SAQA All qualifications and part qualifications registered on the National Qualifications Framework are public property. Thus the only payment that can be made for them is for service and reproduction. It is illegal to sell this material for profit. If the material is reproduced or quoted, the South African Qualifications Authority (SAQA) should be acknowledged as the source.
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 
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  Complete 

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  Reregistered  2023-06-30  INSETA 
    Elective  49529   Further Education and Training Certificate: Long-Term Risk Assessment  Level 4  NQF Level 04  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  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.
     
    1. CKP Development Agency (Pty) Ltd. 
    2. Discovery Life Ltd 
    3. Faisit (Pty) Ltd 
    4. Intec College 
    5. Invuya Institute of Learning (Pty) Ltd 
    6. Masifunde Training Centre (Pty) Ltd 
    7. Sanlam Life Insurance Ltd 
    8. Sanlam Life Insurance Ltd. 
    9. The Institute of Health Risk Managers (Pty) Ltd 
    10. Umfolozi FET College - Central Office 



    All qualifications and part qualifications registered on the National Qualifications Framework are public property. Thus the only payment that can be made for them is for service and reproduction. It is illegal to sell this material for profit. If the material is reproduced or quoted, the South African Qualifications Authority (SAQA) should be acknowledged as the source.