Tax Administration Laws Amendment Act

Link to law: http://www.gov.za/documents/tax-administration-laws-amendment-act-1
Published: 2015-01-20

Subscribe to a Global-Regulation Premium Membership Today!

Key Benefits:

Subscribe Now
Tax Administration Laws Amendment Act
Please note that most Acts are published in English and another South African official language. Currently we only have capacity to publish the English versions.
This means that this document will only contain even numbered pages as the other language is printed on uneven numbered pages.
Government Gazette
REPUBLIC OF SOUTH AFRICA
Vol. 595 Cape Town 20 January 2015 No. 38406
THE PRESIDENCY No. 22 20 January 2015
It is hereby notified that the President has assented to the following Act, which is hereby published for general information:–
No. 44 of 2014: Tax Administration Laws Amendment Act, 2015

2 No. 38406 GOVERNMENT GAZETTE, 20 January 2015 Act No. 44 of 2014 Tax Administration Laws Amendment Act, 2014
GENERAL EXPLANATORY NOTE:
[ ] Words in bold type in square brackets indicate omissions from existing enactments.
Words underlined with a solid line indicate insertions in existing enactments.
ACT To—
● amend the Income Tax Act, 1962, so as to effect consequential and textual amendments; to delete a provision; and to amend certain provisions;
● amend the Customs and Excise Act, 1964, so as to effect consequential amendments; to amend certain provisions; to insert certain provisions; and to effect technical corrections;
● amend the Value-Added Tax Act, 1991, so as to effect consequential amendments; and to amend certain provisions;
● amend the South African Revenue Service Act, 1997, so as to amend a provision;
● amend the Securities Transfer Tax Administration Act, 2007, so as to effect a consequential amendment;
● amend the TaxAdministrationAct, 2011, so as to amend certain provisions; to effect technical corrections; and to effect textual and consequential amend- ments;
● amend the Tax Administration Laws Amendment Act, 2012, so as to effect technical corrections;
● amend the Tax Administration Laws Amendment Act, 2013, so as to postpone an effective date;
● amend the Customs Duty Act, 2014, so as to effect technical corrections; to effect consequential amendments; and to insert a provision;
● amend the Customs Control Act, 2014, so as to amend certain provisions; to effect consequential amendments; and to insert a provision,
and to provide for matters connected therewith.
BE IT ENACTED by the Parliament of the Republic of South Africa, asfollows:— Amendment of section 1 of Act 58 of 1962, as amended by section 3 of Act 90 of 1962, section 1 of Act 6 of 1963, section 4 of Act 72 of 1963, section 4 of Act 90 of 1964, section 5 of Act 88 of 1965, section 5 of Act 55 of 1966, section 5 of Act 76 of 1968, section 6 of Act 89 of 1969, section 6 of Act 52 of 1970, section 4 of Act 88 of 1971, section 4 of Act 90 of 1972, section 4 of Act 65 of 1973, section 4 of Act 85 of 1974, section 4 of Act 69 of 1975, section 4 of Act 103 of 1976, section 4 of Act 113 of 1977, section 3 ofAct 101 of 1978, section 3 ofAct 104 of 1979, section 2 ofAct 104
5
(English text signed by the President) (Assented to 16 January 2015)
4 No. 38406 GOVERNMENT GAZETTE, 20 January 2015 Act No. 44 of 2014 Tax Administration Laws Amendment Act, 2014
of 1980, section 2 of Act 96 of 1981, section 3 of Act 91 of 1982, section 2 of Act 94 of 1983, section 1 of Act 30 of 1984, section 2 of Act 121 of 1984, section 2 of Act 96 of 1985, section 2 of Act 65 of 1986, section 1 of Act 108 of 1986, section 2 of Act 85 of 1987, section 2 of Act 90 of 1988, section 1 of Act 99 of 1988, Government Notice R780 of 1989, section 2 of Act 70 of 1989, section 2 of Act 101 of 1990, section 2 of Act 129 of 1991, section 2 of Act 141 of 1992, section 2 of Act 113 of 1993, section 2 ofAct 21 of 1994, Government Notice 46 of 1994, section 2 ofAct 21 of 1995, section 2 of Act 36 of 1996, section 2 of Act 28 of 1997, section 19 of Act 30 of 1998, Government Notice 1503 of 1998, section 10 of Act 53 of 1999, section 13 of Act 30 of 2000, section 2 of Act 59 of 2000, section 5 of Act 5 of 2001, section 3 of Act 19 of 2001, section 17 of Act 60 of 2001, section 9 of Act 30 of 2002, section 6 of Act 74 of 2002, section 33 of Act 12 of 2003, section 12 of Act 45 of 2003, section 3 of Act 16 of 2004, section 3 of Act 32 of 2004, section 3 of Act 32 of 2005, section 19 of Act 9 of 2006, section 3 of Act 20 of 2006, section 3 of Act 8 of 2007, section 5 of Act 35 of 2007, section 2 of Act 3 of 2008, section 4 of Act 60 of 2008, section 7 of Act 17 of 2009, section 6 of Act 7 of 2010, section 7 of Act 24 of 2011, section 271 of Act 28 of 2011, read with item 23 of Schedule 1 to that Act, section 2 of Act 22 of 2012 and section 4 of Act 31 of 2013
1. Section 1 of the Income TaxAct, 1962, is hereby amended by the substitution in the definition of ‘‘representative taxpayer’’ for paragraph (a) of the following paragraph:
‘‘(a) in respect of the income of a company, the public officer thereof, or in the event of such company being placed under business rescue in terms of Chapter 6 of the Companies Act, the business rescue practitioner;’’.
Amendment of section 3 of Act 58 of 1962, as amended by section 3 of Act 141 of 1992, section 3 of Act 21 of 1994, section 3 of Act 21 of 1995, section 20 of Act 30 of 1998, section 3 of Act 59 of 2000, section 6 of Act 5 of 2001, section 4 of Act 19 of 2001, section 18 of Act 60 of 2001, section 7 of Act 74 of 2002, section 13 of Act 45 of 2003, section 4 of Act 16 of 2004, section 2 of Act 21 of 2006, section 1 of Act 9 of 2007, section 3 of Act 36 of 2007, section 1 of Act 4 of 2008, section 2 of Act 61 of 2008, section 5 of Act 60 of 2008, section 14 of Act 8 of 2010, section 271 of Act 28 of 2011, read with paragraph 25 of Schedule 1 to that Act, and section 2 of Act 39 of 2013
2. Section 3 of the Income Tax Act, 1962, is hereby amended— (a) by the substitution in subsection (4) for paragraph (b) of the following
paragraph: ‘‘(b) section 8(5)(b) and (bA), section 10 (1)(cA), (e)(i)(cc), (j) and (nB),
section 10A(8), section 11(e), (f), (g), (gA), (j) and (l), section 12B(6), section 12C, section 12E, [section 12G,] section 12J(6), (6A) and (7), section 13, [section 14,] section 15, section 18A(5C), section 22(1) and (3), section 23H(2), section 23K, section 24(2), section 24A(6), section 24C, section 24D, section 24I(1) and (7), section 24J(9), section 24P, section 25A, section 27, section 28(9), section 30, section 30A, section 30B, section 30C, section 31, [section 35(2),] section 37A, [section 37H,] section 38(2)(a) and (b) and (4), section 44(13)(a), section 47(6)(c)(i), [section 57(2),] section 62(1)(c)(iii) and (d) and (2)(a) and (4), section 80B and section 103(2);’’;
(b) by the substitution in subsection (4) for paragraph (e) of the following paragraph:
‘‘(e) paragraphs 5(2), 14(6), [18, 20(1)(a) and (2), 20A(1) and (2),] 21(2)[,] and 24 [and 27] of the Fourth Schedule;’’; and
(c) by the substitution in subsection (4) for paragraph (f) of the following paragraph:
‘‘(f) paragraphs 10(3) [and (4)], 11(2) [and (7), 12(1)] and 13 of the Sixth Schedule;’’.
4
5
10
15
20
25
30
35
40
45
50
55
6 No. 38406 GOVERNMENT GAZETTE, 20 January 2015 Act No. 44 of 2014 Tax Administration Laws Amendment Act, 2014
Amendment of section 18A of Act 58 of 1962, as substituted by section 24 of Act 30 of 2000 and amended by section 72 of Act 59 of 2000, section 20 of Act 30 of 2002, section 34 ofAct 45 of 2003, section 26 ofAct 31 of 2005, section 16 ofAct 20 of 2006, section 18 of Act 8 of 2007, section 31 of Act 35 of 2007, section 1 of Act 3 of 2008, section 6 of Act 4 of 2008, section 34 of Act 60 of 2008, section 37 of Act 7 of 2010, section 44 of Act 24 of 2011, section 7 of Act 21 of 2012 and section 52 of Act 31 of 2013
3. Section 18Aof the Income TaxAct, 1962, is hereby amended by the substitution for subsection (4) of the following subsection:
‘‘(4) The provisions of [subsections (9) and (10) of] section 30(10) shall apply mutatis mutandis in respect of any institution, board or body contemplated in subsection (1)(a).’’.
Amendment of section 30 of Act 58 of 1962, as amended by section 16 of Act 19 of 2001, section 22 of Act 30 of 2002, section 31 of Act 74 of 2002, section 45 of Act 45 of 2003, section 28 of Act 32 of 2004, section 36 of Act 31 of 2005, section 24 of Act 20 of 2006, section 25 ofAct 8 of 2007, section 43 ofAct 35 of 2007, section 22 ofAct 3 of 2008, section 41 ofAct 60 of 2008, section 41 ofAct 17 of 2009, section 53 ofAct 7 of 2010 and section 8 of Act 21 of 2012
4. Section 30 of the Income Tax Act, 1962, is hereby amended by the deletion of subsection (9).
Amendment of section 64K of Act 58 of 1962, as inserted by section 56 of Act 60 of 2008 and amended by section 53 of Act 17 of 2009, section 84 of Act 24 of 2011, section 271 of Act 28 of 2011, read with paragraph 55 of Schedule 1 to that Act, section 14 of Act 21 of 2012 and section 5 of Act 39 of 2013
5. Section 64K of the Income Tax Act, 1962, is hereby amended— (a) by the deletion in subsection (1) of paragraph (d); and (b) by the insertion after subsection (1) of the following subsection:
‘‘(1A) If, in terms of this Part a person has— (a) paid a dividend; or (b) received a dividend that is exempt or partially exempt from
dividends tax in terms of section 64F or 64FA, that person must submit a return in respect of that dividend to the Commissioner by the last day of the month following the month during which the dividend is paid or received.’’.
Insertion of section 64LA in Act 58 of 1962
6. The following section is hereby inserted in the Income TaxAct, 1962, after section 64L:
‘‘Refund of tax in respect of dividends in specie
64LA. Notwithstanding the provisions of Chapter 13 of the Tax Administration Act, if— (a) dividends tax is paid by a company in respect of a dividend that
consists of a distribution of an asset in specie as a result of the company being unable to obtain the declaration and written undertak- ing contemplated in section 64FA(1)(a) or (2) by the date contem- plated in that section; and
(b) both the declaration and the written undertaking are submitted to the company within three years after the payment of the tax,
so much of the amount of dividends tax paid as would not have been payable had that declaration and written undertaking been submitted by the date contemplated in section 64FA(1)(a) or (2) is refundable to the company by SARS if claimed within three years of the date of payment of the tax.’’.
6
5
10
15
20
25
30
35
40
45
50
8 No. 38406 GOVERNMENT GAZETTE, 20 January 2015 Act No. 44 of 2014 Tax Administration Laws Amendment Act, 2014
Amendment of paragraph 1 of Fourth Schedule to Act 58 of 1962, as amended by section 22 ofAct 72 of 1963, section 44 ofAct 89 of 1969, section 24 ofAct 52 of 1970, section 37 ofAct 88 of 1971, section 47 ofAct 85 of 1974, section 6 ofAct 30 of 1984, section 38 of Act 121 of 1984, section 20 of Act 70 of 1989, section 44 of Act 101 of 1990, section 44 of Act 129 of 1991, section 33 of Act 141 of 1992, section 48 of Act 113 of 1993, section 16 of Act 140 of 1993, section 37 of Act 21 of 1995, section 34 of Act 36 of 1996, section 44 of Act 28 of 1997, section 52 of Act 30 of 1998, section 52 of Act 30 of 2000, section 53 of Act 59 of 2000, section 19 of Act 19 of 2001, section 32 ofAct 30 of 2002, section 46 ofAct 32 of 2004, section 49 ofAct 31 of 2005, section 28 of Act 9 of 2006, section 39 of Act 20 of 2006, section 54 of Act 8 of 2007, section 64 ofAct 35 of 2007, section 43 ofAct 3 of 2008, section 66 ofAct 60 of 2008, section 17 ofAct 18 of 2009, section 18 ofAct 8 of 2010, section 93 ofAct 24 of 2011, section 271 ofAct 28 of 2011, read with paragraph 77 of Schedule 1 to thatAct, and section 7 of Act 39 of 2013
7. (1) Paragraph 1 of the Fourth Schedule to the Income Tax Act, 1962, is hereby amended—
(a) by the deletion in the definition of ‘‘provisional taxpayer’’ of the word ‘‘and’’ at the end of paragraph (bb) of the exclusion;
(b) by the substitution in the definition of ‘‘provisional taxpayer’’ for the full stop at the end of paragraph (dd) of the exclusion of the expression ‘‘; and’’;
(c) by the addition in the definition of ‘‘provisional taxpayer’’ of the following paragraph to the exclusion:
‘‘(ee) a small business funding entity.’’; and (d) by the substitution in the definition of ‘‘representative employer’’ for
paragraph (a) of the following paragraph: ‘‘(a) in the case of any company, the public officer of that company, or, in
the event of such company being placed under business rescue in terms of Chapter 6 of the Companies Act, in liquidation or under judicial management, the business rescue practitioner, liquidator or judicial manager, as the case may be;’’.
(2) Paragraphs (a), (b) and (c) of subsection (1) come into operation on 1March 2015.
Amendment of paragraph 18 of Fourth Schedule to Act 58 of 1962, as amended by section 28 ofAct 90 of 1964, section 42 ofAct 88 of 1971, section 49 ofAct 58 of 1974, section 19 of Act 104 of 1979, section 26 of Act 65 of 1986, section 9 of Act 108 of 1986, section 24 of Act 19 of 2001, section 34 of Act 30 of 2002, section 58 of Act 74 of 2002, section 24 of Act 16 of 2004, section 47 of Act 32 of 2004, section 53 of Act 31 of 2005, section 1 of Act 3 of 2008, section 22 of Act 18 of 2009, section 96 of Act 24 of 2011 and section 21 of Act 21 of 2012
8. (1) Paragraph 18 of the Fourth Schedule to the Income Tax Act, 1962, is hereby amended—
(a) by the substitution in subparagraph (1) for item (c) of the following item: ‘‘(c) any natural person who [on the last day of that year will be below
the age of 65 years and who] does not derive any income from the carrying on of any business, if— (i) the taxable income of that person for the relevant year of
assessment will not exceed the tax threshold; or (ii) the taxable income of that person for the relevant year of
assessment which is derived from interest, foreign dividends and rental from the letting of fixed property will not exceed [R20 000] R30 000;’’; and
(b) by the deletion in subparagraph (1) of item (d). (2) Subsection (1) comes into operation for years of assessment commencing on or
after 1 March 2015.
8
5
10
15
20
25
30
35
40
45
50
10 No. 38406 GOVERNMENT GAZETTE, 20 January 2015 Act No. 44 of 2014 Tax Administration Laws Amendment Act, 2014
Amendment of paragraph 19 of Fourth Schedule to Act 58 of 1962, as amended by section 28 ofAct 88 of 1965, section 46 ofAct 89 of 1969, section 43 ofAct 88 of 1971, section 50 of Act 85 of 1974, section 49 of Act 94 of 1983, section 52 of Act 101 of 1990, section 44 of Act 21 of 1995, section 37 of Act 5 of 2001, section 87 of Act 45 of 2003, section 54 ofAct 31 of 2005, section 46 ofAct 3 of 2008, section 18 ofAct 61 of 2008, section 23 of Act 18 of 2009, section 271 of Act 28 of 2011, read with item 90 of Schedule 1 to that Act, section 22 of Act 21 of 2012 and section 13 of Act 39 of 2013
9. (1) Paragraph 19 of the Fourth Schedule to the Income Tax Act, 1962, is hereby amended—
(a) by the substitution in subparagraph (1)(d)(i) for subsubitems (aa) and (bb) of the following subsubitems:
‘‘(aa) the amount of any taxable capital gain [included therein in terms of] contemplated in section 26A; [and]
(bb) the taxable portion of any retirement fund lump sum benefit, retirement fund lump sum withdrawal benefit or severance benefit[,] (other than any amount [included under] contemplated in paragraph (eA) of the definition of ‘gross income’ in section 1); and
(bbA)any amount (other than a severance benefit) contemplated in paragraph (d) of the definition of ‘gross income’ in section 1,
included in the taxpayer’s taxable income for that year of assessment;’’; (b) by the substitution in subparagraph (1) for the proviso to item (d) of the
following proviso: ‘‘: Provided that, if an estimate under item (a) or (b) must be made[— (a)] more than 18 months[; and (b) in respect of a period that ends more than one year,] after the end
of the latest preceding year of assessment in relation to such estimate, the basic amount determined in terms of [subitem] subitems (i) and (ii) shall be increased by an amount equal to eight per cent per annum of that amount, from the end of such year to the end of the year of assessment in respect of which the estimate is made.’’; and
(c) by the deletion in subparagraph (1)(e)(ii) of the proviso. (2) Subsection (1) comes into operation for years of assessment commencing on or
after 1 March 2015.
Amendment of paragraph 20 of Fourth Schedule to Act 58 of 1962, as amended by section 25 ofAct 72 of 1963, section 29 ofAct 88 of 1965, section 47 ofAct 89 of 1969, section 44 ofAct 88 of 1971, section 51 ofAct 85 of 1974, section 36 ofAct 69 of 1975, section 50 of Act 94 of 1983, section 39 of Act 121 of 1984, section 19 of Act 61 of 2008, section 24 of Act 18 of 2009, section 271 of Act 28 of 2011, read with paragraph 91 of Schedule 1 to that Act, and section 23 of Act 21 of 2012
10. (1) Paragraph 20 of the Fourth Schedule to the Income Tax Act, 1962, is hereby amended—
(a) by the substitution for the heading of the following heading: ‘‘PENALTY FOR UNDERPAYMENTOF PROVISIONALTAXAS A RESULT OF UNDERESTIMATION’’;
(b) by the substitution in subparagraph (1) for items (a) and (b) of the following items, respectively:
‘‘(a) more than R1 million and such estimate is less than 80 per cent of the amount of the actual taxable income the Commissioner must impose, in addition to the normal tax [chargeable] payable in respect of the taxpayer’s taxable income for such year of assess- ment, a penalty, which is deemed to be a percentage based penalty imposed under Chapter 15 of the Tax Administration Act, equal to 20 per cent of the difference between—
10
5
10
15
20
25
30
35
40
45
50
55
12 No. 38406 GOVERNMENT GAZETTE, 20 January 2015 Act No. 44 of 2014 Tax Administration Laws Amendment Act, 2014
(i) the amount of normal tax, calculated[,] at the rates applicable in respect of such year of assessment and after taking into account any amount of a rebate deductible in terms of this Act in the determination of normal tax payable, in respect of a taxable income equal to 80 per cent of such actual taxable income; and
(ii) the amount of employees’ tax and provisional tax in respect of such year of assessment paid by the end of the year of assessment;
(b) in any other case, less than 90 per cent of the amount of such actual taxable income and is also less than the basic amount applicable to the estimate in question, as contemplated in paragraph 19(1)(d), the taxpayer shall, subject to the provisions of subparagraphs (2) and (3), be liable to pay to the Commissioner, in addition to the normal tax [chargeable] payable in respect of his or her taxable income for such year of assessment, a penalty, which is deemed to be a percentage based penalty imposed under Chapter 15 of the Tax Administration Act, equal to 20 per cent of the difference between the lesser of— (i) the amount of normal tax, calculated[,] at the rates applicable
in respect of such year of assessment and after taking into account any amount of a rebate deductible in terms of this Act in the determination of normal tax payable, in respect of a taxable income equal to 90 per cent of such actual taxable income; and
(ii) the amount of normal tax calculated in respect of a taxable income equal to such basic amount, at the rates applicable in respect of such year of assessment and after taking into account any amount of a rebate deductible in terms of this Act in the determination of normal tax payable,
and the amount of employees’ tax and provisional tax in respect of such year of assessment paid by the end of the year of assessment.’’;
(c) by the substitution in subparagraph (1) for the proviso of the following proviso:
‘‘: Provided that any retirement fund lump sum benefit, retirement fund lump sum withdrawal benefit [or any], severance benefit or any other amount contemplated in paragraph (d) of the definition of ‘gross income’ received by or accrued to or to be received by or accrue to the taxpayer during the relevant year of assessment shall not be taken into account for purposes of this subparagraph[;].’’;
(d) by the insertion after subparagraph (2) of the following subparagraphs: ‘‘(2A) If the final or last estimate of his or her taxable income is not
submitted in terms of paragraph 19(1)(a) by a provisional taxpayer other than a company, or the estimate of its taxable income in respect of the period contemplated in paragraph 23(b) is not submitted in terms of paragraph 19(1)(b) by a company which is a provisional taxpayer, in respect of any year of assessment, the non-submission shall be deemed to be a nil submission. (2B) Any penalty imposed under subparagraph (1) in respect of a year
of assessment must be reduced by any penalty imposed under paragraph 27(1) in respect of payment referred to in paragraph 21(1)(b) or 23(b).’’;
(e) by the insertion after subparagraph (2B) of the following subparagraph: ‘‘(2C) The Commissioner may, if he or she is satisfied that the
provisional taxpayer’s failure to submit such an estimate timeously was not due to an intent to evade or postpone the payment of provisional tax or normal tax, remit the whole or any part of the penalty imposed under subparagraph (1).’’; and
12
5
10
15
20
25
30
35
40
45
50
55
14 No. 38406 GOVERNMENT GAZETTE, 20 January 2015 Act No. 44 of 2014 Tax Administration Laws Amendment Act, 2014
(f) by the deletion of subparagraph (3). (2) Paragraphs (a), (b), (c), (d) and (f) of subsection (1) come into operation for years
of assessment commencing on or after 1 March 2014. (3) Paragraph (e) of subsection (1) comes into operation for years of assessment
commencing on or after 1 March 2015.
Repeal of paragraph 20A of Fourth Schedule to Act 58 of 1962
11. (1) Paragraph 20A of the Fourth Schedule to the Income Tax Act, 1962, is hereby repealed. (2) Subsection (1) comes into operation for years of assessment commencing on or
after 1 March 2015.
Amendment of paragraph 24 of Fourth Schedule to Act 58 of 1962, as substituted by section 30 of Act 88 of 1965 and amended by section 54 of Act 85 of 1974 and section 52 of Act 94 of 1983
12. The Fourth Schedule to the Income Tax Act, 1962, is hereby amended by the substitution for paragraph 24 of the following paragraph:
‘‘24. The Commissioner may absolve any provisional taxpayer from making payment of any amount of provisional tax payable in terms of paragraph 21(1)(a) [or paragraph 22] or paragraph 23(a), if [he] the Commissioner is satisfied that the taxable income which may be derived by such taxpayer for the year of assessment in question cannot be estimated on the facts available at the time when payment of the amount in question has to be made.’’.
Amendment of paragraph 29 of Eighth Schedule to Act 58 of 1962, as inserted by section 38 of Act 5 of 2001 and amended by section 81 of Act 60 of 2001, section 38 of Act 30 of 2002, section 76 of Act 74 of 2002, section 47 of Act 20 of 2006, section 61 of Act 8 of 2007 and section 96 of Act 7 of 2010
13. Paragraph 29 of the Eighth Schedule to the Income Tax Act, 1962, is hereby amended—
(a) by the substitution in subparagraph (5) for the words following item (c) of the following words:
‘‘that person may only adopt the market value as the valuation date value of that asset if that person has furnished proof of that valuation to the Commissioner in the form as the Commissioner may prescribe, with the first return submitted by that person after the period contemplated in subparagraph (4) [or, if it was not submitted with that return, within such period as the Commissioner may allow if proof is submitted that the valuation was performed within the period prescribed].’’; and
(b) by the substitution in subparagraph (6) for the words following item (b) of the following words:
‘‘that person must [submit] retain proof of that valuation [in a form prescribed by the Commissioner with the return for the year of assessment during which that asset was disposed of].’’.
Amendment of section 43 of Act 91 of 1964, as amended by section 6 of Act 105 of 1976, section 7 of Act 112 of 1977, section 6 of Act 86 of 1982, section 32 of Act 45 of 1995, section 34 of Act 34 of 1997, section 124 of Act 60 of 2001, section 45 of Act 30 of 2002, section 23 of Act 34 of 2004, section 8 of Act 36 of 2007 and section 92 of Act 60 of 2008
14. Section 43 of the Customs and Excise Act, 1964, is hereby amended by the substitution in subsection (7) for paragraph (d) of the following paragraph:
‘‘(d) [No] Except for the liability for duty in terms of the proviso to section 87(1), no duty shall be payable on any goods to which this subsection relates on disposal as contemplated in paragraph (b), but any duty paid on such goods shall not be refundable.’’.
14
5
10
15
20
25
30
35
40
45
50
16 No. 38406 GOVERNMENT GAZETTE, 20 January 2015 Act No. 44 of 2014 Tax Administration Laws Amendment Act, 2014
Amendment of section 47 of Act 91 of 1964, as amended by section 11 of Act 95 of 1965, section 17 of Act 105 of 1969, section 2 of Act 7 of 1974, section 7 of Act 105 of 1976, section 10 ofAct 112 of 1977, section 9 ofAct 98 of 1980, section 8 ofAct 86 of 1982, section 15 ofAct 84 of 1987, section 4 ofAct 69 of 1988, section 22 ofAct 59 of 1990, section 3 ofAct 61 of 1992, section 37 ofAct 45 of 1995, section 63 ofAct 30 of 1998, section 53 ofAct 53 of 1999, section 126 ofAct 60 of 2001, section 104 ofAct 74 of 2002, section 138 of Act 45 of 2003, section 3 of Act 10 of 2005, section 90 of Act 31 of 2005, section 11 of Act 36 of 2007 and section 94 of Act 60 of 2008
15. Section 47 of the Customs and Excise Act, 1964, is hereby amended by the addition to subsection (9)(a) of the following subparagraph after subparagraph (iii):
‘‘(iv) (aa) For the purposes of this subparagraph ‘alcoholic beverages’ means alcoholic beverages as contemplated in Chapter 22 of Part 1 of Schedule No. 1. (bb) Notwithstanding anything to the contrary contained in this Act, every
manufacturer or importer of an alcoholic beverage shall, irrespective of any existing tariff determination at the time this subparagraph comes into operation, apply for a tariff determination of that beverage in terms of this paragraph.
(cc) An application for a tariff determination shall be accompanied by— (A) detailed information of the brand name, process of manufacture, the
ingredients used, the proportion in which they are used, the alcoholic strength and such other particulars as the Commissioner may specify; and
(B) if applicable, a letter from the administering officer referred to in section 3 of the Liquor Products Act, 1989 (Act No. 60 of 1989), confirming that the alcoholic beverage complies with that Act.
(dd) Notwithstanding subsection (3) of section 4, but subject, with the necessary changes, to the proviso to subsection (3) and subsections (3A), (3C) and (3D) of that section, the Commissioner may disclose any information provided in terms of item (cc) to the Director General of the Department of Agriculture, Forestry and Fisheries. (ee)After the date this subparagraph comes into operation, application for a tariff
determination shall be made for an alcoholic beverage— (A) before release of a clearance for home consumption of the first importation; or (B) before removal from the excise manufacturing warehouse for any purpose in
terms of this Act, as may be applicable in respect of that alcoholic beverage. (ff) The Commissioner may, for the purposes of implementation of this
subparagraph, by rule— (A) specify a period after the date this subparagraph comes into operation within
which and the order in which an application for a tariff determination in respect of any class or kind of alcoholic beverage manufactured or imported shall be submitted; and
(B) prescribe any other matter as contemplated in subsection (13). (gg) If, for any alcoholic beverage, the brand name, process of manufacture, any
ingredient or the proportion in which it is used, or the alcoholic strength changes, application for a new tariff determination shall be made before release of a clearance for home consumption or before removal from the excise manufacturing warehouse for any purpose in terms of this Act, as may be applicable in respect of that alcoholic beverage. (hh) This subparagraph may not be read as preventing any officer from
performing any function contemplated in section 106.’’.
Substitution of section 50 of Act 91 of 1964, as inserted by section 66 of Act 30 of 1998
16. The following section is hereby substituted for section 50 of the Customs and Excise Act, 1964:
16
5
10
15
20
25
30
35
40
45
50
18 No. 38406 GOVERNMENT GAZETTE, 20 January 2015 Act No. 44 of 2014 Tax Administration Laws Amendment Act, 2014
‘‘Provisions relating to the disclosure of information in terms of agreements [and conventions]
50. (1) Notwithstanding the provisions of section 4(3)[— (a)] or any other law relating to confidentiality or secrecy, but subject to section 101B, the Commissioner may, in accordance with— [(i)](a) any international agreement [or convention] in respect of
[customs co-operation to which the Republic is a party]mutual administrative assistance and cooperation or exchange of informa- tion in customs matters which is in force and binds the Republic in terms of section 231 of the Constitution of the Republic of South Africa, 1996, hereinafter referred to as the ‘Constitution’; or
[(ii)](b) any other international agreement [or convention to which the Republic is a party] which is in force and binds the Republic in terms of section 231 of the Constitution, and in circumstances where the Commissioner is on good cause shown, satisfied that the international or regional interest or national public interest in the disclosure of information outweighs any potential harm to the person, firm or business to whom or to which such information relates— [(aa)] (i) disclose, or for the purpose of [subparagraph (i)]
paragraph (a), in writing authorise any officer to disclose, any information relating to any person, firm or business acquired by an officer in carrying out any duty under this Act;
[(bb)] (ii) render mutual and technical assistance in accordance with any [convention or] agreement contemplated in [subparagraph (i)] paragraph (a); and
[(cc)](iii) in writing authorise any officer to exercise any power under this Act which may be considered necessary for the [purposes] purpose of rendering such assistance or obtaining such information.
(2) (a) (i) If any agreement referred to in subsection (1)(a) provides for the automatic exchange of information of the cross-border movement of means of transport, goods and persons the Commissioner may determine the information, including the contents of any documents relating to clearance declarations for such movement, that will be allowed to be disclosed as contemplated in subsection(1)(b)(i). (ii) Notwithstanding subsection (1) and subparagraph (i), the Commis-
sioner may not disclose information in terms of this section where any of the grounds for refusal referred to in Chapter 4 of the Promotion of Access to Information Act, 2000 (Act No. 2 of 2000), applies except if disclosure is authorised for the purposes contemplated in section 46 of that Act. (b) For the purposes of this subsection automatic exchange of informa-
tion may include the systematic supply of clearance information in terms of the agreement by the customs authority of the sending party to the customs authority of the receiving party in an agreed electronic or other structured format in advance of the arrival of the persons, goods or means of transport in the territory of the receiving party. (c) Any information automatically exchanged shall be treated as
confidential by the receiving party and may only be used for the purposes of risk analysis by the customs authority of that party except if the party providing the information in writing authorises its use for other purposes or by other authorities in terms of the provisions of the agreement regulating the exchange of such information. (d) The Commissioner may, in respect of the automatic exchange of
information—
18
5
10
15
20
25
30
35
40
45
50
55
20 No. 38406 GOVERNMENT GAZETTE, 20 January 2015 Act No. 44 of 2014 Tax Administration Laws Amendment Act, 2014
(i) authorise the use for other purposes or by other authorities of the information provided by the other party to the agreement as contemplated in paragraph (c);
(ii) specify conditions on which any information will be exchanged and on which it may be used for any other purpose or by any other authority;
(iii) refuse the exchange of information with a party to any agreement if the information will not be afforded in the territory of that party a level of protection that satisfies the requirements of this Act.
(e) For the purposes of this subsection any reference to the ‘Commis- sioner’ includes any officer contemplated in subsection (1)(b).
[(b) the](3) The Commissioner may[, in the circumstances contem- plated in paragraph (a)] for the purposes of subsection (1)(b)— [(i)](a) disclose[, such] information or [as contemplated in paragraph
(a)(i),] authorise [such] disclosure to a person authorised to act on behalf of any international agency, institution or organisation with which an agreement has been entered into with the Republic; and
[(ii)](b) specify the purpose for which such disclosure is authorised and the manner in which or the conditions under which such disclosure is to be made.
(4) The Commissioner may make rules in respect of any matter which the Commissioner reasonably considers to be necessary and useful to achieve the efficient and effective administration of this section.’’.
Amendment of section 101B ofAct 91 of 1964, as inserted by section 38 ofAct 61 of 2008
17. Section 101B of the Customs and Excise Act, 1964, is hereby amended— (a) by the insertion in subsection (1) of the following definition after the
definition of ‘‘Advance Passenger Information’’, ‘‘airline’’ and ‘‘operator’’: ‘‘ ‘person’means a natural person and juristic person, unless the context otherwise requires;’’;
(b) by the substitution for the definition of ‘‘personal information’’ of the following definition:
‘‘ ‘personal information’means information relating to an identified or identifiable natural person and where it is applicable an identified or identifiable juristic person as determined by the Commissioner;’’;
(c) by the substitution in subsection (2) for paragraphs (a) and (c) of the following paragraphs:
‘‘(a) applies— (i) to the Commissioner, an officer, or any person acting under a
delegation from or under control or direction of the Commis- sioner; and
(ii) subject to section 4(3), (3A), (3B), (3C), (3D) and (3E), to any personal information in possession of or under the control of the Commissioner;
(c) regulates the manner in which personal information must be processed and protected by the Commissioner.’’;
(d) by the substitution in subsection (3) for paragraph (a) of the following paragraph:
‘‘(a) The Commissioner or an officer may, subject to subsection (6), obtain and use personal information [only], if—
(i) Advance Passenger Information, for the purpose specified in section 7A(2);
(ii) any other personal information obtained from any other source as contemplated in section 4(3), for the administration of any other provision of this Act, including any international agreement contemplated in section 50; or
(iii) provided by a party to an international agreement, in accordance with the provisions of that agreement and section 50.’’;
20
5
10
15
20
25
30
35
40
45
50
55
22 No. 38406 GOVERNMENT GAZETTE, 20 January 2015 Act No. 44 of 2014 Tax Administration Laws Amendment Act, 2014
(e) by the substitution in subsection (5)(a) for the words preceding subparagraph (i) of the following words:
‘‘No records containing personal information which allows a [passen- ger] person to be identified shall be retained for longer than necessary for achieving the purpose of [Advance Passenger Information] personal information processing, unless—’’;
(f) by the substitution in subsection (5)(a) for subparagraphs (i) and (v) of the following subparagraphs:
‘‘(i) the [passenger] person authorises such retention; (v) the personal information has been used to make a decision about a
[passenger] person and the record must be retained for such a period as may be reasonably required for the [passenger] person to request access to the record.’’;
(g) by the substitution in subsection (6) for the words preceding paragraph (a) of the following words:
‘‘Personal information may not be further processed in a manner that is not compatible with the purpose for which [Advance Passenger Information] that information is obtained and used as contemplated in subsection (3)(a) by the Commissioner, unless—’’;
(h) by the substitution in subsection (6) for paragraph (a) of the following paragraph:
‘‘(a) the [passenger] person authorises such further processing;’’; (i) by the substitution in subsection (6)(b) for subparagraph (iii) of the following
subparagraph: ‘‘(iii) to prevent an imminent and serious threat to public safety or the
life or health of the [passenger] person; or’’; (j) by the substitution in subsection (7) for paragraph (a) of the following
paragraph: ‘‘(a) whether at the request of a [passenger] person or on own initiative,
ensure that all records relating to personal information are complete, not misleading, up to date and accurate;’’;
(k) by the substitution in subsection (9)(a) for the words preceding subparagraph (i) of the following words:
‘‘Any [passenger] person is entitled to—’’; (l) by the substitution in subsection (9) for paragraph (b) of the following
paragraph: ‘‘(b) Where a [passenger] person makes a request contemplated in
paragraph (a), the Commissioner must inform the [passenger] person that he or she may request the correction of any such information.’’;
(m) by the substitution in subsection (9)(c) for the words preceding subparagraph (i) of the following words:
‘‘Where the Commissioner receives a request for the correction of personal information from a [passenger] person, the Commissioner must—’’;
(n) by the substitution in subsection (9)(c) for subparagraph (ii) of the following paragraph:
‘‘(ii) in instances where the Commissioner decides on good cause not to correct the information, attach at the request of the [passen- ger] person a statement to the information concerning the correction sought but not made in such a manner that it will always be read together with the information;’’;
(o) by the substitution in subsection (9)(c)(iii) for item (bb) of the following item: ‘‘(bb) inform the [passenger] person of the actions taken as a result of
the request for correction.’’; (p) by the substitution in subsection (10) for paragraphs (a) and (b) of the
following paragraphs: ‘‘(a) process personal information concerning a person’s religion or
philosophy of life, race, political persuasion or health or sexual life, except where the [passenger] person has given his or her explicit consent to the processing of the information;
(b) transfer any personal information about a [passenger] person to a foreign government other than in the manner contemplated in section 50: Provided that the Commissioner is satisfied that the
22
5
10
15
20
25
30
35
40
45
50
55
60
24 No. 38406 GOVERNMENT GAZETTE, 20 January 2015 Act No. 44 of 2014 Tax Administration Laws Amendment Act, 2014
recipient of that information is subject to a law which effectively upholds principles for fair handling of personal information that are substantially similar to the information protection principles set out in this section.’’.
Continuation of amendments made under section 119A of Act 91 of 1964
18. Any rule made under section 119A of the Customs and Excise Act, 1964, or any amendment or withdrawal of or insertion in such rule during the period 1 September 2013 up to and including 30 September 2014 shall not lapse by virtue of section 119A(3) of that Act.
Amendment of section 1 of Act 89 of 1991, as amended by section 21 of Act 136 of 1991, paragraph 1 of Government Notice 2695 of 8 November 1991, section 12 of Act 136 of 1992, section 1 of Act 61 of 1993, section 22 of Act 97 of 1993, section 9 of Act 20 of 1994, section 18 of Act 37 of 1996, section 23 of Act 27 of 1997, section 34 ofAct 34 of 1997, section 81 ofAct 53 of 1999, section 76 ofAct 30 of 2000, section 64 of Act 59 of 2000, section 65 of Act 19 of 2001, section 148 of Act 60 of 2001, section 114 of Act 74 of 2002, section 47 of Act 12 of 2003, section 164 of Act 45 of 2003, section 43 of Act 16 of 2004, section 92 of Act 32 of 2004, section 8 of Act 10 of 2005, section 101 of Act 31 of 2005, section 40 of Act 9 of 2006, section 77 of Act 20 of 2006, sections 81 and 108 ofAct 8 of 2007, section 104 ofAct 35 of 2007, section 68 ofAct 3 of 2008, section 104 ofAct 60 of 2008, section 33 ofAct 18 of 2009, section 119 ofAct 7 of 2010, section 26 ofAct 8 of 2010, section 129 ofAct 24 of 2011, section 271 ofAct 28 of 2011, read with paragraph 196 of Schedule 1 to thatAct, section 145 of Act 22 of 2012 and section 165 of Act 31 of 2013
19. (1) Section 1 of the Value-Added Tax Act, 1991, is hereby amended— (a) by the deletion in subsection (1) of the definition of ‘‘Controller’’ and the
definition of ‘‘Customs and Excise Act’’; (b) by the insertion in subsection (1) of the following definitions before the
definition of ‘‘customs controlled area’’: ‘‘ ‘customs authority’ has the meaning assigned thereto in section 1 of the Customs Control Act; ‘Customs Control Act’ means the Customs Control Act, 2014 (Act No. 31 of 2014);’’;
(c) by the substitution in subsection (1) for the definition of ‘‘customs controlled area’’ of the following definition:
‘‘ ‘customs controlled area’ has the meaning assigned thereto in section [21A(1A) or (1)]1 of the Customs [and Excise] Control Act;’’;
(d) by the deletion in subsection (1) of the definition of ‘‘customs controlled area enterprise’’;
(e) by the insertion in subsection (1) after the definition of ‘‘customs controlled area’’ of the following definition:
‘‘ ‘Customs Duty Act’ means the Customs Duty Act, 2014 (Act No. 30 of 2014);’’;
(f) by the insertion in subsection (1) of the following definition after the definition of ‘‘entertainment’’:
‘‘ ‘Excise Duty Act’ means the Excise Duty Act, 1964 (Act No. 91 of 1964);’’;
(g) by the insertion in subsection (1) of the following definition after the definition of ‘‘grant’’:
‘‘ ‘importation’, in relation to goods, means when goods— (a) enter the Republic; or (b) are cleared for home use or a customs procedure before the arrival
of the goods in the Republic, in terms of the Customs Control Act;’’;
(h) by the deletion in subsection (1) of the definition of ‘‘inbound duty and tax free shop’’;
(i) by the substitution in subsection (1) for the definition of ‘‘Industrial Development Zone (IDZ)’’ of the following definition:
‘‘[‘Industrial Development Zone (IDZ)’ has the meaning assigned thereto in section 21A(1A) or (1) of the Customs and Excise Act] ‘IDZ’ means an industrial development zone prescribed in an area
24
5
10
15
20
25
30
35
40
45
50
55
60
26 No. 38406 GOVERNMENT GAZETTE, 20 January 2015 Act No. 44 of 2014 Tax Administration Laws Amendment Act, 2014
designated as a Special Economic Zone in terms of section 23 or 24 of the Special Economic Zones Act;’’;
(j) by the substitution in subsection (1) for the definition of ‘‘Industrial Development Zone (IDZ) operator’’ of the following definition:
‘‘[‘Industrial Development Zone (IDZ) operator’ has the meaning assigned thereto in section 21A(1A) or (1) of the Customs and Excise Act] ‘IDZ operator’ means an operator defined in section 1 of the Special Economic Zones Act;’’;
(k) by the substitution in subsection (1) in paragraph (a) of the definition of ‘‘input tax’’ for subparagraph (ii) of the following subparagraph:
‘‘(ii) the vendor on the importation of goods by [him] that vendor; or’’;
(l) by the deletion in subsection (1) of the definition of ‘‘licensed customs and excise storage warehouse’’;
(m) by the insertion in subsection (1) of the following definitions after the definition of ‘‘services’’:
‘‘ ‘SEZ’ means an area designated as a Special Economic Zone in terms of the Special Economic Zones Act; ‘SEZ enterprise’means an SEZ enterprise as defined in section 1 of the Customs Control Act to the extent to which it is carried on in a customs controlled area;’’;
(n) by the insertion in subsection (1) of the following definition after the definition of ‘‘South African Revenue Service’’:
‘‘ ‘Special Economic Zones Act’ means the Special Economic Zones Act, 2014 (Act No. 16 of 2014);’’;
(o) by the insertion in subsection (1) of the following definition after the definition of ‘‘Stamp Duties Act’’:
‘‘ ‘storage warehouse’ has the meaning assigned thereto in section 1 of the Customs Control Act;’’;
(p) by the insertion in subsection (1) of the following definition after the definition of ‘‘tax fraction’’:
‘‘ ‘tax free shop’ has the meaning assigned thereto in section 1 of the Customs Control Act;’’.
(2) Paragraphs (a), (b), (c), (d), (e), (f), (g), (h), (i), (j), (l), (m), (n), (o) and (p) of subsection (1) come into operation on the date on which the Customs Control Act, 2014 (Act No. 31 of 2014), takes effect.
Amendment of section 7 of Act 89 of 1991, as amended by section 23 of Act 136 of 1991, section 14 ofAct 136 of 1992, section 23 ofAct 97 of 1993, section 33 ofAct 37 of 1996, section 165 of Act 45 of 2003 and section 94 of Act 32 of 2004
20. (1) Section 7 of the Value-Added Tax Act, 1991, is hereby amended— (a) by the substitution in subsection (1) for paragraph (b) of the following
paragraph: ‘‘(b) on the importation of any goods [into the Republic] by any person
on or after the commencement date; and’’; (b) by the substitution in subsection (3) for paragraphs (a), (b) and (d) of the
following paragraphs: ‘‘(a)Where any goods manufactured in the Republic, being of a class
or kind subject to excise duty or environmental levy under Part 2 or 3 of Schedule No. 1 to the [Customs and] Excise Duty Act, have been supplied at a price which does not include such excise duty or environmental levy and tax has become payable in respect of the supply in terms of subsection (1)(a), value-added tax shall be levied and paid at the rate of 14 per cent for the benefit of the National Revenue Fund on an amount equal to the amount of such excise duty or environmental levy which, subject to any rebate of such excise duty or environmental levy under the said Act, is paid.
26
5
10
15
20
25
30
35
40
45
50
55
28 No. 38406 GOVERNMENT GAZETTE, 20 January 2015 Act No. 44 of 2014 Tax Administration Laws Amendment Act, 2014
(b) The tax payable in terms of paragraph (a) shall be paid by the person liable in terms of the [Customs and] Excise Duty Act for the payment of the said excise duty or environmental levy. (d) [Subject to this Act, the provisions of the Customs and Excise
Act relating to the clearance of goods subject to excise duty or environmental levy and the payment of that excise duty or environmental levy shallmutatis mutandis have effect as if enacted in this Act] The tax on the clearance of goods subject to excise duty or environmental levy shall be recovered or refunded in terms of the relevant provisions of the Excise Duty Act, as if the tax were an excise duty or environmental levy contemplated in that Act, whether or not the said provisions apply for the purposes of any excise duty or environmen- tal levy levied in terms of that Act.’’.
(2) Subsection (1) comes into operation on the date on which the Customs Control Act, 2014, takes effect.
Amendment of section 8 of Act 89 of 1991, as amended by section 24 of Act 136 of 1991, paragraph 4 of Government Notice 2695 of 8 November 1991, section 15 of Act 136 of 1992, section 24 ofAct 97 of 1993, section 11 ofAct 20 of 1994, section 20 of Act 46 of 1996, section 25 of Act 27 of 1997, section 83 of Act 53 of 1999, section 67 of Act 19 of 2001, section 151 of Act 60 of 2001, section 166 of Act 45 of 2003, section 95 of Act 32 of 2004, section 102 of Act 31 of 2005, section 172 of Act 34 of 2005, section 42 of Act 9 of 2006, section 79 of Act 20 of 2006, section 27 of Act 36 of 2007, section 106 ofAct 60 of 2008, section 91 ofAct 17 of 2009, section 120 ofAct 7 of 2010, section 131 ofAct 24 of 2011, section 146 ofAct 22 of 2012 and section 166 of Act 31 of 2013
21. (1) Section 8 of the Value-Added Tax Act, 1991, is hereby amended— (a) by the substitution in subsection (24) for the words preceding the further
proviso of the following words: ‘‘For the purposes of this Act, a vendor, being [a customs controlled area] an SEZ enterprise or an IDZ operator in a customs controlled area, shall be deemed to supply goods in the course or furtherance of an enterprise where movable goods are temporarily removed from a place in a customs controlled area to a place outside the customs controlled area, situated in the Republic, if those goods are not returned to the customs controlled area within 30 days of its removal, or within a period approved in writing by the [Controller] customs authority: Provided that this subsection shall not apply where those movable goods are supplied by the [customs controlled area] SEZ enterprise or IDZ operator, prior to the expiry of the relevant prescribed time period:’’; and
(b) by the substitution in subsection (24) for paragraph (a) of the further proviso of the following paragraph:
‘‘(a) goods that are [deemed to have been imported under paragraph (i) of the proviso to section 13(1)] cleared for home use in terms of the Customs Control Act; or’’.
(2) Subsection (1) comes into operation on the date on which the Customs Control Act, 2014, takes effect.
Amendment of section 11 of Act 89 of 1991, as amended by section 27 of Act 136 of 1991, Government Notice 2695 of 8 November 1991, section 17 of Act 136 of 1992, section 27 ofAct 97 of 1993, section 13 ofAct 20 of 1994, section 28 ofAct 27 of 1997, section 89 ofAct 30 of 1998, section 85 ofAct 53 of 1999, section 77 ofAct 30 of 2000, section 43 of Act 5 of 2001, section 153 of Act 60 of 2001, section 169 of Act 45 of 2003, section 46 of Act 16 of 2004, section 98 of Act 32 of 2004, section 21 of Act 9 of 2005, section 105 of Act 31 of 2005, section 44 of Act 9 of 2006, section 81 of Act
28
5
10
15
20
25
30
35
40
45
50
30 No. 38406 GOVERNMENT GAZETTE, 20 January 2015 Act No. 44 of 2014 Tax Administration Laws Amendment Act, 2014
20 of 2006, section 105 of Act 35 of 2007, section 29 of Act 36 of 2007, Government Notice R.1024 in Government Gazette 32664 of 30 October 2009, section 134 of Act 24 of 2011 and section 169 of Act 31 of 2013
22. (1) Section 11 of the Value-Added Tax Act, 1991, is hereby amended— (a) by the substitution in subsection (1) for paragraph (c) of the following
paragraph: ‘‘(c) the goods (being movable goods) are supplied to a lessee or other
person under a rental agreement, charter party or agreement for chartering, if the goods are used exclusively in an export country or by [a customs controlled area] an SEZ enterprise or an IDZ operator in a customs controlled area: Provided that this subsection shall not apply where a ‘motor car’ as defined in section 1 is supplied to [a person located] an SEZ enterprise or an IDZ operator in a customs controlled area;’’;
(b) by the substitution in subsection (1) for paragraph (h) of the following paragraph:
‘‘(h) the goods consist of fuel levy goods referred to in Fuel Item Levy numbers 195.10.03, 195.10.17, 195.20.01 and 195.20.03 in Part 5A of Schedule No. 1 to the [Customs and] Excise Duty Act; or’’;
(c) by the substitution in subsection (1) for paragraph (hA) of the following paragraph:
‘‘(hA) the goods consist of petroleum oil and oils obtained from bituminous minerals, known as crude, referred to in Heading No. 27.09 in Chapter 27 of Schedule No. 1 to the Customs [and Excise] Duty Act when supplied for the purpose of being refined for the production of fuel levy goods as defined in section 1 of the [Customs and ]Excise Duty Act; or’’;
(d) by the substitution in subsection (1) for paragraph (l) of the following paragraph:
‘‘(l) the goods consist of illuminating kerosene (marked) intended for use as fuel for illuminating or heating, referred to in Fuel Item Levy number 195.10.13 in Part 5A of Schedule No. 1 to the [Customs and] Excise Duty Act and are not mixed or blended with another substance; or’’;
(e) by the substitution in subsection (1)(m) for the words preceding subparagraph (i) of the following words:
‘‘a vendor supplies movable goods, (excluding any ‘motor car’ as defined in section 1), in terms of a sale or instalment credit agreement to [a customs controlled area] an SEZ enterprise or an IDZ operator in a customs controlled area and those goods are physically delivered to that [customs controlled area] SEZ enterprise or IDZ operator in a customs controlled area either—’’;
(f) by the substitution in subsection (1) for paragraph (mA) of the following paragraph:
‘‘(mA) a vendor supplies fixed property situated in a customs controlled area to [a customs controlled area] an SEZ enterprise or an IDZ operator under any agreement of sale or letting or any other agreement under which the use or permission to use such fixed property is granted;’’;
(g) by the substitution in subsection (1) for paragraph (u) of the following paragraph:
‘‘(u) the supply of goods, other than the supply of goods by [an inbound duty and] a tax free shop, which have been imported and [entered] cleared for storage in a [licensed Customs and Excise] storage warehouse but have not been [entered] cleared for home [con- sumption] use; or’’;
(h) by the substitution in subsection (1) for paragraph (v) of the following paragraph:
‘‘(v) the supply of goods by [an inbound duty and] a tax free shop:’’;
30
5
10
15
20
25
30
35
40
45
50
55
32 No. 38406 GOVERNMENT GAZETTE, 20 January 2015 Act No. 44 of 2014 Tax Administration Laws Amendment Act, 2014
(i) by the substitution in subsection (2) for paragraph (e) of the following paragraph:
‘‘(e) the services comprise the transport of goods or any ancillary transport services supplied directly in connection with the exporta- tion from the Republic or the importation [into the Republic] of goods or the movement of goods through the Republic from one export country to another export country, where such services are supplied directly to a person who is not a resident of the Republic and is not a vendor, otherwise than through an agent or other person; or’’; and
(j) by the substitution in subsection (2) for paragraph (k) of the following paragraph:
‘‘(k) the services are physically rendered elsewhere than in the Republic or to [a customs controlled area] an SEZ enterprise or an IDZ operator in a customs controlled area; or’’.
(2) Subsection (1) comes into operation on the date on which the Customs Control Act, 2014, takes effect.
Amendment of section 12 of Act 89 of 1991, as amended by section 18 of Act 136 of 1992, section 14 of Act 20 of 1994, section 22 of Act 37 of 1996, section 69 of Act 19 of 2001, section 154 ofAct 60 of 2001, section 117 ofAct 74 of 2002, section 99 ofAct 32 of 2004, section 45 of Act 9 of 2006, section 82 of Act 20 of 2006, section 109 of Act 60 of 2008, section 147 of Act 22 of 2012 and section 170 of Act 31 of 2013
23. (1) Section 12 of the Value-Added Tax Act, 1991, is hereby amended by the substitution in paragraph (k) for the words preceding the proviso of the following words:
‘‘the supply of goods in the Republic by any person that is not a resident of the Republic and that is not a vendor, other than the supply of goods by [an inbound duty and] a tax free shop, which have not been [entered] cleared for home [consumption] use:’’.
(2) Subsection (1) comes into operation on the date on which the Customs Control Act, 2014, takes effect.
Amendment of section 13 of Act 89 of 1991, as amended by section 29 of Act 136 of 1991, section 19 ofAct 136 of 1992, section 15 ofAct 20 of 1994, section 30 ofAct 27 of 1997, section 34 of Act 34 of 1997, section 86 of Act 53 of 1999, section 70 of Act 19 of 2001, section 155 of Act 60 of 2001, section 170 of Act 45 of 2003, section 100 ofAct 32 of 2004, section 106 ofAct 31 of 2005, section 110 ofAct 60 of 2008, section 135 of Act 24 of 2011, section 271 of Act 28 of 2011, read with item 112 of Schedule 1 to that Act and section 171 of Act 31 of 2013
24. (1) Section 13 of the Value-Added Tax Act, 1991, is hereby amended— (a) by the substitution in subsection (1) for the words preceding the proviso of the
following words: ‘‘For the purposes of this Act the importation of goods shall be deemed to [be imported into the Republic] take place on the date [on which the goods are] contemplated in section 22 of the Customs Duty Act, regardless of whether or not customs duty is payable or a rebate of customs duty is granted in terms of the [provisions of the]Customs [and Excise] Duty Act [deemed to be imported:].’’;
(b) by the deletion in subsection (1) of the proviso; (c) by the substitution in subsection (2) for the words preceding paragraph (a) of
the following words: ‘‘For the purposes of thisAct the value to be placed on the importation of goods [into the Republic] shall be deemed to be—’’;
(d) by the substitution in subsection (2) for paragraph (a) of the following paragraph:
‘‘(a) [where such goods are entered or are required to be entered for home consumption in terms of the Customs and ExciseAct,] the value [thereof] of such goods for customs duty purposes, in terms of the Customs DutyAct, plus any duty levied, in terms of the [said]
32
5
10
15
20
25
30
35
40
45
50
55
34 No. 38406 GOVERNMENT GAZETTE, 20 January 2015 Act No. 44 of 2014 Tax Administration Laws Amendment Act, 2014
Customs Duty Act in respect of the importation of such goods, plus 10 per cent of the said value; or’’;
(e) by the substitution for subsection (2A) of the following subsection: ‘‘(2A) The value to be placed on the importation of goods [into the
Republic] which have been [imported and entered] cleared for storage in a [licensed Customs and Excise] storage warehouse but have not been [entered] cleared for home [consumption] use shall be deemed to be the greater of the value determined in terms of subsection (2)(a) or the value of acquisition determined under section 10(3) if those goods while stored in that storage warehouse are supplied to any person before being [entered] cleared for home [consumption] use.’’;
(f) by the substitution in subsection (2B) for the words preceding paragraph (a) of the following words:
‘‘Notwithstanding subsection (2), the value to be placed on the importation of goods [into the Republic] where—’’;
(g) by the substitution in subsection (5) for paragraph (a) of the following paragraph:
‘‘(a) for the collection (in such manner as the Commissioner may determine) by a SARS official, or the Managing Director of the South African Post Office Limited on behalf of the Commissioner, of the tax payable in terms of this Act in respect of the importation of any goods [into the Republic]; and’’; and
(h) by the substitution for subsection (6) of the following subsection: ‘‘(6) [Subject to this Act, the provisions of the Customs and Excise
Act relating to the importation, transit, coastwise carriage and clearance of goods and the payment and recovery of duty shall mutatis mutandis apply as if enacted in this Act, whether or not the said provisions apply for the purposes of any duty levied in terms of the Customs and Excise Act.] The tax on importation of goods shall be recovered or refunded in terms of the Customs DutyAct as if the tax were an import duty contemplated in section 18 of that Act, regardless of whether or not the said section applies for the purposes of any import duty levied in terms of that Act.’’.
(2) Subsection (1) comes into operation on the date on which the Customs Control Act, 2014, takes effect.
Amendment of section 16 of Act 89 of 1991, as amended by section 30 of Act 136 of 1991, section 21 ofAct 136 of 1992, section 30 ofAct 97 of 1993, section 16 ofAct 20 of 1994, section 23 of Act 37 of 1996, section 32 of Act 27 of 1997, section 91 of Act 30 of 1998, section 87 of Act 53 of 1999, section 71 of Act 19 of 2001, section 156 of Act 60 of 2001, section 172 of Act 45 of 2003, section 107 of Act 31 of 2005, section 47 of Act 9 of 2006, section 83 of Act 20 of 2006, section 83 of Act 8 of 2007, section 106 ofAct 35 of 2007, section 30 ofAct 36 of 2007, section 29 ofAct 8 of 2010, section 137 ofAct 24 of 2011, section 148 ofAct 22 of 2012 and section 173 ofAct 31 of 2013
25. (1) Section 16 of the Value-Added Tax Act, 1991, is hereby amended— (a) by the substitution in subsection (2) for paragraph (d) of the following
paragraph: ‘‘(d) a bill of entry or other document prescribed in terms of the Customs
and Excise Act together with the receipt for the payment of the tax in relation to the said importation have been delivered (including by means of an electronic delivery mechanism) in accordance with that Act and are held by the vendor making that deduction, [or by his agent as contemplated in section 54(3)(b)] at the time that any return in respect of that importation is furnished; or’’;
(b) by the insertion in subsection (2) after paragraph (d) of the following paragraph:
‘‘(dA) a bill of entry or other document prescribed in terms of the Customs and ExciseAct as contemplated in section 54(2A) is held by the agent, and a statement as contemplated in section 54(3)(b)
34
5
10
15
20
25
30
35
40
45
50
55
36 No. 38406 GOVERNMENT GAZETTE, 20 January 2015 Act No. 44 of 2014 Tax Administration Laws Amendment Act, 2014
is held by the vendor at the time that any return in respect of that importation is furnished; or’’; and
(c) by the substitution for the proviso to subsection (2) of the following proviso: ‘‘: Provided that where a tax invoice or debit note or credit note in relation to that supply has been provided in accordance with this Act, or a bill of entry or other document has been delivered (including by means of an electronic delivery mechanism) in accordance with the Customs and Excise Act, as the case may be, the Commissioner may determine that no deduction for input tax in relation to that supply or importation shall be made unless that tax invoice or debit note or credit note or that bill of entry or other document is retained in accordance with the provisions of section 55 and Part A of Chapter 4 of the Tax Administration Act.’’.
(2) Subsection (1) comes into operation on 1 April 2015.
Amendment of section 16 of Act 89 of 1991, as amended by section 30 of Act 136 of 1991, section 21 ofAct 136 of 1992, section 30 ofAct 97 of 1993, section 16 ofAct 20 of 1994, section 23 of Act 37 of 1996, section 32 of Act 27 of 1997, section 91 of Act 30 of 1998, section 87 of Act 53 of 1999, section 71 of Act 19 of 2001, section 156 of Act 60 of 2001, section 172 of Act 45 of 2003, section 107 of Act 31 of 2005, section 47 of Act 9 of 2006, section 83 of Act 20 of 2006, section 83 of Act 8 of 2007, section 106 ofAct 35 of 2007, section 30 ofAct 36 of 2007, section 29 ofAct 8 of 2010, section 137 ofAct 24 of 2011, section 148 ofAct 22 of 2012, section 173 ofAct 31 of 2013 and section 25 of this Act
26. (1) Section 16 of the Value-Added Tax Act, 1991, is hereby amended— (a) by the substitution in subsection (2) for the words preceding paragraph (a) of
the following words: ‘‘No deduction of input tax in respect of a supply of goods or services, the importation of any goods [into the Republic] or any other deduction shall be made in terms of this Act, unless—’’;
(b) by the substitution in subsection (2) for paragraph (c) of the following paragraph:
‘‘(c) [sufficient] records are maintained as required by section 20(8) where the supply is a supply of second-hand goods or a supply of goods as contemplated in section 8(10) and in either case is a supply to which that section relates; or’’;
(c) by the substitution in subsection (2) for paragraphs (d) and (dA) of the following paragraphs:
‘‘(d) a [bill of entry] release notification or other document prescribed in terms of the Customs [and Excise] Control Act together with the receipt for the payment of the tax in relation to the said importation have been delivered (including by means of an electronic delivery mechanism) in accordance with that Act and are held by the vendor making that deduction, at the time that any return in respect of that importation is furnished; or
(dA)a [bill of entry] release notification or other document prescribed in terms of the Customs [and Excise] Control Act as contemplated in section 54(2A) is held by the agent, and a statement as contemplated in section 54(3)(b) is held by the vendor at the time that any return in respect of that importation is furnished; or’’;
(d) by the substitution for the proviso to subsection (2) of the following proviso: ‘‘: Provided that where a tax invoice or debit note or credit note in relation to that supply has been provided in accordance with this Act, or a [bill of entry] release notification or other document has been delivered (including by means of an electronic delivery mechanism) in accordance
36
5
10
15
20
25
30
35
40
45
50
38 No. 38406 GOVERNMENT GAZETTE, 20 January 2015 Act No. 44 of 2014 Tax Administration Laws Amendment Act, 2014
with the Customs [and Excise] Control Act, as the case may be, the Commissioner may determine that no deduction for input tax in relation to that supply or importation shall be made unless that tax invoice or debit note or credit note or that [bill of entry] release notification or other document is retained in accordance with the provisions of section 55 and Part A of Chapter 4 of the Tax Administration Act.’’;
(e) by the substitution in subsection (3)(n) for subparagraphs (i) and (ii) of the following subparagraphs:
‘‘(i) those goods are returned to the [customs controlled area] SEZ enterprise or IDZ operator in a customs controlled area; or
(ii) those goods are supplied by the [customs controlled area] SEZ enterprise or IDZ operator in a customs controlled area where those goods are supplied after the relevant prescribed time period contemplated in section 8(24):’’; and
(f) by the substitution in paragraph (i) of the proviso to subsection (3) for subparagraph (bb) of the following subparagraph:
‘‘(bb) goods were [entered] cleared for home [consumption] use in terms of the Customs [and Excise] Control Act;’’.
(2) Paragraphs (a), (c), (d), (e) and (f) of subsection (1) come into operation on the date on which the Customs Control Act, 2014, takes effect.
Amendment of section 18 of Act 89 of 1991, as amended by section 32 of Act 136 of 1991, section 23 ofAct 136 of 1992, section 32 ofAct 97 of 1993, section 18 ofAct 20 of 1994, section 34 of Act 27 of 1997, section 93 of Act 30 of 1998, section 89 of Act 53 of 1999, section 174 of Act 45 of 2003, section 103 of Act 32 of 2004, section 109 ofAct 31 of 2005, section 49 ofAct 9 of 2006, section 85 ofAct 20 of 2006, section 112 of Act 60 of 2008, section 123 of Act 7 of 2010, section 138 of Act 24 of 2011 and section 149 of Act 22 of 2012
27. (1) Section 18 of the Value-Added Tax Act, 1991, is hereby amended by the substitution for subsection (10) of the following subsection:
‘‘(10) Where— (a) goods or services have been supplied by a vendor at the zero rate in terms of
[sections] section 11(1)(c), 11(1)(m), 11(1)(mA) or 11(2)(k) to a vendor, that is [a customs controlled area] an SEZ enterprise or an IDZ operator in a customs controlled area; or
(b) goods have been imported [into the Republic] by a vendor, being [a customs controlled area] an SEZ enterprise or an IDZ operator in a customs controlled area and those goods are exempt from tax in terms of section 13(3),
and where a deduction of input tax would have been denied in terms of section 17(2), or to the extent that such goods or services are not wholly for consumption, use or supply within a customs controlled area in the course of making taxable supplies by that vendor, that is [a customs controlled area] an SEZ enterprise or an IDZ operator, those goods or services shall be deemed to be supplied by the vendor concerned, that is an SEZ enterprise or an IDZ operator, in the same tax period in which they were so acquired, in accordance with the formula:
A × B in which formula— ‘A’ represents the rate of tax levied in terms of section 7(1); and ‘B’ represents—
(i) the cost to the vendor, that is an SEZ enterprise or an IDZ operator, of the acquisition of those goods or services which were supplied to him or her in terms of [sections] section 11(1)(c), 11(1)(m), 11(1)(mA) or 11(2)(k); or
(ii) the value to be placed on the importation of goods [into the Republic] as determined in terms of section 13(2).’’.
38
5
10
15
20
25
30
35
40
45
50
55
40 No. 38406 GOVERNMENT GAZETTE, 20 January 2015 Act No. 44 of 2014 Tax Administration Laws Amendment Act, 2014
(2) Subsection (1) comes into operation on the date on which the Customs Control Act, 2014, takes effect.
Amendment of section 27 of Act 89 of 1991, as amended by section 34 of Act 136 of 1991, section 28 ofAct 136 of 1992, section 78 ofAct 30 of 2000, section 11 ofAct 10 of 2005, section 50 of Act 9 of 2006, section 1 of Act 3 of 2008, section 25 of Act 4 of 2008, section 271 of Act 28 of 2011, read with paragraph 120 of Schedule 1 to that Act and section 22 of Act 39 of 2014
28. (1) Section 27 of the Value-Added Tax Act, 1991, is hereby amended— (a) by the deletion in subsection (1) of the definition of ‘‘Category F’’; (b) by the substitution in subsection (2) for paragraph (a) of the following
paragraph: ‘‘(a) Every vendor, not being a vendor who falls within Category C,
D[,] or E [or F] as contemplated in subsection (3), (4)[,] or (4A) [or (4B)], shall fall within Category A or Category B.’’;
(c) by the substitution in subsection (3) for the words following paragraph (c) of the following words:
‘‘and the Commissioner has directed that, with effect from the commencement date or such later date as may be appropriate, the vendor shall fall within Category C: Provided that a vendor falling within Category C shall cease to fall within that Category with effect from the commencement of a future period notified by the Commissioner, if the vendor has applied in writing to be placed within Category A, B, D[,] or E [or F] and the Commissioner is satisfied that by reason of a change in the vendor’s circumstances he satisfies the requirements of this section for placing within Category A, B, D[,] or E [or F].’’;
(d) by the substitution in subsection (4) for the words following paragraph (b) of the following words:
‘‘and the Commissioner has directed that, with effect from the commencement date or such later date as may be appropriate, the vendor shall fall within Category D: Provided that a vendor falling within Category D shall cease to fall within that Category with effect from the commencement of a future period notified by the Commissioner, if written application is made by the person who made the application referred to in subparagraph (v) for the vendor to be placed within Category A, B, C[,] or E [or F] or the Commissioner is satisfied that by reason of a change in circumstances that vendor should be placed within Category A, B, C[,] or E [or F].’’;
(e) by the substitution in subsection (4A) for paragraph (ii) of the proviso of the following paragraph:
‘‘(ii) the Commissioner is satisfied that by reason of a change in circumstances, that vendor should be placed in Category A, B, C[,] or D [or F]; or’’; and
(f) by the deletion of subsection (4B). (2) Subsection (1) comes into operation on 1 July 2015 and applies in respect of tax
periods commencing on or after that date.
Amendment of section 31 of Act 89 of 1991, as amended by section 80 of Act 30 of 2000, section 180 ofAct 45 of 2003, section 41 ofAct 34 of 2004, section 38 ofAct 32 of 2005, section 87 of Act 20 of 2006 and section 271 of Act 28 of 2011, read with paragraph 124 of Schedule 1 to that Act
29. Section 31 of the Value-Added Tax Act, 1991, is hereby amended by the substitution in subsection (1) for paragraph (f) of the following paragraph:
‘‘(f) any person who holds himself or herself out as a person entitled to a refund or who produces, furnishes, authorises, or makes use of any tax invoice or document or debit note and has obtained any undue tax benefit or refund under the provisions of [an export incentive scheme] any regulation referred to in paragraph (d) of the definition of ‘exported’ in section 1, to which such person is not entitled.’’.
40
5
10
15
20
25
30
35
40
45
50
55
42 No. 38406 GOVERNMENT GAZETTE, 20 January 2015 Act No. 44 of 2014 Tax Administration Laws Amendment Act, 2014
Amendment of section 39 of Act 89 of 1991, as amended by section 37 of Act 136 of 1991, section 30 of Act 136 of 1992, section 3 of Act 61 of 1993, section 23 of Act 20 of 1994, section 40 ofAct 27 of 1997, section 166 ofAct 60 of 2001, section 184 ofAct 45 of 2003, section 50 of Act 16 of 2004, section 105 of Act 32 of 2004, section 22 of Act 9 of 2005, section 114 of Act 60 of 2008, section 39 of Act 18 of 2009 and section 271 of Act 28 of 2011, read with paragraph 128 of Schedule 1 to that Act
30. (1) Section 39 of the Value-Added Tax Act, 1991, is hereby amended— (a) by the substitution for subsection (4) of the following subsection:
‘‘(4) Where any importer of goods which are required to be [entered] cleared under the Customs [and Excise] Control Act, fails to pay any amount of tax payable in respect of the importation of the goods on the date [on which the goods are entered under the said Act for home consumption in the Republic or the date on which customs duty is payable in terms of the said Act in respect of the importation or, if such duty is not payable, the date on which it would be so payable if it had been payable, whichever date is later] contemplated in section 13(1), the Commissioner must, in accordance with Chapter 15 of the Tax Administration Act, impose on that importer a penalty equal to 10 per cent of the said amount of tax.’’; and
(b) by the substitution for subsection (5) of the following subsection: ‘‘(5)Where any person who is liable for the payment of tax fails to pay
any amount of such tax on the date on which in terms of the [Customs and] Excise Duty Act, liability arises for the payment of the excise duty or environmental levy referred to in section 7(3)(a), the Commissioner must, in accordance with Chapter 15 of the Tax Administration Act, impose on that person a penalty equal to 10 per cent of the said amount of tax.’’.
(2) Subsection (1) comes into operation on the date on which the Customs Control Act, 2014, takes effect.
Amendment of section 44 of Act 89 of 1991, as amended by section 37 of Act 97 of 1993, section 27 ofAct 37 of 1996, section 42 ofAct 27 of 1997, section 100 ofAct 30 of 1998, section 98 of Act 53 of 1999, section 168 of Act 60 of 2001, section 88 of Act 20 of 2006, section 36 of Act 36 of 2007, section 43 of Act 61 of 2008, section 271 of Act 28 of 2011, read with item 133 of Schedule 1 to that Act and section 180 of Act 31 of 2013
31. Section 44 of the Value-Added Tax Act, 1991, is hereby amended by the substitution for subsection (9) of the following subsection:
‘‘(9) The Commissioner may make or authorise a refund of any amount of tax which has become refundable to any person under the provisions of [an export incentive scheme] any regulation referred to in paragraph (d) of the definition of ‘exported’ in section 1.’’.
Amendment of section 45 of Act 89 of 1991, as substituted by section 271 of Act 28 of 2011, read with paragraph 134 of Schedule 1 to that Act
32. Section 45 of the Value-Added Tax Act, 1991, is hereby amended by the substitution for subsection (2) of the following subsection:
‘‘(2) Despite the provisions of Chapter 12 of the Tax Administration Act, if a person fails to[— (a) without just cause submit relevant material, requested by SARS for
purposes of verification, inspection or audit of a refund in accordance with Chapter 5 of the Tax Administration Act; or
(b)] furnish SARS in writing with particulars of the account required in terms of section 44(3)(d) to enable SARS to transfer a refund to that account,
42
5
10
15
20
25
30
35
40
45
50
44 No. 38406 GOVERNMENT GAZETTE, 20 January 2015 Act No. 44 of 2014 Tax Administration Laws Amendment Act, 2014
no interest accrues on the amount refundable for the period from the date that[— (i) in respect of subparagraph (a), the relevant material was required to be
submitted; or (ii) in respect of subparagraph (b),] the refund is authorised, until the date that the person submits the [relevant material or] bank account particulars.’’.
Amendment of section 46 of Act 89 of 1991, as amended by section 185 of Act 45 of 2003, section 41 ofAct 32 of 2005, section 15 ofAct 10 of 2006 and section 271 ofAct 28 of 2011, read with paragraph 136 of Schedule 1 to that Act
33. Section 46 of the Value-Added Tax Act, 1991, is hereby amended by the substitution for paragraph (a) of the following paragraph:
‘‘(a) on any company shall be the public officer thereof or, in the case of any company which is placed under business rescue in terms of Chapter 6 of the Companies Act, 2008 (Act No. 71 of 2008), or in liquidation, the business rescue practitioner or the liquidator thereof;’’.
Amendment of section 54 of Act 89 of 1991, as amended by section 40 of Act 136 of 1991, section 34 ofAct 136 of 1992, section 25 ofAct 20 of 1994, section 46 ofAct 27 of 1997, section 100 of Act 53 of 1999 and section 51 of Act 16 of 2004
34. (1) Section 54 of the Value-Added Tax Act, 1991, is hereby amended— (a) by the substitution in subsection (2A)(a) for the proviso of the following
proviso: ‘‘: Provided that a [bill of entry] release notification or other document prescribed in terms of the Customs [and Excise] Control Act in relation to that importation may nevertheless be held by such agent’’;
(b) by the substitution in subsection (3) for paragraph (b) of the following paragraph:
‘‘(b) a [bill of entry] release notification or other document prescribed in terms of the Customs [and Excise] Control Act in relation to the importation of goods is held by an agent as contemplated in subsection (2A),’’; and
(c) by the substitution in subsection (6)(b) for subparagraph (i) of the following subparagraph:
‘‘(i) the supply is directly in connection with either the exportation, or the arranging of the exportation, of goods from the Republic to any country or place outside the Republic, or the importation, or the arranging of the importation, of goods [to the Republic] from any country or place outside the Republic, including, in either case, the transportation of those goods within the Republic as part of such exportation or importation, as the case may be; or’’.
(2) Subsection (1) comes into operation on the date on which the Customs Control Act, 2014, takes effect.
Amendment of section 30 of Act 34 of 1997
35. Section 30 of the SouthAfrican Revenue ServiceAct, 1997, is hereby amended by the substitution for subsection (1) of the following subsection:
‘‘(1) No person may [apply to any company, body, firm, business or undertaking a name or description signifying or implying some connection between the company, body, firm, business or undertaking and SARS]— (a) use the name or abbreviated name of SARS in an unlawful manner; (b) use any logo or design of SARS without its authorisation; (c) falsely represent any material or substance as emanating from SARS;
44
5
10
15
20
25
30
35
40
45
50
46 No. 38406 GOVERNMENT GAZETTE, 20 January 2015 Act No. 44 of 2014 Tax Administration Laws Amendment Act, 2014
(d) use any name or description which implies some association or connection between the person or any corporate entity, body, firm, business or undertaking and SARS; or
(e) register or use a domain name which incorporates the name or description ‘SouthAfrican Revenue Service’ or ‘SARS’ or the name or description of any of its subsidiaries.’’.
Insertion of section 6A in Act 26 of 2007
36. The Securities Transfer Tax Administration Act, 2007, is hereby amended by the insertion of the following section:
‘‘Penalty on default
6A. If any tax remains unpaid after the relevant date for payment referred to in section 3 the Commissioner must, under Chapter 15 of the Tax AdministrationAct, 2011, impose a penalty of 10 per cent of the unpaid tax but the Commissioner may remit the penalty or any portion thereof in accordance with the provisions of Chapter 15 of the Tax Administration Act, 2011.’’.
Amendment of section 1 of Act 28 of 2011, as amended by section 36 of Act 21 of 2012 and section 30 of Act 39 of 2013
37. Section 1 of the Tax Administration Act, 2011, is hereby amended— (a) by the substitution for the definition of ‘‘international tax agreement’’ of the
following definition: ‘‘ ‘international tax agreement’means— (a) an agreement entered into with the government of another country
in accordance with a tax Act; or (b) any other agreement entered into between the competent authority
of the Republic and the competent authority of another country relating to the automatic exchange of information under an agreement referred to in paragraph (a);’’;
(b) by the substitution for the definition of ‘‘relevant material’’ of the following definition:
‘‘ ‘relevant material’means any information, document or thing that in the opinion of SARS is [forseeably] foreseeably relevant for the administration of a tax Act as referred to in section 3;’’;
(c) by the substitution for the definition of ‘‘return’’ of the following definition: ‘‘ ‘return’ means a form, declaration, document or other manner of submitting information to SARS that incorporates a self-assessment [or], is a basis on which an assessment is to be made by SARS or incorporates relevant material required under section 25, 26 or 27 or a provision under a tax Act requiring the submission of a return;’’;
(d) by the substitution for the definition of ‘‘tax Act’’ of the following definition: ‘‘ ‘tax Act’means this Act or an Act, or portion of an Act, referred to in section 4 of the SARS Act, excluding the Customs and Excise Act, the Customs Control Act, 2014 (Act No. 31 of 2014), and the Customs Duty Act, 2014 (Act No. 30 of 2014);’’; and
(e) by the substitution for the definition of ‘‘tax offence’’ of the following definition:
‘‘ ‘tax offence’ means an offence in terms of a tax Act or any other offence involving— (a) fraud on SARS or on a SARS official relating to the administration
of a tax Act; or (b) theft of moneys due or paid to SARS for the benefit of the National
Revenue Fund;’’.
46
5
10
15
20
25
30
35
40
45
50
48 No. 38406 GOVERNMENT GAZETTE, 20 January 2015 Act No. 44 of 2014 Tax Administration Laws Amendment Act, 2014
Amendment of section 3 of Act 28 of 2011, as amended by section 37 of Act 21 of 2012 and section 31 of Act 39 of 2013
38. Section 3 of the Tax Administration Act, 2011, is hereby amended by the substitution in subsection (3) for the words preceding paragraph (a) and paragraphs (a), (b) and (c) of the following words and paragraphs:
‘‘If SARS [has], in accordance with an international agreement[, received a request for]— (a) received a request for, is obliged to exchange or wishes to spontaneously
exchange information, SARS may disclose or obtain the information [requested] for transmission to the competent authority of the other country as if it were relevant material required for purposes of a taxAct and must treat the information obtained as taxpayer information;
(b) received a request for the conservancy or the collection of an amount alleged to be due by a person under the tax laws of the requesting country, SARS may deal with the request under the provisions of section 185; or
(c) received a request for the service of a document which emanates from the requesting country, SARS may effect service of the document as if it were a notice, document or other communication required under a tax Act to be issued, given, sent or served by SARS.’’
Amendment of section 26 of Act 28 of 2011, as amended by section 41 of Act 21 of 2012 and section 35 of Act 39 of 2013
39. Section 26 of the Tax Administration Act, 2011, is hereby amended by the substitution for subsection (2) of the following subsection:
‘‘(2) A person required under subsection (1) to submit a return must do so in the prescribed form and manner and the return must— (a) contain the information prescribed by the Commissioner; [and] (b) [must] be a full and true return; and (c) for purposes of providing the information required in the return, comply with
the due diligence requirements as may be prescribed in a tax Act, an international tax agreement or by the Commissioner in the public notice consistent with an international standard for exchange of information.’’.
Amendment of section 34 of Act 28 of 2011, as amended by section 45 of Act 21 of 2012 and section 37 of Act 39 of 2013
40. (1) Section 34 of the Tax Administration Act, 2011, is hereby amended— (a) by the substitution for the definition of ‘‘participant’’ of the following
definition: ‘‘ ‘participant’, in relation to an ‘arrangement’, means— (a) a ‘promoter’; or (b) a [company or trust which] person who directly or indirectly
[derives] will derive or assumes that [it] the person [derives] will derive a ‘tax benefit’ or ‘financial benefit’ by virtue of an ‘arrangement’;’’;
(b) by the substitution for the definition of ‘‘promoter’’ of the following definition:
‘‘ ‘promoter’, in relation to an ‘arrangement’, means a person who is principally responsible for organising, designing, selling, financing or managing the [reportable] ‘arrangement’;’’;
(c) by the insertion after the definition of ‘‘promotor’’ of the following definition: ‘‘ ‘reportable arrangement’ means an ‘arrangement’ referred to in section 35(1) or 35(2) that is not an excluded ‘arrangement’ referred to in section 36;’’; and
48
5
10
15
20
25
30
35
40
45
50
50 No. 38406 GOVERNMENT GAZETTE, 20 January 2015 Act No. 44 of 2014 Tax Administration Laws Amendment Act, 2014
(d) by the substitution for the definition of ‘‘tax benefit’’ of the following definition:
‘‘ ‘tax benefit’ [includes] means the avoidance, postponement [or], reduction or evasion of a liability for tax.’’.
(2) Subsection (1) comes into operation on the date of promulgation of this Act.
Amendment of section 35 of Act 28 of 2011
41. (1) Section 35 of the Tax Administration Act, 2011, is hereby amended— (a) by the substitution in subsection (1) for the words preceding paragraph (a) of
the following words: ‘‘An ‘arrangement’ is a ‘reportable arrangement’ [if it is listed in terms of subsection (2) or] if a [‘tax benefit’ is or will be derived or is assumed to be derived by any] person is a ‘participant’ [by virtue of] in the ‘arrangement’ and the ‘arrangement’—’’;
(b) by the substitution for subsection (2) of the following subsection: ‘‘(2) An ‘arrangement’ is a ‘reportable arrangement’ if the Commis-
sioner has listed the ‘arrangement’ in a public notice.’’; and (c) by the deletion of subsection (3).
(2) Subsection (1) comes into operation on the date of promulgation of this Act.
Amendment of section 36 of Act 28 of 2011, as amended by section 46 of Act 21 of 2012
42. (1) Section 36 of the Tax Administration Act, 2011, is hereby amended by the substitution for subsection (4) of the following subsection:
‘‘(4) The Commissioner may determine an ‘arrangement’ to be an excluded ‘arrangement’ by public notice[, if satisfied that the ‘arrangement’ is not likely to lead to an undue ‘tax benefit’].’’.
(2) Subsection (1) comes into operation on the date of promulgation of this Act.
Amendment of section 37 of Act 28 of 2011, as amended by section 47 of Act 21 of 2012
43. (1) Section 37 of the Tax Administration Act, 2011, is hereby amended— (a) by the substitution for subsections (1), (2) and (3) of the following subsections
respectively: ‘‘(1) The [‘promoter’ must disclose the] information referred to in
section 38 in respect of a ‘reportable arrangement’ must be disclosed by a person who— (a) is a ‘participant’ in an ‘arrangement’ on the date on which it
qualifies as a ‘reportable arrangement’, within 45 business days after that date; or
(b) becomes a ‘participant’ in an ‘arrangement’ after the date on which it qualifies as a ‘reportable arrangement’, within 45 business days after becoming a ‘participant’.
[(2) If there is no ‘promoter’ in relation to the ‘arrangement’ or if the ‘promoter’ is not a resident, all other ‘participants’must disclose the information.] (3)A ‘participant’ need not disclose the information if the ‘participant’
obtains a written statement from[— (a) the ‘promoter’ that the ‘promoter’ has disclosed the ‘arrange-
ment’; or (b)] any other ‘participant’[, if subsection (2) applies,] that the other
‘participant’ has disclosed the ‘reportable arrangement’.’’; and (b) by the deletion of subsection (4).
(2) Subsection (1) comes into operation on the date of promulgation of this Act.
50
5
10
15
20
25
30
35
40
45
50
52 No. 38406 GOVERNMENT GAZETTE, 20 January 2015 Act No. 44 of 2014 Tax Administration Laws Amendment Act, 2014
Amendment of section 38 of Act 28 of 2011
44. (1) Section 38 of the Tax Administration Act, 2011, is hereby amended by the substitution for the words preceding paragraph (a) of the following words:
‘‘The [‘promoter’ or ‘participant’ must submit,] following information in relation to a ‘reportable arrangement’, must be submitted in the prescribed form and manner and by the date specified[—]:’’.
(2) Subsection (1) comes into operation on the date of promulgation of this Act.
Amendment of section 39 of Act 28 of 2011
45. (1) The Tax Administration Act, 2011, is hereby amended by the substitution for section 39 of the following section:
‘‘Reportable arrangement reference number
39. SARS must, after receipt of the information contemplated in section 38, issue a ‘reportable arrangement’ reference number to each ‘participant’ for administrative purposes only.’’.
(2) Subsection (1) comes into operation on the date of promulgation of this Act.
Amendment of section 46 of Act 28 of 2011, as amended by section 50 of Act 21 of 2012 and section 38 of Act 39 of 2013
46. Section 46 of the Tax Administration Act, 2011, is hereby amended by the substitution for subsection (4) of the following subsection:
‘‘(4) A person receiving from SARS a request for relevant material under this section must submit the relevant material to SARS at the place, in the format (which must be reasonably accessible to the taxpayer) and within the time specified in the request.’’.
Amendment of section 50 of Act 28 of 2011
47. Section 50 of the Tax Administration Act, 2011, is hereby amended by the substitution for subsection (1) of the following subsection:
‘‘(1)A judge may, on application made ex parte and authorised by a senior SARS official grant an order in terms of which a person described in section 51(3) is designated to act as presiding officer at the inquiry referred to in this section.’’.
Amendment of section 69 of Act 28 of 2011, as amended by section 41 of Act 36 of 2013
48. Section 69 of the Tax Administration Act, 2011, is hereby amended by the substitution for subsection (8) of the following subsection:
‘‘(8) The Commissioner may, despite the provisions of this section, [publish] disclose— (a) the name and taxpayer reference number of a taxpayer; (b) a list of approved public benefit organisations for the purposes of the
provisions of sections 18A and 30 of the Income Tax Act; [and] (c) the name and tax practitioner registration number of a registered tax
practitioner; and (d) taxpayer information in an anonymised form.’’.
52
5
10
15
20
25
30
35
40
54 No. 38406 GOVERNMENT GAZETTE, 20 January 2015 Act No. 44 of 2014 Tax Administration Laws Amendment Act, 2014
Amendment of section 162 of Act 28 of 2011
49. Section 162 of the Tax Administration Act, 2011, is hereby amended by the substitution for subsections (1) and (2) of the following subsections, respectively:
‘‘(1) Tax must be paid by the day and at the place notified by SARS, the Commissioner by public notice or as specified in a tax Act, and must be paid as a single amount or in terms of an instalment payment agreement under section 167. (2) [SARS] The Commissioner may by public notice prescribe the method of
payment of tax, including electronically.’’.
Amendment of section 164 of Act 28 of 2011, as amended by section 58 of Act 39 of 2013
50. (1) Section 164 of the Tax Administration Act, 2011, is hereby amended by the substitution for subsection (3) of the following subsection:
‘‘(3) A senior SARS official may suspend payment of the disputed tax or a portion thereof having regard to relevant factors, including— (a) whether the recovery of the disputed tax will be in jeopardy or there will be a
risk of dissipation of assets; (b) the compliance history of the taxpayer with SARS; (c) whether fraud is prima facie involved in the origin of the dispute; (d) whether payment will result in irreparable hardship to the taxpayer not
justified by the prejudice to SARS or the fiscus if the disputed tax is not paid or recovered; or
(e) whether the taxpayer has tendered adequate security for the payment of the disputed tax and accepting it is in the interest of SARS or the fiscus.’’.
(2) Subsection (1) comes into operation on the date of promulgation of this Act.
Substitution of section 184 of Act 28 of 2011
51. (1) The following section is hereby substituted for section 184 of the Tax Administration Act, 2011:
‘‘Recovery of tax debts from [responsible third parties] other persons
184. (1) SARS has the same powers of recovery against the assets of a person [referred to in] who is personally liable under section 155, 157 or this Part as SARS has against the assets of the taxpayer and the person has the same rights and remedies as the taxpayer has against such powers of recovery. (2) SARS must provide a [responsible third party] person referred to in
subsection (1) with an opportunity to make representations— (a) before the [responsible third party] person is held liable for the tax
debt of the taxpayer in terms of section 155, 157, 179, 180, 181, 182 or 183, if this will not place the collection of tax in jeopardy; or
(b) as soon as practical after the [responsible third party] person is held liable for the tax debt of the taxpayer in terms of section 155, 157, 179, 180, 181, 182 or 183.’’.
(2) Subsection (1) comes into operation on the date of promulgation of this Act.
Amendment of section 187 of Act 28 of 2011
52. (1) Section 187 of the Tax Administration Act, 2011, is hereby amended by the substitution for subsection (2) of the following subsection:
‘‘(2) Interest payable under a tax Act is calculated on— (a) the daily balance owing; or
54
5
10
15
20
25
30
35
40
45
56 No. 38406 GOVERNMENT GAZETTE, 20 January 2015 Act No. 44 of 2014 Tax Administration Laws Amendment Act, 2014
(b) the daily balance owing and compounded monthly, which method of determining interest will apply to a tax type from the date the Commissioner prescribes it by public notice.’’.
(2) Subsection (1) comes into operation on a date determined by the Minister of Finance by notice in the Gazette.
Amendment of section 190 of Act 28 of 2011, as amended by section 71 of Act 39 of 2013
53. Section 190 of the Tax Administration Act, 2011, is hereby amended by the substitution for subsection (4) of the following subsection:
‘‘(4) A person is entitled to a refund under subsection (1) only if the refund is claimed by the person in the case of— (a) an assessment by SARS, within three years from the date of the assessment;
or (b) self-assessment, within five years from the date the return had to be submitted
or, if no return is required, payment had to be made in terms of the relevant tax Act.’’.
Substitution of section 194 of Act 28 of 2011
54. The following section is hereby substituted for section 194 of the Tax Administration Act, 2011:
‘‘Application of Chapter
194. Parts C and D of this Chapter apply only in respect of a tax debt owed by a ‘debtor’ if the liability to pay the tax debt is not disputed by the ‘debtor’.’’.
Amendment of section 195 of Act 28 of 2011
55. Section 195 of the Tax Administration Act, 2011, is hereby amended by the substitution for subsection (1) of the following subsection:
‘‘(1) A senior SARS official may decide to temporarily ‘write off’ an amount of tax debt— (a) if satisfied that the tax debt is uneconomical to pursue as described in
section 196 at that time; or (b) for the duration of the period that the ‘debtor’ is subject to business rescue
proceedings under Chapter 6 of the ‘Companies Act’, as referred to in section 132 of that Act.’’.
Amendment of section 207 of Act 28 of 2011
56. Section 207 of the Tax Administration Act, 2011, is hereby amended by the substitution in subsection (2) for paragraphs (b) and (c) of the following paragraphs, respectively:
‘‘(b) be submitted [by the end of themonth]within 60 business days following the end of the fiscal year; and
(c) contain details of the number of tax debts ‘written off’ or ‘compromised’[,] and the amount of revenue forgone, [and the estimated amount of savings in costs of recovery,] which must be reflected in respect of main classes of taxpayers or sections of the public.’’.
Amendment of section 208 of Act 28 of 2011
57. Section 208 of the Tax Administration Act, 2011, is hereby amended by the substitution for the definition of ‘‘ ‘administrative non-compliance penalty’ or ‘pen- alty’ ’’ of the following definition:
‘‘ ‘administrative non-compliance penalty’ or ‘penalty’ means a ‘‘penalty’’ imposed by SARS in accordance with this Chapter or a tax Act other than this Act, and excludes an understatement penalty referred to in Chapter 16;’’.
56
5
10
15
20
25
30
35
40
45
50
58 No. 38406 GOVERNMENT GAZETTE, 20 January 2015 Act No. 44 of 2014 Tax Administration Laws Amendment Act, 2014
Amendment of section 215 of Act 28 of 2011
58. Section 215 of the Tax Administration Act, 2011, is hereby amended by the addition of the following subsection:
‘‘(5) If a tax Act other than this Act provides for remittance grounds for a ‘penalty’, SARS may despite the provisions of section 216, 217 or 218 remit the ‘penalty’ or a portion thereof under such grounds.’’.
Amendment of section 235 of Act 28 of 2011
59. Section 235 of the Tax Administration Act, 2011, is hereby amended by the substitution for the heading of the following heading:
‘‘[Criminal offences relating to evasion] Evasion of tax and obtaining undue refunds by fraud or theft’’.
Amendment of section 240 of Act 28 of 2011, as amended by section 82 of Act 21 of 2012 and section 81 of Act 39 of 2013
60. Section 240 of the Tax Administration Act, 2011, is hereby amended— (a) by the substitution in subsection (3) for the words preceding paragraph (a) of
the following words: ‘‘A person may not register as a tax practitioner under subsection (1) or SARS may deregister a registered tax practitioner if the person or the registered tax practitioner, as the case may be—’’;
(b) by the deletion in subsection (3) of the word ‘‘or’’ at the end of paragraph (a), insertion of that word at the end of paragraph (b) and addition of the following paragraph:
‘‘(c) during the preceding five years has been convicted of a serious tax offence.’’; and
(c) by the addition of the following subsection: ‘‘(4) If prosecution for a serious tax offence has been instituted but not
finalised against a person or registered tax practitioner and if the person or registered tax practitioner continues with the commission of a serious tax offence after the criminal proceedings have been instituted, a senior SARS official may— (a) not register the person as a registered tax practitioner; or (b) suspend the registration of the registered tax practitioner, for the duration of the criminal proceedings commencing on the date that prosecution is instituted and ending on the date that the person or registered tax practitioner is finally acquitted.’’.
Amendment of section 240A of Act 28 of 2011, as amended by section 83 of Act 21 of 2002 and section 82 of Act 39 of 2013
61. (1) Section 240A of the Tax Administration Act, 2011, is hereby amended by the substitution for subsection (3) of the following subsection:
‘‘(3) A body must within the prescribed time period and in the prescribed form and manner, if recognised under— (a) subsection (1), submit a list of its members to whom the provisions under
section 240(1) apply; and (b) subsection (2), submit a report on its members and compliance with this
Chapter.’’. (2) Subsection (1) is deemed to have come into operation on 20 December 2012.
58
5
10
15
20
25
30
35
40
45
60 No. 38406 GOVERNMENT GAZETTE, 20 January 2015 Act No. 44 of 2014 Tax Administration Laws Amendment Act, 2014
Amendment of section 248 of Act 28 of 2011
62. (1) Section 248 of the Tax Administration Act, 2011, is hereby amended— (a) by the substitution for the heading of the following heading:
‘‘Public officer in event of liquidation [or], winding-up or business rescue’’; and
(b) by the renumbering of the existing wording to subsection (1) and the addition of the following subsection:
‘‘(2) In the event of a company referred to in section 246(1) being subject to a business rescue plan referred to in Part D of Chapter 6 of the ‘Companies Act’, the business rescue practitioner as defined in that Chapter is required to exercise, in respect of the company, all the functions and assume all the responsibilities of a public officer under a tax Act for the period that the company is subject to the business rescue plan.’’.
(2) Subsection (1) comes into operation on the date of promulgation of this Act.
Amendment of section 255 of Act 28 of 2011, as amended by section 88 of Act 21 of 2012
63. Section 255 of the Tax Administration Act, 2011, is hereby amended by the substitution for subsection (2) of the following subsection:
‘‘(2) SARSmay, in the case of a return or other document submitted in electronic format, accept an electronic or digital signature of a person as a valid signature for purposes of a tax Act if a signature is required.’’.
Substitution of section 256 of Act 28 of 2011, as substituted by section 89 of Act 21 of 2012
64. (1) The following section is hereby substituted for section 256 of the Tax Administration Act, 2011:
‘‘Tax compliance status
256. (1) A taxpayer may apply, in the prescribed form and manner, to SARS for a confirmation of the taxpayer’s tax compliance status. (2) SARS must issue or decline to issue the confirmation of the
taxpayer’s tax compliance status within 21 business days from the date the application is submitted or such longer period as may reasonably be required if a senior SARS official is satisfied that the confirmation of the taxpayer’s tax compliance status may prejudice the efficient and effective collection of revenue. (3) A senior SARS official may provide a taxpayer with confirmation of
the taxpayer’s tax compliance status as compliant only if satisfied that the taxpayer is registered for tax and does not have any— (a) outstanding tax debt, excluding a tax debt contemplated in section 167
or 204 or a tax debt that has been suspended under section 164 or does not exceed the amount referred to in section 169(4); or
(b) outstanding return unless an arrangement acceptable to the SARS official has been made for the submission of the return.
(4) A confirmation of tax compliance status must be in the prescribed format and include at least— (a) the original date of issue of the tax compliance status confirmation to
the taxpayer; (b) the name, taxpayer reference number and identity number or company
registration number of the taxpayer; (c) the date of the confirmation of the tax compliance status of the
taxpayer to an organ of state or a person referred to in subsection (5); and
60
5
10
15
20
25
30
35
40
45
50
62 No. 38406 GOVERNMENT GAZETTE, 20 January 2015 Act No. 44 of 2014 Tax Administration Laws Amendment Act, 2014
(d) a confirmation of the tax compliance status of the taxpayer as at the date referred to in paragraph (c).
(5) Despite the provisions of Chapter 6, SARS may confirm the taxpayer’s tax compliance status as at the date of a request by— (a) an organ of state; or (b) a person to whom the taxpayer has presented the tax compliance status
confirmation. (6) SARS may alter the taxpayer’s tax compliance status to non-
compliant if the confirmation— (a) was issued in error; or (b) was obtained on the basis of fraud, misrepresentation or non-
disclosure of material facts, and SARS has given the taxpayer prior notice and an opportunity to respond to the allegations of at least 14 days prior to the alteration. (7)A taxpayer’s tax compliance status will be indicated as non-compliant
by SARS for the period commencing on the date that the taxpayer no longer complies with a requirement under subsection (3) and ending on the date that the taxpayer remedies the non-compliance.’’.
(2) Subsection (1) comes into operation on the date of promulgation of this Act.
Amendment of section 270 of Act 28 of 2011, as amended by section 86 of Act 39 of 2013
65. Section 270 of the Tax Administration Act, 2011, is hereby amended— (a) by the substitution in subsection (6D) for paragraphs (a) and (b) of the
following paragraphs, respectively: ‘‘(a) the Income Tax Act, excluding returns required under the Fourth
Schedule to thatAct, a senior SARS official must, in considering the objection, reduce the penalty in whole or in part if satisfied that there were extenuating circumstances; or
(b) the Value-Added TaxAct or the Fourth Schedule to the Income Tax Act, a senior SARS official must reduce the penalty in whole if the penalty was imposed under circumstances other than the circum- stances referred to in item (v) of the understatement penalty table in section 223(1).’’; and
(b) by the deletion of subsection (8).
Repeal of section 11 of Act 21 of 2012
66. (1) Section 11 of the Tax Administration Laws Amendment Act, 2012, is hereby repealed.
(2) Subsection (1) is deemed to have come into operation on 30 June 2013.
Amendment of section 26 of Act 21 of 2012
67. Section 26 of the Tax Administration Laws Amendment Act, 2012, is hereby amended by the substitution for subsection (2) of the following subsection:
‘‘(2) Subsection [(1)](1)(a) is deemed to have come into operation on 1 March 2014 and applies in respect of years of assessment commencing on or after that date.’’.
Amendment of section 8 of Act 39 of 2013
68. Section 8 of the Tax Administration Laws Amendment Act, 2013, is hereby amended by the substitution for subsection (2) of the following subsection:
‘‘(2) Paragraph (a) of subsection (1) comes into operation on 1 March [2015] 2016 and applies in respect of amounts contributed on or after that date.’’.
62
5
10
15
20
25
30
35
40
45
64 No. 38406 GOVERNMENT GAZETTE, 20 January 2015 Act No. 44 of 2014 Tax Administration Laws Amendment Act, 2014
Amendment of section 1 of Act 30 of 2014
69. Section 1 of the Customs Duty Act, 2014, is hereby amended by the substitution in subsection (1) for paragraph (a) of the definition of ‘‘port or place of export’’ of the following paragraph:
‘‘(a) where the goods are [packed into containers, or if not containerised,] loaded on board a vessel, aircraft, railway carriage or vehicle[,] in which the goods will be transported across the border of that country to the Republic;’’.
Amendment of section 88 of Act 30 of 2014
70. Section 88 of the Customs DutyAct, 2014, is hereby amended by the substitution in subsection (1)(a) for subparagraph (iii) of the following subparagraph:
‘‘(iii) an origin determination or origin re-determination referred to in section 156(2); or’’.
Amendment of section 201 of Act 30 of 2014
71. Section 201 of the Customs Duty Act, 2014, is hereby amended by— (a) the substitution in subsection (2) for the Table of the following Table:
‘‘FIXED AMOUNT PENALTIES
Category of breach Amount of penalty Category A Maximum of R2 500 Category B R5 000 Category C R7 500 Category D R10 000’’
; and (b) the addition of the following subsection:
‘‘(4) No fixed amount penalty may be imposed in terms of this section for a breach consisting of a failure to submit to the customs authority full or accurate information, other than information that may result in revenue prejudice, if the breach was committed inadvertently and in good faith.’’.
Amendment of section 202 of Act 30 of 2014
72. Section 202 of the Customs DutyAct, 2014, is hereby amended by the substitution for subsection (3) of the following subsection:
‘‘(3) The customs authority may for a Category A breach referred to in the Table in section 201(2) consisting of a failure to submit to the customs authority full or accurate information other than information that may result in revenue prejudice, impose in terms of subsection (1) a fixed amount penalty for the breach only after it has issued a warning for the same or a similar type of breach to the person who committed the breach.’’.
Substitution of section 221 of Act 30 of 2014
73. The following section is hereby substituted for section 221 of the Customs Duty Act, 2014:
‘‘Admissibility of certain statements in documents
221. In any criminal or civil proceedings arising from the [application] implementation or enforcement of this Act, any statement in any record, letter or other document submitted, kept or received by or on behalf of any person to the effect that goods of a particular price, value (including any commission, discount, cost, charge, expense, royalty, freight, tax, draw- back, refund, rebate or other information which relates to such goods and has a bearing on such price or value), quantity, quality, nature, strength or
64
5
10
15
20
25
30
35
40
45
66 No. 38406 GOVERNMENT GAZETTE, 20 January 2015 Act No. 44 of 2014 Tax Administration Laws Amendment Act, 2014
other characteristic have been produced, imported, exported, ordered, supplied, purchased, sold, dealt with, processed, traded in or held in stock by that person, is admissible as evidence that that person has produced, imported, exported, ordered, supplied, purchased, sold, dealt with, pro- cessed, traded in or held in stock goods of that price, value, quantity, quality, nature, strength or other characteristic.’’.
Amendment of section 177 of Act 31 of 2014
74. Section 177 of the Customs Control Act, 2014, is hereby amended by the addition of the following subsection:
‘‘(5) Subsection (4) only applies if a change referred to in paragraph (a) of that subsection, or any refund, amount, discount, commission, credit or debit referred to in paragraph (b) of that subsection, affects any information included in the clearance declaration submitted in respect of the goods to which the invoice relates.’’.
Amendment of section 178 of Act 31 of 2014
75. Section 178 of the Customs Control Act, 2014, is hereby amended by the substitution in subsection (5) for paragraph (a) of the following paragraph:
‘‘(a) notify the customs authority of— (i) any amendment to an invoice that affects any information included in the
clearance declaration submitted in respect of the goods to which the invoice relates; or
(ii) the receipt of such an amended invoice or a debit or credit note; and’’.
Amendment of section 241 of Act 31 of 2014
76. Section 241 of the Customs Control Act, 2014, is hereby amended by the substitution for subsection (2) of the following subsections:
‘‘(2) This Chapter applies to the transfer of imported goods [at a customs seaport or airport]— (a) from one foreign-going vessel or aircraft to another foreign-going vessel or
aircraft at the same customs seaport or airport; or (b) from one foreign-going vessel at a customs seaport to another foreign-going
vessel at another customs seaport served by the same Customs Office. (3) Any reference in this Act to a customs seaport where a transhipment
operation is carried out must, where subsection (2)(b) applies, be read as referring to both customs seaports as contemplated in that subsection.’’.
Amendment of section 242 of Act 31 of 2014
77. Section 242 of the Customs Control Act, 2014, is hereby amended by the substitution in subsection (1) for paragraph (a) of the following paragraph:
‘‘(a) to be transferred [at a customs seaport or airport]— (i) from the foreign-going vessel [or aircraft] on which those goods were
imported to another foreign-going vessel [or aircraft at that seaport or airport] on which those goods are to be exported from the Republic, whether the exporting vessel is docked at the same customs seaport as the importing vessel or at another customs seaport served by the same Customs Office; or
(ii) at the same customs airport from the foreign-going aircraft on which those goods were imported to another foreign-going aircraft on which those goods are to be exported from the Republic; and’’.
66
5
10
15
20
25
30
35
40
45
68 No. 38406 GOVERNMENT GAZETTE, 20 January 2015 Act No. 44 of 2014 Tax Administration Laws Amendment Act, 2014
Amendment of section 634 of Act 31 of 2014
78. Section 634 of the Customs ControlAct, 2014, is hereby amended by the insertion after subsection (2) of the following subsection:
‘‘(2A)Subsection (2) does not apply to— (a) the licensee of inward or home use processing premises importing goods for
inward or home use processing on those premises; or (b) the licensee of inward processing premises exporting inward processed
compensating products obtained from the inward processing of goods on those premises.’’.
Short title and commencement
79. (1) This Act is called the Tax Administration Laws Amendment Act, 2014. (2) Save in so far as is otherwise provided for in this Act, amendments to the Tax
AdministrationAct, 2011 (Act No. 28 of 2011), are deemed to have come into operation on 1 October 2012. (3) The amendments to the Customs Duty Act, 2014, and the Customs Control Act,
2014, come into operation on the date on which the Customs Control Act, 2014, takes effect. (4) Subject to subsections (2) and (3), and save in so far as is otherwise provided for
in this Act or the context otherwise indicates, the amendments effected by thisAct come into operation on the date of promulgation of this Act.
68
5
10
15
20