CRS News Flash 12 November 2021 – SOUTH AFRICA – Explanatory Summary of the Tax Administration Laws Amendment Bill 2021

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.