Second Revenue Laws Amendment Act 60 of 2001

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60 of 2001

The Second Revenue Laws Amendment Act 60 of 2001 intends:

  • to amend the Marketable Securities Tax Act, 1948, so as:
    • to provide for a further exemption;
    • to effect changes to the Act to give effect to the restructuring of the South African Revenue Service;
    • to provide for objection and appeal procedures where a person is aggrieved by a decision of the Commissioner;
  • to amend the Transfer Duty Act, 1949, so as:
    • to effect changes to the Act to give effect to the restructuring of the South African Revenue Service;
    • to provide for a further exemption;
    • to further regulate the objection and appeal procedures where a person is aggrieved by a decision of the Commissioner;
  • to amend the Estate Duty Act, 1955, so as:
    • to effect certain consequential amendments to the provisions relating to the determination of the value of property for purposes of the Act;
    • to effect changes to the Act to give effect to the restructuring of the South African Revenue Service;
    • to further regulate the objection and appeal procedures where a person is aggrieved by a decision of the Commissioner;
    • to regulate refunds of amounts of duty not properly chargeable and to provide for the set-off of amounts refundable against any other amount due to the Commissioner;
  • to amend the Income Tax Act, 1962, so as:
    • to insert a definition and to amend certain other definitions;
    • to provide that the exercise of certain discretions of the Commissioner shall be subject to objection and appeal;
    • to amend the secrecy provisions to enable the Commissioner to disclose certain information to the Director-General of the National Treasury, the National Commissioner of the South African Police Service and the National Director of Public Prosecutions in certain circumstances;
    • to further regulate the provisions relating to foreign tax credits;
    • to further regulate the provisions relating to the recoupments of amounts which have been allowed as a deduction;
    • to further regulate the provisions relating to controlled foreign entities;
    • to further regulate the provisions relating to foreign dividends;
    • to further regulate the provisions relating to income received by or accrued to residents from a source outside the Republic;
    • to provide for the determination of taxable income in respect of foreign equity instruments;
    • to further regulate the exemption provisions;
    • to further regulate the provisions relating to the scrapping allowance;
    • to further regulate the capital allowance in respect of pipelines, transmission lines and railway lines;
    • to further regulate the additional strategic industrial investment allowance;
    • to provide for a cut-off date for the provisions relating to schemes of arrangements involving trading stock;
    • to further regulate the limitation of the allowances granted to lessors of certain assets;
    • to provide that where for purposes of the Act regard must be had to the market value of an asset, the amount of input tax in the case of a vendor must be excluded from that market value;
    • to further regulate the limitation of certain deductions of expenditure where the benefit in respect of which the expenditure relates extends beyond the year of assessment during which the expenditure is incurred;
    • to provide for a cut-off date for the provisions relating to transactions whereby fixed property or company shares are exchanged for shares;
    • to further regulate the provisions relating to gains or losses on foreign exchange transactions;
    • to further regulate the provisions relating to the determination of taxable income and losses in foreign currency;
    • to repeal a provision relating to assessments on transfers of business undertakings by foreign companies to South African subsidiaries;
    • to amend the provisions relating to long-term insurers to provide that the different funds of an insurer shall be deemed to be companies which are connected persons for purposes of certain provisions of the Act;
    • to amend the provisions relating to allowances in respect of capital expenditure of mining assets and the recoupment thereof upon sale, transfer, cession or lease of mining property;
    • to provide for certain consequential amendments;
    • to provide for special rules relating to company formations, share-for-share transactions, intra-group transactions, unbundling transactions and liquidation transactions;
    • to provide for a further exemption from donations tax;
    • to effect changes to the Act to give effect to the restructuring of the South African Revenue Service;
    • to further regulate the provisions relating to secondary tax on companies;
    • to further regulate the requirements relating to returns of information by unit portfolios and in respect of financial instruments administered by portfolio administrators;
    • to provide that where a person appointed as an agent of a taxpayer does not comply with certain provisions of the Act, it shall constitute an offence;
    • to further regulate the objection and appeal procedures where a person is aggrieved by an assessment by the Commissioner and matters relating thereto;
    • to provide that the Minister may promulgate rules prescribing the procedures to be observed in lodging an objection and noting appeal and the conduct and hearing of an appeal before a tax court;
    • to provide that the Minister may by regulation prescribe the circumstances under which the Commissioner may waive a claim against a taxpayer for purposes of the settlement of a dispute and the reporting requirements where a claim is waived;
    • to further regulate the provisions relating to the taxation of lump sum benefits paid by a pension fund where a portion of that benefit must in terms, of a divorce order be paid to the former spouse of the member;
    • to further regulate and refine the provisions relating to capital gains tax;
  • to amend the Customs and Excise Act, 1964, so as:
    • to insert and amend certain definitions in section 1;
    • to provide that decisions or determinations must be in writing;
    • to further amend provisions relating to the disclosure of information;
    • to make provision for prescribing by rule of wharfs and places where degrouping depots may be established for the handling of imported or exported goods and matters incidental thereto;
    • to further regulate provisions relating to the reporting of cargo;
    • to further provide for the landing of goods before due entry;
    • to further regulate the removal of goods in bond and the export of goods from a customs and excise warehouse;
    • to introduce principles and procedures governing the administration of industrial development zones and matters incidental thereto;
    • to amend a prohibition and a definition relating to marked goods;
    • to further regulate the time of entry for imported goods;
    • to provide for goods imported by air for which immediate clearance is requested;
    • to provide for the disposal of goods on failure to make due entry, goods imported in contravention of any other law and seized and abandoned goods and matters incidental thereto;
    • to amend the provisions determining liability for duty in respect of imported goods and when liability ceases;
    • to further specify principles relating to the interpretation of provisions in the Schedules, the powers of the Commissioner to determine tariff headings, subheadings and items, to make binding tariff determinations and matters incidental thereto;
    • to further provide for the enacting into law of international agreements under the provisions of the Act;
    • to further provide for the Commissioner's powers to determine the value of imported goods and locally produced goods and matters incidental thereto;
    • to further regulate rebates and refunds of duty and losses in respect of certain goods;
    • to amend procedures relating to claims for goods seized and to prescribe when goods are condemned and forfeited;
    • to further provide for the disposal of seized goods; to introduce new provisions in terms of which the Commissioner may settle or waive claims;
    • to introduce internal administrative appeal procedures and matters incidental thereto;
    • to further provide for procedures governing notice of actions and the period for bringing action;
    • to amend requirements providing for the appointment of agents by a container operator, or a master, pilot or other carrier;
    • to amend provisions relating to the liability of agents to include liability in respect of other carriers;
    • to further regulate the powers of the Commissioner to destroy goods or delay the departure of a ship or vehicle; and
    • to provide for a lien in respect of goods in a customs and excise warehouse;
  • to amend the Stamp Duties Act, 1968, so as:
    • to effect changes to the Act to give effect to the restructuring of the South African Revenue Service;
    • to provide for objection and appeal procedures where a person is aggrieved by a decision of the Commissioner;
    • to further regulate the stamp duties on debit entries;
    • to provide for a further exemption;
  • to amend the Value-Added Tax Act, 1991, so as  to redefine welfare organisations and further define certain other expressions, to revise the provisions relating to the supply of accommodation, to clarify the exemption in respect of a debt obligation, to provide for the disclosure of certain information to the National Police Commissioner or the National Director of Public Prosecutions, to amend a reference to the Postmaster General to the Managing Director of the South African Post Office Limited, to clarify the position regarding the liability for VAT in the case of the expropriation of property, to clarify the exemption in respect of the rental of dwellings, to amend the provisions relating to exemption in respect of educational services, to regulate the payment of tax on importation in cases where tax has not been paid to a Controller of Customs and Excise, to require that the legal or trading name of a vendor be supplied in a tax invoice for an input tax deduction to be claimable, to provide for a refund in lieu of a refund in respect of the use of diesel in the case of amounts paid to small scale farmers, to regulate the holding of debit or credit notes, tax invoices or statements in the case of agents, to require the issue of a tax invoice in the case of all supplies exceeding R10 000 and impose further requirements in respect of tax invoices, to provide that returns may be submitted electronically up to the last business day of a month, to amend certain provisions relating to objection and appeal, to require that particulars of the banking or similar account of a vendor be submitted, to amend the reference to Receivers of Revenue to SARS offices, to require that reasons be submitted as to why a person appointed as agent is not able to comply with the appointment, to provide that a rental pool scheme operated and managed for the benefit of the owners of sectional title interests or shareholders in a Shareblock Company is regarded as a separate enterprise, to make it an offence to issue a document that purports to be a tax invoice but does not meet certain requirements, to make it an offence to, without lawful cause, fail to comply with a notice of appointment as agent in terms of section 47, to prevent a vendor from stating or implying that any form of discount, including discount in the form of trade or cash discount or a refund is in lieu of VAT, to provide for the rounding off of VAT, to substitute Schedule 1 to the Act which makes provision for exemption on importation;
  • to amend the Income Tax Act, 1993, so as to provide for a cut-off date for the unbundling provisions in consequence of the introduction of the special rules relating to unbundling transactions in Part III of Chapter II of the Income Tax Act, 1962;
  • to amend the Taxation Laws Amendment Act, 1994, so as to provide for an exemption from marketable securities tax and uncertificated securities tax in the case of rationalisation schemes and to provide for a cut-off date of the rationalisation provisions in consequence of the introduction of the special rules relating to intra-group transactions in Part III of Chapter II of the Income Tax Act, 1962;
  • to amend the Uncertificated Securities Tax Act, 1998, so as:
    • to provide for a further exemption;
    • to effect changes to the Act to give effect to the restructuring of the South African Revenue Service;
    • to provide for objection and appeal procedures where a person is aggrieved by a decision of the Commissioner;
  • to amend the Revenue Laws Amendment Act, 1999, so as to repeal an amendment introduced by that Act;
  • to amend the Taxation Laws Amendment Act, 2001, so as to effect certain textual amendments;
  • to amend the Revenue Laws Amendment Act, 2001, so as to effect certain textual amendments; and
  • to provide for matter connected therewith.

Commencement

  • 24 November 1999, 23 February 2000, 1 January 2001, 15 July 2001, 27 July 2001, 1 September 2001, 1 October 2001, 7 November 2001, 1 December 2001, 12 December 2001, 1 January 2002, 1 March 2002
  • 26 February 2003, Section 130(1)(h) (Gazette 24974 of 26 February 2003)
  • 1 April 2003, Sections 5(1), 10(1), 11(1), 14(1), 15(1), 53(1), 54(1), 55(1), 56(1), 57(1), 58(1), 59(1), 60(1), 145(1), 160(1) and 182(1) (Gazette 24639 of 1 April 2003)
  • 2 April 2003, Section 130(1)(i) (Gazette 24639 of 1 April 2003)
  • 1 January 2005, Sections 121(1) and 148(1)(e) (Gazette 27139 of 22 Dec 2004)

Amendments