S.L. 123.27 ст. 10ASale by judicial auction.

(1) Any third party claiming that he holds security or rights which are not affected by the rights of the Commissioner in respect of withholding and payment of tax in terms of article

43(9)(c) of the Income Tax Management Act in respect of transfers of immovable property and any rights thereon in a sale by judicial auction, shall complete the relevant parts of the form prescribed in Schedule J and file the said form in triplicate with the Registrar of Courts, together with such documents as may be required to be attached thereto in terms of the said form. One of the copies of the form shall be stamped by the Registrar of Courts in acknowledgement of the receipt of the said notice.

(2) Within a period of two (2) months from the date of a sale by judicial auction, any transferor of immovable property and any rights thereon in a sale by judicial auction shall be entitled to complete the relevant parts of the form prescribed in Schedule J, either separately or concurrently with the use of the same form as set out in sub-rule (1), in order to indicate the tax treatment that should be applicable to the said transfer, and such form shall be filed in triplicate with the Registrar of Courts, together with such documents as may be required to be attached thereto in terms of the said form. One of the copies shall be stamped by the Registrar of Courts in acknowledgement of the receipt of the said notice. Where any transferor does not file the duly completed form prescribed in Schedule J with the Registrar of Courts in terms of this sub-rule, any tax deducted by the Registrar of Courts hall be deemed to constitute final tax or provisional tax relating to the transfer of the property or any rights thereon in terms of paragraph (a) or (b), as the case may be, of article 43(1) of the Income Tax Management Act. This is without prejudice to any tax payment or reporting obligations applicable to the transferor in terms of any of the provisions of the Income Tax Acts.

(3) On receipt of the form prescribed in Schedule J in the circumstances set out in sub-rules (1) and, or (2), the Registrar of Courts, after ascertaining that the relevant parts thereof are duly completed and that any documents required to be attached thereto in terms of the said form are duly annexed, shall forward them, together with the application for withdrawal of funds, to a judge of the Superior Courts for his decree thereon. One of the copies of the duly completed form prescribed in Schedule J, together with the documents attached thereto and the Court decree, shall, within a period of not more than three (3) months after the Court’s decree is issued, be forwarded by the Registrar of Courts to the Commissioner.

(4) Where any third party holds any security or rights which are not affected by the rights of the Commissioner in respect of withholding and payment of tax in terms of article 43(9)(c) of the Income Tax Management Act or rule 10B of these rules in a transfer of immovable property and any rights thereon in a sale by judicial auction, but after the satisfaction of all amounts due in respect of such security or rights any funds remain from the proceeds of the sale by judicial auction, the obligations of the Registrar of Courts in terms of article 43(9)(c) of the Income Tax Management Act shall be applicable and any tax due to the Commissioner shall be paid out of such remaining funds.