Tax Bills: adoption

Meeting report

Taxation Laws Amendment Bill [B17-2016] (section 77): adoption
The Chairperson noted that there had been a briefing on the Bill the previous week. However, the process had already commenced in August, before the Committee went to Mexico, when it had a joint meeting with the Standing Finance Committee on the Bill. The drafters had noted that as part of the Committee process.

The Committee formally adopted the Committee Report that recommended the adoption of the Bill without amendment by the National Council of Provinces (NCOP).

Mr F Essack (DA, Mpumalanga) commented that the DA had no problem with the report, but had some comments which it wanted taken into consideration. He read out bullet points 1, 2 and 3 on page 1, related to tax incentives, guarding against over-regulation by the Treasury, and the need for industry to be consulted before tax proposals were brought to Parliament.

The Chairperson told Mr Essack that the comments were already in the report.

Mr Essack apologised.

The Chairperson advised that Mr Essack could declare it in the plenary session. It would be in the declaration to the House.

Mr Essack said that he would only insist that it be put on record, and recorded in the minutes.

Ms T Motara (ANC, Gauteng) asked Mr Essack if what was raised was to be submitted for adoption or raised as an additional point. She asked where it had to be included.

The Chairperson noted that the report was already adopted. The DA could raise its comments in the plenary on the following day.

Mr Essack repeated that he simply wanted it to be recorded. It was related to the Employment Tax Incentive.

Mr T Motlashuping (ANC, North West) remarked that the report was already adopted. The Committee was told that there would be time to interact about the issues raised in the House. Mr Essack was preventing engagement with issues, and not assisting the meeting.

The Chairperson asked Mr Essack to submit the comments to the Secretariat. Copies had to be circulated to all Members.

Tax Administration Laws Amendment Bill [B18-2016] (section 75]: adoption
The Chairperson noted that there had been engagement with the Treasury and SARS on 24 August. There were subsequent engagements on 21 September, and the week before. He noted that the Tax Ombud was highlighted.

The Committee formally adopted the Committee Report that recommended the adoption of the Bill without amendment by the NCOP.

Rates & Monetary Amounts and Amendment of Revenue Laws Bill [B19-2016] (section 77): adoption
The Chairperson noted that the Bill was announced by the Finance Minister in February at the tabling of the National Budget. He informed the new Committee member, Ms B Mathebula (EFF) that the Secretariat had to give her a Budget Review book. It was a resource document, tabled by the Finance Minister with the National Budget, and was very important. The Secretary also had to give her the Medium Term Budget Policy Statement (MTBPS) as that was the entrée for the 2017 Budget. It was a section 77 Bill which included rates and brackets, tabled by the Finance Minister with the National Budget.

Mr Essack noted that the DA objected to line item 2 on page 2 with respect to transfer duty, a rate of 13% was introduced, for transactions of over R10 million. The DA objected to line item 7 on the increase of a capital gains inclusion rate for consolidated foreign companies from 33.3% to 40%. There was also an objection to line item 12, the increase in the inclusion rate of taxable capital gains and assessable capital losses, from 33.3% to 40% for individuals and persons, and for the other from 66.6% to 80%.

The Chairperson told the DA that the objections would be captured.

The Committee Report, recommending the adoption of the Bill without amendment by the NCOP, was considered and adopted, with objections by the DA captured.

Rates & Monetary Amounts & Amendment of Revenue Laws (Administration) Bill: adoption
The Committee formally adopted the Committee Report that recommended the adoption of the Bill without amendment by the NCOP.

Adoption of minutes
Minutes of 29 and 30 November were adopted.

Conclusion
The Chairperson said that the day’s meeting was the last one of the year. He thanked members for the value added to procedures, meetings and strategic engagements. He wished everyone well for the festive season. The first term programme, until the end of March, was already compiled. There would be a joint management meeting later that day, to put the programme together. He thanked the staff and wished those well who were studying.

He said the Finance Standing Committee was meeting about the referral back to Parliament by the President, of the Financial Intelligence Centre Amendment (FICA) Bill. It was a matter of concern. The FICA Bill would be dealt with in January. It was not to be rushed. That would be item one in January. Item two would be the Financial Sector Regulation Bill. The Bill was referred to the Select Committee and he presumed that members had read it. It was going to be a difficult exercise. It could not be dealt with in two or three meetings; it would rather require two or three months. The Committee management would deal with the process in the Finance Committee. It took the Finance Standing Committee 28 meetings, four public hearings and 156 hours to deal with the Bill. It was important legislation to bring the country in line with the international environment. He asked the Committee Whip, Ms Motara, if the plenary session at 10h00 on the following day would be done by Friday 12h00.

Ms Motara affirmed that all could be done by Friday 12h00, if other parties cooperated. She urged other parties in a playful tone to play nice.

Mr L Gaehler (UDM, Eastern Cape) thanked the Chairperson for his leadership.

The Chairperson thanked Mr Mohai as Chairperson of the Appropriations Select Committee whom he could always consult.

The Chairperson adjourned the meeting.