.
Executors, please study the Estate Duty Act guide on the SARS website in detail and acquaint yourself with all Tax issues applicable in the administration of estates.
Failure to be up to date in this regard may render serious personal financial implications to Executors.