ATC191121: Report of the Standing Committee on Finance on the Tax Administration Laws Amendment Bill [B19 - 2019] dated 20 November 2019

Finance Standing Committee

Report of the Standing Committee on Finance on the Tax Administration Laws Amendment Bill [B19 - 2019] dated 20 November 2019
 

The Standing Committee on Finance, having considered and examined the Tax Administration Laws Amendment Bill [B19 - 2019] (National Assembly- section 75), referred to it, reports as follows:

 

1. The Minister of Finance’s tax proposals were part of the 2019 Budget announcements on 20 February 2019. Owing to the change of government administration, which mainly affected the operations of the Executive and the Legislative arms of government, as a result of the National Elections in May this year, the Standing Committee on Finance, jointly with Select Committee of Finance, held its public hearings on the draft tax bills late in the year on 10 September, after being briefed on the draft tax bills by the National Treasury and SARS on 03 September. The National Treasury and SARS responded to the public submissions on 18 September 2019.
2. The 2019 Draft Taxation Administration Law Amendment Bill (TALAB or the Bill) were further published on 21 July 2019, containing more complex, technical and administrative tax proposals announced in the 2019 Budget. The Minister introduced the Bill formally with the Medium Term Budget Policy Statement on 30 October 2019.
3. The amendments TALAB are mainly technical corrections the Income Tax Act, 1962; the Customs and Excise Act, 1964; the Value Added Tax Act, 1991, the Skills Development Levies Act, 1999; the Unemployment Insurance Contributions Act, 2002- to align time periods for a refund under this Act to the Tax Administration Act of 2011; and the Tax Administration Act of 2011. The technical corrections were mainly accepted.  
4. The main comments received during the public hearings were:
   1. on the amendments to the Income Tax Act, in relation to double taxation agreements and to tax free investments.
   2. on the Customs and Excise Act amendments in respect of the Commissioner of SARS to prescribe rules relating to the making of advance foreign currency payments; and
   3. on Tax Administration Act in respect of: the extension of the notice period to institute legal proceedings against the Commissioner of SARS from 1 week to 10 working days; Common Report Standards mandatory disclosure rules and non-compliance penalties; and on modernising tax compliance through automation. 
5. The Committee supports the Bill and asks that the House approves it.

 

The Economic Freedom Fighters (EFF) abstained from voting on the Bill

 

Report to be considered.