National Treasury has released the 2012 Taxation Laws Amendment Bills for public comment. The draft Taxation Laws Amendment Bill, the Rates and Monetary Amounts and Amendment of Revenue Laws Bill, 2012 (introduced in March 2012), and the Tax Administration Amendment Bill give effect to most of the 2012 Budget Review tax proposals. The remaining tax proposals which have a later implementation date because they require more consultation (e.g. retirement proposals, carbon tax), or require specific legislation (e.g. the gambling tax), will be published for comment later this year or next year.
The draft Taxation Laws Amendment Bill deals with the substantive aspects of the tax proposals made in the 2012 Budget Review and the Rates and Monetary Amounts and Amendment of Revenue Laws Bill, 2012, addresses changes to rates and thresholds. The draft Tax Administration Amendment Bill, 2012 deals with changes to the administrative provisions of tax Acts administered by SARS, including the Tax Administration Act. The draft legislation and explanatory memorandum can be found on the National Treasury (www.treasury.gov.za) and SARS (www.sars.gov.za) websites.
The draft 2012 Taxation Laws Amendment Bill and Tax Administration Amendment Bill are published for public comment prior to formal introduction in Parliament. The Standing Committee of Finance will also convene hearings into these bills before their formal introduction in Parliament. In the meantime, National Treasury also invites public comments, and will engage separately with stakeholders, including through workshops to be held in early August 2012. Thereafter, National Treasury and the South African Revenue Service will revise the bills, taking into account public comments, and then introduce them in parliament for the more formal process. This process is in accordance with the Money Bills Procedure and Related Matters Act, No 9 of 2009.
For technical reasons, the draft tax amendments continue to be split into two bills - a money bill (section 77 of the Constitution) covering issues relating to rates and the tax base and an ordinary bill covering tax administration (section 75 of the Constitution).
National Treasury is formally requesting public comments on the above-mentioned proposals. For ease of reference and to facilitate processing, it would be appreciated if all comments are arranged in accordance with the explanatory memorandum. It would also be helpful if the legal nature of the problem is stated, along with a "detailed” factual description of the relevant transaction and context. Treasury would also appreciate proposed solution for each of the stated problem.
Comments should be sent by email to firstname.lastname@example.org or by fax to (012) 315 5516 and to email@example.com or by fax to (012) 315 5516. Please ensure that these comments reach the National Treasury or the SA Revenue Service by 31 July 2012.
Click to download the following documents:
Draft Taxation Laws Amendment Bill 2012
Draft Explanatory Memorandum