SAQA

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SOUTH AFRICAN QUALIFICATIONS AUTHORITY

REGISTERED UNIT STANDARD THAT HAS PASSED THE END DATE:

Demonstrate knowledge and insight into the Income Tax Act (58 of 1962 and the accompanying regulations) as amended as it applies to insurance and investment products

SAQA US ID	UNIT STANDARD TITLE
14315	Demonstrate knowledge and insight into the Income Tax Act (58 of 1962 and the accompanying regulations) as amended as it applies to insurance and investment products
ORIGINATOR
SGB Financial Services
PRIMARY OR DELEGATED QUALITY ASSURANCE FUNCTIONARY
-
FIELD			SUBFIELD
Field 03 - Business, Commerce and Management Studies			Finance, Economics and Accounting
ABET BAND	UNIT STANDARD TYPE	PRE-2009 NQF LEVEL	NQF LEVEL	CREDITS
Undefined	Regular	Level 4	NQF Level 04	2
REGISTRATION STATUS		REGISTRATION START DATE	REGISTRATION END DATE	SAQA DECISION NUMBER
Passed the End Date - Status was "Registered"		2004-12-02	2007-02-21	SAQA 1657/04
LAST DATE FOR ENROLMENT		LAST DATE FOR ACHIEVEMENT
2008-02-21		2011-02-21

In all of the tables in this document, both the pre-2009 NQF Level and the NQF Level is shown. In the text (purpose statements, qualification rules, etc), any references to NQF Levels are to the pre-2009 levels unless specifically stated otherwise.

This unit standard is replaced by:

US ID	Unit Standard Title	Pre-2009 NQF Level	NQF Level	Credits	Replacement Status
243132	Demonstrate knowledge and insight into the Income Tax Act (58 of 1962 and the accompanying regulations) as amended as it applies to Long-Term insurance and investment products	Level 4	NQF Level 04	2

PURPOSE OF THE UNIT STANDARD

This unit standard is intended to empower learners who work in insurance and investment organisations and learners who work in call centres with sufficient general knowledge of the Income Tax Act to enable them to apply the provisions of the Act to insurance products and investment instruments.

The qualifying learner is capable of:

Identifying the sections of the Income Tax Act (58 of 1962) that apply to insurance products and investment instruments.

Applying the relevant sections of the Act to insurance products and investment instruments.

Explaining the tax implications on local and foreign dividends and interest.

Applying knowledge of taxation on insurance products and investment instruments to the annual tax return (IT12).

LEARNING ASSUMED TO BE IN PLACE AND RECOGNITION OF PRIOR LEARNING

There is open access to this unit standard. Learners should be competent in Communication and Mathematical Literacy at Level 3.

UNIT STANDARD RANGE

The typical scope of this unit standard is:

Sections of the Act include Life of the deceased (3.3a), estate duty, short term (section 23h).

Insurance and investment products with tax implications include Short Term, Long Term, Retirement Funds, Pension Funds, Retirement Annuity Funds and Provident Funds.

Tax implications on Retirement Annuities include tax advantages, premiums and once matured.

Tax documents include proof from banks, insurance policies, investments and medical schemes.

Income Tax refers to tax on individual natural persons.

Specific Outcomes and Assessment Criteria:

SPECIFIC OUTCOME 1

Identify the sections of the Income Tax Act (58 of 1962) as amended.

OUTCOME NOTES

Identify the sections of the Income Tax Act (58 of 1962) as amended that apply to insurance and investments.

ASSESSMENT CRITERIA

ASSESSMENT CRITERION 1

1. The sections of the Act that apply to short term insurance are identified in the Act.

ASSESSMENT CRITERION 2

2. The sections of the Act that apply to long term insurance are identified in the Act.

ASSESSMENT CRITERION 3

3. The sections of the Act that apply to medical schemes and medical insurance are identified in the Act.

ASSESSMENT CRITERION 4

4. The sections of the Act that apply to investment instruments are identified in the Act.

ASSESSMENT CRITERION 5

5. The implications of the Annual Budget Speech of the Minister of Finance for changes and review of tax legislation are explained with reference to how the latest budget speech impacted on insurance and investments.

SPECIFIC OUTCOME 2

Apply the relevant sections of the Income Tax Act to insurance products and investment instruments.

ASSESSMENT CRITERIA

ASSESSMENT CRITERION 1

1. The different investment and long term insurance products that have tax implications are named with examples.

ASSESSMENT CRITERION 2

2. The application of tax in Retirement Annuity type products is explained and an indication given of the limits on investment and who would purchase such a product.

ASSESSMENT CRITERION 3

3. A Retirement Annuity is selected and the tax implications are identified for a particular product.

ASSESSMENT CRITERION 4

4. The application of tax on the proceeds from a pension fund is explained and an indication given of the effect of tax on resignation, early withdrawal and retirement.

ASSESSMENT CRITERION 5

5. The application of tax on the proceeds from a provident fund is explained in terms of monthly contribution and lump sum payment and an indication is given of the effect of taxation on retirement, death and early withdrawal.

ASSESSMENT CRITERION 6

6. Endowment policies, retirement annuities and provident funds are compared in terms of the tax advantages to the client.

ASSESSMENT CRITERION 7

7. The effect of tax on living annuities is explained in terms of capital and monthly income portions.

ASSESSMENT CRITERION 8

8. The tax implications for short term insurance are investigated for an individual and a company in terms of premiums and claims.

SPECIFIC OUTCOME 3

Explain the tax implications on local and foreign dividend and interest.

ASSESSMENT CRITERIA

ASSESSMENT CRITERION 1

1. The effect of tax on dividends is explained for local investment options.

ASSESSMENT CRITERION 2

2. The effect of tax on dividends is explained for foreign investment options.

ASSESSMENT CRITERION 3

3. The effect of tax on interest bearing investments and dividends from investments is explained with reference to the significance of the Budget Speech on taxable interest.

ASSESSMENT CRITERION 4

4. The effect of tax on income from script lending is explained with reference to the IT3(b).

SPECIFIC OUTCOME 4

Apply knowledge of taxation on insurance products and investment instruments.

OUTCOME NOTES

Apply knowledge of taxation on insurance products and investment instruments to the annual tax return (IT12).

ASSESSMENT CRITERIA

ASSESSMENT CRITERION 1

1. The tax certificates or documents required to prove taxable allowances claimed are identified for deductible allowances.

ASSESSMENT CRITERION 2

2. A tax return IT12 is completed with all the necessary documents for three case studies.

UNIT STANDARD ACCREDITATION AND MODERATION OPTIONS

This unit standard will be internally assessed by the provider and moderated by a moderator registered by INSQA or a relevant accredited ETQA. The mechanisms and requirements for moderation are contained in the document obtainable from INSQA, INSQA framework for assessment and moderation.

UNIT STANDARD ESSENTIAL EMBEDDED KNOWLEDGE

N/A

UNIT STANDARD DEVELOPMENTAL OUTCOME

N/A

UNIT STANDARD LINKAGES

N/A

Critical Cross-field Outcomes (CCFO):

UNIT STANDARD CCFO ORGANISING

The learner is able to manage his/her own activities responsibly and effectively to maximise productivity and service to clients by being able to demonstrate the various applications and impact of tax on different products and investments.

UNIT STANDARD CCFO COLLECTING

The learner is able to collect, organise and apply information relating to the Income Tax Act.

UNIT STANDARD CCFO COMMUNICATING

The learner is able to communicate effectively in explaining the application of the Income Tax Act to insurance and investment products/instruments.

UNIT STANDARD CCFO DEMONSTRATING

The learner is able to demonstrate an understanding of the world as a set of related systems by identifying the implications of the Budget speech for taxation.

UNIT STANDARD CCFO CONTRIBUTING

The learner is able to act as a responsible citizen by correctly completing the IT12 for three case studies.

UNIT STANDARD ASSESSOR CRITERIA

N/A

UNIT STANDARD NOTES

This unit standard has been replaced by unit standard 243132, which is " Demonstrate knowledge and insight into the Income Tax Act (58 of 1962 and the accompanying regulations) as amended as it applies to Long-Term insurance and investment products ", Level 4, 2 credits.

QUALIFICATIONS UTILISING THIS UNIT STANDARD:

	ID	QUALIFICATION TITLE	PRE-2009 NQF LEVEL	NQF LEVEL	STATUS	END DATE	PRIMARY OR DELEGATED QA FUNCTIONARY
Core	20773	National Certificate: Long Term Insurance	Level 4	NQF Level 04	Passed the End Date - Status was "Registered"	2004-12-05	INSETA
Elective	49649	Further Education and Training Certificate: Long-term Insurance	Level 4	NQF Level 04	Passed the End Date - Status was "Reregistered"	2023-06-30	INSETA
Elective	49529	Further Education and Training Certificate: Long-Term Risk Assessment	Level 4	NQF Level 04	Passed the End Date - Status was "Reregistered"	2023-06-30	INSETA
Elective	20638	National Certificate: Collective Investment Schemes	Level 4	NQF Level 04	Passed the End Date - Status was "Registered"	2004-12-05	INSETA
Elective	48640	National Certificate: Financial Services Management	Level 4	Level TBA: Pre-2009 was L4	Passed the End Date - Status was "Reregistered"	2023-06-30	INSETA
Elective	48493	National Certificate: Financial Services: Wealth Management	Level 4	NQF Level 04	Passed the End Date - Status was "Registered"	2007-02-11	Was INSETA until Last Date for Achievement
Elective	20774	National Certificate: Insurance: Long Term: Risk Assessment	Level 4	NQF Level 04	Passed the End Date - Status was "Registered"	2004-12-05	Was INSETA until Last Date for Achievement
Elective	24396	National Certificate: Risk Management	Level 4	NQF Level 04	Passed the End Date - Status was "Registered"	2006-10-08	Was INSETA until Last Date for Achievement
Elective	23973	National Certificate: Financial Services: Wealth Management	Level 5	Level TBA: Pre-2009 was L5	Passed the End Date - Status was "Registered"	2006-08-13	Was INSETA until Last Date for Achievement

PROVIDERS CURRENTLY ACCREDITED TO OFFER THIS UNIT STANDARD:

This information shows the current accreditations (i.e. those not past their accreditation end dates), and is the most complete record available to SAQA as of today. Some Primary or Delegated Quality Assurance Functionaries have a lag in their recording systems for provider accreditation, in turn leading to a lag in notifying SAQA of all the providers that they have accredited to offer qualifications and unit standards, as well as any extensions to accreditation end dates. The relevant Primary or Delegated Quality Assurance Functionary should be notified if a record appears to be missing from here.

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