31 January 2005
The South African Revenue Service (SARS) considered requests from various
interested parties and today extended the date of submission for public
responses to the Discussion Paper on Tax Avoidance.
The Discussion Paper was released by Finance Minister Trevor Manuel on 3
November last year. The initial deadline for public submissions or comment was
today, 31 January 2006.
In order to accommodate requests for an extension from, among others, the
Banking Association of South Africa as well as from the South African Chamber
of Business (SACOB)/Business Unity South Africa (BUSA), SARS has extended the
deadline to 28 February 2006 to allow further submissions.
In view of the long consultative process, which SARS expects will follow the
new deadline, it will not be possible to consider further requests for
extensions beyond 28 February 2006.
The decision to accommodate the requests from the business sector is also
motivated by the importance for SARS of the proposals in the Discussion Paper.
The Discussion Paper is a precursor to amendments to Section 103 of the Income
Tax Act, which SARS expects will be introduced later this year.
The Discussion Paper reviews the effectiveness of applicable legislation on
impermissible tax avoidance which is contained in Section 103 of the Income Tax
Act (Act No. 58 of 1962). It further outlines SARSâ views on tax evasion,
impermissible tax avoidance, and tax planning and outlines the corrosive effect
that impermissible tax avoidance schemes have on levels of compliance and a
sustainable revenue base both locally and internationally.
SARS appreciates the responses from interested parties and the debate around
tax avoidance the release of the Discussion Paper has generated thus far.
Proposals arising from these submissions will be considered in full. SARS will
shortly release an Interim Response to comments that have been made public to
date. Comments will also be welcome in respect of the Interim Response.
The discussion paper is still available from the SARS website (http://www.sars.gov.za) and in print from selected
SARS offices. Interested parties can send comments to policycomments@sars.gov.za on or before
Tuesday, 28 February 2006 or for the attention of:
Law Administration
Discussion Paper on Tax Avoidance
Private Bag X923
Pretoria
0001
Enquiries:
Adrian Lackay
Tel: (012) 422 4206
Cell: 083 388 2580
Issued by: South African Revenue Service
31 January 2006
