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Taxation Laws Amendment Act 30 of 1998

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30 of 1998

The Taxation Laws Amendment Act 30 of 1998 intends:

  • to amend the Marketable Securities Tax Act, 1948 [repealed in 2003], so as
    • to withdraw an exemption;
    • to further regulate the payment of penalties;
    • to make provision for the payment of interest;
    • to further regulate the making of refunds;
    • to effect certain textual amendments; and
    • to provide for the publication of names of offenders;
  • to amend the Transfer Duty Act, 1949, so as
    • to further regulate the payment of transfer duty;
    • to effect certain textual amendments;
    • to further regulate the making of refunds; and
    • to provide for the publication of names of offenders;
  • to amend the Estate Duty Act, 1955, so as
    • to further regulate the payment of estate duty;
    • to effect certain textual amendments; and
    • to provide for the publication of names of offenders;
  • 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 1999 and 30 June 1999, and by companies in respect of taxable incomes for the years of assessment ending during the period of 12 months ending on 31 March 1999;
    • to further define certain expressions;
    • to make certain decisions of the Commissioner subject to objection and appeal;
    • to adjust the secrecy provisions;
    • to increase certain tax rebates;
    • to further regulate the receipt and accrual of income from certain funds;
    • to further regulate the taxation of allowances or advances in respect of transport expenses;
    • to further regulate the circumstances in which amounts are deemed to have accrued from a source within the Republic;
    • to further regulate the circumstances in which amounts received or accrued in relation to the disposal of listed shares are deemed to be of a capital nature;
    • to further regulate the taxation of investment income from foreign sources;
    • to further regulate the taxation of investment income of controlled foreign entities and investment income arising from donations, settlements or other dispositions;
    • to further regulate the application of certain exemptions;
    • to withdraw certain exemptions and to introduce another;
    • to further regulate certain general deductions allowed in the determination of taxable income;
    • to repeal the deduction in respect of expenses incurred by medical practitioners and dentists on courses or congresses outside the Republic;
    • to deem certain dividends received by or accrued to a shareholder to be income derived otherwise than in the form of dividends;
    • to further regulate the limitation of allowances granted to lessors of certain assets;
    • to further regulate the taxation of gains and losses on foreign exchange transactions; 
    • to further regulate the taxation of the income of trusts and beneficiaries of trusts;
    • to further regulate the determination of the taxable income of certain persons in respect of international transactions;
    • to effect certain textual amendments;
    • to introduce an exemption from donations tax;
    • to further regulate the determination of amounts distributed which are deemed to be dividends for purposes of the Secondary Tax on Companies;
    • to further regulate the furnishing of information;
    • to provide for the publication of names of offenders;
    • to delete certain obsolete provisions;
    • to further regulate the making of refunds;
    • to make certain general anti-avoidance provisions also applicable to trusts;
    • to empower the Minister of Finance to make regulations prescribing the contents of certain accounts;
    • to further regulate the computation of gross income derived by way of lump sum benefits from certain pension, provident and retirement annuity funds;
    • to further regulate the deduction or withholding of amounts by employers in respect of normal tax; and
    • to extend the provisions in relation to, and to further regulate, the determination of benefits and advantages derived by reason of employment;
  • to amend the Customs and Excise Act, 1964, so as
    • to further define certain expressions;
    • to adjust the secrecy provisions;
    • to effect certain consequential and textual amendments;
    • to introduce special measures to regulate the payment of duty on marked goods;
    • to further regulate the conclusion of certain international agreements;
    • to regulate the disclosure of information and the rendering of mutual assistance in terms of a convention or agreement;
    • to further regulate the making of refunds;
    • to criminalise certain conduct;
    • to provide for the publication of names of offenders;
    • to further regulate the circumstances in which rewards may be made;
    • to further regulate the liability of an agent for obligations imposed on such agent’s principal;
    • to further regulate the prohibition and restriction on the importation of certain goods; and
    • to provide for the continuation of certain amendments to the Schedules to the Customs and Excise Act, 1964;
  • to amend the Stamp Duties Act, 1968, so as
    • to further define certain expressions;
    • to introduce certain exemptions; 
    • to further regulate the payment of stamp duty;
    • to further regulate the making of refunds;
    • to provide for the publication of names of offenders; and
    • to withdraw certain exemptions;
  • to amend the Value-Added Tax Act, 1991, so as
    • to further define certain expressions;
    • to exclude certain activities from the scope of the exemption for financial services;
    • to allow the Commissioner to make certain information regarding vendors known;
    • to limit the application of the zero rate in respect of the supply of services to non-residents;
    • to limit the application of the payments basis of accounting for tax and to introduce a transitional arrangement in that regard;
    • to limit the period during which input tax may be deducted to five years and to introduce a scheme for determining the tax liability;
    • to provide that any basis for apportioning input tax be approved by the Commissioner and that the basis so approved may only be changed from a future tax period;
    • to make further provision in respect of adjustments of input tax;
    • to further regulate the particulars to be reflected on tax invoices;
    • to further regulate the circumstances in which the Commissioner should be advised of a change of status;
    • to provide for certain decisions of the Commissioner to be subject to objection and appeal; to limit the circumstances in which a vendor is protected from the withdrawal of a ruling;
    • to prohibit the backdating of claims for refunds and to further provide for amounts due by vendors to be set off against refunds;
    • to further regulate the determination of the period of 21 days within which a refund must be made;
    • to further regulate the publication of names of offenders; and
    • to effect certain textual amendments;
  • to amend the Income Tax Act, 1993, so as to effect a textual amendment to the unbundling provisions;
  • to amend the Income Tax Act, 1996, so as to effect a textual amendment; and
  • to amend the Tax on Retirement Funds Act, 1996, so as to increase the rate of tax; and
  • to provide for matters connected therewith.

Commencement

  • 29 June 1998, unless otherwise indicated in the Act or by Proclamation.
  • 15 June 1999, Section 70(1)  (Gazette 20190 of 11 June 1999)