Revenue Laws Amendment Act 20 of 2006

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20 of 2006

The Revenue Laws Amendment Act 20 of 2006 intends:

  • to amend the Transfer Duty Act, 1949, so as:
    • to provide for the exemption from duty of municipalities;
    • to provide for the exemption from duty of water service providers; and
    • to delete an obsolete provision in relation to the exemption of public benefit organisations from duty;
  • to amend the Estate Duty Act, 1955, so as to provide for the exemption of property bequeathed to a municipality;
  • to amend the Income Tax Act, 1962, so as:
    • to amend, insert and delete certain definitions;
    • to extend the exceptions to the secrecy provisions;
    • to provide for the delegation of powers and performance of duties by the Minister;
    • to provide that the Commissioner may deem a portion of an allowance to be actually expended in respect of subsistence expenses by employees;
    • to further regulate the recoupment of amounts previously allowed as a deduction;
    • to provide for the valuation of shares in a private company;
    • to further regulate the taxation of a resident in relation to foreign companies controlled by the resident;
    • to amend the exemption of foreign states and their institutions and other multinational organisations and their employees;
    • to regulate the exemption of regional electricity distributors, water services providers, mining rehabilitation funds, recreational clubs, interest received or accrued by non-residents, the remuneration of the crew and officers of a ship, scholarships and bursaries, amounts paid by government in respect of assets that are to be destroyed and amounts paid in terms of an official development assistance agreement;
    • to further regulate the deduction of amounts paid to mining rehabilitation funds;
    • to provide for the deduction of advance royalty payments;
    • to provide for increased deductions and allowances in respect of research and development;
    • to further regulate the taxation of small business corporations;
    • to further regulate the deduction of amounts donated to public benefit organisations;
    • to further regulate the deduction of expenditure and allowances and base cost in respect of assets funded by government;
    • to further regulate the double deduction of expenditure for tax purposes;
    • to further regulate the treatment of exchange differences; 
    • to further regulate the incurral and accrual of interest; 
    • to regulate the tax treatment of mining for oil and gas; 
    • to delete obsolete provisions in relation to the long-term insurance industry;
    • to amend the regulation of public benefit organisations, recreational clubs and mining rehabilitation funds;
    • to amend the definition of domestic or foreign financial instrument holding company;
    • to further regulate the treatment of company formation and share for share transactions;
    • to further regulate the disposal by a holding company of a share in a liquidating company;
    • to amend the regulation of a dividend cycle;
    • to insert General Anti-avoidance Rules;
    • to regulate certain administrative provisions of the Act;
    • to regulate the taxation of lump sum benefits in relation to retirement funds;
    • to further regulate the treatment of personal service entities;
    • to exclude public benefit organisations and recreational clubs as provisional taxpayers;
    • to clarify the definition of the tax threshold;
    • to regulate the treatment of capital gains in relation to deceased estates;
    • to further regulate the capital gains tax treatment of assets disposed of which are used to produce exempt amounts;
    • to provide for the treatment for capital gains tax purposes of assets disposed of for destruction by the government;
    • to further regulate the treatment for capital gains purposes of exchange differences;
    • to provide for the treatment of the disposal of assets by recreational clubs;
    • to provide for the disposal of assets of a deceased estate in terms of a redistribution agreement;
    • to amend the valuation date to cater for recreational clubs and public benefit organisations;
    • to provide for an extension for the submission of valuations based on market value;
    • to provide that a portion of a capital gain may be attributed to a beneficiary of a trust;
    • to amend certain activities which are classified as public benefit activities;
    • to confirm that donations and bequests to public benefit organisations continue to be disregarded; and
    • to effect certain textual and consequential amendments and to delete certain obsolete provisions;
  • to amend the Customs and Excise Act, 1964;
    • to amend and to specify provisions relating to liability for duty of the master, pilot, any other carrier, terminal operator, combination terminal operator, bulk goods terminal operator, road vehicle terminal operator, transit shed operator, container operator and the container depot operator;
    • to amend provisions regarding the amendment of anti-dumping, countervailing and safeguard duties and to provide for other safeguard measures and the imposition of quotas;
    • to amend the references to items of Schedule No. 6 in respect of refunds of distillate fuel, to delete references to Schedule No. 5 and items of that Schedule and to provide for deductions from the dutiable quantity of unmarked illuminating kerosene or unmarked specified aliphatic hydrocarbon solvents;
    • to effect a textual amendment to a refund provision;
    • to delete the word fine from the order in which instalments paid must be utilised;
    • to delete the word fine from the provisions relating to liens on goods and the order in which amounts recovered must be utilised; t
    • o deem that certain amendments in respect of the value for excise duty purposes came into operation on 1 July 2001;
    • to amend Schedule No. 4 and
    • to effect certain textual and consequential amendments;
  • to amend the Stamp Duty Act, 1968,
    • to provide for the exemption of municipalities, traditional communities, regional electricity distributors and water service providers from duty; and
    • to amend Schedule 1;
  • to amend the Finance and Financial Adjustments Consolidations Act, 1977, so as to delete section 9 thereof;
  • to amend the Value-Added Tax Act, 1991, so as:
    • to amend definitions in respect of designated entities, foreign donor funded projects, municipalities and welfare organisations;
    • to amend and insert certain deeming provisions;
    • to provide for the valuation of the deeming provisions;
    • to provide for zero-rating of fixed property located in a customs controlled area, and other supplies made to an Industrial Development Zone operator, and payments made by public authorities in respect of the Animal Diseases Act, 1984;
    • to further regulate the zero-rating of international donor funding;
    • to provide for certain exemptions; to further regulate the circumstances where input tax deductions may be claimed;
    • to regulate the adjustments to be made by a customs controlled area enterprise and Industrial Development Zone operator in a customs controlled area;
    • to regulate the provisions of bad debts; 
    • to further regulate the issuing of additional assessments;
    • to provide for a de minimus rule for refunds;
    • to amend Schedule 1;
    • to effect certain textual and consequential amendments and to delete certain obsolete provisions;
  • to amend the Uncertificated Securities Tax Act, 1998, so as:
    • to amend the definition of person;
    • to provide for the payment of uncertificated securities tax through a participant or member by the person liable for such payment; and
    • to effect certain textual and consequential amendments and to delete certain obsolete provisions;
  • to amend the Unemployment Insurance Act, 2001, so as:
    • to repeal section 3(1)(e) thereof; and
    • to repeal section 14(a)(i) thereof;
  • to amend the Revenue Laws Amendment Act, 2003, so as:
    • to bring certain provisions thereof into operation; and
    • to amend an effective date provision;
  • to amend the Taxation Laws Amendment Act, 2005, so as:
    • to extend the date for the conversion of exchanges; and
    • to provide for a date of coming into operation of certain provisions;
  • to amend the Small Business Tax Amnesty and Amendment of Taxation Laws Act, 2006, so as:
    • to make textual amendments;
    • to further regulate travel allowances in respect of overseas travel; and
    • to provide for the rates of taxation in respect of recreational clubs or public benefit organisations; and
  • to introduce measures relating to 2010 FIFA World Cup South Africa.

Commencement

  • 7 February 2007, unless otherwise indicated
  • 1 October 2008, Sections 12(1) and 33(1) (Gazette 31410 of 12 September 2008) 
  • 1 April 2008, Sections 5(1) and 6(1) (Gazette 30941 of 1 April 2008) 

Amendments