Tax Administration Laws Amendment Act (South Africa)

Tax Administration Laws Amendment Act

Published: 2012-12-20

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Vol570 GN36036 No1107 Act21.indd
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. 570 Cape Town 20 December 2012 No. 36036
THE PRESIDENCY No. 1107 20 December 2012
It is hereby notified that the President has assented to the following Act, which is hereby published for general information:–
No. 21 of 2012: Tax Administration Laws Amendment Act, 2012

2 No. 36036 GOVERNMENT GAZETTE, 20 December 2012 Act No. 21 of 2012 Tax Administration Laws Amendment Act, 2012
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—
● make a provision for the enactment of an international agreement into law;
● insert a provision providing for the application of the TaxAdministration Act, 2011, to certain matters relating to customs and excise;
● amend the Estate Duty Act, 1955, so as to effect a consequential amendment;
● amend the Income Tax Act, 1962, so as to effect textual amendments; to amend certain provisions; to insert new provisions and to effect consequential amendments;
● amend the Customs and Excise Act, 1964, so as to amend a provision; ● amend the Value-Added TaxAct, 1991, so as to amend a provision and to
insert a new provision; ● amend the Unemployment Insurance Contributions Act, 2002, so as to
effect a textual amendment; ● amend the Mineral and Petroleum Resources Royalty (Administration)
Act, 2008, so as to insert certain provisions; ● amend the Taxation Laws Second Amendment Act, 2009, so as to repeal
a provision; ● amend the Taxation Laws Second Amendment Act, 2011, so as to
postpone an effective date; ● amend the Tax Administration Act, 2011, so as to effect technical
corrections, to regulate tax practitioners; and to provide for matters connected therewith.
BE IT ENACTED by the Parliament of the Republic of South Africa, as follows:— Enactment of an international agreement into law
1. (1) Notwithstanding anything to the contrary contained in thisAct or any other law, an international agreement on combined border control posts entered into by the National Executive with the government of any other country shall, after approval by Parliament in terms of section 231 of the Constitution and on publication in the Gazette, have the effect as if enacted in any law in terms of which any power must be exercised or a function must be performed to give effect to that agreement, including any law regulating the movement of goods, persons or means of transport into or out of the Republic.
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(English text signed by the President) (Assented to 12 December 2012)
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(2) Any annex or amendment to such agreement shall have the same effect after approval by Parliament in terms of section 231 of the Constitution and on publication in the Gazette.
Application of Tax Administration Act to certain matters relating to customs and excise
2. (1) The Tax Ombud appointed in terms of section 14 of the TaxAdministrationAct, 2011 (Act No. 28 of 2011), must review and address in accordance with the provisions of sections 16 to 21 of that Act and any regulations issued under section 257(2) of that Act, any complaint by a person affected by the application of the Customs and Excise Act, 1964 (Act No. 91 of 1964), regarding a service, procedural or administrative matter.
(2) Chapter 14 of the Tax Administration Act, 2011, applies to the writing off or compromise of an amount owed to the Commissioner in terms of the Customs and Excise Act, 1964. (3) Subsections (1) and (2) are deemed to have come into operation on 1 October
2012.
Amendment of section 10 of Act 45 of 1955
3. (1) Section 10 of the Estate Duty Act, 1955, is hereby amended by the substitution for subsection (1) of the following subsection:
‘‘(1) [If the assessment of duty is delayed beyond a period of twelve months from the date of death, interest at the prescribed rate shall be] Interest in terms of Chapter 12 of the Tax Administration Act [payable as from a date twelve months after the date of death] must be calculated on the difference (if any) between the duty assessed and any deposit [(if any)] made on account of the duty [payable within the said period of twelve months].’’.
(2) Subsection (1) is deemed to have come into operation on the date that paragraph 18 of Schedule 1 to the Tax Administration Act, 2011, comes into operation.
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 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 ofAct 30 of 1984, section 2 ofAct 121 of 1984, section 2 ofAct 96of 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 and paragraph 23 of Schedule 1 to Act 28 of 2011
4. Section 1 of the Income TaxAct, 1962, is hereby amended by the substitution in the definition of ‘representative taxpayer’ for paragraph (c) of the following paragraph:
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‘‘(c) in respect of income which is the subject of any trust or in respect of the income of any minor or mentally disordered or defective person or any other person under legal disability, the trustee, guardian, curator or other person entitled to the receipt, management, disposal or control of such income or remitting or paying to or receiving moneys on behalf of such person under disability;’’.
Amendment of section 11D of Act 58 of 1962, as inserted by section 13 of Act 20 of 2006 and amended by section 13 of Act 8 of 2007, section 3 of Act 9 of 2007, section 19 ofAct 35 of 2007, section 11 ofAct 3 of 2008, section 19 ofAct 60 of 2008, section 16 ofAct 17 of 2009, section 20 ofAct 7 of 2010, section 32 ofAct 24 of 2011, section 1 of Act 25 of 2011 and paragraph 34 of Schedule 1 to Act 28 of 2011
5. (1) Section 11D of the Income TaxAct, 1962, is hereby amended by the substitution for subsection (19) of the following subsection:
‘‘(19) [For the purposes of subsection (1), the] The Commissioner may, notwithstanding the provisions of sections 99 and 100 of the Tax Administration Act, raise an additional assessment for any year of assessment with respect to a deduction in respect of research and development which has been allowed, where approval has been withdrawn in terms of subsection (10).’’.
(2) Subsection (1) is deemed to have come into operation on 1 October 2012 and applies in respect of expenditure incurred in respect of research and development on or after that date but before 1 October 2022.
Amendment of section 12I of Act 58 of 1962, as inserted by section 26 of Act 60 of 2008 and amended by section 24 of Act 17 of 2009, section 26 of Act 7 of 2010 and section 37 of Act 24 of 2011
6. (1) Section 12I of the Income TaxAct, 1962, is hereby amended by the substitution for subsection (11) of the following subsection:
‘‘(11) Within 12 months after the close of each year of assessment, starting with the year in which approval is granted in terms of subsection (8), a company carrying on an industrial policy project must report to the adjudication committee with respect to the progress of the industrial policy project in terms of the requirements of subsections (7) and (8) within such time, in such form and in such manner as the Minister of Finance may prescribe.’’.
(2) Subsection (1) is deemed to have come into operation on 1 January 2012 and applies in respect of industrial policy projects approved on or after that date.
Amendment of section 18A ofAct 58 of 1962, as amended by section 16 of Act 88 of 1971, section 13 of Act 90 of 1972, section 14 of Act 65 of 1973, section 16 of Act 69 of 1975, section 13 of Act 104 of 1980, section 16 of Act 96 of 1981, section 14 of Act 91 of 1982, section 16 of Act 94 of 1983, section 16 of Act 121 of 1984, section 15 of Act 90 of 1998, section 17 of Act 101 of 1990, section 20 of Act 129 of 1991, section 11 ofAct 36 of 1996, section 24 ofAct 30 of 2000, section 20 ofAct 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 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 and section 44 of Act 24 of 2011
7. Section 18Aof the Income TaxAct, 1962, is hereby amended by the addition of the following subsection:
‘‘(7) Any person who is— (i) in a fiduciary capacity responsible for the management or control of the
income and assets of any public benefit organisation, institution, board or body contemplated in this section; or
(ii) the accounting officer or accounting authority contemplated in the Public Finance Management Act, 1999 (Act 1 of 1999), or the Local Government: Municipal Finance Management Act, 2003 (Act 56 of 2003), as the case may be, for any institution in respect of which that Act applies,
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who intentionally fails to comply with any provisions of this section, or a provision of the constitution, will or other written instrument under which such organisation is established to the extent that it relates to the provisions of this section, shall be guilty of an offence and liable on conviction to a fine or to imprisonment for a period not exceeding 24 months.’’.
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 24 of Act 20 of 2006, section 22 of Act 3 of 2008, section 41 of Act 60 of 2008, section 41 of Act 17 of 2009, section 53 of Act 7 of 2010
8. Section 30 of the Income Tax Act, 1962, is hereby amended by the insertion after subsection (10) of the following subsection:
‘‘(11) Any person who is in a fiduciary capacity responsible for the management or control of the income and assets of any approved public benefit organisation and who intentionally fails to comply with any provision of this section or of the constitution, will or other written instrument under which such organisation is established to the extent that it relates to the provisions of this section, shall be guilty of an offence and liable on conviction to a fine or to imprisonment for a period not exceeding 24 months.’’.
Amendment of section 30A of Act 58 of 1962, as amended by section 26 of Act 8 of 2007, section 42 of Act 60 of 2008, section 42 of Act 17 of 2009 and section 54 of Act 7 of 2010
9. Section 30Aof the Income TaxAct, 1962, is hereby amended by the addition of the following subsection:
‘‘(9) Any person who is in a fiduciary capacity responsible for the management or control of the income and assets of any approved recreational club and who intentionally fails to comply with any provision of this section or of the constitution, or other written instrument under which such recreational club is established to the extent that it relates to the provisions of this section, shall be guilty of an offence and liable on conviction to a fine or to imprisonment for a period not exceeding 24 months.’’.
Amendment of section 30B ofAct 58 of 1962, as amended by section 56 of Act 24 of 2011
10. Section 30B of the Income Tax Act, 1962, is hereby amended by the addition of the following subsection:
‘‘(10)Any person who is in a fiduciary capacity responsible for the management or control of the income and assets of any approved association and who intentionally fails to comply with any provision of this section or of the constitution, or other written instrument under which such association is established to the extent that it relates to the provisions of this section, shall be guilty of an offence and liable on conviction to a fine or to imprisonment for a period not exceeding 24 months.’’.
Insertion of sections 37L, 37M, 37N and 37O in Act 58 of 1962
11. (1) The following sections are hereby inserted in the Income TaxAct, after section 37K:
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‘‘Withholding of withholding tax on interest by payers of interest
37L. (1) Subject to subsections (2) and (3), any person who makes payment of any amount of interest to or for the benefit of a foreign person must withhold an amount as contemplated in section 37J from that payment. (2) A person must not withhold any amount from any payment
contemplated in subsection (1)— (a) to the extent that the interest is exempt from the withholding tax on
interest in terms of section 37K(1); or (b) if the foreign person to or for the benefit of which that payment is to be
made has— (i) by a date determined by the person making the payment; or (ii) if the person making the payment did not determine a date as
contemplated in subparagraph (i), by the date of the payment, submitted to the person making the payment a declaration in such form as may be prescribed by the Commissioner that the foreign person is, in terms of section 37K(3), exempt from the withholding tax on interest in respect of that payment.
(3) The rate referred to in subsection (1) must, for the purposes of that subsection, be reduced if the foreign person to or for the benefit of which the payment contemplated in that subsection is to be made has— (a) by a date determined by the person making the payment; or (b) if the person making the payment did not determine a date as
contemplated in paragraph (a), by the date of the payment, submitted to the person making the payment a declaration in such form as may be prescribed by the Commissioner that the interest is subject to that reduced rate of tax as a result of the application of an agreement for the avoidance of double taxation.
Payment and recovery of tax
37M. (1) If, in terms of section 37JA, a foreign person is liable for any amount of withholding tax on interest in respect of any amount of interest that is paid to or for the benefit of the foreign person, that foreign person must pay that amount of withholding tax by the last day of the month following the month during which the interest is paid, unless the tax has been paid by any other person. (2)Any person that withholds any withholding tax on interest in terms of
section 37L must pay the tax to the Commissioner by the last day of the month following the month during which the interest is paid.
Refund of withholding tax on interest
37N. Notwithstanding chapter 13 of the Tax Administration Act, if— (a) an amount is withheld from a payment of an amount of interest as
contemplated in section 37L(1); (b) a declaration contemplated in section 37L(2)(b) or (3) in respect of
that interest is not submitted to the person paying that interest by the date of the payment of that interest; and
(c) a declaration contemplated in section 37L(2)(b) or (3) is submitted to the Commissioner within three years after the payment of the interest in respect of which the declaration is made,
so much of that amount as would not have been withheld had that declaration been submitted by the date contemplated in the relevant subsection is refundable by the Commissioner to the person to which the interest was paid.
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Currency of payments made to Commissioner
37O. If an amount withheld by a person in terms of section 37L(1) is denominated in any currency other than the currency of the Republic, the amount so withheld must, for the purposes of determining the amount to be paid to the Commissioner in terms of section 37M(2), be translated to the currency of the Republic at the spot rate on the date on which the amount was so withheld.’’.
(2) Subsection (1) comes into operation on 1 July 2013 and applies in respect of— (a) interest that accrues; or (b) interest that is paid or that becomes due and payable,
on or after that date.
Insertion of sections 49E, 49F and 49G in Act 58 of 1962
12. (1) The Income Tax Act, 1962, is hereby amended by the insertion of the following sections after section 49D:
‘‘Withholding of withholding tax on royalties by payers of royalties
49E. (1) Subject to subsections (2) and (3), any person making payment of any royalty to or for the benefit of a foreign person must withhold an amount as contemplated in section 49B from that payment. (2) A person must not withhold any amount from any payment
contemplated in subsection (1) if the foreign person to or for the benefit of which that payment is to be made has— (a) by a date determined by the person making the payment; or (b) if the person making the payment did not determine a date as
contemplated in paragraph (a), by the date of the payment, submitted to the person making the payment a declaration in such form as may be prescribed by the Commissioner that the foreign person is, in terms of section 49D, exempt from the withholding tax on royalties in respect of that payment. (3) The rate referred to in section 49B(1) must, for the purposes of that
subsection, be reduced if the foreign person to or for the benefit of which the payment contemplated in that subsection is to be made has— (a) by a date determined by the person making the payment; or (b) if the person making the payment did not determine a date as
contemplated in paragraph (a), by the date of the payment, submitted to the person making the payment a declaration in such form as may be prescribed by the Commissioner that the royalty is subject to that reduced rate of tax as a result of the application of an agreement for the avoidance of double taxation.
Payment and recovery of tax
49F. (1) If, in terms of section 49C, a foreign person is liable for any amount of withholding tax on royalties in respect of any royalty that is paid to or for the benefit of the foreign person, that foreign person must pay that amount of withholding tax by the last day of the month following the month during which the royalty is paid, unless the tax has been paid by any other person. (2) Any person that withholds any withholding tax on royalties in terms
of section 49E must pay the tax to the Commissioner by the last day of the month following the month during which the royalty is paid.
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Refund of withholding tax on royalties
49G. Notwithstanding Chapter 13 of the Tax Administration Act, if— (a) an amount is withheld from a payment of a royalty as contemplated in
section 49E(1); (b) a declaration contemplated in section 49E(2) or (3) in respect of that
royalty is not submitted to the person paying that royalty by the date of the payment of that royalty; and
(c) a declaration contemplated in section 49E(2) or (3) is submitted to the Commissioner within three years after the payment of the royalty in respect of which the declaration is made,
so much of that amount as would not have been withheld had that declaration been submitted by the date contemplated in the relevant subsection is refundable by the Commissioner to the person to which the royalty was paid.’’.
(2) Subsection (1) comes into operation on 1 July 2013 and applies in respect of royalties that are paid or that become due and payable on or after that date, but only to the extent that the amount of the royalties was not subject to tax in terms of section 35 of the Income Tax Act, 1962.
Amendment of section 61 of Act 58 of 1962, as amended by section 25 of Act 90 of 1988 and section 57 of Act 45 of 2003
13. (1) Section 61 of the Income TaxAct, 1962, is hereby amended by the substitution for paragraph (d) of the following paragraph:
‘‘(d) the reference in paragraphs (b) and (c) of the definition of ‘representative taxpayer’ in section [one] 1 to the income under the management, disposition or control of an agent or to income which is the subject of any trust, as the case may be, shall be deemed to include a reference to any property disposed of under a donation which is under the management, disposition or control of the agent or to property disposed of under a donation which is the subject of the trust, as the case may be;’’.
(2) Subsection (1) comes into operation on 1 January 2013 and applies in respect of years of assessment commencing on or after that date.
Amendment of section 64K of Act 58 of 1962, as inserted by section 56 of Act 60 of 2008, substituted by section 53 of Act 17 of 2009 and amended by section 84 of Act 24 of 2011
14. Section 64K of the Income Tax Act, 1962, is hereby amended by the substitution in subsection (1) for paragraph (d) of the following paragraph:
‘‘(d) If, in terms of this Part, a person [is required to make payment of any amount of dividends tax] has paid a dividend[,] that person must[, together with that payment,] submit a return to the Commissioner.’’.
Amendment of section 64L of Act 58 of 1962, as substituted by section 53 of Act 17 of 2009
15. (1) Section 64L of the Income Tax Act, 1962, is hereby amended— (a) by the substitution in subsection (1) for paragraph (c) of the following
paragraph: ‘‘(c) [a] both the declaration and the written undertaking contemplated in
section 64G(2)(a) or (3) [is] are submitted to the company within three years after the payment of the dividend in respect of which [it is] they are made,’’;
(b) by the insertion after subsection (1) of the following subsection: ‘‘(1A) If—
(a) an amount is withheld by a company from the payment of a dividend in terms of section 64G(1); and
(b) a rebate in respect of foreign taxes paid on that dividend should have been deducted from that amount in terms of section 64N,
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so much of that amount as would not have been withheld had that rebate been deducted from the amount, is refundable to the person to whom the dividend was paid: Provided such rebate is claimed within three years after the payment of the relevant dividend.’’; and
(c) by the substitution for subsections (2), (3) and (4) of the following subsections, respectively:
‘‘(2) Any amount that is refundable in terms of subsection (1) or (1A) must be refunded by the company that withheld that amount to the person to whom the dividend was paid— (a) from any amount of dividends tax withheld by that company within
a period of one year after the submission of the declaration contemplated in subsection (1)(c) or the claim of a rebate contemplated in subsection (1A); or
(b) to the extent that the amount that is refundable exceeds the amount of dividends tax withheld as contemplated in paragraph (a), from an amount recovered by the company from the Commissioner in terms of subsection (3).
(3) Subject to subsection (4), if any amount is refundable to any person by a company in terms of subsection (1) or (1A) and that amount exceeds the amount of dividends tax withheld as contemplated in subsection (2)(a), the company contemplated in subsection (2) may recover the excess from the Commissioner. (4) No amount may be recovered in terms of subsection (3) if the
company submits the claim for recovery to the Commissioner after the expiry of a period of four years reckoned from the date of the payment contemplated in subsection (1)(a) or (1A)(a).’’.
(2) Subsection (1)(a) is deemed to have come into operation on 1 April 2012.
Amendment of section 64M of Act 58 of 1962, as inserted by section 53 of Act 17 of 2009
16. Section 64M of the Income Tax Act, 1962, is hereby amended— (a) by the substitution in subsection (1) for paragraph (c) of the following
paragraph: ‘‘(c) [a] both the declaration and the written undertaking contemplated in
section 64H(2)(a) or (3) [is] are submitted to the regulated intermediary within three years after the payment of the dividend in respect of which [it is] they are made,’’;
(b) by the insertion after subsection (1) of the following subsection: ‘‘(1A) If—
(a) an amount is withheld by a regulated intermediary from the payment of a dividend in terms of section 64H(1); and
(b) a rebate in respect of foreign taxes paid on that dividend should have been deducted from that amount in terms of section 64N,
so much of that amount as would not have been withheld had that rebate been deducted from the amount, is refundable to the person to whom the dividend was paid: Provided such rebate is claimed within three years after the payment of the relevant dividend.’’; and
(c) by the substitution for subsection (2) of the following subsection: ‘‘(2) Any amount that is refundable in terms of subsection (1) or (1A)
must be refunded by the regulated intermediary contemplated in subsection (1)(a) or (1A)(a) from any amount of dividends tax withheld by the regulated intermediary after the submission of the declaration as contemplated in subsection (1)(c) or the claim of a rebate contemplated in subsection (1A).’’.
(2) Subsection (1)(a) is deemed to have come into operation on 1 April 2012.
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Amendment of section 64N of Act 58 of 1962, as inserted by section 54 of Act 17 of 2009
17. (1) Section 64N of the Income Tax Act, 1962, is hereby amended by the addition of the following subsection:
‘‘(5) A company or regulated intermediary must obtain proof of any tax paid to any sphere of government of any country other than the Republic and deducted from the dividend tax payable in terms of this section, in the form and manner prescribed by the Commissioner.’’.
(2) Subsection (1) is deemed to have come into operation on 1 April 2012.
Amendment of section 72A of Act 58 of 1962, as substituted by section 65 of Act 45 of 2003 and amended by section 11 ofAct 32 of 2005 and section 13 ofAct 4 of 2008
18. (1) Section 72A of the Income Tax Act, 1962, is hereby amended by the substitution for subsection (2) of the following subsection:
‘‘(2) A resident must have available for submission to the Commissioner when so requested, a copy of the financial statements of the controlled foreign company for the relevant foreign tax year[, as defined in section 9D,] of that controlled foreign company.’’.
(2) Subsection (1) is deemed to have come into operation on 1 January 2012 and applies in respect of foreign tax years ending during years of assessment commencing on or after that date.
Amendment of paragraph 2 of Fourth Schedule to Act 58 of 1962, as added by section 19 of Act 6 of 1963 and amended by section 23 of Act 72 of 1963, section 29 of Act 55 of 1966, section 38 of Act 88 of 1971, section 48 of Act 85 of 1974, section 30 of Act 103 of 1976, section 28 of Act 113 of 1977, section 29 of Act 104 of 1980, section 40 of Act 90 of 1988, section 21 of Act 70 of 1989, section 45 of Act 101 of 1990, section 45 ofAct 129 of 1991, section 38 ofAct 21 of 1995, section 45 ofAct 28 of 1997, section 53 of Act 30 of 2000, section 54 of Act 59 of 2000, section 20 of Act 19 of 2001, section 21 of Act 16 of 2004, section 50 of Act 31 of 2005, section 40 of Act 20 of 2006, section 55 of Act 8 of 2007, section 65 of Act 35 of 2007, section 18 of Act 18 of 2009 and section 94 of Act 24 of 2011
19. (1) Paragraph 2 of the Fourth Schedule to the Income Tax Act, 1962, is hereby amended—
(a) by the insertion after subparagraph (1A) of the following subparagraph: ‘‘(1B) Notwithstanding the provisions of subparagraph (1), a person
shall deduct or withhold employees’ tax in respect of any amount payable in respect of variable remuneration, as defined in section 7B(1), on the date on which the amount is paid to the employee by the employer as contemplated in section 7B(2).’’;
(b) by the deletion in subparagraph (4) of item (d); and (c) by the substitution in subparagraph (4)(f) for subitem (i) of the following
subitem: ‘‘(i) as does not exceed 5 per cent of that remuneration after deducting
therefrom the amounts contemplated in items (a) to [(d)](cA); and’’. (2) Paragraph (a) of subsection (1) comes into operation on 1 March 2013 and applies
in respect of amounts received or accrued on or after that date. (3) Paragraphs (b) and (c) of subsection (1) come into operation on 1 March 2014 and
apply in respect of years of assessment commencing on or after that date.
Amendment of paragraph 14 of Fourth Schedule to Act 58 of 1962, as amended by section 40 of Act 88 of 1971, section 50 of Act 101 of 1990, section 57 of Act 74 of 2002, section 22 of Act 4 of 2008, section 16 of Act 61 of 2008, section 21 of Act 18 of 2009, section 22 ofAct 8 of 2010 and paragraph 85 of Schedule 1 toAct 28 of 2011
20. Paragraph 14 of the Fourth Schedule to the Income Tax Act, 1962, is hereby amended by the substitution for subparagraph (6) for the following subparagraph:
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‘‘(6) If an employer fails to render to the Commissioner a return referred to in subparagraph (3) within the period prescribed in that subparagraph, the Commis- sioner may impose [under Chapter 15 of the Tax Administration Act] on that employer a [percentage based] penalty, which is deemed to be a percentage based penalty imposed under Chapter 15 of the Tax Administration Act, for each month that the employer fails to submit a complete return which in total may not exceed 10 per cent of the total amount of employees’ tax deducted or withheld or which should have been deducted or withheld by the employer from the remuneration of employees for the period described in that subparagraph.’’.
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 58 of Act 74 of 2002, section 34 of Act 30 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 and section 96 of Act 24 of 2011
21. Paragraph 18 of the Fourth Schedule to the Income Tax Act, 1962, is hereby amended by the insertion after subparagraph (1) of the following subparagraph:
‘‘(2) Any taxable capital gain of a company resulting from the application of the deemed disposal rules under section 29B of the Act for years of assessment ending on or after 29 February 2012 but not later than 31 October 2012, is exempt from provisional tax.’’.
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 and paragraph 90 of Schedule 1 to Act 28 of 2011
22. Paragraph 19 of the Fourth Schedule to the Income Tax Act, 1962, is hereby amended by the substitution in subparagraph (1) for item (a) of the following item:
‘‘(a) Every provisional taxpayer (other than a company) shall, during every period within which provisional tax is or may be payable by that provisional taxpayer as provided in this Part, submit to the Commissioner (should the Commissioner so require) a return of an estimate of the total taxable income which will be derived by the taxpayer in respect of the year of assessment in respect of which provisional tax is or may be payable by the taxpayer: Provided that such estimate will not include any retirement fund lump sum benefit, retirement fund lump sum withdrawal benefit or any severance benefit received by or accrued to or to be received by or accrue to the taxpayer during the relevant year of assessment.’’.
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 and paragraph 91 of Schedule 1 toAct 28 of 2011
23. Paragraph 20 of the Fourth Schedule to the Income Tax Act, 1962, is hereby amended—
(a) by the substitution in subparagraph (1) for item (a) of the following item: ‘‘(a) more than R1 million and such estimate is less than 80 per cent of
the amount of the actual taxable income the Commissioner [may, if he or she is not satisfied that the amount of such estimate was seriously calculated with due regard to the factors having a
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bearing thereon or was not deliberately or negligently under- stated, subject to the provisions of subparagraph (3),] must impose, in addition to the normal tax chargeable in respect of the taxpayer’s taxable income for such year of assessment, a penalty, which is deemed to be a percentage based penalty imposed under Chapter 15 of the TaxAdministrationAct, equal to 20 per cent of the difference between [the amount of normal tax as calculated in respect of such estimate and]—
(i) the amount of normal tax calculated, at the rates applicable in respect of such year of assessment, 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) by the substitution in subparagraph (1) for item (b) of the following item: ‘‘(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 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 amount of normal tax as calculated in respect of such estimate and] the lesser of [the following amounts, namely]—
(i) the amount of normal tax calculated, at the rates applicable in respect of such year of assessment, 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 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 insertion of the following proviso to subparagraph (1) at the end of item (e):
‘‘Provided that any retirement fund lump sum benefit, retirement fund lump sum withdrawal benefit or any severance benefit 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;’’; and
(d) by the substitution for subparagraph (2) of the following paragraph: ‘‘(2) Where the Commissioner is satisfied that the amount of any
estimate referred to in subparagraph (1)[(b)] was seriously calculated with due regard to the factors having a bearing thereon and was not deliberately or negligently understated, or if the Commissioner is partly so satisfied, the Commissioner may in his or her discretion remit the penalty or a part thereof.’’.
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Amendment of paragraph 20A of Fourth Schedule to Act 58 of 1962, as amended by section 25 of Act 52 of 1970, section 45 of Act 88 of 1971, section 52 of Act 85 of 1974, section 40 of Act 121 of 1984, section 88 of Act 45 of 2003 and paragraph 92 of Schedule 1 to Act 28 of 2011
24. Paragraph 20A of the Fourth Schedule to the Income Tax Act, 1962, is hereby amended by the substitution for subparagraph (1) of the following subparagraph:
‘‘(1) Subject to the provisions of subparagraphs (2) and (3), where any provisional taxpayer is liable for the payment of normal tax in respect of any amount of taxable income derived by that provisional taxpayer during any year of assessment and the estimate of [his or her] the taxpayer’s taxable income for that year required to be submitted by [him or her] the taxpayer under paragraph 19(1) during the period contemplated in paragraph 21(1)(b), 22(1) or 23(b), as the case may be, was not submitted by [him or her] the taxpayer on or before the last day of that year the taxpayer shall, unless the Commissioner has estimated the said taxable income under paragraph 19(2) or has increased the amount thereof under paragraph 19(3), be required to pay to the Commissioner, in addition to the normal tax chargeable in respect of such taxable income, 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 amount by which the normal tax payable by [him or her] the taxpayer in respect of such taxable income exceeds the sum of any amounts of provisional tax paid by [him or her] the taxpayer in respect of such taxable income within any period allowed for the payment of such provisional tax under this Part and any amounts of employees’ tax deducted or withheld from [his or her] the taxpayer’s remuneration by [his or her] the taxpayer’s employer during such year.’’.
Amendment of paragraph 27 of Fourth Schedule to Act 58 of 1962, as amended by section 43 of Act 121 of 1984, section 29 of Act 65 of 1986, section 48 of Act 32 of 2004 and paragraph 95 of Schedule 1 to Act 28 of 2011
25. Paragraph 27 of the Fourth Schedule to the Income Tax Act, 1962, is hereby amended by the substitution for subparagraph (1) of the following subparagraph:
‘‘(1) If any provisional taxpayer fails to pay any amount of provisional tax for which he or she is liable within the period allowed for payment thereof in terms of paragraph 21 or 23, or paragraph 25(1), the Commissioner must, under Chapter 15 of the Tax Administration Act, impose a penalty, which is deemed to be a percentage based penalty imposed under Chapter 15 of the TaxAdministrationAct, equal to ten per cent of the amount not paid.’’.
Amendment of paragraph 11 of Sixth Schedule to Act 58 of 1962, as amended by paragraph 99 of Schedule 1 to Act 28 of 2011
26. (1) Paragraph 11 of the Sixth Schedule to the Income Tax Act, 1962, is hereby amended—
(a) by the insertion of the following subparagraph after subparagraph (4): ‘‘(4A) For purposes of paragraph 2(1) of the Fourth Schedule and
section 89bis (2), a registered micro business may elect to pay the amounts deducted or withheld in terms of that paragraph or section to the Commissioner—
(i) with regard to amounts deducted or withheld during the first six calendar months from the first day of the year of assessment, by the end of such period; and
(ii) with regard to amounts deducted or withheld within the next six calendar months following the period in item (i), by the last day of the year of assessment.’’;
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(b) by the substitution for subparagraph (6) of the following subparagraph: ‘‘(6)Where the estimate described in subparagraph 4(a) is less than 80
per cent of the taxable turnover for the 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 tax payable on 80 per cent of the taxable turnover for the year of assessment and the tax payable on that estimate must be charged.’’; and
(c) by the substitution for subparagraph (7) of the following subparagraph: ‘‘(7) Where the Commissioner is satisfied that the estimate described
in subparagraph (4)(a) was not deliberately or negligently understated and was seriously made based on the information available, or is partly so satisfied, the Commissioner must waive the [additional tax] penalty charged in terms of subparagraph (6) in full or in part.’’.
(2) Subsection (1) 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 3 of Act 91 of 1964, as amended by section 114 of Act 60 of 2001, section 42 ofAct 30 of 2002, section 132 ofAct 45 of 2003 and section 25 ofAct 18 of 2009
27. Section 3 of the Customs and Excise Act, 1964, is hereby amended by the substitution in subsection (2) for paragraph (a) of the following paragraph:
‘‘(a) Any decision made and any notice or communication signed or issued by [any] such officer or person may be withdrawn or amended by—
(i) the officer or person concerned; (ii) the branch manager to whom the officer or person in (i) reports; (iii) the officer or person in charge of customs operations or excise operations; or (iv) the Commissioner personally,
[the Commissioner or by the officer or person concerned (] with effect from the date of making such decision or signing or issuing such notice or communication or the date of withdrawal or amendment thereof [)] and shall, until it has been so withdrawn, be deemed, except for the purposes of this subsection, to have been made, signed or issued by the Commissioner.’’.
Continuation of amendments made under section 119A of Act 91 of 1964
28. 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 August 2011 up to and including 31 July 2012 shall not lapse by virtue of section 119A(3) of thatAct.
Amendment of section 20 of Act 89 of 1991, as amended by section 25 of Act 136 of 1992, section 33 of Act 97 of 1993, section 35 of Act 27 of 1997, section 94 of Act 30 of 1998, section 91 ofAct 53 of 1999, section 157 ofAct 60 of 2001, section 175 ofAct 45 of 2003, section 47 of Act 16 of 2004, section 104 of Act 32 of 2004, section 38 of Act 21 of 2006, section 14 of Act 9 of 2007, section 1 of Act 3 of 2008, section 35 of Act 18 of 2009 and section 30 of Act 8 of 2010
29. Section 20 of the Value-Added Tax Act, 1991, is hereby amended by the substitution in subsection (5) of the words preceding paragraph (a) of the following words:
‘‘Notwithstanding anything in subsection (4), where the consideration in money for a supply does not exceed [R3 000] R5 000, a tax invoice (abridged tax invoice) shall be in the currency of the Republic and shall contain the particulars specified in that subsection or the following particulars:’’.
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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 and paragraph 120 of Schedule 1 to Act 28 of 2011
30. (1) Section 27 of the Value-Added Tax Act, 1991, is hereby amended by the substitution for subsection (4) of the following subsection:
‘‘(4) A vendor shall fall within Category D if— (a) (i) the vendor’s enterprise consists solely of agricultural, pastoral or other
farming activities or the vendor is a branch, division or separate enterprise which is deemed by subsection (5) of section 23 to be a separate person for the purposes of that section and is as such registered under that section or the vendor is a branch, division or a separate enterprise registered as a separate vendor under section 50(2);
[(b)] (ii) the activities of any such branch, division or separate enterprise consist solely of agricultural, pastoral or other farming activities and activities of that kind are not carried on in any other branch, division or separate enterprise of the vendor or the association not for gain, as the case may be, by whom a written application referred to in [paragraph (e)] subparagraph (v) is made;
[(c)](iii) the total value of the taxable supplies of the vendor from agricultural, pastoral or other farming activities— [(i)](aa) has in the period of 12 months ending on the last day of any
month of the calendar year not exceeded R1,5 million; and [(ii)](bb) is not likely to exceed that amount in the period of 12 months
commencing at the end of the period referred to in [subpara- graph (i)] item (aa);
[(d)](iv) the vendor does not fall within Category C; and [(e)] (v) the vendor whose enterprise consists solely of agricultural, pastoral or
other farming activities or the vendor referred to in section 50(2) or the association not for gain referred to in section 23(5), as the case may be, has made a written application to the Commissioner, in such form as the Commissioner may prescribe, for such first-mentioned vendor or the branch, division or separate enterprise in question, as the case may be, to be placed within Category D[,]; or
(b) the vendor is a micro business that is registered in terms of the Sixth Schedule to the Income Tax Act and has made written application in such form as the Commissioner may prescribe, to be placed in Category D,
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 [paragraph (e)] subparagraph (v) for the vendor to be placed within Category A, B, C, 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, E or F.’’.
(2) Subsection (1) is deemed to have come into operation on 1 March 2014 and applies in respect of tax periods commencing on or after that date.
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Amendment of section 28 of Act 89 of 1991, as amended by section 29 of Act 136 of 1992, section 79 of Act 30 of 2000, section 44 of Act 5 of 2001, section 158 of Act 60 of 2001, section 118 ofAct 74 of 2002, section 179 ofAct 45 of 2003, section 37 ofAct 32 of 2005, section 32 of Act 36 of 2007, section 41 of Act 61 of 2008, section 31 of Act 8 of 2010 and paragraph 121 of Act 28 of 2011
31. Section 28 of the Value-Added Tax Act, 1991, is hereby amended— (a) by the substitution in subsection (1) for the words preceding paragraph (a) of
the following words: ‘‘[Subject to subsection (4) every] Every vendor shall, within the period ending on the twenty-fifth day of the first month commencing after the end of a tax period relating to such vendor or, where such tax period ends on or after the first day and before the twenty-fifth day of a month, within the period ending on such twenty-fifth day—’’; and
(b) by the substitution in subsection (1) for paragraph (iii) of the proviso of the following paragraph:
‘‘(iii) a vendor registered with the Commissioner to submit returns electronically is deemed to have submitted the return and made payment within the period contemplated in subsection (1) if the vendor submits the returns and makes full payment of the amount of tax electronically in the prescribed form and manner within the period ending on the last business day of the month during which that twenty-fifth day falls;’’.
Amendment of section 10 of Act 4 of 2002
32. Section 10 of the Unemployment Insurance Contributions Act, 2002, is hereby amended by the substitution in subsection (3) for the words preceding paragraph (a) of the following words:
‘‘[The] Each employer contemplated in sections 8 and 9, must, before the seventh day of each month, submit to the [Commissioner or the] Unemployment Insurance Commissioner[, whichever is applicable to such employer in terms of section 8 or 9,] such information relating to its employees as the Minister may prescribe by regulation, including details relating to—’’.
Amendment of section 19 of Act 29 of 2008, as amended by section 39 of Act 8 of 2010
33. (1) Section 19 of the Mineral and Petroleum Resources Royalty (Administration) Act, 2008, is hereby amended—
(a) by the substitution in subsection (1) for the words preceding paragraph (a) of the following words:
‘‘In respect of a year of assessment an extractor must annually submit to the Minister of Finance a report in the form and manner that the Minister may prescribe advising the Minister of—’’;
(b) by the addition in subsection (1) of the following paragraphs: ‘‘(g) the amounts of the royalty imposed in terms of section 2 of the
Royalty Act in respect of refined minerals and unrefined minerals, respectively;
(h) the amount of earnings before interest and taxes determined in accordance with section 5(1) and (2) of the Royalty Act, respec- tively;
(i) the amount of the royalty that would have been imposed on an extractor in respect of mineral resources transferred had that extractor not been exempt from the royalty in terms of section 7(1)(a) of the Royalty Act;
(j) the amount of the royalty that would have been imposed on an extractor in respect of mineral resources transferred had that
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extractor not been exempt from the royalty in terms of section 7(1)(b) of the Royalty Act; and
(k) the amount of the royalty that would have been imposed on an extractor had that extractor not been exempt from the royalty in terms of section 8 of the Royalty Act.’’.
(2) Subsection (1) comes into operation on 1 January 2013.
Repeal of section 1 of Act 18 of 2009
34. Section 1 of the Taxation Laws SecondAmendmentAct, 2009, is hereby repealed.
Amendment of section 1 of Act 25 of 2011
35. (1) Section 1 of the Taxation Laws Second Amendment Act, 2011, is hereby amended by the substitution for subsection (2) of the following subsection:
‘‘(2) Subsection (1) comes into operation on [1 April 2012 unless a later date is determined by the Minister by notice in the Gazette] 1 October 2012 and applies in respect of research and development on or after [1 April 2012, or such later date determined by the Minister by notice in the Gazette] 1 October 2012, but on or before 1 [April] October 2022.’’.
(2) Subsection (1) is deemed to have come into operation on 14 December 2011.
Amendment of section 1 of Act 28 of 2011
36. Section 1 of the Tax Administration Act, 2011, is hereby amended— (a) by the insertion of the following definition after the definition of ‘‘assess-
ment’’: ‘‘ ‘asset’ includes— (a) property of whatever nature, whether movable or immovable,
corporeal or incorporeal; and (b) a right or interest of whatever nature to or in the property;’’;
(b) by the substitution for the definition of ‘‘effective date’’ of the following definition:
‘‘ ‘effective date’ is the date described in section 187(3), (4) and (5) of this Act, or the date from when interest is otherwise calculated under a tax Act;’’;
(c) by the insertion of the following definition after the definition of ‘‘reduced assessment’’:
‘‘ ‘registered tax practitioner’ means a person registered under section 240;’’;
(d) by the substitution for paragraph (c) of the definition of ‘‘SARS official’’of the following paragraph:
‘‘(c) a person contracted or engaged by SARS for purposes of the administration of a tax Act and who carries out the provisions of a tax Act under the control, direction or supervision of the Commis- sioner;’’; and
(e) by the substitution for the definition of ‘‘shareholder’’ of the following definition:
‘‘ ‘shareholder’ means a person who holds a beneficial interest [in a share] in a company as defined in the Income Tax Act;’’.
Amendment of section 3 of Act 28 of 2011
37. Section 3 of the Tax Administration Act, 2011, is hereby amended— (a) by the substitution in subsection (2) for paragraph (f) of the following
paragraph: ‘‘(f) investigate whether [an] a tax offence has been committed [in
terms of a tax Act], and, if so— (i) to lay criminal charges; and (ii) to provide the assistance that is reasonably required for the
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investigation and prosecution of the tax [offences or related common law offences]offence;’’; and
(b) by the substitution in subsection (3) for paragraph (a) of the following paragraph:
‘‘(a) information, SARS may 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 tax Act and must treat the information obtained as [if it were] taxpayer informa- tion;’’.
Amendment of section 6 of Act 28 of 2011
38. Section 6 of the Tax Administration Act, 2011, is hereby amended— (a) by the substitution in subsection (3) for paragraph (c) of the following
paragraph: ‘‘(c) a SARS official occupying a post designated by the Commissioner
in writing for this purpose.’’; (b) by the substitution in subsection (4) for paragraph (a) of the following
paragraph: ‘‘(a) [an] a SARS official under the control of the Commissioner or a
senior SARS official; or’’; and (c) by the substitution for subsection (5) of the following subsection:
‘‘(5) Powers and duties not specifically required by this Act to be exercised by the Commissioner or by a senior SARS official, may be exercised by a SARS official [employed or contracted to exercise or perform powers or duties for purposes of the administration of a tax Act].’’.
Amendment of section 8 of Act 28 of 2011
39. Section 8 of the Tax Administration Act, 2011, is hereby amended by the substitution for subsections (1) and (2) of the following subsections, respectively:
‘‘(1) SARS [must] may issue an identity card to each SARS official exercising powers and duties for purposes of the administration of a tax Act. (2) When a SARS official exercises a power or duty for purposes of the
administration of a tax Act in person outside SARS premises, the official must produce the identity card upon request by a member of the public.’’.
Amendment of section 11 of Act 28 of 2011
40. Section 11 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 lay a criminal charge relating to a tax offence described in section 235] cost order in favour of SARS resulting from any civil proceedings under this Act constitutes funds of SARS within the meaning of section 24 of the SARS Act.’’.
Amendment of section 26 of Act 28 of 2011
41. The Tax Administration Act, 2011, is hereby amended by the substitution for section 26 of the following section:
‘‘Third party returns
26. (1) The Commissioner may by public notice require a person who employs, pays amounts to, receives amounts on behalf of or otherwise transacts with another person, or has control over assets of another person, to submit a return [with the required information in the prescribed form and manner and] by the date specified in the notice. (2) A person required under subsection (1) to submit a return must do so
in the prescribed form and manner and the return must contain the information prescribed by the Commissioner and must be a full and true return.’’.
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Amendment of section 27 of Act 28 of 2011
42. The Tax Administration Act, 2011, is hereby amended by the substitution for section 27 of the following section:
‘‘Other returns required
27. (1) SARS may require a person to submit further or more detailed returns regarding any matter for which a return is required or prescribed by a tax Act. (2) A person required under subsection (1) to submit a return must do so
in the prescribed form and manner and the return must contain the information prescribed by SARS and must be a full and true return.’’.
Amendment of section 29 of Act 28 of 2011
43. Section 29 of the Tax Administration Act, 2011, is hereby amended— (a) by the substitution in subsection (1) for paragraph (b) of the following
paragraph: ‘‘(b) are specifically required under a taxAct or by the Commissioner by
public notice; and’’; (b) by the substitution in subsection (2) for the words preceding paragraph (a) of
the following words: ‘‘The requirements of this Act to keep records, books of account or
documents for a tax period apply to a person who—’’; and (c) by the substitution for the words in subsection (3) that precede paragraph (a)
of the following words: ‘‘Records, books of account or documents need not be retained by the
person described in—’’.
Amendment of section 32 of Act 28 of 2011
44. Section 32 of the Tax Administration Act, 2011, is hereby amended— (a) by the substitution for paragraph (a) of the following paragraph:
‘‘(a) records, books of account or documents are relevant to an audit or investigation under Chapter 5 which the person, subject to the audit or investigation has been notified of or is aware of; or’’; and
(b) by the substitution in subsection (1) for the words following paragraph (b) of the following words:
‘‘the person must retain the records, books of account or documents relevant to the audit, investigation, objection or appeal until the audit or investigation is concluded or the assessment or the decision becomes final.’’.
Amendment of section 34 of Act 28 of 2011
45. Section 34 of the Tax Administration Act, 2011, is hereby amended by the inclusion of single quotes around the word ‘arrangement’ where they do not appear;’’.
Amendment of section 36 of Act 28 of 2011
46. Section 36 of the Tax Administration Act, 2011, is hereby amended by the substitution in subsection (1)(a) for the words preceding item (i) of the following words:
‘‘a [loan, advance or] debt in terms of which—’’.
Amendment of section 37 of Act 28 of 2011
47. Section 37 of the Tax Administration Act, 2011, is hereby amended by the substitution in subsection (3) for the words preceding paragraph (a) of the following words:
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‘‘A ‘participant’ need not disclose the information [in respect of the ‘arrange- ment’] if the ‘participant’ obtains a written statement from—’’.
Amendment of section 42 of Act 28 of 2011
48. Section 42 of the Tax Administration Act, 2011, is hereby amended— (a) by the substitution for subsection (1) of the following subsection:
‘‘(1) A SARS official involved in or responsible for an audit under this [Part] Chapter must, in the form and in the manner as may be prescribed by the Commissioner by public notice, provide the taxpayer with a report indicating the stage of completion of the audit.’’; and
(b) by the substitution for subsection (6) of the following subsection: ‘‘(6) SARS may under the circumstances described in subsection (5)
issue the assessment or make the decision referred to in section 104(2) resulting from the audit and the grounds of the assessment or decision must be provided to the taxpayer within 21 business days of the assessment or the decision [referred to in section 104(2)], or the further period that may be required based on the complexities of the audit or the decision.’’.
Amendment of section 43 of Act 28 of 2011
49. Section 43 of the Tax Administration Act, 2011, is hereby amended by the substitution for subsections (1) and (2) of the following subsections, respectively:
‘‘(1) If at any time before or during the course of an audit it appears that a [person] taxpayer may have committed a serious tax offence, the investigation of the offence must be referred to a senior SARS official responsible for criminal investigations for a decision as to whether a criminal investigation should be pursued. (2) Relevant material [gathered during an audit] obtained under this Chapter
from the taxpayer after the referral, must be kept separate from the criminal investigation [and may not be used in criminal proceedings instituted in respect of the offence].’’.
Amendment of section 46 of Act 28 of 2011
50. Section 46 of the Tax Administration Act, 2011, is hereby amended— (a) by the substitution for subsection (3) of the following subsection:
‘‘(3)A request by SARS for relevant material from a person other than the taxpayer is limited to relevant information related to the records maintained or that should reasonably be maintained by the person in relation to the taxpayer.’’; and
(b) by the substitution for subsection (5) of the following subsection: ‘‘(5) If reasonable grounds for an extension are submitted by the
person, SARS may extend the period within which the relevant material must be submitted [on good cause shown].’’.
Amendment of section 49 of Act 28 of 2011
51. Section 49 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: ‘‘The person on whose premises an audit or criminal investigation is carried out and any other person on the premises, must provide such reasonable assistance as is required by SARS to conduct the audit or investigation, including—’’; and
(b) by the substitution for subsection (3) of the following subsection: ‘‘(3) The person may recover from SARS after completion of the audit
or criminal investigation (or, at the person’s request, on a monthly basis) the cost for the use of photocopying facilities in accordance with the fees
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prescribed in section 92(1)(b) of the Promotion of Access to Information Act.’’.
Amendment of section 61 of Act 28 of 2011
52. Section 61 of the Tax Administration Act, 2011, is hereby amended by the substitution for subsection (1) of the following subsection:
‘‘(1)ASARS official exercising a power under a warrant referred to in section 60 must produce the warrant, and if the owner or person in control of the premises is not present, the SARS official must affix a copy of the warrant to the premises in a prominent and visible place.’’.
Amendment of section 63 of Act 28 of 2011
53. Section 63 of the TaxAdministrationAct, 2011, is hereby amended by the addition of the following subsection:
‘‘(5) If the owner or person in control of the premises is not present, the SARS official must inform such person of the circumstances referred to in subsection (2) as soon as reasonably possible after the execution of the search and seizure.’’.
Amendment of section 71 of Act 28 of 2011
54. Section 71 of the Tax Administration Act, 2011, is hereby amended by the substitution in subsection (3) for paragraph (b) of the following paragraph:
‘‘(b) the information will likely be [critical] material to the prosecution of the offence or avoidance of the risk; and’’.
Amendment of section 72 of Act 28 of 2011
55. The Tax Administration Act, 2011, is hereby amended by the substitution for section 72 of the following section:
‘‘Self incrimination
72. (1) A taxpayer may not refuse to comply with his or her obligations in terms of legislation to complete and file a return or an application on the grounds that to do so might incriminate him or her, and an admission by the taxpayer contained in a return, application, or other document submitted to SARS by a taxpayer is admissible in criminal proceedings against the taxpayer for [an] a tax offence [under a taxAct], unless a competent court directs otherwise. (2)An admission by the taxpayer of the commission of [an] a tax offence
[under a tax Act] obtained from a taxpayer under Chapter 5 is not admissible in criminal proceedings against the taxpayer, unless a competent court directs otherwise.’’.
Amendment of section 79 of Act 28 of 2011
56. Section 79 of the Tax Administration Act, 2011, is hereby amended— (a) by the deletion in subsection (4) of the word ‘‘and’’ after paragraph (l); and (b) by the addition in subsection (4) of the following paragraphs:
‘‘(n) a statement confirming that the ‘applicant’ complied with any registration requirements under a taxAct, with regard to any tax for which the ‘applicant’ is liable, unless the ‘application’ concerns a ruling to determine if the ‘applicant’ must register under a tax Act; and
(o) a statement confirming that all returns required to be rendered by that ‘applicant’ in terms of a taxAct have been rendered and any tax
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has been paid or arrangements acceptable to SARS have been made for the submission of any outstanding returns or for the payment of any outstanding tax.’’.
Amendment of section 80 of Act 28 of 2011
57. Section 80 of the Tax Administration Act, 2011, is hereby amended by the substitution in subsection (1)(a) for item (vi) of the following item:
‘‘(vi) a matter which can be resolved by SARS issuing a directive under the Fourth Schedule or the Seventh Schedule to the Income Tax Act;’’.
Amendment of section 91 of Act 28 of 2011
58. Section 91 of the Tax Administration Act, 2011, is hereby amended— (a) by the substitution for subsection (5) of the following subsection:
‘‘(5) If a tax Act requires a taxpayer to submit a return— (a) the making of an assessment under subsection (4) does not detract
from the obligation to submit a return; [and] (b) the taxpayer in respect of whom the assessment has been issued
may, within [the period described in section 104] 30 business days from the date of assessment, request SARS to issue a reduced assessment or additional assessment by submitting a complete and correct return[.]; and
(c) an assessment under subsection (4) is not subject to objection or appeal unless the taxpayer submits the return and SARS does not issue a reduced or additional assessment.’’; and
(b) by the addition of the following subsection: ‘‘(6) A senior SARS official may extend the period referred to in
subsection (5)(b) within which the return must be submitted, for a period not exceeding the period for which a penalty may be automatically increased under section 211(2).’’.
Amendment of section 99 of Act 28 of 2011
59. Section 99 of the Tax Administration Act, 2011, is hereby amended by the substitution in subsection (1)(d)(i) for item (aa) of the following item:
‘‘(aa) amount which should have been assessed to tax under the preceding assessment was, in accordance with the practice generally prevailing at the date of the preceding assessment, not assessed to tax; or’’.
Amendment of section 107 of Act 28 of 2011
60. Section 107 of the Tax Administration Act, 2011, is hereby amended by the addition of the following subsection:
‘‘(7) SARS may concede an appeal in whole or in part before— (a) the matter is heard by the tax board or the tax court; or (b) an appeal against a judgment of the tax court or higher court is heard.’’.
Amendment of section 130 of Act 28 of 2011
61. Section 130 of the Tax Administration Act, 2011, is hereby amended by the deletion of subsection (3).
Amendment of section 135 of Act 28 of 2011
62. Section 135 of the Tax Administration Act, 2011, is hereby amended by the substitution for subsection (1) of the following subsection:
‘‘(1) If an intending appellant wishes to appeal against a decision of the tax court to the Supreme Court of Appeal, the ‘registrar’must submit the notice of intention to appeal lodged under section 134(1) to the president of the tax court, who must
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make an order granting or refusing leave to appeal having regard to the grounds of the intended appeal as indicated in the notice.’’.
Amendment of section 142 of Act 28 of 2011
63. Section 142 of the Tax Administration Act, 2011, is hereby amended by the substitution for the definition of ‘settle’ of the following definition:
‘‘ ‘settle’ means[, after the lodging of an appeal under this Chapter,] to resolve a ‘dispute’ by compromising a disputed liability, otherwise than by way of either SARS or the person concerned accepting the other party’s interpretation of the facts or the law applicable to those facts or of both the facts and the law, and ‘settlement’ must be construed accordingly.’’.
Amendment of section 164 of Act 28 of 2011
64. Section 164 of the Tax Administration Act, 2011, is hereby amended by the substitution in subsection (5) for paragraph (d) of the following paragraph:
‘‘(d) there is a material change in any of the factors referred to in subsection (3), upon which the decision to suspend payment of the amount involved was based.’’.
Amendment of section 166 of Act 28 of 2011
65. Section 166 of the Tax Administration Act, 2011, is hereby amended by the substitution in subsection (1) for the words preceding paragraph (a) of the following words:
‘‘Despite anything to the contrary contained in a tax Act, SARS may allocate payment made in terms of a tax Act against an amount of penalty or interest or the oldest amount of outstanding tax at the time of the payment, other than amounts—’’.
Amendment of section 187 of Act 28 of 2011
66. Section 187 of the Tax Administration Act, 2011, is hereby amended by the substitution in subsection (3) for paragraph (d) of the following paragraph:
‘‘(d) a fixed amount penalty referred to in section 210, is the date [for payment specified in the notice] of assessment of the penalty, and in relation to an increment of the penalty under section 211(2), the date of the increment.’’.
Amendment of section 189 of Act 28 of 2011
67. Section 189 of the Tax Administration Act, 2011, is hereby amended by the substitution for subsection (5) of the following subsection:
‘‘(5) If interest is payable under this Chapter and the rate at which the interest is payable has with effect from any date been altered, and the interest is payable in respect of any [tax] period or portion thereof which commenced before the said date, the interest to be determined in respect of— (a) the[tax] period or portion thereof which ended immediately before the said
date; or (b) the portion of the [tax] period which was completed before the said date, must
be calculated as if the rate had not been altered.’’.
Amendment of section 192 of Act 28 of 2011
68. Section 192 of the Tax Administration Act, 2011, is hereby amended by the deletion of the definition of ‘‘asset’’.
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Amendment to Chapter 14 of Act 28 of 2011
69. Chapter 14 of the Tax Administration Act, 2011, is hereby amended by the deletion of single quotes from the word ‘asset’.
Amendment of section 210 of Act 28 of 2011
70. The Tax Administration Act, 2011, is hereby amended by the substitution for section 210 of the following section:
‘‘Non-compliance subject to penalty
210. (1) If SARS is satisfied that non-compliance by a person referred to in subsection (2) exists, [excluding the non-compliance referred to in section 213,] SARS must impose the appropriate ‘penalty’ in accordance with the Table in section 211. (2) Non-compliance is failure to comply with an obligation that is
imposed by or under a tax Act and is listed in a public notice issued by the Commissioner, other than— (a) the failure to pay tax subject to a percentage based penalty under Part
C; [or] (b) non-compliance [subject to] in respect of which an understatement
penalty under Chapter 16 has been imposed; or (c) the failure to disclose information subject to a reportable arrangement
penalty under section 212.’’.
Amendment of section 211 of Act 28 of 2011
71. Section 211 of the Tax Administration Act, 2011, is hereby amended by the substitution in subsection (2) for paragraph (a) of the following paragraph:
‘‘(a) the date of [the delivery of the ‘penalty] assessment[’] of the penalty, if SARS is in possession of the current address of the person and is able to deliver the assessment, but is limited to 35 months from the date of the [delivery] assessment; or’’.
Amendment of section 217 of Act 28 of 2011
72. Section 217 of the Tax Administration Act, 2011, is hereby amended— (a) by the substitution in subsection (1) for paragraph (a) of the following
paragraph: ‘‘(a) a ‘first incidence’ of [the] non-compliance [described in section
210, 212 or 213]; or’’; and (b) by the substitution for subsection (3) of the following subsection:
‘‘(3) [In the case of a penalty] If a ‘penalty’ has been imposed under section 213, SARS may remit the ‘penalty’ or a portion thereof, if SARS is satisfied that— (a) the ‘penalty’ has been imposed in respect of a ‘first incidence’ of
[the] non-compliance [described in section 210, 212 or 213], or involved an amount of less than R2 000;
(b) reasonable grounds for the non-compliance exist; and (c) the non-compliance in issue has been remedied.’’.
Amendment of section 223 of Act 28 of 2011
73. Section 223 of the Tax Administration Act, 2011, is hereby amended by the substitution in subsection (3) for paragraph (b) of the following paragraph:
‘‘(b) was in possession of an opinion by a registered tax practitioner[, as defined in section 239,] that— (i) was issued by no later than the date that the relevant return was due; (ii) [took account of the specific facts and circumstances of the
arrangement] was based upon full disclosure of the specific facts and circumstances of the arrangement and, in the case of any opinion regarding the applicability of the substance over form doctrine or the
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anti-avoidance provisions of a tax Act, this requirement cannot be met unless the taxpayer is able to demonstrate that all of the steps in or parts of the arrangement were fully disclosed to the tax practitioner, whether or not the taxpayer was a direct party to the steps or parts in question; and
(iii) confirmed that the taxpayer’s position is more likely than not to be upheld if the matter proceeds to court.’’.
Amendment of section 224 of Act 28 of 2011
74. The Tax Administration Act, 2011, is hereby amended by the substitution for section 224 of the following section:
‘‘Objection and appeal against decision not to remit understatement penalty
224. A decision by SARS not to remit an understatement penalty under section 223(3) is subject to objection and appeal under Chapter 9.’’.
Amendment of section 229 of Act 28 of 2011
75. Section 229 of the Tax Administration Act, 2011, is hereby amended by the substitution for paragraph (a) of the following paragraph:
‘‘(a) not pursue criminal prosecution for a [statutory] tax offence [under a tax Act] arising from the ‘default’ [or a related common law offence];’’.
Amendment of section 231 of Act 28 of 2011
76. Section 231 of the Tax Administration Act, 2011, is hereby amended by the substitution in subsection (1) for paragraph (c) of the following paragraph:
‘‘(c) pursue criminal prosecution for a [statutory] tax offence [under a taxAct or a related common law offence].’’.
Amendment of section 234 of Act 28 of 2011
77. Section 234 of the Tax Administration Act, 2011, is hereby amended— (a) by the substitution for paragraph (g) of the following paragraph:
‘‘(g) issues an erroneous, incomplete or false document required to be issued under a tax Act [to be issued] to another person;’’; and
(b) by the addition after paragraph (o) of the following paragraph: ‘‘(p) fails or neglects to withhold and pay to SARS an amount of tax as
and when required under a tax Act;’’.
Amendment of section 235 of Act 28 of 2011
78. Section 235 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 lay a complaint with the South African Police Service or the National ProsecutingAuthority regarding an offence [contemplated in subsection (1)] under this section.’’.
Amendment of section 237 of Act 28 of 2011
79. The Tax Administration Act, 2011, is hereby amended by the substitution for section 237 of the following section:
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‘‘Criminal offences relating to filing return without authority
237. A person who— (a) submits a return or other document to SARS under a forged signature; (b) uses an electronic or digital signature of another person in an
electronic communication to SARS without the person’s consent and authority; or
(c) otherwise submits to SARS a communication on behalf of another person without the person’s consent and authority,
[without the person’s consent and authority,] is guilty of an offence and, upon conviction, is subject to a fine or to imprisonment for a period not exceeding two years.’’.
Amendment of heading of Chapter 18 of Act 28 of 2011
80. (1) Chapter 18 of the Tax Administration Act, 2011, is hereby amended by the substitution for the heading of the following heading:
‘‘REGISTRATION OF TAX PRACTITIONERS AND REPORTING OF UNPROFESSIONAL CONDUCT’’.
(2) Subsection (1) comes into operation on the date of promulgation of this Act.
Amendment of section 239 of Act 28 of 2011
81. (1) Section 239 of the Tax Administration Act, 2011, is hereby amended— (a) by the insertion of the following definition after the definition of ‘controlling
body’: ‘‘ ‘recognised controlling body’means a ‘controlling body’ recognised by the Commissioner under section 240A.’’; and
(b) by the deletion of the definition of ‘‘registered tax practitioner’’: (2) Subsection (1) comes into operation on the date of promulgation of this Act.
Amendment of section 240 of Act 28 of 2011
82. (1) Section 240 of the Tax Administration Act, 2011, is hereby amended— (a) by the substitution in subsection (1) for paragraph (b) of the following
paragraph: ‘‘(b) completes or assists in completing a [document to be submitted to
SARS] return by another person [in terms of a tax Act],’’; (b) by the substitution in subsection (1) for the words following paragraph (b) of
the following words: ‘‘must—
(i) register with or fall under the jurisdiction of a ‘recognised controlling body’ by the later of 1 July 2013 or 21 business days after the date on which that person for the first time provides the advice or completes or assists in completing the return; and
(ii) register with SARS as a tax practitioner[,] in [such] the prescribed form and manner [as the Commissioner may determine], within[30] 21 business days after the date on which that person for the first time provides the advice or completes or assists in completing [any such document] the return.’’;
(c) by the substitution in subsection (2) for paragraph (a) of the following paragraph:
‘‘(a) provides the advice or completes or assists in completing a [document] return solely for no consideration to that person or his or her employer or a connected person in relation to that employer or that person;’’;
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(d) by the substitution in subsection (2) for paragraph (d) of the following paragraph:
‘‘(d) provides the advice or completes or assists in completing a [document]return solely—
(i) to or in respect of the employer by whom that person is employed on a full-time basis or to or in respect of [that] the employer and connected persons in relation to [that] the employer; or
(ii) under the direct supervision of a person who is a registered [as a] tax practitioner [in terms of subsection (1)].’’; and
(e) by the substitution in subsection (3) for paragraph (a) of the following paragraph:
‘‘(a) during the preceding five years has been removed from a related profession by a ‘controlling body’ for serious misconduct; [and] or’’.
(2) Subsection (1) comes into operation on the date of promulgation of this Act.
Insertion of section 240A in Act 28 of 2011
83. (1) The Tax Administration Act, 2011, is hereby amended by the insertion of the following section after section 240:
‘‘Recognition of controlling bodies
240A. (1) The Commissioner must recognise as a ‘recognised control- ling body’— (a) the Independent Regulatory Board forAuditors established in terms of
section 3 of the Auditing Professions Act, 2005 (Act No. 26 of 2005); (b) a Law Society established in terms of Chapter 3 of the Attorneys Act.
1979 (Act No. 53 of 1979); (c) the General Council of the Bar of South Africa, a Bar Council and a
Society of Advocates referred to in section 7 of the Admission of Advocates Act, 1964 (Act No. 74 of 1964); and
(d) a statutory body that the Minister is satisfied is similar to the statutory bodies in this subsection and the details of which are published in the Gazette.
(2) The Commissioner may recognise a ‘controlling body’, for natural persons who provide advice with respect to the application of a tax Act or complete returns, as a ‘recognised controlling body’ if the body— (a) maintains relevant and effective—
(i) minimum qualification and experience requirements; (ii) continuing professional education requirements; (iii) codes of ethics and conduct; and (iv) disciplinary codes and procedures;
(b) is approved in terms of section 30B of the Income Tax Act for purposes of section 10(1)(d)(iv) of the Act; and
(c) has at least 1 000 members when applying for recognition or reasonable prospects of having 1 000 members within a year of applying.
(3) A body recognised under subsection (2) must submit a report on its members and compliance with this Chapter within the time period and in the form and manner as prescribed by the Commissioner. (4) The Minister may appoint a panel of retired judges or persons of
similar stature and competence one or more of whommay decide, on behalf of a body recognised under subsection (2), complaints lodged under section 241— (a) at the request of the body; or (b) if the Minister is satisfied that the body’s disciplinary process is
ineffective. (5) The costs of the panel in deciding complaints will be borne equally by
such a body and SARS. (6) If a body recognised under subsection (2) no longer meets the listed
requirements, the Commissioner must notify it that if it does not take
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corrective steps within the period specified in the notice, its recognition will be withdrawn at the end of the period.’’.
(2) Subsection (1) comes into operation on the date of promulgation of this Act.
Substitution of section 241 of Act 28 of 2011
84. (1) The Tax Administration Act, 2011, is hereby amended by the substitution for section 241 of the following section:
‘‘Complaint to controlling body [of tax practitioner]
241. (1) A senior SARS official may lodge a complaint with a ‘controlling body’ if a [‘registered tax practitioner’ or] person who carries on a profession governed by the ‘controlling body’, did or omitted to do anything with respect to the affairs of a taxpayer, including that person’s affairs, that in the opinion of the official— (a) was intended to assist the taxpayer to avoid or unduly postpone the
performance of an obligation imposed on the taxpayer under a taxAct; (b) by reason of negligence on the part of the person resulted in the
avoidance or undue postponement of the performance of an obligation imposed on the taxpayer under a tax Act;[ or]
(c) constitutes a contravention of a rule or code of conduct for the profession which may result in disciplinary action being taken against the [‘registered tax practitioner’ or] person by the body[.]; or
(d) constitutes conduct under subsection (2) by a registered tax practi- tioner.
(2) A senior SARS official may lodge a complaint with a ‘recognised controlling body’ if a registered tax practitioner has, in the opinion of the official— (a) without exercising due diligence prepared or assisted in the prepara-
tion, approval or submission of any return, affidavit or other document relating to matters affecting the application of a tax Act;
(b) unreasonably delayed the finalisation of any matter before SARS; (c) given an opinion contrary to clear law, recklessly or through gross
incompetence, with regard to any matter relating to a tax Act; (d) been grossly negligent with regard to any work performed as a
registered tax practitioner; (e) knowingly given false or misleading information in connection with
matters affecting the application of a tax Act or participated in such activity; or
(f) directly or indirectly attempted to influence a SARS official with regard to any matter relating to a tax Act by the use of threats, false accusations, duress, or coercion, or by offering gratification as defined in the Prevention and Combating of Corrupt Activities Act, 2004 (Act No. 12 of 2004).’’.
(2) Subsection (1) comes into operation on the date of promulgation of this Act.
Amendment of section 244 of Act 28 of 2011
85. Section 244 of the Tax Administration Act, 2011, is hereby amended by the substitution in subsection (3) for paragraph (a) of the following paragraph:
‘‘(a) reasonable grounds exist for the delay and the application is submitted within 21 business days of the deadline; or’’.
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Amendment of section 246 of Act 28 of 2011
86. Section 246 of the Tax Administration Act, 2011, is hereby amended by the substitution for subsection (4) of the following subsection:
‘‘(4)A company [covered by this section] that has not appointed a public officer is subject to a tax Act[, the same] as if a tax Act did not require the public officer to be appointed.’’.
Amendment of section 252 of Act 28 of 2011
87. Section 252 of the Tax Administration Act, 2011, is hereby amended by the substitution for paragraph (a) of the following paragraph:
‘‘(a) [delivered] handed to the public officer of the company;’’.
Amendment of section 255 of Act 28 of 2011
88. Section 255 of the Tax Administration Act, 2011, is hereby amended by the substitution for subsection (1) of the following subsection:
‘‘(1) The Commissioner may by public notice make rules prescribing— (a) the procedures for submitting a return in electronic format, electronic
record retention and [for] other electronic communications between SARS and other persons; [and]
(b) requirements for an electronic or digital signature of a return or communication; and
(c) the procedures for electronic record retention by SARS.’’.
Substitution of section 256 of Act 28 of 2011
89. (1) The Tax Administration Act, 2011, is hereby amended by the substitution for section 256 of the following section:
‘‘Tax clearance certificate
256. (1) A taxpayer may apply to SARS for a tax clearance certificate in the prescribed form and manner. (2) SARS must issue or decline to issue the certificate within 21 business
days from the date the application is [duly filed] submitted or such longer period as may reasonably be required if a senior SARS official is satisfied that the issuing of a tax clearance certificate 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 and may confirm that the taxpayer is tax compliant by issuing a tax clearance certificate only if satisfied that the taxpayer is registered for tax and does not have any— (a) tax debt outstanding, 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 SARS has been made for the submission of the return.
(4) A tax clearance certificate must be in the prescribed form and include at least— (a) the original date of issue of the tax clearance certificate [reference
number assigned to the certificate and reflected in the records of SARS];
(b) the name, taxpayer reference number, address and identity number or company registration number of the taxpayer;
(c) the date of the application for a certificate; (d) a statement that the taxpayer [has no outstanding tax debts] is tax
compliant as [at] determined on the original date of issue of the certificate; and
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(e) the expiry date of the certificate. (5) Despite the provisions of Chapter 6, SARS may confirm the
taxpayer’s tax compliance status [validity and expiry date of the certificate upon] as at the date of a request by a sphere of government, [or] parastatal or other person to whom the taxpayer has presented the certificate. (6) SARS may withdraw a certificate with effect from the date of the
issue thereof if the certificate— (a) was issued in error; or (b) was obtained on the basis of fraud, misrepresentation or non-
disclosure of material facts. (7) A certificate is invalid 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 257 of Act 28 of 2011
90. Section 257 of the Tax Administration Act, 2011, is hereby amended— (a) by the substitution in subsection (2)(b) for the words preceding subparagraph
(i) of the following words: ‘‘the limitations on the [jurisdiction]mandate of the Tax Ombud, having regard to—’’;
(b) by the insertion of the following subsection after subsection (2): ‘‘(2A) For purposes of the issue of a tax clearance certificate under
section 256, the Minister may make regulations regarding— (a) the circumstances when a tax clearance certificate may be required
from a person or be issued by SARS; (b) the period of validity of a tax clearance certificate; or (c) any procedure to further regulate the issue or withdrawal of a tax
clearance certificate.’’.
Amendment of section 269 of Act 28 of 2011
91. Section 269 of the Tax Administration Act, 2011, is hereby amended by the substitution for subsection (1) of the following subsection:
‘‘(1) Rules, notices and regulations issued under the provisions of a tax Act repealed by this Act that are in force immediately before the commencement date of this Act, remain in force as if they were issued under [section 103 or 257, respectively,] the equivalent provisions of this Act, to the extent consistent with this Act, until new rules, notices and regulations are issued under such provisions.’’.
Deletion of paragraph 78 of Schedule 1 to Act 28 of 2001
92. Paragraph 78 of Schedule 1 to the TaxAdministrationAct, 2011, is hereby deleted.
Amendment of paragraph 167 of Schedule 1 to Act 28 of 2011
93. Paragraph 167 of Schedule 1 to the Tax Administration Act, 2011, is hereby amended—
(a) by the substitution for paragraph (c) of the following paragraph: ‘‘(c) by the addition after subsection [(1)](2) of the following subsection:
‘[(2)] (3) Unless the context indicates otherwise, a word or expression to which a meaning has been assigned in the Tax Administration Act bears that meaning for purposes of this Act.’ ’’; and
(b) by the deletion of paragraph (d).
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Short title and commencement
94. (1) This Act is called the Tax Administration Laws Amendment Act, 2012. (2) Save in so far as is otherwise provided for in this Act, amendments to the Tax
Administration Act, 2011, will be deemed to have come into operation on 1 October 2012. (3) Subject to subsection (2), and save in so far as is otherwise provided for in thisAct,
or the context otherwise indicates, the amendments effected by this Act come into operation on the date of promulgation of this Act.
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