Section 120: Penalty on amount claimed in assessment

120. Penalty on amount claimed in assessment (1) Where an assessment is made under section 119, the amount of duty, levy and tax claimed in the assessment shall carry a penalty not exceeding 50 per cent and such penalty shall be deemed to be part of the tax claimed. (2) For the purpose of subsection (1)— “tax claimed”, in relation to the relevant period— (a) means the difference between the amount of duty, levy and tax payable in the assessment and tax declared in the return under section 115; but (b) does not include— (i) any penalty under sections 116, 117 and 124; and (ii) any interest under section 125. (3) This section shall, subject to section 60 (1B), not apply to an assessment of any sum due under section 60 (1A). (S. 120 came into operation on 6 December 2007.) [S. 120 amended by s. 10 (q) of Act 26 of 2012 w.e.f. 22 December 2012; s. 25 (w) of Act 18 of 2016 w.e.f. 1 October 2016.]