The re-examination of the South African tax system by relating it to prevailing trends in international taxation by the Tax Review Committee ("the Judge Davies committee"), could see the current mining tax regime being reconsidered, says professional services firm Deloitte.
"An integral part of the Committee's objectives will be to evaluate the South African tax system against the international tax trends, and examine international initiatives to improve tax compliance and deal with tax base erosion," says Alex Gwala, Associate Director at Deloitte.
"One of the specific considerations will be an examination of whether the current mining tax regime is appropriate and takes into account the agreement between the Government, labour and business to ensure that the mining sector contributes to growth and job creation. To do so, it is required that mining remains a competitive investment proposition in which all role players contribute to better working and living conditions."
Section 240A of the Tax Administration Act, 2011 (as amended) requires that all tax practitioners register with a recognized controlling body before 1 July 2013. It is a criminal offense to not register with both a recognized controlling body and SARS.