Demutualisation Levy Act, 2001
Act 9 of 2002
- Published in Government Gazette 2827 on 8 October 2002
- Commenced on 8 October 2002
- [This is the version of this document from 8 October 2002 and includes any amendments published up to 15 November 2024.]
1. Definitions
For the purposes of this Act, a word or expression to which a meaning has been assigned in the Income Tax Act, bears that meaning and, unless the context indicates otherwise -“affected company” means a company with a share capital to which the Namibian portion of the long-term insurance business of a mutual insurer has been transferred consequent upon a demutualisation scheme effected by that mutual insurer;“Companies Act” means the Companies Act, 1973 (Act No. 61 of 1973);[The Companies Act 61 of 1973 has been replaced by the Companies Act 28 of 2004.]“demutualisation scheme” means a transaction, sanctioned in terms of the applicable laws of Namibia or another country, which results in -(a)the transfer of the business of a mutual insurer to a company with a share capital; or(b)the conversion of a mutual insurer into a company with a share capital; or(c)a combination of paragraphs (a) and (b);“free reserves” means the funds accumulated by a mutual insurer which represent the excess of assets over liabilities and as determined in accordance with section 4;“free shares” means shares issued in terms of a demutualisation scheme, other than shares issued to raise capital;“holding company” means a holding company as defined in section 1 of the Companies Act;“Income Tax Act” means the Income Tax Act, 1981 (Act No. 24 of 1981);“Levy” means the demutualisation levy imposed by section 3(1);“Minister” means the Minister of Finance;“mutual insurer” means an insurer which is not a company with a share capital, and which has carried on insurance business in Namibia in terms of the Insurance Act, 1943 (Act No. 27 of 1943);[The Insurance Act 27 of 1943 has been replaced by the Short-term Insurance Act 4 of 1998 and the Long-term Insurance Act 5 of 1998.]“Namibian members” means -(a)natural persons who are ordinarily resident in Namibia; or(b)persons other than natural persons that are effectively managed in Namibia; or(c)persons, where the Minister is satisfied that it is not possible for the affected company to determine where they are ordinarily resident or where they are effectively managed, whose only or last recorded address in the records of a mutual insurer is in Namibia,to whom free shares are issued; in respect of the insurance business carried on by a mutual insurer in Namibia, in terms of a demutualisation scheme effected by the mutual insurer;“share” means a security, stock, share, debenture or other interest capable of being sold in a share market or exchange or otherwise.2. Administration of Act
The Minister of Finance must administer this Act.3. Imposition of levy, and rate thereof
4. Determination of free reserves
5. Date of liability for levy
Liability for the payment of the levy arises on the first of the month following the date of commencement of this Act.6. Namibian members liable for levy
7. Payment of levy
8. Assessment by Minister
Where the Minister is satisfied that an amount of the levy has not been paid, or has not been paid in full, within the period contemplated in section 7, the Minister may make a reasonable estimate of the unpaid amount and issue to the affected company a notice of assessment of the unpaid amount.9. Interest on late payment
Where an affected company or other entity referred to in section 6(4) fails to pay the levy in full before or on the last date for payment prescribed by section 7, interest must be paid by the affected company on the outstanding balance of the levy as well as any penalty imposed under section 10 at the rate and calculated in the manner prescribed by the Income Tax Act for outstanding tax, calculated from the due date for the payment of the levy to and including the date on which payment is received for the benefit of the State Revenue Fund.10. Penalties
If the affected company fails to pay the levy in full before or on the last date for payment prescribed by section 7, a penalty of 10 per cent of any unpaid amount must be paid by the affected company.11. Discretion of Minister
A decision by the Minister in the exercise of a discretion under this Act is subject to objection and appeal.12. Application of Income Tax Act
13. Overpayments of levy
The repayment of an amount of the levy overpaid for the benefit of the State Revenue Fund as a result of an amount -14. Short title
This Act is called the Demutualisation Levy Act, 2001.History of this document
08 October 2002 this version
Commenced
Documents citing this one 2
Gazette 1
1. | Namibia Government Gazette dated 2002-10-08 number 2827 |
Judgment 1
1. | Doro !Nawas Conservancy and Oters v Ndimulunde and Others (HD-MC-CIV-MOT-GEN-2024/00505) [2024] NAHCMD 606 (16 October 2024) |