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. Committee’s 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 Committee’s 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 committee’s 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 government’s 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 committee’s function to legislate, conduct oversight on the Executive’s 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 committee’s 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;
amend the Estate Duty Act, 1955, so as to amend a time period; and to repeal a section; amend the Income Tax Act, 1962, so as to insert new provisions; to amend
the calculation of interest; to amend a definition; and to effect textual and consequential amendments;
amend the Customs and Excise Act, 1964, so as to amend provisions empowering the withdrawal or amendment of a decision, notice or communication; to amend provisions regulating the removal in bond of goods; to amend provisions regulating the exportation of goods from a
customs and excise warehouse; to insert special provisions regarding the storage and clearance of stores, spares and equipment supplied to foreign-going ships and aircraft; to insert a provision specifying circumstances in which goods free of duty may be entered under a rebate item of Schedule No. 4; to amend provisions under which a penalty may be mitigated or remitted; to amend provisions regulating payment of outstanding amounts and interest; to insert a provision empowering the making of rules for the purposes of modernising customs administration; and to effect textual and consequential amendments; amend the Value-Added Tax Act, 1991, so as to insert a definition; to insert new provisions; to amend the calculation of interest; and to effect textual and consequential amendments; amend the Skills Development Levies Act, 1999, so as to amend a definition; to insert new provisions; to amend the calculation of interest; and to effect textual and consequential amendments;
amend the Unemployment Insurance Contributions Act, 2002, so as to amend a definition; to insert new provisions; to amend the calculation of interest; and to effect textual and consequential amendments; amend the Diamond Export Levy (Administration) Act, 2007, so as to
amend a time period; to amend refunds; to amend the calculation of interest; and to effect textual and consequential amendments; amend the Diamond Export Levy Act, 2007, so as to clarify an existing provision;
amend the Securities Transfer Tax Act, 2007, so as to extend a time period; amend the Mineral and Petroleum Resources Royalty (Administration) Act, 2008, so as to amend effective dates; to provide for nonbinding private
opinions; and to effect textual amendments, and to provide for matters connected therewith.

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
amendments; amend the Customs and Excise Act, 1964, so as to amend the air passenger tax; to amend rates of duty in Schedule No. 1; to provide for the continuation of certain amendments to the Schedule; amend the Banks Act, 1990, so as to effect a consequential amendment;
amend the Value-Added Tax Act, 1991, so as to amend monetary amounts; to insert a new provision; to effect consequential amendments; amend the Taxation Laws Amendment Act, 2004, so as to change an effective date; amend the Revenue Laws Amendment Act, 2006, so as to change effective dates; amend the Diamond Export Levy Act, 2007, so as to insert a definition; to
clarify a provision; amend the Securities Transfer Tax Act, 2007, so as to make a textual amendment; amend the Mineral and Petroleum Resources Royalty Act, 2008, so as to amend effective dates; to amend provisions; to update a Schedule; amend the Revenue Laws Amendment Act, 2008, so as to amend commencement provisions; introduce measures relating to sharing of general fuel levy revenue; provide for special measures relating to zero-rating of certain goods and services; and to provide for matters connected therewith.

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 Parliament’s annual budget, appropriations and approvals; to amend the provisions dealing with donor funds; to delete certain provisions dealing with Parliament’s 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 Parliament’s 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 Committee’s function to legislate, conduct oversight on the Executive’s actions and its entities.

The Committee’s mandate ensured the committee’s function to legislate, conduct oversight on the Executive’s 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 committee’s 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