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Treasury publishes draft 2015 Taxation Laws Amendment Bill

Thursday, 23 July 2015   (0 Comments)
Posted by: Author: Linda Ensor
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Author: Linda Ensor (BDlive)

Treasury has published the draft 2015 Taxation Laws Amendment Bill and the 2015 Draft Tax Administration Laws Amendment Bill, both keenly awaited by tax practitioners who wish to see how the tax measures announced in the budget in February will be implemented.

The draft bills have been published on the Treasury and South African Revenue Service websites for public comment prior to their formal introduction into Parliament.

The draft Taxation Laws Amendment Bill deals with substantive changes to the tax laws while the draft Taxation Administration Laws Amendment Bill deals with administrative provisions of tax legislation.

Treasury said in a statement on Wednesday the first batch of the 2015 Taxation Laws Amendment Bill was published last month. It contained tax proposals that required an additional round of comment such as measures to counter tax-free corporate migrations, transitional tax issues resulting from the regulation of hedge funds and the tax implications of the outright transfer of collateral.

The draft released on Wednesday includes these proposals with the amendments that have arisen from comments received on the first batch.

It also deals with the issue of closing a loophole to ensure consistent tax treatment on all retirement funds; closing a loophole to avoid estate duty through excessive contributions to retirement funds; the tax implications of the outright transfer of collateral; transitional tax issues resulting from the regulation of hedge funds; measures to counter tax free corporate-migrations; withdrawal of special foreign tax credits for service fees sourced in SA; reinstatement of the controlled foreign company diversionary income rules; allowing municipalities to demarcate more areas as urban development zones; and the monetary threshold adjustments for enterprises supplying commercial accommodation.

The 2015 draft Tax Administration Laws Amendment Bill gives effect key proposals including medical scheme tax credits to be taken into account for PAYE; the collection of information by South African financial institutions and an associated obligation on the financial institutions to register with SARS; extension of period of limitations for issuance of assessments under narrow circumstances; and clarifies qualifying persons for voluntary disclosure, relaxing the requirements for voluntary disclosure and broadening the ambit of voluntary disclosure relief.

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