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SAIT Technical Department presented taxation issues of cardinal importance to the SCOF

Wednesday, 27 August 2014   (0 Comments)
Posted by: Author: SAIT Technical
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Author: SAIT Technical

On Tuesday, the 26th of August 2014, SAIT’s Technical Department, represented by Erich Bell (Acting Head of Tax Technical), Lesedi Seforo (Tax Technical Advisor) and Job Kabochi (VAT Committee Member) delivered a presentation to the Standing Committee on Finance in an attempt to curb some of the more questionable amendments contained in the draft Taxation Laws Amendment Bill, 2014 (‘TLAB’) and the draft Tax Administration Laws Amendment Bill, 2014. (‘TALAB’).

The most prominent issues that the Technical Department presented on included: 

  • Clause 88(1)(a) of the TLAB: Proposed removal of section 11(1)(g)  of the Value-Added Tax Act (No. 89 of 1991) (‘VAT Act’) which would have the effect that suppliers may no longer zero-rate the specified goods set forth in Schedule 2 to the VAT Act.
  • Clause 87(1)(a) of the TLAB: This clause needed clarity regarding the words ‘originates’ and ‘address’.
  • Clause 34(b) of the TALAB: Proposed that the definition of relevant material in section 1 of the Tax Administration Act (No. 28 of 2011) be amended to refer to ‘…that in the opinion of SARS is foreseeably relevant…’ This amendment may lead to a phishing expedition if no objective oversight is introduced. Furhtermore, this legislative change may have undesired ramifications on the tax clearance certificate system.
  • Proposed changes to section 12E of the Income Tax Act (No. 58 of 1962) which would have the effect that these small business corporations would be subject to tax at 28 per cent from the first Rand of taxable income and that they would then receive a R15 000 refundable compliance rebate, should they be tax compliant. We feel that the current system must be retained and that the R 15 000 rebate is too low.



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