Treasury published its revised Draft Taxation Laws Amendment Bill. The
consequence is that implementation of provisions of the Taxation Laws Amendment
Act dealing with the tax treatment of retirement fund contributions, that were
due to come into effect on 1 March 2015, will now be delayed for a year.
National Treasury has indicated that this is to allow further consultation
between Government and NEDLAC, and to allow consideration of broader social
security reform initiatives. Should no agreement on implementation be reached
between them by the end of June 2015, the implementation date may be moved to 1
March 2017. The affected provisions pertain to, amongst other
things aligning the tax treatment of contributions to pension, provident and
retirement annuity; requiring the annuitisation of retirement benefits in
provident funds; and the taxation of employer contributions as fringe benefits
in the hands of employees.
Gilfillan has been actively engaging with clients and industry bodies on the
amendments and has raised issues regarding the interpretation and
implementation of certain aspects of the amendments with the IRF Legal &
Technical Committee. The deferred implementation date allows additional time to
continue these engagements.
this space for further updates on the status of the amendments and provisions
of the new revised Bill.
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.