Taxation Laws Amendment Bill & Appropriation Bill: adoption

NCOP Finance

25 June 2002
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Meeting Summary

A summary of this committee meeting is not yet available.

Meeting report


26 June 2002

Ms Mahlangu (ANC)

Relevant documents:
Taxation Laws Amendment Bill [B26 - 2002]
Appropriation Bill [B4 - 2002]
PowerPoint Presentation on the Budget and the Appropriation Bill

SARS refreshed the memory of the Committee on the Taxation Laws Amendment Bill. The Committee agreed that the Bill was clear and straightforward and the Bill was adopted. A more detailed briefing was given to the Finance Committees of both Houses on 4 June 2002.
National Treasury briefed the committee on the Appropriation Bill. The Bill was adopted but the DP noted that they were voting against the Bill as a whole. The Minister and Director General gave a detailed briefing on the Budget on 21 February 2002.

Taxation Laws Amendment Bill
Mr Tomasek (SARS) highlighted the main features of the Bill such as the limitations on employee deductions, the Public Benefit Organisation provisions, the power of the Commissioner and the wage incentive.

These issues had been thoroughly discussed during the informal briefing and hearings.

Mr Tomasek advised that there was a slight change in the wage incentive in that the previously unemployed are "incentivised". If an employer signs a learnership agreement with a person who is unemployed, that employer is entitled to e deduction equal to the annual salary to a maximum of R25 000. If the employer signs an agreement with an already employed person the deduction that is allowed is equal to only 70% of the annual salary to a maximum of R17 500.

Mr Aulsebrook (KZN Legislature) asked what is the status of funds that were taken out of the country illegally.

Mr Tomasek replied that he could not address the issues around exchange control amnesty because it was the prerogative of the Minister of Finance. He added that in clause 27 the Commissioner had the power to determine the value of assets held offshore and not disclosed and also to deem the amount of income that the asset generated.

Mr Ralane (ANC) said that everything was clear and moved for the adoption of the Bill.

The Chair read the report and the Committee agreed to adopt the Bill.

Appropriation Bill
Ms Shelly Robinson (Director in the Budget Office of National Treasury) briefed the committee on the Appropriation Bill. She said that the Bill is the legislative interpretation of the Estimates of National Expenditure (ENE). The ENE explains the policy changes and explains what departments are actually doing.

The presentation provided the details of the MTEF process, the overview of the 2002 budget, spending priorities over the MTEF, allocations, spending, division of revenue, transfers and the main changes in the 2002 budget. All these details are also contained in the briefing on the Budget to the Finance Portfolio Committee on 21 February 2002.

The Bill was put before the committee.

Mr Theron indicated that the DP would be voting against the Bill.

The remaining members agreed to the Bill and the Committee adopted it.

The meeting was adjourned.


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