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Revenue Laws Amendment 19 of 2001

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19 of 2001
The Revenue Laws Amendment 19 of 2001 intends:
 
  • to amend the Estate Duty Act, 1955, so as to further regulate the valuation of property for purposes of inclusion and deduction purposes;
  • to amend the Income Tax Act, 1962, so as:
    • to fix the rates of normal tax payable by persons other than companies in respect of taxable incomes for the years of assessment ending on 28 February 2002 and 30 June 2002, and by companies in respect of taxable incomes for the years of assessment ending during the period of 12 months ending on 31 March 2002;
    • to amend the definition of "gross income" so as to avoid a double inclusion of an amount therein;
    • to regulate the tax treatment of pension funds where employees are transferred from a local authority to a municipal entity;
    • to take capital gains into account in the formula used for determining the rate at which special remuneration or lump sum payments must be taxed;
    • to increase the primary rebate for individuals;
    • to further regulate the recoupment provisions in respect of any distribution of an asset to a shareholder;
    • to amend the definition of "foreign dividend" to exclude certain amounts; to increase the amount of dividends and interest which are exempt from tax;
    • to provide for the deduction of pre-production interest in respect of certain depreciable assets;
    • to provide for a scrapping allowance in respect of certain depreciable assets;
    • to provide for the deduction of an amount invested by a small business corporation in certain manufacturing assets;
    • to provide for an allowance in respect of investments in certain aircraft hangars, aprons, runways and taxiways;
    • to provide for an additional industrial investment allowance in respect of qualifying strategic industrial projects;
    • to further regulate the deduction in respect of buildings used in a process of manufacturing;
    • to regulate the treatment of certain income of non-resident trusts;
    • to further regulate the taxation of long-term insurers; to further regulate the limitation on trading activities of a public benefit organisation;
    • to further regulate electronic communication with the Commissioner;
    • to provide for the payment of employees' tax by directors of private companies; to increase the provisional tax threshold;
    • to further regulate the provisions relating to the taxation of capital gains; and
    • to provide for certain consequential and textual amendments;
  • to amend the Customs and Excise Act, 1964, so as:
    • to provide that requirements in respect of any report listing and describing cargo carried by or loaded on to any ship, aircraft, railway train or other vehicle and any outturn report to be submitted to the Controller may be prescribed by rule;
    • to provide for the removal of goods in bond by a licensed remover;
    • to provide for the removal of goods for export by a licensed remover;
    • to reduce the period for which goods may be stored in a customs and excise warehouse from five years to two years;
    • to make provision that the Commissioner may determine by rule the time when excisable goods or fuel levy goods manufactured in the Republic shall be entered or deemed to be entered for home consumption and the payment of duty on such goods, restrict the licensing of customs and excise storage warehouses, cancel the licence of any existing storage warehouse and allow any imported goods to be mixed with locally produced excisable or fuel levy goods of the same class or kind in a customs and excise warehouse on payment of any difference of duty;
    • to provide that goods so used shall be subject to the duties leviable and the manufacturing, accounting and removal procedures prescribed in terms of excisable or fuel levy goods manufactured in such warehouse;
    • to provide further for provisions that regulate the removal of goods from a customs and excise warehouse;
    • to provide that export bills of entry must be delivered before the goods are exported or at such times and in the circumstances provided by rule; to provide that imported goods may be delivered by the master, pilot or other carrier, container operator or depot operator to certain persons licensed or registered on compliance with such conditions or procedures as may be prescribed by rule and when liability for duty shall cease in respect of such goods;
    • to insert a new section which provides for procedures relating to the registration of persons participating in activities regulated by the Act and the refusal of any application for registration and the suspension or cancellation of a registration and matters incidental thereto; to further regulate provisions relating to licensing;
    • to provide for the activities for which a licence is required, the persons who are required to licence, the procedures and other requirements to be prescribed in the Notes, to the item in Schedule No. 8 in which such licence is specified and in the rules, and to specify the circumstances in which the Commissioner may refuse an application for a new licence or renewal of a licence or cancel or suspend a licence;
    • to further provide for requirements in respect of the licensing of clearing agents;
    • to provide for the licensing of a remover of goods in bond, the goods which are to be removed by such licensed remover, the application for such licence, the liability of the remover of goods in bond and other persons in respect of any goods removed or carried by the remover and matters incidental thereto;
    • to confer accredited client status on any applicant who is licensed or registered under the Act;
    • to prescribe the requirements in respect of such status and matters incidental thereto;
    • to introduce an invoice price basis of valuation for excise duty purposes in respect of goods manufactured in the Republic and specified in certain items of Section B of Part 2 of Schedule No. 1;
    • to provide for a refund of fuel levy on distillate fuel and the levy leviable on diesel in terms of the Road Accident Fund Act, 1996, and to provide for matters connected therewith;
    • to further regulate certain provisions in respect of which deductions are allowed from the dutiable quantities and to limit such deductions to quantities not exceeding these specified in each case;
    • to regulate electronic communication for the purposes of customs and excise procedures and to provide for matters connected therewith;
    • to amend Schedule No. 1 to the said Act and the effective date thereof; and
    • to provide for the continuation of amendments to the Schedules;
  • to amend the Stamp Duties Act, 1968, so as :
    • to remove stamp duties on bills of exchange and promissory notes, bills of entry, securities and suretyships;
    • to further regulate the stamp duties on debit entries; and
    • to provide for certain consequential and textual amendments;
  • to amend the Value-Added Tax Act, 1991, so as:
    • to further define certain expressions and to simplify and revise the provisions relating to the supply of accommodation;
    • to enable the Commissioner to publish the name and registration numbers of vendors;
    • to regulate the VAT consequences on the transfer of all assets and liabilities of a disestablished local authority to a new local authority so as to ensure that it will not constitute a supply subject to VAT when the consolidation of their accounting systems takes place; to regulate the exemption in respect of dwellings in the case of employers and local authorities who supply staff accommodation, to make it clear that any officer under the Commissioner's control, direction or supervision may be authorised to collect VAT on importation of goods;
    • to make provision for a flat rate scheme in certain circumstances for small scale farmers; to prevent claims for refunds of certain amounts of VAT after five years;
    • to make it an offence not to issue a tax invoice to a recipient as required by the Act; and to make allowance for the addition of small quantities of minerals, vitamins and similar additives to increase the nutritional value of maize meal and milk;
  • to amend the Road Accident Funds Act, 1996, so as to provide for a refund by the Road Accident Fund of certain levies leviable in terms of that Act;
  • to amend the Uncertificated Securities Tax Act, 1998, so as to provide for an exemption in respect of a change in beneficial ownership in securities which are interest bearing debentures listed by a financial exchange;
  • to amend the Skills Development Levies Act, 1999, so as:
    • to regulate the period during which certain information must be submitted by the Commissioner to the Director General of Labour; and
    • to further regulate the court's jurisdiction in respect of offences;
  • to amend the Taxation Laws Amendment Act, 2000, so as to remove the requirement that the Commissioner must approve a benefit fund;
  • to amend the Taxation Laws Amendment Act, 2001, so as to delete an amendment proposed in that Act; and
  • to provide for matters connected therewith. 

Commencement

27 July 2001

Amendments