ATC140327: Report of the Standing Committee on Finance on its activities undertaken during the 4th Parliament (May 2009 – March 2014), dated 12 March 2014
Finance Standing Committee
Report of the
Standing Committee on Finance on its activities undertaken during the 4th
Parliament (May 2009 March 2014), dated 12 March 2014
Key highlights
1.
Reflection on
committee programme per year and on whether the objectives of such programmes
were achieved
Objectives as set out in
programmes achieved for each year.
2.
Committees focus
areas during the 4
th
Parliament
In
order to achieve its mandate the current Business Plan of Portfolio Committee
on Finance for 2009/14 seeks to achieve the following specific goals by
identifying focus areas:
Ensure that referred legislation is dealt with expeditiously and
in a transparent manner through;
·
Allowing for thorough
scrutiny of proposed legislation in that it aims to accelerate the transformation
of South African society
·
Increased public
participation in legislative process
Improve its oversight over the institutions falling under its
Portfolio area by;
·
Ensuring a culture of
openness, transparency and accountability through effective oversight
·
Regular evaluation of the
activities of executive branch of government and other organs of state
Improve the knowledge and skills of its members to deal with the
complex, technically demanding matters placed before the committee through;
·
Providing the necessary
training and skills development
Dealing with matters of
public interest through;
·
Identifying issues and
providing the necessary forum for debate
Research support
·
Provide necessary
research support that is beyond the scope and expertise of the research unit
3.
Key areas
for future work
·
Insurance Laws Amendment Bill [B 16 - 2013 (s75)]
·
Development Bank of Southern Africa Amendment Bill
[B 2 - 2014 (s75)]
·
Money Bills Amendment
Procedure and Related Matters Act (Amendment Bill house resolution)
4.
Key
challenges emerging
·
Limited time to process legislation, report etc.
referred to the Committee
·
Documents prepared by departments pertaining to
complex legislation should be designed for easier comprehension by the
committee, and as far as possible, the Department should submit a list of
legislation that it intends introducing into Parliament for the Committee to
process during its five year term
·
The need to enhance sector specific skills and
experience, through training interventions, within the committee to enhance the
Committees oversight capacity
·
Knowledge of the processes and procedures pertaining
to the work of committees within Parliament should be made clearer to all
members
·
Technical/operational challenges that were encountered
relates to constraints created by the Parliamentary Programme that at times
would not provide sufficient time for the Committee to comply with time frames
in terms of the Money Bills Amendment Procedure and Related Matters Act, 2009
5.
Recommendations
·
Enhance coordinated legal and research support
structures for members, so as to ensure the effective day to day functioning of
the Committee, thus enhancing its oversight capacity.
·
The establishment of the Parliamentary Budget Office
for the 5
th
Parliament will add value in this respect. The filling
of any vacancies within this unit should be considered as a matter of urgency,
and the unit should be sufficiently capacitated to assist the Committee in its
day to day work.
·
Sector specific and ongoing skills training should
be offered on an ongoing basis for the benefit of committees, specifically when
dealing with technical legislation. Such interventions should be considered
before the Committee deals with any legislation of a technical nature. The
Committee should also have a legal expert available when dealing with such
legislation.
·
During the 5
th
Parliament the Committee
should ensure that its legislative plans and processes are timeously shared
with the Department as well as with Parliament as a whole, to ensure that there
is an alignment of plans and processes between all stakeholders.
·
The Committee should prioritise and plan a detailed
overseas study tour,
with a view to observing the processes
followed by other legislatures in considering fiscal frameworks, budget
processes and the methods employed by similar committees of other legislatures
in performing oversight over designated entities.
·
There is a need for the proper planning and alignment of the
Parliamentary Programme and activities of the two Houses of Parliament, in
conjunction with the department, so as to enable the Committee to comply with
legislative processes in performing its oversight work. This process should be
guided by the strategic plan of Parliament.
·
The
Money Bills Amendment
Procedure and Related Matters Act (Amendment Bill house resolution) should be
prioritised so as to give effect to the House resolution.
1.
Introduction
1.1
Department/s and
Entities falling within the committees portfolio
a)
Department of Finance: National Treasury and the Department of
Performance Monitoring and Evaluation: Statistics South Africa:
Core
mandate/strategic objectives
b)
Entities:
Name of Entity
|
Role of Entity
|
National Treasury
|
The National Treasury draws its
mandate from Chapter 2 of the Public Finance Management Act based on Chapter
13 of the Constitution. It is mandated to:
·
coordinate macroeconomic policy,
·
promote governments fiscal policy framework,
·
manage the budget preparation process,
·
coordinate intergovernmental financial relations,
·
facilitate the Division of Revenue Act, which provides for
an equitable distribution of nationally raised revenue between national,
provincial and local government; and
·
monitor the implementation of provincial budgets,
·
create an enabling regulatory environment for the
financial sector,
·
defend the integrity of the financial system,
·
ensure efficient and effective revenue collection,
·
programmes of the Development Finance Institutions (DFIs).
|
South African Revenue Service
|
The South African Revenue Service Act
34 of 1997, gives us the mandate to perform the following tasks:
·
collect all revenues that are due;
·
ensure maximum compliance with the legislation; and
·
provide a customs service that will maximise revenue
collection, protect our borders and facilitate trade.
|
South African Reserve Bank
|
The Reserve Bank is required to
achieve and maintain price stability in the interest of balanced and
sustainable economic growth in South Africa.
The achievement of price stability is
quantified by the setting of an inflation target by Government that serves as
a yardstick against which price stability is measured. The achievement of
price stability is underpinned by the stability of the financial system and
financial markets. For this reason, the Bank is obliged to actively promote
financial stability as one of the important determinants of financial system
stability.
At present, sections 223 to 225 of
the Constitution of the Republic of South Africa, 1996, the South African
Reserve Bank Act, 1989 as amended and the regulations framed in terms of this
Act, provide the enabling framework for the Bank's operations. The Bank has a
considerable degree of autonomy in the execution of its duties.
In terms of section 224 of the
Constitution, 1996, "the South African Reserve Bank, in pursuit
of its primary object, must perform its functions independently and
without fear, favour or prejudice, but there must be regular consultation
between the Bank and the Cabinet member responsible for national
financial matters." The independence and autonomy of the Bank
are therefore entrenched in the Constitution.
The Bank has been entrusted
with the overarching monetary policy goal of containing inflation.
The Bank can use any instruments of monetary policy at its disposal to achieve
this monetary policy goal. This implies that the Bank has instrument
independence in monetary policy implementation but not goal independence in
the selection of a monetary policy goal.
The Governor of the Bank holds
regular discussions with the Minister of Finance and meets periodically with
members of the Parliamentary Portfolio and Select Committees on Finance. In
terms of section 32 of the South African Reserve Bank Act, 1989, the Bank
publishes a monthly statement of its assets and liabilities and submits its
Annual Report to Parliament. The Bank is therefore ultimately accountable to
Parliament.
|
Financial Services Board
|
The Financial Services Board is a
unique independent institution established by statute to oversee the South
African Non-Banking Financial Services Industry in the public interest.
The FSB is committed
t
o promote and
maintain a sound financial investment environment in South Africa.
|
Development Bank of Southern Africa
|
The Development Bank of Southern
Africa exist as a juristic person by the name the Development Bank of
Southern Africa Limited and its role, powers, functions and duties are
defined by the Development Bank of Southern Africa Act, 1997. Published in
Government Gazette No17962 Vol. 382 on 25 April 1997 No 641. The DBSA is
registered as a company in terms of the Companies Act, 1973, but is exempt
from the provisions of the Companies Act, 1973 (Act 61 of 1973). The Minister
may however by notice in the Gazette apply any provision of the Companies
Act, 1973, the Banks Act, 1990, or such other law to the Bank, in so far as
such provision is not inconsistent with the provisions of the Development
Bank of Southern Africa Act, 1997 (Act 13 of 1997) with such modifications as
the Minister may deem fit and may specify in that notice, and may withdraw or
amend any such notice.
|
Financial and Fiscal Commission
|
The Commission derives its mandate
from Chapter 13 of the Constitution of the Republic of South Africa Act No.
108 of 1996 as amended. Sections 220, 221 and 222 as well as related Sections
214(2), 219(5), 228(2)(b), 229(5), 230(2), 230A(2) and 230A(2) provide among
others that the Commission is an independent, objective, impartial and
unbiased advisory institution that has to be consulted by Government with
regard to division of revenue among the three spheres of government and in
the enactment of legislation pertaining to provincial taxes, municipal fiscal
powers and functions, and provincial and municipal loans.
|
Public Investment Corporation
|
The PIC
having been established by an Act of Parliament to provide for the
investment by the corporation of certain monies received or held by, for or
on behalf of the Government of the Republic and certain bodies, councils,
funds and accounts
|
Financial Intelligence Centre
|
To establish and maintain an
effective policy and compliance framework and operational capacity to oversee
compliance and to provide high quality, timeous financial intelligence for
use in the fight against crime, money laundering and terror financing in
order for South Africa to protect the integrity and stability of its
financial system, develop economically and be a responsible global citizen.
|
Accounting Standards Boards
|
Developing and maintaining financial
reporting standards that lead to proficient performance in the public sector
is critical to good corporate governance in national, provincial and local
government. The Accounting Standards Board (ASB) is the national public
entity charged with this important responsibility in South Africa.
|
Independent Regulatory Board for
Auditors
|
The
mandate of the Independent Regulatory Board for Auditors (the IRBA) is to
protect the public by regulating audits performed by registered auditors and
developing and maintaining internationally comparable ethical and auditing
standards for auditors and establishing measures that advance the
implementation of appropriate standards of competence and good ethics, that
promote investment and as a consequence employment in South Africa.
The
statutory Committee for Auditor Ethics assists the Regulatory Board to
determine what constitutes improper conduct by registered auditors by
developing rules and guidelines for professional ethics, including a code of
professional conduct
|
South African Special Risk Insurance
Association
|
SASRIA
is an
insurance association in South Africa - the South African Special Risks
Insurance Association. It was inaugurated in 1976 with the aim of creating a
body that could provide additional insurance options for the South African
insurance market in general.
|
Land Bank
|
Land Bank is a specialist
agricultural bank guided by a government mandate to provide financial
services to the commercial farming sector and to agri-business and to make
available new, appropriately designed financial products that would
facilitate access to finance by new entrants to agriculture from historically
disadvantaged backgrounds. Today, the Bank is a true South African
development finance institution that serves all farmers equally. The mission
of Land Bank is:
·
To develop and provide appropriate products for commercial
and development clients.
·
To leverage private sector investment into the
agricultural sector.
·
To develop partnerships with intermediaries for on
lending.
·
To develop techniques for financing high-risk agriculture
and new business areas.
·
To support programmes of the Ministry of Land Affairs and
Agriculture by aligning the Bank's products with these programmes.
·
To contribute to rural development by linking up with
government structures and activities.
|
Department of Performance Monitoring and Evaluation: Statistics South
Africa
|
The aim of Stats SA is to provide
relevant and accurate statistics by corresponding with internationally
approved practice to inform users of the dynamics of the economy and society.
It is mandated through the Statistics Act [No.6 of 1999] to coordinate statistical
production among organs of the state, the private sector and any other
institutions to facilitate proper planning, decision making and monitoring
and evaluation of policies and projects. Establishment of institutions such
as the National Planning Commission and the Department of Performance
Monitoring and Evaluation in the country magnifies the importance and demand
for the Department to provide even more statistics that measure government
policy implementation and thus influence policy development. The demand for
accurate, relevant and timeous data expands even to regional and local levels
of government such as municipalities to improve services delivery
|
1.2
Functions of
committee:
Parliamentary committees are mandated to:
·
Monitor the financial and non-financial
performance of government departments and their entities to ensure that
national objectives are met.
·
Process and pass legislation.
·
Facilitate public participation in Parliament
relating to issues of oversight and legislation.
1.3
Method of work of the
committee
The Standing Committee on Finance was established in terms of
section 4(1) of the Money Bills Amendment Procedure and Related Matters Act.
The mandate of the Committee is conferred to it by the Constitution,
legislation, the standing rules or a resolution of the House, including
consideration and report on the following:
·
The national macro-economic and
fiscal policy;
·
Amendments to the fiscal
framework, revised fiscal framework and revenue proposals and Bills;
·
Actual revenue published by the
National Treasury; and
·
Any other related matter set out
in the Money Bills Amendment Procedure and Related Matters Act.
Furthermore, the mandate encompasses the committees function to
legislate, conduct oversight on the Executives actions and its entities. The
Money Bills Amendment Procedure and Related Matters Act makes provisions for a
procedure for this committee to amend money bills.
1.4
Purpose of the report
The purpose of this report is to provide an account of the Standing Committee
on Finance work during the 4
th
Parliament and to inform the members
of the new Parliament of key outstanding issues pertaining to the oversight and
legislative programme of the Department of Finance: National Treasury and the
Department of Performance Monitoring and Evaluation: Statistics South Africa
and its entities.
This report provides an overview of the activities the committee
undertook during the 4
th
Parliament, the outcome of key activities,
as well as any challenges that emerged during the period under review and
issues that should be considered for follow up during the 5
th
Parliament. It summarises the key issues for follow-up and concludes with
recommendations to strengthen operational and procedural processes to enhance
the committees oversight and legislative roles in future.
2.
Key statistics
The table below provides an overview of the number of meetings held,
legislation and international agreements processed and the number of oversight
trips and study tours undertaken by the committee, as well as any statutory
appointments the committee made, during the 4
th
Parliament:
Activity
|
2009/10
|
2010/11
|
2011/12
|
2012/13
|
2013/14
|
Total
|
Meetings held
|
42
|
47
|
48
|
59
|
47
|
243
|
Legislation processed
|
2
|
3
|
4
|
5
|
12
|
26
|
Oversight trips undertaken
|
1
|
0
|
4
|
3
|
0
|
8
|
Study tours undertaken
|
0
|
0
|
0
|
0
|
0
|
0
|
International agreements processed
|
4
|
12
|
5
|
8
|
0
|
29
|
Statutory appointments made
|
0
|
0
|
0
|
0
|
1
|
1
|
Interventions considered
|
0
|
0
|
0
|
0
|
0
|
0
|
Petitions considered
|
0
|
0
|
0
|
0
|
0
|
0
|
3.
Stakeholders:
None
4.
Briefings and/or
public hearings
The Standing Committee on
Finance held numerous public hearings, for all legislation referred to it as
well as the annual Budget and Medium Term Budget Policy Statement (MTBPS) as
follows:
-
Public hearings on Bills 26
-
Public hearings on Budget / MTBPS - 9
5.
Legislation
The following pieces of legislation were referred to the committee and
processed during the 4
th
Parliament:
Year
|
Name of Legislation
|
Tagging
|
Objectives
|
Completed/Not Completed
|
2009/10
|
Taxation Laws Second Amendment
Bill [B11-2009]
|
Section 75
|
To provide for
the allocation of payments; amend the Transfer Duty Act, 1949, so as to
extend a time period;
|
Completed
|
|
Taxation Laws Amendment Bill
[B10-2009]
|
Section 77
|
To amend the
Transfer Duty Act, 1949, so as to amend a definition; to make a new
provision; to provide for an exemption; to effect consequential amendments;
amend the Estate Duty Act, 1955, so as to make further provision for a
deduction; amend the Income Tax Act, 1962, so as to fix the rates of normal
tax and amend monetary amounts; to amend and insert certain definitions; to
effect technical corrections; to repeal certain provisions; to amend certain
provisions; to make a new provision; to effect textual and consequential
|
Completed
|
2010/11
|
South African Reserve Bank
Amendment Bill [B10-2010]
|
Section 75
|
To amend the South African Reserve Bank Act, 1989
(Act No. 90 of 1989) (the Act) in order to achieve the following
objectives: To stop shareholders of the South African Reserve Bank (the
Bank) from circumventing the Act's current limitation of a maximum of 10 000
shares per shareholder; to allow for the nomination of directors by a broader
base of the South African public and to broaden representation on the Board
of the Bank (the Board); to provide for the establishment of a Panel for
the election of directors; to define clear criteria regarding when persons
are disqualified from serving on the Board; to provide for the confirmation
of Board nominees against fit and proper and fiduciary criteria; to clarify
the powers and functions of the Board, which will primarily be those of
governance, with all remaining powers and duties of the Bank as set out in
section 10 of the Act being vested in and being exercised by the Governor and
Deputy Governors; and to provide for the possibility of the Governor and
Deputy Governors to be re-appointed to serve a term of less than five years.
|
Completed
|
|
Voluntary Disclosure Programme
and Taxation Laws Second Amendment Bill [B 29 2010]
|
Section 75
|
To introduce a voluntary disclosure programme;
amend the Transfer Duty Act, 1949, so as to provide for electronic submission
of returns and electronic payment of duty; amend the Income Tax Act, 1962, so
as to amend certain provisions; amend the Unemployment Insurance
Contributions Act, 2002, so as to effect a technical correction; amend the
Mineral and Petroleum Resources Royalty (Administration) Act, 2008, so as to
amend certain provisions; and provide for matters connected therewith.
|
Completed
|
|
Taxation Laws Amendment Bill [B
28 2010]
|
Section 77
|
To amend the Transfer Duty Act, 1949, so as to
amend a provision; amend the Income Tax Act, 1962, so as to amend, delete and
insert certain definitions; to effect technical corrections; to repeal
certain provisions; to amend certain provisions; to make new provision; and
to effect textual and consequential amendments; amend the Customs and Excise Act,
1964, so as to amend provisions; and to make provision for continuations;
amend the Income Tax Act, 1990, so as to effect technical corrections; amend
the Value-Added Tax Act, 1991, so as to amend certain provisions; amend the
Unemployment Insurance Contributions Act, 2002, so as to amend a provision;
amend the Securities Transfer Tax Act, 2007, so as to amend certain provisions;
and to effect a consequential amendment; amend the Revenue Laws Amendment
Act, 2008, so as to effect technical corrections; amend the Taxation Laws
Amendment Act, 2009, so as to effect technical corrections; amend the
Taxation Laws Amendment Act, 2010, so as to repeal a
provision; and to effect technical corrections;
amend the Taxation Laws Amendment Act, 2011, so as repeal a provision; and to
effect technical corrections; and to provide for matters connected therewith.
|
Completed
|
2011/12
|
Tax Administration Bill
[B11-2011]
|
Section 75
|
To provide for
the effective and efficient collection of tax; to provide for the alignment
of the administration provisions of tax Acts and the consolidation of the
provisions into one piece of legislation to the extent practically possible.
|
Completed
|
|
Taxation Laws Amendment Bill
[B19 - 2011]
|
Section 77
|
To amend the
Transfer Duty Act, 1949, so as to amend and delete certain definitions; to
modify rates and thresholds; to make new provision; and to effect textual and
consequential amendments.
|
Completed
|
|
Taxation Laws Second Amendment
Bill [B20-2011]
|
Section 75
|
To amend the
Income Tax Act, 1962, so as to amend certain provisions; amend the Customs
and Excise Act, 1964, so as to amend certain provisions; to make additional
provision for disclosure of information; to broaden the scope of a provision;
and to make provision for continuations; and to provide for matters connected
therewith.
|
Completed
|
|
Government Employees Pension
Law Amendment Bill [B15-2011]
|
Section 75
|
To amend the
Government Employees Pension Law, 1996, so as to amend a definition and
insert a definition; to provide for the payment of a pension interest to a
former spouse of a member on divorce or the dissolution of a customary
marriage; to amend the powers of the Board to make rules; to amend the
provisions providing for the recognition of pensionable service of former
members of non-statutory forces or services; and to provide for matters
connected therewith.
|
Completed
|
2012/13
|
Credit Rating Services Bill
[B8-2012]
|
Section 75
|
To provide for the registration of credit rating
agencies; provide for the regulation of certain activities of credit rating
agencies; provide conditions for the issuing of credit ratings and rules on
the organisation and conduct of credit rating agencies; and to provide
matters connected therewith.
|
Completed
|
|
Financial Markets Bill
[B12-2012]
|
Section 75
|
To provide for the regulation of financial
markets; license and regulate exchanges, central securities depositories,
clearing houses and trade repositories; regulate and control securities
trading and the custody and administration of securities; prohibit insider
trading and other market abuses; provide for the approval of nominees; provide
for codes of conduct; replace the Securities Services Act, 2004, as amended
by the Financial Services Laws General Amendment Act, 2008, so as to align
this Act with international standards; and to provide for matters connected
therewith.
|
Completed
|
|
Rates and Monetary Amounts and
Amendment of Revenue Laws Bill [B10 - 2012]
|
Section 77
|
To fix the rates of normal tax; amend the Income
Tax Act, 1962, so as to amend rates and monetary amounts; amend the Customs
and Excise Act, 1964, so as to amend rates of duty in Schedule 1; and to
provide for matters connected therewith.
|
Completed
|
|
Tax Administration Laws
Amendment Bill [B35-2012]
|
Section 75
|
To make a provision for the enactment of an
international agreement into law; insert a provision providing for the
application of the Tax Administration 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 Tax Act,
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.
|
Completed
|
|
Taxation Laws Amendment Bill
[B34 - 2012]
|
Section 77
|
To amend the Transfer Duty Act, 1949, so as to
amend a provision; amend the Income Tax Act, 1962, so as to amend, delete and
insert certain definitions; to effect technical corrections; to repeal
certain provisions; to amend certain provisions; to make new provision; and
to effect textual and consequential amendments; amend the Customs and Excise
Act, 1964, so as to amend provisions; and to make provision for
continuations; amend the Income Tax Act, 1990, so as to effect technical
corrections; amend the Value-Added Tax Act, 1991, so as to amend certain
provisions; amend the Unemployment Insurance Contributions Act, 2002, so as
to amend a provision; amend the Securities Transfer Tax Act, 2007, so as to
amend certain provisions; and to effect a consequential amendment; amend the
Revenue Laws Amendment Act, 2008, so as to effect technical corrections;
amend the Taxation Laws Amendment Act, 2009, so as to effect technical corrections;
amend the Taxation Laws Amendment Act, 2010, so as to repeal a provision; and
to effect technical corrections; amend the Taxation Laws Amendment Act, 2011,
so as repeal a provision; and to effect technical corrections; and to provide
for matters connected therewith.
|
Completed
|
2013/14
|
Merchant
Shipping (International Oil Pollution Compensation Fund) Administration Bill
[B42 2013]
|
Section 75
|
To provide for administrative matters in
connection with the levy imposed in terms of the Merchant Shipping
(International Oil Pollution Compensation Fund) Contributions Act, 2013; and
to provide for matters connected therewith.
|
Completed
|
|
Merchant
Shipping (International Oil Pollution Compensation Fund) Contributions Bill
[B41 2013]
|
Section 77
|
To provide for the imposition of the
International Oil Pollution Compensation Fund Contributions Levy on persons
referred to in Article 10 of the 1992 Fund Convention; to provide for the
manner in which the levy is determined; to provide that levies and interest
due to be paid to the International Oil Pollution Compensation Fund are a
direct charge against the National Revenue Fund; and to provide for matters
connected therewith.
|
Completed
|
|
Banks Amendment Bill [B43-2012]
|
Section 75
|
To amend the Banks Act, 1990, so as to
define certain expressions and to amend certain definitions; to
bring certain provisions in line with their practical application; to update
references to legislation and institutions; to extend the use of the name
bank to representative offices; to provide that a contravention of the Financial
Intelligence Centre Act, 2001, is a cause for suspension or cancellation of registration
as a bank; to align the Banks Act, 1990, with the Companies Act, 2008; and to
comply further with the requirements of the Basel Committee of Banking Supervision;
and to provide for matters connected therewith.
|
Completed
|
|
Rates and Monetary Amounts and
Amendment of Revenue Laws Bill [B12 - 2013]
|
Section 77
|
To fix the rates of normal tax; to amend
the Income Tax Act, 1962, so as to amend rates and monetary amounts; to amend
the Customs and Excise Act, 1964, so as to amend rates of duty in Schedule 1;
and to provide for matters connected therewith.
|
Completed
|
|
Financial Services Laws General
Amendment Bill [B29-2012]
|
Section 75
|
To
amend and update the Pension Funds Act, 1956, the South African Reserve Bank
Act, 1989, the Financial Services Board Act, 1990, the Long-term Insurance Act,
1998, the Short-term Insurance Act, 1998, the Inspection of Financial Institutions
Act, 1998, the Financial Institutions (Protection of Funds) Act, 2001, the
Financial Advisory and Intermediary Services Act, 2002, the Collective Investment
Schemes Control Act, 2002, the Co-operative Banks Act, 2007, and the Financial
Services Laws General Amendment Act, 2008, in order to close regulatory gaps,
to effect improvements to certain provisions, to provide for increased
supervisory capabilities, to rationalise and align the supervisory functions
afforded to the Registrar; and to align the aforementioned Acts with the Companies
Act, 2008; to amend the National Payment System Act, 1998, the Medical
Schemes Act, 1998, and the Co-operatives Act, 2005, to the extent that those
laws impact on the stability of the financial services sector and
impede on a holistic regulatory approach and effective supervision; and to
provide for matters connected therewith.
|
Completed
|
|
Employment Tax Incentive Bill
[B46 - 2013]
|
Section 77
|
To provide for an employment tax incentive in the
form of an amount by which employees tax may be reduced; to allow for a
claim and payment of an amount where employees tax cannot be reduced; and to
provide for matters connected therewith.
|
Completed
|
|
Tax Administration Laws
Amendment Bill [B40-2013]
|
Section 75
|
To amend the Transfer Duty Act,
1949, so as to effect consequential amendments; amend the Income Tax Act,
1962, so as to effect textual and consequential amendments; to amend
provisions; and to effect technical corrections; amend the Customs and Excise
Act, 1964, so as to amend a provision; to make a new provision; and to amend
provisions; amend the Value-Added Tax Act, 1991, so as to effect technical
corrections; amend the Skills Development Levies Act, 1999, so as to make a
new provision; and to effect consequential amendments; amend the Unemployment
Insurance Contributions Act, 2002, so as to make a new provision; and to
effect consequential amendments;
amend
the Securities Transfer Tax Act, 2007, so as to effect consequential amendments;
amend the Mineral and Petroleum Resources Royalty Act, 2008, so as to effect consequential
amendments; amend the Mineral and Petroleum Resources Royalty
(Administration) Act, 2008, so as to effect a technical correction; amend the
Tax Administration Act, 2011, so as to amend certain provisions; to effect
technical corrections; and to effect textual and consequential amendments; and
to provide for matters connected therewith.
|
Completed
|
|
Taxation Laws Amendment Bill
[B39 - 2013]
|
Section 77
|
To amend the Transfer Duty Act, 1949, so as to
amend provisions; amend the Estate Duty Act, 1955, so as to amend a
provision; amend the Income Tax Act, 1962, so as to amend, delete and insert
certain definitions; to effect technical corrections; to repeal certain
provisions; to amend certain provisions; to make new provision; and to effect
textual and consequential amendments;
amend the Customs and Excise Act, 1964, so
as to amend provisions; and to make provision for continuations;
amend the Value-Added Tax Act, 1991, so as
to amend certain provisions; repeal the Demutualisation Levy Act, 1998; amend
the Securities Transfer Tax Act, 2007, so as to amend a provision; amend the
Mineral and Petroleum Resources Royalty Act, 2008, so as to amend certain
provisions; and to amend Schedules; amend the Taxation Laws Amendment Act,
2011, so as to amend certain provisions; amend the Taxation Laws Amendment
Act, 2012, so as to amend certain provisions; and to effect technical
corrections; make provision for special zero-rating in respect of goods and
services supplied in certain circumstances; and to provide for matters
connected therewith.
|
Completed
|
|
Financial Management of
Parliament Amendment Bill [B1 2014]
|
Section
76
|
To amend the Financial Management of Parliament Act, 2009 so as to
insert further definitions; to deal with the financial management of
provincial legislatures; to amend the provisions dealing with the oversight
mechanism; to amend provisions dealing with Parliaments annual budget,
appropriations and approvals; to amend the provisions dealing with donor
funds; to delete certain provisions dealing with Parliaments own revenue
sources; to align the provisions dealing with reporting and auditing with the
Public Finance Management Act, 1999; to repeal certain sections of the Powers
and Privileges Act, 1963; to delete certain references to provincial
legislatures in the Public Finance Management Act, 1999; to include
references to performance management; to amend the long title; and to provide
for matters connected therewith.
|
Completed
|
|
Customs
and Excise Amendment Bill
[B44 2013]
|
Section 75
|
To amend the Customs and Excise Act, 1964, so as
to delete all provisions superseded by general provisions of the Customs
Control Act applicable to all tax levying Acts; to delete all provisions
relating to the customs control of imported goods and goods to be exported;
to delete all provisions relating to the imposition, collection and refunding
of customs duties and other matters relating to customs duties; to limit the
remaining provisions of the Act to excise duties, fuel levies, Road Accident
Fund levies, environmental levies, air passenger taxes and matters relating
to such duties, levies and taxes; and to change the name of the Act to the Excise
Duty Act, 1964; and to provide for matters connected therewith.
|
Completed
|
|
Customs
Control Bill
[B45 2013]
|
Section 75
|
To provide for customs control of all vessels,
aircraft, trains, vehicles, goods and persons entering or leaving the
Republic; to facilitate the implementation of certain laws levying taxes on
goods and of other legislation applicable to such goods and persons; and for
matters incidental thereto.
|
Completed
|
|
Customs
Duty Bill
[B43 2013]
|
Section 77
|
To provide for the imposition, assessment,
payment and recovery of customs duties on goods imported or exported from the
Republic; and for matters incidental thereto.
|
Completed
|
6.
Oversight trips
undertaken
The following oversight
trips were undertaken:
Date
|
Area Visited
|
Objective
|
Recommendations
|
Responses to Recommendations
|
Follow-up Issues
|
Status of Report
|
11 -12
August 2009
|
South
African Revenue Services from
|
Site
inspection to Customs Border Control in Durban
|
|
|
|
Not adopted
|
26 July 2011
|
Public Investment
Corporation (PIC) Gauteng Province, Pretoria
|
As part of its oversight responsibility,
the Standing Committee on Finance undertook an oversight visit to the
Public Investment Corporation (PIC) and Financial
Services Board (FSB)
to observe how the different units of the
entities function. The committee also feels that when the entities are at
Parliament, not enough time is spent for interactions, and the committee
intends taking this time to better understand how the entities function, in
order to improve the oversight
|
|
|
|
Not adopted
|
27 July 2011
|
Financial Services
Board (FSB) Gauteng Province, Pretoria
|
As part of its oversight responsibility,
the Standing Committee on Finance undertook an oversight visit to the
Public Investment Corporation (PIC) and Financial
Services Board (FSB)
to observe how the different units of the
entities function. The committee also feels that when the entities are at
Parliament, not enough time is spent for interactions, and the committee
intends taking this time to better understand how the entities function, in
order to improve the oversight role the committee plays
|
|
|
|
Not adopted
|
03 August 2011
|
Financial Services
Board (FSB) Gauteng Province, Pretoria
|
As part of its oversight responsibility,
the Standing Committee on Finance undertook an oversight visit to the
Public Investment Corporation (PIC) and Financial
Services Board (FSB)
to observe how the
different units of the entities function. The committee also feels that when
the entities are at Parliament, not enough time is spent for interactions,
and the committee intends taking this time to better understand how the
entities function, in order to improve the oversight role the committee plays
|
|
|
|
Not adopted
|
04 & 05 August
2011
|
Government
Employees Pension Fund (GEPF) Gauteng Province, Pretoria
|
As part of its oversight responsibility,
the Standing Committee on Finance undertook an oversight visit to the
Public Investment Corporation (PIC) and Financial
Services Board (FSB)
to observe how the different units of the
entities function. The committee also feels that when the entities are at
Parliament, not enough time is spent for interactions, and the committee
intends taking this time to better understand how the entities function, in
order to improve the oversight role the committee plays
|
|
|
|
Not adopted
|
25 January 2012
|
Gauteng Province,
Pretoria, Statistics South Africa
|
As part of its oversight responsibility,
the Standing Committee on Finance undertook an oversight visit to Statistics
South Africa (Stats SA) to observe how the different units of the entities
function. The committee also feels that when the entities are at Parliament,
not enough time is spent for interactions, and the committee intends taking
this time to better understand how the entities function, in order to improve
the oversight role the committee plays. The objective of the visit to Stats
SA was further interaction and a means of the Committee and Stats SA to work
together on legislative cohesion
|
|
|
|
Not adopted
|
26 January 2012
|
Gauteng Province, Johannesburg,
Johannesburg Stock Exchange
|
As part of its oversight responsibility,
the Standing Committee on Finance undertook an oversight visit to and the
Johannesburg Stock Exchange (JSE) to observe how the different units of the
entities function. The committee also feels that when the entities are at
Parliament, not enough time is spent for interactions, and the committee
intends taking this time to better understand how the entities function, in
order to improve the oversight role the committee plays. The JSE visit
focussed on Parliaments role in helping to strengthen the economy through
the private sector, as well as realising a better relationship between the
Committee and the JSE. The Committee expressed its view that public education
programmes should be implemented and better cooperation was needed for this
to be achieved.
|
|
|
|
Not adopted
|
18 21 June 2012
|
Projects funded by the Development Bank of
South Africa (DBSA) in Port Elizabeth Nelson Mandela Bay Infrastructure
Development Programme and Kuzuko Lodge
|
Observing the impact
the projects have on the local economy and the community.
|
|
|
|
Not adopted
|
7.
Study tours
undertaken
No study tours were
undertaken
8.
International
Agreements:
The following international
agreements were processed and reported on:
Date referred
|
Name of International Agreement
|
Objective
|
Status of Report
|
Date of enforcement
|
|
Agreement between the Republic of South
Africa and the Federal Republic of Germany
|
Avoidance of Double Taxation with
respect
to taxes on income and on
capital
|
Adopted
|
|
|
Agreement between the Republic of South
Africa and the United Mexican States
|
Avoidance of Double Taxation and the
Prevention of Fiscal Evasion with respect to taxes on income
|
Adopted
|
|
|
Protocol amending the convention between
the Republic of South Africa and The Government of Ireland
|
Avoidance of Double Taxation and the
prevention of fiscal evasion with respect to taxes on income and capital
gains
|
Adopted
|
|
|
Protocol amending the convention between
the Republic of South Africa and The Kingdom of Sweden
|
Avoidance of double taxation and the
prevention of fiscal evasion with respect to taxes on income
|
Adopted
|
|
01 June 2011
|
Agreement on the Establishment of the
African Tax Administration Forum
|
Establishment of the African Tax
Administration Forum
|
Adopted
|
21 June 2011
|
12 September 2011
|
Agreement between the Government of the
Republic of South Africa and the Government of the Republic of San Marino
|
Exchange of information relating to tax
matters
|
Adopted
|
27 October 2011
|
12 September 2011
|
Agreement between the Government of the
Republic of South Africa and the Government of Jersey
|
Exchange of information with respect to
taxes
|
Adopted
|
27 October 2011
|
12 September 2011
|
Protocol Amending the Agreement between the
Government of the Republic of Seychelles and the Government of the Republic
of South Africa
|
Avoidance of Double Taxation and the
prevention of fiscal evasion with respect to taxes on income
|
Adopted
|
27 October 2011
|
12 September 2011
|
Agreement
between the Government of the Republic of South Africa and the Government of
the States of Guernsey
|
Exchange of information relating to tax
matters
|
Adopted
|
27 October 2011
|
12 September 2011
|
Agreement
between the Government of the Republic of South Africa and the Government of
the Cayman Islands
|
Exchange of information relating to tax
matters
|
Adopted
|
27 October 2011
|
12 September 2011
|
Protocol Amending the Agreement between the
Government of the Republic of South Africa and the Government of Malaysia
|
Avoidance of Double Taxation and the
prevention of fiscal evasion with respect to taxes on income
|
Adopted
|
27 October 2011
|
19 October 2011
|
Protocol and Additional Protocol amending
the Convention between the Republic of South Africa and the Republic of
Austria
|
Avoidance of Double Taxation with respect
to Taxes on Income and Capital
|
Adopted
|
27 October 2011
|
19 October 2011
|
Agreement between the Government of the
Republic of South Africa and the Government of Bermuda
|
Exchange of Information relating to Tax
Matters
|
Adopted
|
27 October 2011
|
19 October 2011
|
Agreement between the Republic of South
Africa and the Government of the Commonwealth of the Bahamas
|
Exchange of Information relating to Tax
Matters
|
Adopted
|
27 October 2011
|
23 February 2011
|
Agreement between the government of the
Republic of South Africa and the government of the Republic of Kenya
|
Avoidance of Double Taxation and the
prevention of fiscal evasion with respect to taxes on income
|
Adopted
|
27 October 2011
|
23 February 2011
|
Protocol between the government of the
Republic of South Africa and the government of the United Kingdom of Great
Britain and Northern Ireland
|
Amend the convention for the Avoidance of
Double Taxation and the prevention of fiscal evasion with respect to taxes on
income and on capital gains
|
Adopted
|
27 October 2011
|
30 March 2012
|
Convention on Mutual Administrative
Assistance in Tax Matters as amended by the 2011 Protocol
|
Convention on Mutual Administrative
Assistance in Tax Matters as amended by the 2011 Protocol
|
Adopted
|
23 May 2012
|
30 March 2012
|
Supplementary Protocol Amending the
Agreement between the Government of the Republic of South Africa and the Government
of the Sultanate of Oman
|
Avoidance of Double Taxation and the
Prevention of Fiscal Evasion with respect to Taxes on Income
|
Adopted
|
23 May 2012
|
30 March 2012
|
Agreement Between the Government of the
Republic of South Africa and the Government of the Republic of Liberia
|
Exchange of Information relating to Tax Matters
|
Adopted
|
23 May 2012
|
30 March 2012
|
Agreement between the Government of the
Republic of South Africa and the Government of the Republic of Gibraltar
|
Exchange of Information relating to Tax Matters
|
Adopted
|
23 May 2012
|
30 March 2012
|
Agreement between the Government of the
Republic of South Africa and the Government of the Commonwealth of Dominica
|
Exchange of Information with respect to
Taxes and Tax Matters
|
Adopted
|
23 May 2012
|
18 June 2013
|
Agreement between the Government of the
Republic of South Africa and the Government of the Republic of Botswana
|
Avoidance of Double Taxation and the
Prevention of Fiscal Evasion with respect to Taxes on Income with Protocol
|
Adopted
|
22 August 2013
|
17 April 2013
|
Convention between the Republic of South
Africa and the Republic of Chile
|
Avoidance of Double Taxation and the
Prevention of Fiscal Evasion with respect to taxes on income and on capital
|
Adopted
|
22 August 2013
|
17 April 2013
|
Agreement between the Government of the
Republic of South Africa and the Government of the Republic of Costa Rica
|
Exchange of information relating to tax
matters
|
Adopted
|
20 June 2013
|
18 June 2013
|
Agreement between the Government of the
Republic of South Africa and the Government of the Republic of Mauritius
|
Avoidance of Double Taxation and the
Prevention of Fiscal Evasion with respect to Taxes on Income
|
Adopted
|
20 June 2013
|
17 April 2013
|
Protocol Amending the Agreement between the
Government of the Republic of South Africa and the Government of the Republic
of Malta
|
Avoidance of Double Taxation and the
Prevention of Fiscal Evasion with respect to taxes on income
|
Adopted
|
20 June 2013
|
17 April 2013
|
Protocol Amending the Convention between
the Republic of South Africa and the Kingdom of Norway
|
Avoidance of Double Taxation and the
Prevention of Fiscal Evasion with respect to taxes on income
|
Adopted
|
20 June 2013
|
17 April 2013
|
Agreement between the Government of the
Republic of South Africa and the Government of Samoa
|
Exchange of information relating to tax
matters
|
Adopted
|
20 June 2013
|
05 September 2013
|
Agreement
between the Government of the Republic of South Africa and the Government of
the Republic of Mozambique
|
Combined Border
Control Posts on the Mozambique-South Africa Border
|
Adopted
|
12 November 2013
|
9.
Statutory
appointments
In terms of section 15 (1) of the Money Bills Amendment Procedure and
Related Matters Act, No. 9 of 2009, stipulates that,
There is hereby
established a Parliamentary Budget Office headed by a Director, the main
objective of which is to provide independent, objective and professional advice
and analysis to
Parliament
on matters related
to the budget and other money bills.
Date
|
Type of appointment
|
Period of appointment
|
Status of Report
|
09 May 2014
|
Director Parliamentary Budget Office
|
Five years
|
Adopted by the House
|
10.
Obligations conferred
on committee by legislation:
The mandate of the Standing Committee on Finance was conferred to it by
the Constitution, legislation, the standing rules or a resolution of a House,
including considering and reporting on the following:
-
The national macro-economic and fiscal policy;
-
Amendments to the fiscal framework, revised
fiscal framework and revenue proposals and Bills;
-
Actual revenue published by the National
Treasury; and
-
Any other related matter set out in the Money
Bills Amendment Procedure and Related Matters Act, Act No 9 of 2009.
In addition, the mandate also encompasses the Committees function to
legislate, conduct oversight on the Executives actions and its entities.
The Committees
mandate
ensured the committees function to legislate, conduct oversight on the
Executives actions and its entities were achieved.
11.
Summary of outstanding
issues relating to the department/entities that the committee has been
grappling with
The following key issues are outstanding from the committees activities
during the 4
th
Parliament:
Responsibility
|
Issue(s)
|
Processing the Insurance Laws Amendment Bill
[B16-2013
|
The Committee did not have sufficient time
to process this Bill
|
Money Bills Amendment Procedure and Related
Matters Act (amendment Bill)
|
The Committee did not have sufficient time
to process the amendments to this Act
|
Development Bank of Southern Africa Amendment Bill
[B 2 2014]
|
The Committee did not have sufficient time
to process this Bill
|
12.
Committee
strategic plan
The Committee adopted its five year strategic
plan during September 2009.
Documents
No related documents