Revenue Laws Amendment Act 32 of 2004

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32 of 2004

The Revenue Laws Amendment Act 32 of 2004 intends:

  • to amend the Transfer Duty Act, 1949, so as:
    • to regulate the interest and penalty on late payment of duty;
    • to limit the exemption from duty where property is used by a public benefit organisation otherwise than wholly for public benefit activities;
    • to provide for certain consequential and textual amendments;
  • to amend the Income Tax Act, 1962, so as:
    • to amend certain definitions and insert a new definition;
    • to further regulate the provisions relating to deductions of interest and withholding tax on foreign dividends;
    • to further regulate the provisions in terms of which residents are taxed on amounts received by foreigners as a result of any donation by that resident;
    • to further regulate the taxation of executive share incentive schemes;
    • to regulate the taxation of broad-based employee equity share plans for purposes of determining the tax liability of the employee and the deduction for the employer;
    • to further regulate the taxation of instruments which are convertible between debt and equity;
    • to effect certain consequential amendments as a result of the introduction of the Mineral and Petroleum Resources Development Act, 2002, and the Securities Services Act, 2004;
    • to further regulate the exemptions from tax;
    • to further regulate the provisions relating to purchased annuities to make provision for an average exchange rate where consideration given by the purchaser thereof is denominated in a foreign currency;
    • to further regulate the deduction of the cost of improvements effected in terms of a Public Private Partnership;
    • to further regulate the deduction of research and development expenditure;
    • to further regulate the provisions relating to urban development zones;
    • to make provision for the limitation of losses from the disposal of certain assets;
    • to further regulate the provisions relating to the acquisition or disposal of trading stock;
    • to regulate the taxation of transactions where assets are acquired in exchange for the issue of shares;
    • to further regulate the taxation of gains or losses on foreign exchange transactions to exclude non-residents;
    • to further regulate the provisions relating to the incurral and accrual of interest;
    • to regulate the taxation of assets acquired or disposed of for unquantified amounts;
    • to regulate the taxation of the disposal and acquisition of equity shares;
    • to further regulate the provisions relating to the taxation of trusts;
    • to repeal the provisions which regulate the disposal of assets by non-residents;
    • to make provision for a withholding tax in the case where a non-resident disposes of any immovable property in the Republic;
    • to further regulate the provisions relating to the taxation of intra-group transactions;
    • to further regulate the provisions relating to the taxation of unbundling transactions;
    • to further regulate the provisions relating to liquidation distributions;
    • to further regulate the provisions relating to donations tax;
    • to further regulate the provisions relating to secondary tax on companies;
    • to further regulate the provisions which deem certain amounts to be dividends for purposes of secondary tax on  companies;
    • to further regulate the provisions relating to transactions, operations or schemes for purposes of avoiding or postponing liability for or reducing amounts of taxes on income;
    • to further regulate the provisions relating to the taxation of lump sum benefits;
    • to further regulate the employees' tax provisions to include qualifying equity shares granted in terms of a broad-based employee equity share plan and equity instruments in terms of executive equity schemes;
    • to further regulate the provisions relating to provisional tax;
    • to further regulate the provisions relating to fringe benefits to take into account qualifying equity shares granted in terms of a broad-based employee equity share plan and equity instruments in terms of executive equity schemes;
    • to further regulate the capital gains tax provisions to provide for the disposal and acquisition of assets for unqualified amounts;
    • to regulate the capital gains tax implications for qualifying equity shares granted in terms of a broad-based employee equity share plan and equity instruments in terms of executive equity schemes;
    • to further regulate the provisions relating to part disposal of assets;
    • to regulate the capital gains tax implications in respect of the disposal of certain debt claims;
    • to further regulate the provisions relating to disposal of assets for no consideration or consideration not measurable in money;
    • to effect certain textual and consequential amendments and to delete certain obsolete provisions;
  • to amend the Customs and Excise Act, 1964, so as:
    • to insert and amend certain definitions;
    • to further regulate the liability for duty where underpayments are the result of fraud, misrepresentation, non-disclosure of material facts or false declarations for the purposes of the Act;
    • to amend the long title to include environmental levy;
    • to amend the provisions relating to customs controlled areas within Industrial Development Zones;
    • to amend provisions relating to biofuel;
    • to effect certain consequential amendments;
  • to amend the Stamp Duty Act, 1968, so as:
    • to amend and insert certain definitions;
    • to introduce interest and penalty provisions for failure or late payment of duty;
    • to further provide for additional duty in case of evasion;
    • to introduce provisions relating to e-stamping and electronic payments;
    • to regulate the time in which an instrument must be stamped:
    • to provide for regulations in respect of duty on other consideration;
    • to further delete administrative penalties;
    • to regulate the rate and exemption of duty;
    • to provide for certain consequential and textual amendments;
  • to amend the Value- Added Tax Act, 1991, so as:
    • to amend and insert certain definitions;
    • to provide for the imposition of levies introduced in the Customs and Excise Act, 1964;
    • to introduce certain deeming provisions;
    • to provide for certain zero-rating and exemptions;
    • to provide for the provisions relating to Industrial Development Zones;
    • to further regulate the circumstances where an input tax may be claimed;
    • to prescribe further requirements for tax invoices;
    • to provide for certain textual amendments;
    • to effect certain consequential amendments and to delete obsolete references to Acts that have been repealed;
    • to clarify certain provisions;
  • to amend the Uncertificated Securities Tax Act, 1998, so as:
    • to amend and insert certain definitions;
    • to provide for the value on which duty will be payable on securities;
    • to further regulate the exemptions from duty;
    • to effect certain textual amendments;
  • to amend the Second Revenue Laws Amendment Act, 2001, and the Revenue Laws Amendment Act, 2002, so as:
    • to further regulate the provisions relating to industrial development zones inserted in the Customs and Excise Act, 1964;
    • to delete certain provisions which have not come into operation yet;
  • to amend the Revenue Laws Amendment Act, 2003, so as to delete certain provisions which have not come into operation yet and to further regulate certain commencement dates;
  • to amend the Taxation Laws Amendment Act, 2004, so as:
    • to delete a provision which has not come into operation yet; and
    • to provide for a short title and commencement date; and
  • to provide for matters relating thereto.

Commencement

  • 24 January 2005  and the various dates specified in the Sections
  • 1 July 2005, Section 14(1)(a) (Gazette 27681 of 17 June 2005)
  • 1 April 2005, Sections 92(1)(g) and (k), 95(1)(a), and (c), 98(1)(f) and 103(1)(b) and (c) (Gazette 27427 of 1 April 2005)

Amendments