Hansard: Second Reading Debate: Tax Administration Bill (B11-2011)

House: National Assembly

Date of Meeting: 23 Nov 2011

Summary

No summary available.

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Minutes

THURSDAY, 24 NOVEMBER 2011

PROCEEDINGS OF THE NATIONAL ASSEMBLY

[UNREVISED HANSARD]

The DEPUTY MINISTER OF HEALTH

TAX ADMINISTRATION BILL

(Second Reading debate)

The MINISTER OF FINANCE: Hon Deputy Speaker, Deputy President and hon members, we are here to discuss your favourite topic, tax. The 2008 financial crisis and the current economic stresses in Europe, in particular, once again underlines the importance of sound tax policy, an effective tax administration and a deeply entrenched compliance culture in society. We are privileged to have all three in South Africa. This Bill reflects our constant endeavour to simplify law, reduce red-tape and streamline the administration to provide a better service to taxpayers, whilst strengthening enforcement and compliance.

Our tax administration law is currently duplicated in several different tax Acts, for example, the Income Tax Act, the Value-Added Tax Act, the Customs and Excise Act, ranging in an age that is the legislation from three to 62 years old. The time has come to streamline and bring the law up to date. The Tax Administration Bill creates a single, modern framework for the common administration of the provisions of the tax Acts. The consultation process on this Bill extended for over a two-and-a-half year period.

The key features of the Bill that I am going to summarise just very quickly are the following: Firstly, a phased moves to – a single registration process and a number across taxes to reduce red-tape and streamline the system. Currently, you have to register for Pay As You Earn, Paye, Value-Added Tax, VAT, Income Tax, separately. Secondly, a single account for taxes and simplified allocation rules for the same reason. Thirdly, is the self-assessment of taxes so that taxpayers do not have to wait for SA Revenue Service, Sars, assessment. Of course, this depends upon the honesty of taxpayers. Fourthly, is a greater access to third-party data to underpin Sars initiatives such as the prepopulation of individual tax returns. Fifthly, clearer rules on Sars access to information so that tax liabilities can be determined more quickly and more accurately.

Sixthly, the ability to search business premises without a warrant in narrow cases or few cases and issues so called jeopardy assessments so that Sars can act when tax is at risk and time is of the essence. There are many people in South Africa and elsewhere in the world who won't hesitate to sell their assets, for example, if they know that Sars is on the way. So, we need to do things fairly quickly to stop those sorts of escape mechanisms. Seventhly, the clear requirements and timelines for the issuance of Tax Clearance Certificates to provide greater certainty. Eighthly, feedback on audit progress and findings to engage more fully with taxpayers means that sometimes complex audits take a long time. What these require is that Sars now has an obligation to keep the taxpayer informed about progress in respect of the audit. Ninthly, the specific timeframes for decisions of the Tax Board, which is the equivalent of a Small Claims Court, in respect of tax and wider reporting of Tax Court decisions, to improve access to justice. Tax Courts, hon members - are very different from ordinary courts. Matters heard in the Tax Court are heard in secret - if you like - and they are not reported unless the judge decides so. How does this happen? It gives the anonymity to the taxpayer, but allows the case to be reported so that more role-players can understand what happened in the Tax Court. Lastly, the introduction of Tax Ombud, informed by international experience, will provide taxpayers with a low cost mechanism to address administrative issues.

In conclusion, one thing that the Bill before us today does not address is the transformation of the advisor community. The aggressive undermining of the fiscus that some pursue, obviously at the receipt of a fee even at a time of extreme fiscal stress, is extremely dangerous as we can see in Greece and Italy and other countries. They and their clients must pause for reflection as we must also on the damage they can do to the tax system and South Africa more broadly as a result of their practices.

I would like to thank the broad range of stakeholders who have been involved in the development of the Bill over the last two-and-a- half year. More specifically, I would like to thank the Standing Committee on Finance and Chairperson, Mr Mufamadi, and his team for their invaluable contribution. This has included feedback during the briefing process, a productive public hearing process and the comprehensive set of clarifications, corrections and enhancements that have set out in the Bill. Thank you. [Applause.]

C/W: Mr D D VAN ROOYEN /AZM MNGUNI/VM/ END OF TAKE

"National Assembly Chamber Main",Unrevised Hansard,19 Jan 2012,"Take 92 [National Assembly Chamber Main].doc"

The MINISTER OF FINANCE

Mr D D VAN ROOYEN: Chairperson, Deputy President, hon Ministers and Deputy Ministers, hon members and comrades, the political necessity of any state to advance their programmes and ensure the relevancy of these programmes to their political future depends in the main in part on an established and well-functioning taxation system that directs both tax liability provisions and the tax administration provisions.

The economic base of the state is not just about an ideological discussion of what the macroeconomic fiscal and monitory policy principle should be. It is true that it is necessary to have ideological clarity on macroeconomic principles, but the task of driving the state is dependent on a taxation regime that will realise those ideological convictions.

If the state does address this, it follows all the dangers of becoming detached from its base - its human resources, the people unable to financially address their demands and unable to put into practice policy decisions that would result, as in the case of the ANC, in a better quality of life.

A tax regime is led: firstly, by a clear policy. In our country the ANC and its government were able to put together a combination of taxation policies which reflect the ethos of the organisation and its policy directives. The ANC taxation policy speaks to the progressive nature of the South African taxation regime in which the poor are shielded whilst the wealthy contribute accordingly.

Secondly, the ANC taxation policy speaks to the redistributive nature of the South African taxation system - something which this House has witnessed during many budget speeches of the Minister of Finance, which has assisted the poor and those in low-income categories.

Thirdly, the ANC tax policy speaks to an effective administrative tax system that adds value to the fiscus and the economy through its provisions assisting in the building of the domestic economy and the national output.

Fourthly, the ANC tax policy speaks to the ongoing need for tax reform as part of the overall transformation of tax legislation and the financial sector.

These four pillars are the driving force behind any legislative change to a taxation regime.

Today we deal specifically with deepening the taxation reform in our country that is necessary so as to ensure that we have a fiscus that can assist in bringing into reality our vision of a national democratic society characterised by a thriving and integrated economy with the ability to create employment opportunities in an economy in which increasing social equality and economic growth form a virtuous cycle of development, which progressively improves the quality of life of all citizens; an economy that deals decisively with poverty and frees the potential of each and every individual.

The Tax Administration Bill incorporates into one piece of legislation generic administrative provisions which are currently duplicated in different tax Acts. It seeks to achieve a balance between powers and duties of tax collection and the rights and obligations of taxpayers. It is a preliminary step in rewriting the Income Tax Act and assists by dividing the work into more manageable parts.

The principles that we have adopted in approaching the draft, as is the case in a range of ANC financial policies, are drawn from international best practices. Here the principles of equity and fairness; certainty and simplicity; and efficiency and effectiveness apply.

What the ANC intends the Tax Administration Bill to achieve is a simplified and harmonised piece of legislation in that taxpayers will only have one Tax Administration Act to deal with in which all the duties and rights with regard to tax law is set out in a simplified format. In addressing the administrativeburden on tax collection, the Bill reduces the unnecessary and duplicated provisions and inefficiency and ineffective provisions are also removed, as stated by the Minister.

What the ANC is doing with this Bill is to ensure a more modern, responsive revenue administration which will provide a better service to those who are tax compliant, as a system that can reward and serve them better; while at the same time we are bringing in stricter enforcement, assessment and collection powers to deal with increasingly sophisticated tax evaders.

In line with the Constitution, rights of taxpayers and obligations of tax collection are balanced. Greater equity and fairness is also introduced through this Bill, which again is a constitutional obligation.

We held comprehensive public hearings on the Bill in Parliament, as alluded to by the Minister. The following issues were raised by some of these hearings. The introduction of a Tax Ombud as a mechanism to address service failures and failures in respect of taxpayers' rights. This will provide an effective recourse for taxpayers to balance powers and rights. The Tax Ombud has been introduced to deal with two kinds of disputes - disputes on the interpretation of law and disputes on the administration of law. The powers of the Tax Ombud are powers of review and powers to mediate. It reports directly to the Minister of Finance.

It is our conclusion as the ANC that this Bill will ensure a broadening of the tax base in support of the inclusive growth; raise revenue to finance government programmes and projects; provide tax relief for deserving individuals; and provide tax breaks to support employment creation and skills development, which we dearly need to enhance infrastructure investment. This Bill will also assist in providing for changes in personal income tax brackets and rebates and changes in certain monetary thresholds. It is our take as the ANC that this particular change will definitely clear and boast our intention for the lower-income group to have more disposable income at their disposal.

This Bill will assist to support inclusive growth in the following fashion: it will provide further personal income tax relief; the Bill will introduce a third rebate for aged individuals 75-years and over; it will put clarity on transfer duty relief; the Bill will also deal with various monetary threshold adjustments, including increases in the capital gains exclusion amounts; it will also provide for measures to enhance the learnership and industrial policy incentive programmes; this Bill will further provide for an increase in the turnover tax exemption threshold for micro businesses; and new anti-avoidance measures will also be taken care of in this Bill.

In conclusion, the Bill seeks to considerably streamline and enhance tax administration. It will create greater certainty in tax administration and we believe it will reduce the number of disputes between Sars and the taxpayer. It certainly enhances the rights of taxpayers and, at the same time, it enhances tax morality, which is crucial for the credibility of our tax system. The ANC supports the Tax Administration Bill. Thank you. [Applause.]

Mr S J F MARAIS / np / END OF TAKE

Mr D D VAN ROOYEN

Mr S J F MARAIS: Chairperson, the SA Revenue Service, Sars, performs a vital role in our economy. If Sars doesn't collect the revenue that it should, we will never be able to redress the distortion from our troubled past, and the most vulnerable members of our society will feel the consequences.

The Telegraph reported that in the modern city of Larissa in Greece, there are more Porsche luxury motor vehicles per head than in New York and London. Simply put: tax evasion in Greece is rife, and now it cannot pay its debts. In South Africa, there are apparently individuals who own aeroplanes, yet declare modest incomes and pay a minimal amount of tax. This isn't right. It is Sars' job to make sure that this problem is fixed, and it is our job to make sure that they have the tools to fix it.

The Tax Administration Bill aims to do this. The Bill forms part of a process of simplifying the taxation laws over time, and the DA welcomes this initiative. The Bill consolidates various provisions regarding the administration of taxation currently spread across various parts of the existing taxation laws. It makes various amendments to provide for the effective and the efficient collection of tax. To ensure that Sars is able to bring tax evaders into its revenue net, the tax collection process must give Sars sufficiently sharp teeth, yet also provide adequate protection to the law-abiding taxpayers from any possible overzealous tax collection efforts.

Afrikaans:

Voorsitter, in enige land waar klein sakeondernemings van kardinale belang is om ekonomiese groei en werkskepping te fasiliteer, is dit belangrik dat belastingwetgewing nie 'n belemmering moet wees in die proses nie, maar dat dit juis moet bydra om dit makliker en goedkoper te maak om ondernemings te vestig en te administreer. Die wetgewing moet van so 'n aard wees dat alle bydraers moet ervaar dat dit ook in hulle belang is om daaraan te voldoen en dat hulle nie onnodig belas of selfs geteister of getreiter moet word daarmee nie.

In hierdie verband is ons almal bewus van die enorme vertragings wat ervaar is met die terugbetaling van BTW en brandstofheffings vroeër hierdie jaar en die enorme negatiewe impak daarvan op die ekonomiese aktiwiteite en ook die negatiewe sentimente teenoor Sars. Die Minister is ook bekend met my sentiment oor die saak van persone met gestremdhede en dat hulle nie terugwerkend belas moet word nie.

English:

To ensure this balance, the Office of the Ombud is introduced to review and address any complaints by taxpayers regarding a service matter, a procedural matter, or an administrative matter arising from the application of the Income Tax Act by Sars. The DA has expressed our concern over the independence of the Ombud office, given that it is financed through the Sars budget and that its staff is drawn from within Sars.

We are, however, satisfied that we will be able to monitor the performance of the Tax Ombud through the annual report to Parliament by the Minister of Finance.

English:

Voorsitter, volgens die "Paying Taxes 2012"-verslag wat die Wêreldbank, die Internasionale Monetêre Fonds, en PricewaterhouseCoopers bekend gemaak het, het Suid-Afrika van die 24ste tot die 36ste plek op die ranglys teruggesak. Die meting het ten doel om die doeltreffendheid van die lande se belastingstelsels en die voldoeningslas vir maatskappye te meet. Dit is nie goeie nuus nie, en hopelik sal hierdie wetgewing ook bydra om hierdie posisie te verbeter.

Die regering van die Wes-Kaap het 'n benadering "From Red Tape to Red Carpet" van stapel gestuur wat daarop gemik is juis om dit makliker en goedkoper te maak vir die besigheidsektor om sakeondernemings te begin, dit winsgewend te bedryf en om volhoubare werksgeleenthede daarmee te skep. Dit is 'n benadering wat die regering ook moet volg in elke provinsie, want die Wes-Kaap provinsie moenie 'n eiland van voortreflikheid wees in ons ekonomie nie. [Tussenwerpsels.] Ons het hierdie benadering oor die hele Suid-Afrika nodig en daarom hoop dat hierdie wetgewing ook sal help om by te dra om juis dit te vermag.

English:

Over 400 amendments were made to the Bill during its progress through the Standing Committee on Finance after its First Reading, and stakeholders are broadly satisfied with its contents. The DA will support the Bill and will closely monitor its application in the field. I thank you. [Applause.]

Mr N J J van R KOORNHOF

Mr S J F MARAIS

Mr N J J van R KOORNHOF: Chaiperson, my information is that the Bill is being debated against the announcement that Sars has been honoured as one of the world's best services by a World Bank panel. If that is the case: congratulations.

Oliver Holmes once said, "I like to pay taxes. With them, I buy civilisation." Let me add that this only happens when money is spent wisely and correctly. In this Bill, Treasury has strived to follow international best practice. We are breaking with Commonwealth tradition to have different tax laws and are at least starting to adopt the better approach of a single law that provides the administrative and procedural rules that are common to all taxes.

In this Bill, there is an attempt to use a more plain language drafting style in an effort to make the law more understandable. We welcome the introduction of the Tax Ombud. We are now joining a select number of countries where this has been introduced. The independence of the Tax Ombud will be judged by the taxpaying fraternity, but it is an effective tool to assist tax administration.

South Africa's debt will be over R1 trillion next year, and our revenue taking around R800 billion, so we shall need every cent of taxes. Ronald Reagan said: We don't have a $1 trillion debt because we have not taxed enough. We have a $1 trillion debt because we spend too much. This Tax Administration Bill strengthens Sars' powers to collect tax overall and will become an important tool to make Sars even more effective. We shall support the Bill. [Applause.]

Mr M G ORIANI-AMBROSINI/Mia END OF TAKE

Mr N J J van R KOORNHOF

Mr M G ORIANI-AMBROSINI: Mr Chairman, the IFP supports this Bill. What is in the Bill is commendable and adequate, with the exception, perhaps, of the guarantee expressed for the independence of the ombudsman. We would have liked to see a greater connection between the ombudsman and civil society rather than an immediate appointment from the Minister and the functional relationship with his department.

However, Minister, our concern is not about what is in the Bill. It is about what is not in the Bill. The Bill addresses only one aspect of the fundamental debate on this matter. It addresses the aspect of efficiency and fairness in the application of the tax law - very good. It does not address, perhaps the most fundamental aspect of the fairness of the tax system. That is an aspect which needs to be addressed by the echoing requests for a citizens' committee provided by statute to negotiate and re-examine the entire tax system; and for the establishment of a budget office in Parliament, which would enable members of this Parliament, especially the Finance Committee, to interact with such a structure.

We have calculated that we pay – and the only thing we have in common in this House, for sure, is that we all pay taxes – about 60% in taxes, compounding direct and indirect taxes. This means that we work for the government for seven months a year, and for the balance, we work for ourselves. The fairness of the taxation system, the elements of regressivity in the taxation system, and the balance between direct taxation and indirect taxation are things which need to be re-examined.

So, the function of the ombudsman, very well entrenched here in respect of the correct applications of this Act, need to be extended in the new organ of state assessing the overall fairness of the tax system. Besides that, we support the Bill, and we thank the Minister for his expedited finalisation. Thank you.

ADV A DE W ALBERTS

MR M G ORIANI-AMBROSINI

Afrikaans:

Adv A de W ALBERTS: Voorsitter, hierdie Wetsontwerp stel vordering daar om prosesse rondom belasting meer te vereenvoudig. Hiervoor verdien die Minister 'n pluimpie. Dit is veral die daarstelling van die belastingombud wat geloof moet word.

Dit is egter jammer dat die ombud net oor prosedurele aangeleenthede jurisdiksie het. Die feit dat die SA Inkomstebelastingdiens self kan besluit of hulle interpretasie van die verskeie belastingwette korrek is, skree teen hemele. Tog sal die ombud van groot hulp wees want ons party word oorval deur klagtes van swak dienslewering deur die SA Inkomstebelastingdiens.

English:

We must also judge this Bill within its larger context of tax collection. According to the economist, Mike Schüssler, only 4% of South Africans earn more than R13 000 per month. This is indicative of the small tax base in our country, and it presents a disconcerting picture if not dealt with on an urgent basis. We do not have much to distribute and the tax base must grow by increasing the middle class. This means that we will have to create an environment for entrepreneurs to flourish in. The Treasury's part in this should be to create tax incentives for the entrepreneur to take the risk to plough his or her energy and money into a business venture.

Afrikaans:

Daarom, terwyl die regering wette skep om belasting makliker in te vorder, moet die Minister nog beter stelsels skep wat entrepreneurs in ons land sal laat blom. Dankie.

/Robyn/

END OF TAKE

DR Z LUYENGE

Adv A de W ALBERTS

IsiXhosa :

Gqr Z LUYENGE: Sihlalo ohloniphekileyo, ndivumele ndikhahlele aMalungu eNdlu yoWiso-mthetho nazo zonke izinxiba-mxhaka ezilapha kunye noMphathiswa ojongene nengxowa yelizwe loMzantsi Afrika ngokuthunywa ngulo mbutho wesizwe ogxalaba libanzi lokuthwala abantu neengxaki zaseMzantsi Afrika. Ndiza kuthetha isiXhosa ke, Mphathiswa, kuza kufuneka ufake ezi zinto ziza kukuxelela ukuba ndithini xa ndithetha ngawe.

Irhafu ibalulekile kuqoqosho lweli lizwe nenkqubo-sikhokelo yezemali kuba ngenxa yayo urhulumenete okhokelwa ngumbutho wesizwe, i-ANC, uyakwazi ukuphumeza eminye yemigaqo-nkqubo engundoqo. Kumqulu wawo wezithembiso, i-manifesto, wonyaka wama-2009, umbutho wesizwe ucacise ngokupheleleyo ukuba phakathi kweendlela oza kusebenzisa ngazo amagunya wawo uza kuquka nokusebenzisa irhafu ukuphumeza iinjongo zokudalwa kwamathuba emisebenzi endilisekileyo nempilo yezentlalontle ezinzileyo kunye nokuqinisekisa ngomgaqo-nkqubo wezohlumo loqoqosho ojolise ekudalweni kwamathuba amaninzi emisebenzi.

Ngokuphandle, urhulumente uxhomekeke kwiirhafu ukuze akwazi ukunikezela ngeenkonzo ezingundoqo nokuqiniseka ngentlalontle egqibeleleyo kuluntu lweli lizwe. Imali yerhafu ixhasa imisebenzi yesizwe engundoqo kwaye ibonelela ngamandla uhlumo lwezoqoqosho. Ukongeza apho, ikwadlala indima ebalulekileyo ekuboneleleni ngemithombo yokwandisa amandla ombuso.

Uhlengahlengiso oluninzi lwerhafu lugxile ngokumandla ekwandeni kwemali yoluntu lweli lizwe ngendlela yokukhula koqoqosho olusebenza ngendlela eyiyo. Indlela ekufanele kuqhutyelwe ngayo kulo mthetho-sihlomelo wolawulo lwezerhafu – i-Taxation Amendment Bill kukukhungelanisa irhafu neenjongo zemisebenzi karhulumente ngokubanzi.

Isindululo esikubonelelo lwezezimali ukukhawulelana nophuhliso sibizwa uhlaziyo lweerhafu oluzakwenza ukuba iinkqubo zerhafu zisebenzisane ngakumbi nabahluphekileyo. Ngeli xesha oku bekujoliswe ngokukodwa ekuvuselelweni kwamaziko erhafu ngokutsha, ikwayindlela yokuvuma ukuba kukho imfuno emandla egxile kuthungelelwaniso lovuselelo olwandileyo lwemali yoluntu lwelizwe ukuphucula inkcitho karhulumente kwiinkqubo zokulwa indlala.

Ukwanda kokuveliswa kwemali yangaphakathi elizweni kukhokelela kwiziphumo zophuhliso ezintle xa kujongwe ngokwemveliso yenkcitho karhulumente. Uhlaziyo lwerhafu oluthatyathwa ngendlela ekhuthaza ukuhlangabezana nokukwazi ukuphendula ndawonye nokuphucula amandla ombuso kuba indlela ebanzi yokuphucula ukusebenza kukarhulumente lolu qokelelo lwerhafu.

English :

While the tax reform agenda has traditionally focussed on maximising revenue economic efficiency and compliance, recent research has focussed on the role of taxation as a central strategy for nation building. Chairperson, the research on taxation and development has found that the need to raise taxation can strengthen statement society relationship with positive consequences capacity and the accent to which a government is responsive and accountable to its citizens. Raising sufficient revenue to support projected expenditure on government's economic and social priorities requires adjustment to the tax and expenditure framework over the medium to long term.

This framework should contribute towards sustainable economic growth and job creation; while addressing the significant disparities in the South African society. Lower debt service costscreate more space to sustainable fund investment in economic infrastructure which creates jobs and increased spending on social priorities such as education and health.

The importance of a focussed and a well capacitated revenue administration is a prerequisite for poverty eradication, tackling education backlogs and the provision of acceptable social and health services. It is an important enabler of development creating the fiscal space to pursue the national development agenda, thereby boosting sovereignty as well as serving the needs of the people. The reform tax administration is at the core of ensuring social advances. The reformed tax administration was one set of policy choices that was needed in order to attain fiscal independence and to lay a foundation for meeting the needs of the nation.

IsiXhosa :

Ukukhuthazwa kwemigaqo ephezulu yokuthobela ukuhlawulwa kwerhafu kubalulekile ukuqinisekisa ulawulo lwerhafu olusebenza ngendlela eyiyo. Logama ukunciphisa ukuphetshwa kokuhlawulwa kwerhafu kuphucula ingeniso, kusekwabonakalisa ukuba isizwe siyaziqonda ezentlalo noqoqosho kunye noxanduva lwaso lokuxhasa iinzame zikarhulumente zokwakha uluntu olungcono, ukuyila imigaqo-nkqubo esebenza kakuhle. Ukunciphisa ukuphetshwa kokuhlawulwa kwerhafu kufuna ukuqondwa ngendlela yokuziphatha kwesizwe esithobela imithetho yokuhlawula.

UMthetho oYilwayo wolawulo lwerhafu ufuna ukuququzelela ukuthotyelwa kwemithetho yerhafu nokubalula ngokungaqukiyo ukusetyenziswa komthetho werhafu, kwaye uyilelwe ukuphucula umgangatho wokuthotyelwa kwemithetho yerhafu eMzantsi Afrika.

Ifuthe elijoliswe kulo lonke ngalo Mthetho uYilwayo kukunciphisa umthwalo wokuthobela umthetho kubarhafi kunye nalowo wolawulo kwi-Sars. Iinjongo kukomeleza igunya lokuthotyelwa komthetho ngabo baphepha ukurhafa, kunye nokuphucula umgangatho wokunikezelwa kweenkonzo kwabo bathobela umthetho ngokuhlawula irhafu.

Ukuthobela umthetho werhafu kuyanda xa isizwe sibona ukuba ukuhlawula irhafu kunefuthe kwiinkonzo esibonelelwa ngazo kwaye nezigqibo zokumisela iinkonzo zezibonelelo ziselubala kwaye azinamkhethe. Amava amazwe ngamazwe abonisa ukuba xa abarhafi beyifumanisa ingenamkhethe kwaye ilingana inkqubo yerhafu baye bawuthobele ngokuzithandela umthetho werhafu.

UMthetho oYilwayo ke ngoku ufuna ukuqalisa ukhuseleko lwamalungelo olawulo olungenamkhethe ngokuthi unike abarhafi ngokubanzi iingcebiso ezisebenza kakuhle. Oku kuboniswa ngokusekwa kwee-ofisi zerhafu kwiindawo ngeendawo kunye namalungelo athile ngokuphathelele kwiinkqubo kumasolotya athile omthetho abhekisele kumagunya e-Sars. Oku kuquka ilungelo lokufumana ingxelo yeziphumo zophicotho-zincwadi emveni kokuba lugqityiwe kunye nokunikwa izizathu zokuhlolwa kwerhafu.

Ukuphepha ukuhlawula irhafu kuyathintelwa nakumazwe ngamazwe. Ngomhla we-3 kweyeNkanga kowama-2011, uMzantsi Afrika uzimanye namazwe ali-12 ukutyikitya i–Convention on Mutual Administrative Assistance in Tax Matters. Oku ke kwenzeke kwindibano yamazwe e-G20 e-Cannes phaya e-France. Le ngqungquthela ifuna ukuxhasa intsebenziswano phakathi koorhulumente ngolawulo longeniso, ukuhlolwa kunye nokuqokelelwa kwerhafu. Iyakuthi ikhuthaze intsebenziswano kulawulo lokulwa ukuphethswa kokuhlawulwa kwerhafu.

Kwimeko yoqoqosho lwehlabathi egqubayo, amazwe e-G20 agxininise ngokukhethekileyo kukubaluleka kwentsebenziswano yamazwe ngamazwe engcono phakathi kwamagunya-bantu engeniso kuba ukuphetshwa kokuhlawulwa kwerhafu kulula ngokubangelwa yinkululeko yeemarike zezimali. Abarhafi abaninzi bayawuthobela umthetho werhafu kwaye lo Mthetho uYilwayo kufuneka uqinisekise inkonzo engcono kunye neendleko zothobelo ezisezantsi.

Ngumsebenzi we-Sars ukusekela abo baphebha irhafu ekufuneka bejongene nokohlwaywa, ukuhlolwa kunye negunya loqokelelo eliqatha. Injongo ebalulekileyo yoMthetho oYilwayo ijolise ekuqokelelweni kwerhafu kakuhle nangokufanelekileyo kunye nokulungelelaniswa kolawulo ngokubonelelwa yimithetho yerhafu.

Amagunya okuqokelela iinkcukacha andisiwe ngulo Mthetho uYilwayo. UMthetho oYilwayo uqulethe imithetho jikelele yokuhlola, yokuqinisekisa, yophicotho-zincwadi kunye nophando ngolwaphulo-mthetho kwaye usebenza ngokuhlola izicelo zezinto ezifanelekileyo. Oku kuhlolwa kuya kusetyenziswa ngeenjongo zokuqinisekisa umthetho, ukuqiniseka ngobukho beshishini ngeenjongo zokubhalisa i-value added tax.

UMthetho oYilwayo usekwadala, phakathi kwezinye, inkqubo-sikhokelo yokuxhasa ukwenziwa kwenkqubo yokugcinwa kweencwadi ze-Sars - nto ke leyo iyinto entsha ngokuphathelele kwinzala - apho kuya kulungelelaniswa iirhafu zonke, inzala ekufuneka ihlawulwe kubarhafi okanye ekufuneka abarhafi bayihlawule kwintsalela yetyala abanalo nephindaphinda ngenyanga.

Amatyala jikelele abandakanyiwe nawo kulo Mthetho uYilwayo. Lo Mthetho uYilwayo uxhobisa ngamanyathelo ekufuneka ethatyathiwe xa kukho ityala lokungahlawulwa kwerhafu, ukuchaswa kunye nobumfihlo. Isohlwayo...

English:

The HOUSE CHAIRPERSON (Mr FROLICK): Hon member, your time has expired.

IsiXhosa:

Gqr Z LUYENGE: Le nto ke yokubalekwa kokurhafa yenziwa ngabantu esele benezinto. Iimpula zikalujaca phaya emakhaya...

The HOUSE CHAIRPERSON (Mr FROLICK): Hon member, your time has expired.

IsiXhosa:

Gqr Z LUYENGE: Bendisazama ukuqhawulisa le ndawo. [Kwaqwatywa.]

The MINISTER OF FINANCE

Dr Z LUYENGE

The MINISTER OF FINANCE: Hon Chairperson, let me thank all of the participants for the support of the Tax Administration Bill. Hon Van Rooyen is absolutely right that tax and the ability of government to contribute to employment creation is a very important link, particularly, in the world that we live in today. Tax, hon members, is a key element in ones fiscal sovereignty; our ability to be independent; our ability not to be dictated by any one; and therefore, all of us need to be united in making sure that tax evaders are brought to book and that everyone pays their fair share of tax.

The hon Marais made reference to Porsche and Greece, I am sure we've got islands of Greece in South Africa as well, and he is absolutely right that people who are earning big incomes must pay their fair share and the tax planners and these individuals are doing themselves and this country a huge injustice if they don't do so. Hon Koornhof is also right that we need every cent of tax but his reference to Reagan might be a bit misplaced, so he might have to find a better reference than run with Reagan.

Hon Ambrosini as usual, we said we have a philosophical differences, ours certainly isn't a regressive tax system, it is a progress one, that is the regressive tax and we have it at a modest level; and we are not the United States that requires any citizens committee, we have other ways of resolving our own difficulties. Hon Alberts is absolutely right that we need to grow our tax payers and grow the economy; and hon Luyenge is absolutely right that the convention on tax transparency is a very important international convention and the world needs to do much more to bring havens to book so that the rich and the super rich and the powerful cooperates don't get better opportunities to evade tax.

I wish all of you best over the festive season may you rest with your families and support our legislation next year as well. Thank you.

/UNH (Xh) LMM/English / END OF TAKE

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