The reportable arrangements provisions contained in section 34 to 39 of the Tax Administration Act have been amended by the TALAA. We highlight below some of the more important changes to take note of:
Previously, section 37 determined that the promoter of an arrangement had the reporting obligation. Only when there was no promoter or if the promoter was a non-resident, did all other participants have a reporting obligation. The section has been amended such that requisite information must be disclosed by a person who is a participant (i.e. a promoter or a person who directly or indirectly will derive or assumes that the person will derive a "tax benefit” or "financial benefit” in relation to an arrangement). This amendment was specifically aimed at making all participants in the arrangement primarily responsible for reporting.
The definitions of ‘participant’, ‘promoter’ and ‘tax benefit’ have been amended and a definition has been inserted for ‘reportable arrangement’ for clarification purposes. A ‘reportable arrangement’ is now defined as an arrangement referred to in section 35(1) or 35(2) that is not an excluded arrangement referred to in section 36.
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.