TLAB, TALAB, Rates Bill, Global Tax Bills and Revenue Bill: adoption
Meeting Summary
The Committee met to adopt its reports on six tax bills: the Global Minimum Tax Bill, the Global Minimum Tax Administration Bill, the Draft Revenue Laws Amendment Bill, the Draft Taxation Laws Amendment Bill, the Draft Taxation Administration Laws Amendment Bill, the Draft Rates and Monetary Bill, and the Draft Revenue Laws Amendment Bill.
Before deliberating on its reports, the Committee heard that the Association for Savings and Investment South Africa and National Treasury met the previous day to discuss the former’s concern regarding the seeding date provided in the Revenue Laws Amendment Bill for provident fund members who were age 55 or older on 1 March 2021. The Committee was pleased to hear that the two parties reached an agreement wherein the National Treasury will accommodate the Association’s proposed changes in a ‘quick’ bill sometime at the start of next year.
After concluding this matter, the Committee considered and adopted the reports on the six bills.
This was the Committee’s final meeting for the year.
Meeting report
The Chairperson welcomed everyone to the meeting and outlined its main purpose: the Committee will consider and adopt its reports on the six tax bills. However, before doing that, the Committee would hear the National Treasury (NT)’s response to a letter recently sent by the Association for Savings and Investment South Africa (ASISA).
After that, she asked if the Committee received any apologies.
Mr Nkululeko Mangweni (Committee Secretary) said no apologies were received.
The Chairperson noted that no apologies were received, and she thereafter handed over to the department.
Mr Chris Axelson (Acting Head: Tax and Financial Sector Policy at the National Treasury) indicated that shortly after receiving the letter, the NT requested a meeting with ASISA as it was concerned by some of the points raised. The issue raised by ASISA is that the NT’s policy intent was not in line with the tabled Revenue Laws Amendment Bill, so a correction had to be made. This came after the department’s statement during last week’s Committee meeting that it was too late to amend the tabled Bill. In its meeting with ASISA, the department discussed how it would give funds and other retirement fund administrators the assurance that the corrections would be made at a later stage in a ‘quick’ bill.
The department admitted that the two-pot system was implemented a bit sooner than anticipated. The failure to anticipate this is why subsequent amendments have had to be made to the current legislation. To reassure ASISA, the department communicated that it would upload a quick bill containing the proposed amendments sometime at the beginning of next year to its website. ASISA said these steps may comfort its members.
Ms Adri Messerschmidt (Senior Policy Advisor: Regulatory Affairs at ASISA) confirmed that ASISA did meet with the NT the previous day, where the latter undertook to publish a ‘quick’ bill on its website before the end of the year to give retirement funds and their members the comfort that the law will change to reflect the policy intent.
Mr D Ryder (DA, Gauteng) believed that ASISA raised some important points which placed the Committee in a difficult position because it was being requested to pass a flawed bill with the assurance that a quick bill would be tabled early in the new year. In his opinion, the department was implying that Parliament has allocated insufficient time to process the tax bills and for them to be in effect. In the past, the Committee has made amendments to Section 76 and 77 bills and referred them back to the National Assembly.
He asked the Chairperson to allow Members to consult with their parties for guidance on the matter.
The Chairperson felt it would be fair to reach a compromise in which Members could consult their parties while allowing the department to finalise its consultations with ASISA.
Ms T Legwase (ANC, North West) agreed with the Chairperson’s proposed way forward.
Mr B Radebe (ANC, Free State) asked if ASISA would accept Parliament processing and adopting the bill as it currently is.
Ms Messerschmidt said that while it was not ideal, ASISA was comfortable with the department publishing a quick bill on its website by the end of the year, as this will manage the risk for retirement funds and their members.
Mr S Majola (MK, KwaZulu-Natal) asked if the Committee could receive legal advice before proceeding further.
The Chairperson felt that was unnecessary as ASISA was comfortable with the department’s proposed way forward.
Ms Legwase agreed with the Chairperson’s earlier view that the Committee should allow ASISA to continue its consultations with the department.
Mr Ryder supported the Chairperson’s suggestion. He clarified that this was a principle issue and not a legal issue. To that point, the process had been entirely legal.
The Chairperson noted the Members’ comments. After doing so, she said the Committee would begin deliberations on its reports on the six tax bills, starting with the Rates and Monetary Amounts Amendment Bill.
Committee Report on the Rates and Monetary Amounts Amendment Bill
The Chairperson took the Committee through the report.
After going through the report the Chairperson requested a mover to adopt the report.
Ms S Nxumalo (ANC, Mpumalanga) moved for its adoption.
Mr Radebe seconded the mover.
The report was duly adopted.
Committee Report on the Taxation Laws Amendment Bill
The Chairperson took the Committee through the report.
Mr Ryder was disappointed that the report did not recommend a review of the fuel levy.
After going through the report the Chairperson requested a mover to adopt the report.
Mr Ryder moved for its adoption.
Mr Radebe seconded the mover.
The report was duly adopted.
Committee Report on the Tax Administration Laws Amendment Bill
The Chairperson took the Committee through the report.
After going through the report the Chairperson requested a mover to adopt the report.
Ms Legwase moved for its adoption.
Ms Nxumalo seconded the mover.
The report was duly adopted.
Committee Report on the Revenue Laws Amendment Bill
The Chairperson took the Committee through the report.
After going through the report the Chairperson requested a mover to adopt the report.
Ms Nxumalo moved for its adoption.
Ms Legwase seconded the mover.
The report was duly adopted.
Committee Report on the Global Minimum Tax Bill
The Chairperson took the Committee through the Bill.
Mr Nhlanhla Radebe, (Director: Business Financial and International Tax at the National Treasury) suggested some minor spelling corrections to the report.
After going through the report the Chairperson requested a mover to adopt the report.
Mr P Swart (DA, Western Cape) moved for its adoption.
Ms Nxumalo seconded the mover.
The report was duly adopted.
Committee Report on the Global Minimum Tax Administration Bill
The Chairperson took the Committee through the Bill.
After going through the report the Chairperson requested a mover to adopt the report.
Mr Radebe moved for its adoption.
Ms Nxumalo seconded the mover.
The report was duly adopted.
The Chairperson asked if there were any other items left on the agenda.
Mr Mangweni said there were none.
The Chairperson noted that there were no other items left. Afterwards, she thanked all the Members for their contributions during this term of Parliament and wished them well for the holiday season.
The meeting was adjourned.
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Bills
Present
-
Ndhlovu, Ms S
Chairperson
ANC -
Britz, Mr JHP
DA -
Legwase, Ms TI
ANC -
Majola, Mr JS
MK -
Nxumalo, Ms S
ANC -
Radebe, Mr BA
ANC -
Ryder, Mr D
DA -
Siwisa, Ms AM
EFF -
Swart, Mr PJ
DA
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