Tax Administration Laws Amendment Act, 2019

This section is the explanatory note for an amendment Act and lists the tax laws it changes and the main kinds of changes made.

This section amends section 3 of the principal Act.

This section amends section 3 of the Income Tax Act, 1962 by replacing paragraph (b) in subsection (4) with a new list of referenced provisions.

This provision amends article 3 of the Income Tax Act, 1962, by replacing paragraph (b) in subarticle (4) with a new list of referenced tax provisions.

This text lists sections of earlier Acts that are being amended or referenced.

Certain accounting officers must submit an annual audit certificate to the Commissioner, and foreign persons must provide a declaration and undertaking before a royalty is paid if they want an exemption or reduced withholding tax rate to apply.

Certain officials must give the Commissioner an annual audit certificate, and foreign persons must submit prescribed declaration documents before royalty payment to qualify for withholding-tax relief.

A payment rate must be reduced only when the foreign person has filed the required declaration and undertaking before interest is paid; those documents expire after five years unless a specified financial intelligence law applies.

This section refers to foreign-person payment monitoring and says subsection (1)(c) starts on 1 July 2020.

The Commissioner may assess the donor, the donee, or both for donations tax, and payment by either party discharges the joint obligation. A declaration and written undertaking for a dividend-related reduced rate can become invalid after five years, subject to stated exceptions.

The Commissioner may assess the donor, the donee, or both for gift tax, and payment by one of them cancels the joint liability. The provision also says a company’s declaration and written undertaking for certain dividend-tax treatment expires after five years unless specified anti-money-laundering or tax-compliance rules apply.

This section changes the rules for dividend tax relief and reduced withholding, requiring the recipient to give the company a declaration and written undertaking before payment.

A company must withhold dividend tax at a reduced rate only if the recipient has filed the required declaration and written undertaking before payment. Those documents generally stop being valid after five years, unless a listed compliance regime applies.

A regulated intermediary must withhold dividends tax at a reduced rate only if the required declaration and written undertaking are submitted on time.

A regulated intermediary must withhold dividend tax at the reduced rate only when the required declaration and written undertaking are filed before the dividend is paid.

This section refers to certain tax-compliance rules and says subsection (1)(e) starts on 1 July 2020.

The Commissioner may impose a penalty if an employer does not file a complete return on time.

This provision amends a tax estimate rule so certain retirement and severance benefits are excluded from the estimate, and no estimate is required for the period ending on a person’s date of death.

An employer must give the Commissioner a complete return within the prescribed time, or the Commissioner may impose a monthly percentage-based fine capped at 10%.

This section amends a tax rule so certain retirement-fund lump sums and separation benefits are excluded from an estimate, and no estimate is needed for the period ending on a person’s date of death.

This section lists a series of sections from earlier Acts.

This provision amends section 1 by adding and replacing definitions for “export duty,” “SACU,” and “Tax Administration Act.”

This provision amends section 4 of the Customs and Excise Act to add disclosure exceptions for certain information-sharing purposes.

This section amends Article 1 of the Customs and Excise Act by adding and replacing several definitions.

This provision amends Article 4 to add information-disclosure items linked to carbon offsets, greenhouse gas emissions reporting, and certain foreign exchange advance verification processes.

Certain people must not disclose protected information or allow access to it, except when exercising powers or duties under another Act.

Exporters must amend an invoice or certificate when certain transaction changes occur, and disclosure of the covered information is generally prohibited except for official functions or with consent.

If certain post-invoice transaction changes happen, the exporter must immediately issue an amended invoice or certificate to the importer.

An importer must send the amended invoice, certificate, credit note, or debit note to the Controller within one month of receiving it, and report the circumstances.

This provision amends customs and excise rules, including a bar on tariff determinations for certain bulk removals of alcoholic beverages and a change from “Part 7” to “Part 13” in section 53(2).

Importers must send any amended invoice, certificate, or credit/debit note to the Controller within one month of receiving it, and explain the circumstances.

This provision amends parts of the Customs and Excise Act, 1964, including Article 47 and Article 53.

A provision made under paragraph (a) or subsection (5) applies only to the goods mentioned in it and to the person in whose name it was issued, including goods that person cleared before or after the issue date.

This provision states that the text is subject to specified sections and that section 76 of Act 91 of 1964 is being amended.

Section 76 is amended so the relevant goods must have been damaged, destroyed, or irrecoverably lost by circumstances beyond control before release for home consumption, but robbery or theft is excluded.

This provision adds rules about certain advance foreign exchange payments for imported goods.

A vendor must issue a tax invoice with particulars prescribed by the Commissioner, if the supply relates to certain enterprises.

This provision amends customs law by replacing a paragraph about goods damaged, destroyed, or irrecoverably lost before release for home consumption, while excluding damage or loss caused by robbery or theft.

This provision amends Article 120 to add rules about certain foreign currency advance payments for imported goods.

If an entrepreneur supplies certain enterprises, the entrepreneur must issue a tax invoice with the details prescribed by the Commissioner in the Government Gazette.

This section is a legislative amendment heading: it amends section 41B of Act 89 of 1991.

This amendment bars certain VAT ruling applications from being accepted and disapplies specified Tax Administration Act provisions for VAT class rulings and VAT rulings.

The Director-General may reclassify an employer under the correct SETA jurisdiction if the employer indicated the wrong one, and an employer’s selection is binding unless the Director-General directs otherwise.

If an employer overpays a levy, interest, or penalty to the SETA or approved body, the amount must be refunded to the employer.

If an employer does not pay a levy on time, interest is payable on the unpaid amount.

The Commissioner must not accept certain VAT class decision or VAT decision applications under this section.

This provision amends section 5 by adding a rule that lets the Director-General direct an employer to place a worker at the appropriate SETA workplace, and by replacing subsection (3).

If an employer paid a levy, interest, or penalty that was not due or was overpaid, SETA or an approved body must refund it.

If an employer does not pay the levy, or part of it, by the last payment date, interest is payable on the unpaid amount.

This section amends the definition of “prescribed rate” in the Income Tax Act.

If a levy is still unpaid after the payment deadline, the Commissioner must impose a penalty of 10% of the unpaid amount, subject to subsection (2).

The Commissioner must refund certain employer payments that were not due or were overpaid.

This section amends the arrangement of sections of the Tax Administration Act, 2011 by replacing item 212 with a new heading.

Before starting High Court proceedings against the Commissioner, the applicant must give written notice of at least 10 business days, unless the court directs otherwise.

A senior SARS official may appear in the tax court or a High Court only if the person is a duly admitted and enrolled legal practitioner.

If a levy is unpaid after its due date, the Commissioner must impose a penalty of 10% of the unpaid amount, subject to subsection (2).

If an employer paid money that was not due or was overpaid under the Act, the Commissioner’s office must return the excess amount from the Fund.

This section amends the schedule of articles in the Tax Administration Act, 2011 by replacing item 212 with a new heading: “Reportable arrangement and mandatory disclosure penalty.”

A person may not start High Court proceedings against the Commissioner unless the Commissioner was given at least 10 business days’ written notice, unless the court orders otherwise.

A Senior SAID official may appear in the tax court or High Court only if the person is a legal practitioner admitted and enrolled under the Legal Practice Act, 2014.

This fragment refers to attorneys admitted and enrolled under specified laws, in the context of an amendment to section 42A.

A person claiming legal professional privilege for material required by SARS must give specified information to SARS, and sometimes to the presiding officer or legal practitioner.

SARS may only request relevant material from a non-taxpayer to the extent that the material is kept, or should reasonably be kept, in relation to the taxpayer.

SARS must use a legal practitioner when searching and seizing material that may be privileged, and must seal and hand over material if privilege is claimed and no practitioner is present.

This section amends Article 42A so that a person claiming legal professional privilege must provide specified information to SARS, and sometimes to the presiding officer or the legal practitioner involved.

This provision changes Article 46 so that SARS/SAID’s request for relevant material from someone other than the taxpayer is limited to material kept or reasonably expected to be kept about the taxpayer.

This section replaces section 64 and requires SAID to follow special steps when searching and seizing material that may be protected by legal professional privilege.

A legal practitioner must decide whether privilege applies within 21 business days, may do so as they see fit, and must keep the relevant material if the issue is unresolved or disputed.

This amendment says SARS may assess tax on an estimate if a taxpayer does not file a return, or is not required to file a return but fails to pay the tax due.

This section amends section 100 of the Tax Administration Act, 2011 so that, after an objection decision, no notice of appeal has been filed or a filed notice has been withdrawn.

The chairperson must be a legal practitioner from the panel appointed under section 111.

The Minister must appoint legal practitioners to a panel by public notice, after consulting the Judge-President of the Division of the High Court with jurisdiction where the tax board will sit.

This section sets deadlines for a tax court appeal and for a practitioner to decide whether privilege applies, and it requires keeping the relevant material if the issue is unresolved or disputed.

If a taxpayer does not file a return, or is not required to file but fails to pay tax required by a Tax Act, SARS may make an assessment based on an estimate under section 95.

This provision amends section 100(1)(c) of the Tax Administration Act, 2011.

This provision amends article 110 so that the chairperson must be a legal practitioner appointed from the panel under section 111.

The Minister must, after consulting the relevant Judge-president and by public notice, appoint legal practitioners to a panel from which a tax board chairperson is appointed.

A person intending to appeal a tax court decision must act within 21 business days after the clerk’s notice of the decision.

The court may, for good cause shown, allow a notice of intention to appeal to be lodged with the registrar and served on the other party or their representative.

A cross-appeal after a tax court decision must be filed by written notice, served on the other party or their legal practitioner, and lodged with the registrar.

A party may abandon all or part of a judgment in its favour by written notice lodged with the registrar and the other party or that party’s legal practitioner or agent.

A refundable amount, including interest, must be treated as a taxpayer payment recorded in the taxpayer’s account and used to reduce outstanding tax debt; any remaining amount must be set off against customs and excise debt.

This provision amends section 210 by replacing one paragraph so that failure to disclose information subject to a reportable arrangement or a mandatory disclosure penalty under section 212 is covered.

Certain participants and intermediaries who do not disclose required reportable-arrangement information can be liable for a monthly penalty.

A cross-appeal against a tax court decision must be filed by written notice with the clerk, served on the other party or that party’s lawyer, and filed with the clerk of the court where the cross-appeal is made.

A party may waive all or part of a judgment in its favour by written notice filed with the clerk and served on the other party or that party’s lawyer or agent.

A refundable tax amount, including interest, must be treated as a payment by the taxpayer and recorded in the taxpayer’s account, up to the outstanding tax debt; any remaining amount must be set off against outstanding customs and excise debt.

This provision amends Article 210 by replacing paragraph (c) with wording about failing to disclose information linked to a reportable arrangement or a mandatory disclosure penalty under section 212.

Certain participants or intermediaries who fail to disclose required information can be fined monthly, up to 12 months.

This section sets penalty amounts for certain tax arrangement participants and increases the penalty if the anticipated tax benefit is above specified thresholds.

This section amends section 223(3)(a) to require full disclosure to SARS of the relevant arrangement by the date the return is due.

Section 234(g) is amended so that the issue concerns issuing an erroneous, incomplete, or false document required under a tax Act to SARS or another person.

This provision amends section 240A of the Tax Administration Act, 2011 by replacing one reference and deleting another.

This section amends section 246 so that paragraph (b) now says a tax representative may be appointed by the company, or by an agent or legal practitioner who is authorised to appoint that representative for tax purposes.

A taxpayer may apply to SARS, in the prescribed form and manner, for third-party access to the taxpayer’s tax compliance status.

This provision amends article 223 of the Tax Administration Act, 2011.

This provision amends Article 234 by replacing paragraph (g) with wording about issuing an incorrect, incomplete, or false document required under a tax law to SARS or another person.

This section amends Article 240A of the Tax Administration Act, 2011 by replacing one paragraph and deleting another.

This section amends article 246 of the Tax Administration Act, 2011.

A taxpayer may apply to SAID, in the prescribed form and manner, for third-party access to the taxpayer’s tax compliance status.

SARS must decide third-party access to a taxpayer’s tax compliance status within 21 business days and may later revoke that access in certain cases.

40 No. 42952 GOVERNMENT GAZETTE, 15 JANUARY 2020 Act No. 33 of 2019 Tax Administration Laws Amendment Act, 2019 Amendment of section 262 of Act 28 of 2011 40

This provision amends section 262 and says the Act’s amendments start on promulgation, unless the Act or context says otherwise.

This provision amends the Tax Administration Act, 2011 and says certain panel-appointed practitioners are treated as appointed under section 111 until their earlier expiry or termination. It also says the Act is called the Tax Administration Laws Amendment Act, 2019, and the amendments start on the date of promulgation unless the Act or context says otherwise.

This text is a Gazette header and does not state any substantive rule.

This text is a Government Gazette header showing the issue number, date, and publication details.