|NOVEMBER 2021 – SOUTH AFRICA
TAX ADMINISTRATION LAWS AMENDMENT BILL, 2021
It is important that employers note the following:Publication of Explanatory Summary of the Tax Administration Laws Amendment Bill, 2021
Government has given notice that the Minister of Finance intends to introduce the Tax Administration Laws Amendment Bill, 2021 to the National Assembly soon. An explanatory summary of the Bill has been published in accordance with the Rules of the National Assembly.
The Bill provides for the amendment of the:
· Estate Duty Act, 1955;
· Income Tax Act, 1962;
· Customs and Excise Act, 1964;
· Tax Administration Act, 2011;
· Disaster Management Tax Relief Administration Act, 2020.
Brief overview of amendments:
· Income Act Tax:
· To enable the Commissioner to request certain information by public notice;
· To align the provision for submission of a return by a foreign person in respect of withholding tax on royalties with that of withholding tax on interest;
· To align the refund limitation rules for dividends paid in specie with that of dividends paid in cash;
· To provide that the prescription periods will not apply to certain deductions claimed by farmers and to provide for extended record-keeping periods;
· To provide for textual corrections;
· To provide for a penalty to be raised on an estimate of employees’ tax;
· To provide that a first provisional tax payment and return will not be required when the duration of a year of assessment does not exceed six months;
· To provide for the deletion of a penalty.
· Tax Administration Act:
· To make a textual correction;
· To provide for an extension in submission of a return or relevant material regarding assessments based on an estimate;
· To provide for a date from which a taxpayer may lodge an objection and appeal regarding assessments based on an estimate;
· To provide for an exception to prescription;
· To correct a cross-reference.
· Disaster Management Tax Relief Administration Act:
· To amend certain dates to provide relief under the Act, and to provide for matters connected therewith.