(Act No 38 of 2001), to accommodate the small business tax amnesty
13 October 2006
In Government Notice 1035, published in Government Gazette No 29299, on 13
October 2006, the Minister of Finance issued an exemption from the reporting
obligations under section 29 of the Financial Intelligence Centre Act (Act No
38 of 2001), known as the "FIC Act", in respect of the Small Business Tax
Amnesty and Amendment of Taxation Laws Act (Act No 9 of 2006), known as the
"Small Business Tax Amnesty Act."
The South African Revenue Service (SARS) issued a tax amnesty to those small
businesses that are non-compliant with tax legislation. The amnesty covers
businesses with a turnover not exceeding R10 million and covers the full
spectrum of small businesses such as sole proprietors, partnerships and certain
unlisted companies and trusts.
The amnesty is effective from 1 August 2006 to 31 May 2007.
In terms of the FIC Act, a person who carries on a business, is in charge of
or manages a business or is employed by a business, has a duty to report a
suspicious transaction to the Financial Intelligence Centre where that business
is a party to a transaction that may involve an investigation of tax evasion or
any other duty or levy imposed by SARS.
The exemption applies to persons such as tax advisers, accountants and tax
practitioners when they assist or advise a client who applies for amnesty in
terms of the Small Business Tax Amnesty Act. These advisors will not be
required to report a suspicious transaction in respect of the information
disclosed by the client. The exemption applies irrespective of whether the
client actually applies for amnesty or not.
The exemption does not absolve any person from liability for their own
involvement in unlawful activities.
The full text on the exemption is available on the Financial Intelligence
Centre website at http://www.fic.gov.za.
Enquiries:
The Financial Intelligence Centre
Tel: (012) 309 9200
Fax: (012) 315 5770
E-mail: fic_feedback@fic.gov.za
Issued by: Financial Intelligence Centre
13 October 2006
