Revenue Laws Amendment Act

1. Section I of the Marketable Securities Tax Act, 1948, is hereby amended by the 5 substitution for the definition of "stockbroker" of the following definition: "'stockbroker' means [any natural person who carries on the business of buying -and selling marketable securities and who is a practising member of the South African Institute of Stockbrokers] a stockbroker as defined in section 1 of the Stock Exchanges Control Act, 1985 (Act No. I of 1985);". 10 Substitution of section 9 of Act 32 of 1948

2. The following sections are hereby: su'bstit~ted for section 9 of .the Marketable Securities Tax Act, 1948: ' · · ~'General provisions with regard to information, documents or,.things ~ ·'. ,• ~ -~ . -.. . _; 'J ._· ._ . . , · .. ; ' •·. · 'ad~inistration of thisAct':means the--"- i: (a)- • obtaining of full information in relation to the purchase ,of any · .. ·, ~ - . . 15 I marketable security; ; ' ' . ' (b) ascertaining : oLthe : correctness . of any :return,· financial .statement, 20 document, declaration of facts or valuation; :. . > . · (c) determination of the liability of any person for any tax and any penalty .:. in relation thereto leviable under this Act; · ' ' ·.:, · (d) collecting of any such liability; . · · · .·· . (e) ascertaining whether. an offence in .terms oLthis.Acthas been 25 . committed; · · .. . ·· .(f). ascertaining whether a person has, other than in relation:to a matter contemplated in paragraphs (a), (b){ (c), (d) and (e) of this definition, complied with the provisions of this Act; . , ·, . :, , : •• , • • . • . r · (g) enforcement of any of the Commissioner's remedies under this Act-to 30 . ~ , ensure that any obligation imposed upon any person by this Act, is . complied with; and · · · • . . · · , , . . . • (h) performance of any other administrative function which is necessary , •. .for the carrying out of the provisions of this Act;, · · · ;;., . ; '! , , , · 'a~thorisation .Jetter' means .. a ·written • authorisation: granted· by the 35 :.: ! . ' , :~ ; ., Commissioner, or any chief director, receiver of revenue or chief revenue . inspector under. the control;· direction or, supervision of the Commissioner, to an officer to inspect, audit; examine or obtain, as. contemplated in section , . ' · .·9B,anyinformation,documentsorthings; ·: ··-' ·: .··- . :- ... ,, . · · ~. :·. ·-. 'documents' ·include any. document, book, marketable security,· record, 40 l ' · account, deed, plan, instrument, trade list, stock list, brokers note, affidavit, ,, : -certificate~ · photograph, map, drawing and any : 'computer print-ouC as :: .. ~: ·: defined in section L of the Computer Evidence Act; J983 (Act No. 57 of .: , .. ;; , ·;·:-1983); •, . :· • . ' .'·'·' ' ;• 'info~mation'.includes any data stored by means of a ·computer' as defined 45 . •'·'· in section l'ofthe Computer;EvidenceAct, 1983; .i : ._,, : ! . _ .. :;. · . ; , ;:'judge' means a judge of the · Supreme Court and includes a -judge in _, .. . , .. .... :'.~ · < : -" ·; ., .. · ' ' · •. ,. , ·: .::.· ,, <.; ' ' ·•-. _: "-· chambers; ... · .,· ·. .'officer~.means an officer contemplatedin'section 3(1) of the-IncomeTax ;.•. ' ' ·. .. · ·· ··, : · . l , · · .- .Act, 1962 (Act No: 58 of 1962); ~ ., . . .; ·: · .,._ •·•!' ' ; :- 'premises' include any building, premises, aircraft, vehicle, vessel or place; 'things' include any corporeal or incorporeal thing and any document relating thereto; 'warrant' means a written authorisation issued by a judge to search for and seize any inf?rma~ion, documents or things und~r section 90. - 50 55 6 No. 17463 Act No. 46, 1996 GOVERNMENT GAZETTE, 30 SEPTEMBER 1996 REVENUE LAWS AMENDMENT ACf, 1996 (2) For: the purposes of sections 9A, 9B, 9C and 9D; where any information, documents or things are not in one of the official languages, the Commissioner or any officer may by notice in writing require the person liable for the tax or, on such person's default, any other person, to produce, within a reasonable period, a translation thereof in one of the official languages determined by the Commissioner or such officer. (3) Any translation referred to in subsection (2) shall be- . (a) produced at such time and premises as may be specified by the 5 Commissioner or any officer; and {b) prepared and certified by a sworn translator or another person 10 approved by the Commissioner or such officer. . . (4) For the purP<>ses of sections 9C and 9D, the Commissioner may delegate the powers vested in him by those sections, to any other officer. Furnishing of information, documents or things by any person .

9A. The Commissioner or any officer may, for·the purposes of the 15 administration of this Act in relation to any person liable for the. tax, require such person or any other person to furnish such information (whether orally or in writing), documents or things as the Commissioner or su~h officer may require. · ·· · Obtaining of information, documents or things at certain premises ' ' ' ( 20 . 9B. (1) The Commissioner, or an officer named in an authorisation letter, may, for the purposes of the administration of this Act hi relation to the person liable for the tax, require such person or' any other person, with reasonable prior notice, to furnish, produce or' make available any such information, documents or things as the Commissioner or such officer may 25 require to inspect, audit, examine or obtain. ' ' (2) For the purposes of the inspection, audit, examination or obtaining of an,. such information, documents or things, the Commissioner or an officer contemplated in subsection (1),may call on any person.:_ (a) at any premises; and (b)' at any time during such person's normal business hours: · · (3) For the purposes of subsection (2), the Commissioner or any officer contemplated in subsection (1), shall not enter any dwelling-house or domestic premises (except any part thereof as may be occupied or used for the purposes of trade) without the consent of the occupant. 30 35 ( 4) Any officer exercising any power under this section, shall on demand . produce the authorisation letter issued to him. · . . ' ' ' . ' Inquiry : 9C. (1) The Commissioner or an officer contemplated in s~ction 9( 4) may authorise any person to conduct an inquiry for' the purposes of the 40 administration of this Act. . . . ·' . . ' . (2) Where the Commissioner, or any officer contemplated in section 9( 4), authorises a person to conduct an inquiry, the Cqmmissioneror such officer shall apply to a judge for an order designating a presiding officer before · whom the inquiry is to ~e h~ld. (3) Ajudge may, on ex parte application by the ,Commissioner or any officer contemphited in section 9( 4), grant an order in ierms of which a ·person contemplated. in subsec,tion. (7) is ,design~ted 'to act. as presiding officer at the inquiry contemplated in this section. · (4) An application under subsection (2) shall,be supported by informa- 50 tion supplied under oath'or soleinri declaration, .establishing the facts on · , 45 ,· · · ' ' · which the application ~s based. :i 8 No. 17463 Act No. 46, 1996 GOVERNMENT GAZETTE, 30 SEPTEMBER 1996 REVENUE LAWS AMENDMENT ACT, 1996 • (5) A judge may grant the order referred to in subsection (3) if he is satisfied that there are reasonable grounds to believe that-'- ( a) (i) there has been non-compliance by any person with his obliga . tions in terms of this Act; or (b) .(c) (ii) an offence in terms of this Act has been committed by any person; information, documents or things are likely to be revealed which may afford proof of- (i) (ii) the inquiry referred to in the application is likely to reveal such 10 information, documents or things. such non-compliance; or the committing of such offence; and 5 · (6) An order under subsection (3) shall, inter alia ( a) name the presiding officer; (b) refer to the alleged non-compliance or offence to be inquired into; (c) identify the person alleged to have failed, to comply with the 15 provisions of the Act or to have committed the offence; and (d) be reasonably specific as to the ambit of the inquiry .. (7) Any presiding officer shall be a person appointed by the Minister of Financein terms of section 83A(4) of the Income Tax Act, 1962 (Act No. 58 of 1962). . (8) For the purposes of an inquiry contemplated in this section, a presiding officer designated under subsection (3) shall- (a) determine the proceedings as he may think fit; (b) have the same powers to ·enforce the 'attendance of witnesses and to 20 ( compel them to give evidence or to produce evidential material as are 25 vested in a President of the Special Court contemplated in section 83 of the Income Tax Act, 1962; and record the proceedings and evidence at an inquiry in such manner as he may think.fit. _ (9) Any person may, by written notice issued by the presiding officer, be 30 · , (c) required to appear before him in order to be questioned under oath or solemn declaration .for the purposes of an inquiry contemplated in this section. , ... (10) The notice contemplated in subsection (9) shall specify the- ( a) place where such inquiry will be conducted; (b) ·date and time of such inquiry; and . (c) reasons for such inquiry. _. · 35 (II) Any person whose affairs are investigated m the course of an inquiry contemplated in this section, shall be entitled to be present throughout the inquiry, unless on application by the person contemplated in subsection (1), 40 the presiding officer directs otherwise on the ground that the presence of the person and his representative, or either of them, would be prejudicial to the effective conduct of the inquiry. (12) Any person contemplated in subsection (9) has. the right to a representative of his choice. · · ' (13) An inquiry contemplated in this section shall not be public and the . ,, presiding officer shall at any time on application of the person whose affairs are investigated or any other person giving eyide;nce, exclude from such inquiry or require to withdraw therefrom, !ill ()r any_. persons whose attendance is not necessary for the inquiry. . . . (14) Any person may, at the discretion of the presiding officer, be compensated for his reasonable expenditure related to the attendance of an inquiry, by way of witness fees in accordance with the tariffs prescribed in terms of section 51bis of the Magistrates' Courts Act, 1944 (Act No. 32 of 1944)- :: ' · ' 45 50 55 : ' ' ' '. 10 ·No. 17463 GOVERNMENT GAZETTE, 30 SEPTEMBER 1996 Act No. 46, 1996, ·REVENUE LAWS AMENDMENT ACf, 1996 Search and seizure .. ·. · f , , ' . 9D. (I) For the purposes of the administration of this A~t. a judge may, on ex parte application by the Commissioner or any officer contemplated in :·section 9(4), issue a .. warrant, authorising the officer. named therein to, without prior notice and at any time- ... •,, .. , ' (a) (i) enter and search any premises;·and (ii) search any person presenton the premises, provided that such search is conducted by an officer of the same gender as the person being searched, for any information, documents or things, that may afford evidence as 10 to the non-compliance by any person with his ·obligations in terms of this Act; ' · · (b)· seize any.such information, documents or things; and (c) in carrying out any such search, open or cause to be opened or removed and opened, anything in which such officer suspects any 15 . . information, documents or things to be contained. 1 (2) An application under subsection (I) shall be supported by informa tion supplied under oath or solemn declaration, establishing the facts on 1 which the .application is based. · . , . · ' ; (3) A judge may ,issue the warrant referred to in subsection (I) if he is 20 satisfied that there are reasonable grounds to believe that~ . ' I ·~ ' · . (a)· (i) there has been non-compliance by any person with his obliga- tions in terms of this Act; or· · (ii) an offence in terms of this Act has been committed by any person; ·(b) :information, documents or.things are likely to be found which may 25 i· ' afford evidence of- ' '' .. · ·. (i) ' such non-compliance; or ( (c) the committing of such offence; and (ii) .the premises specified in the application are likely to contain such information, documents or things. . 30 (4) A warrant issued under subsection (I) shall- ( a) refer to the alleged non-compliance or offence. in relation to which it is . · . · issued;. . identify the premises to be searched; • (b) (c) . .identify. the person alleged to have failed· to comply with the 35 • • . :·; > . provisions of the Act or to have committed the offence; and (d) be reasonably specific as to any information, documents or things to be searched for and seized. · : '' · ' · (5) Where the officer named in the warrant has reasonable grounds to '.' believe that- ( a). such.information, documents or things are-,- .:., (i) at any. premises not identified in such warrant; and · ... ,._ · .,,, · ( ·,(b), a warrant cannot be. obtained timeously to prevent such removal or . (ii) . about to be removed or destroyed; and. .. · ·," , :: •destruction,:, such officer may search such premises and further exercise all the powers granted by this section, as if such premises had been identified in a warrant. (6) Any officer who executes a warrant may seize,. in addition to the • information, documents or things referred .to in the· warrant, any other ·.•' 45 information, ·documents or things that such officer believes on reasonable 50 grounds afford evidence of the non-compliance with the relevant obliga tions or the committing of an offence in terms of this Act.. ·· .. ,''· ,. : · :.·• ;-.... . " " · ::' · (7) The officer exercising any power under this section shall on demand produce the relevant warrant (if any). r (8) The Commissioner,- who shall take reasonable care to ensure that the 55 · ,,, · . :•y · information, documents. or things are preserved, may retain them until the conclusion of any. investigation into the non-compliance. or offence in relation to which the information, documents or things were seized or until 12 No. 17463 Act No. 46, 1996 GOVERNMENT GAZETTE, 30 SEPTEMBER 1996 REVENUE LAWS AMENDMENT ACT, 1996 they are required to be used for the purposes of any legal proceedings under this Act, whichever event occurs last. . -.. (9)(a) Any person may apply to the relevant division of the Supreme . Court for the return of any information, documents or things seized under this section. . ·(b) The court hearing such application may, on good cause shown, make such order as it deems fit. - . (10) The person to whose affairs any information, documents or things seized under this section relate, may examine and make extracts therefrom and obtain one copy thereof at the expense_ of the State during normal 10 business hours under such supervision;as the Conunissioner may deter mine.". 5 . -1 Amendment of section 10 of Act 32 of 1948 · 3. Section 10 of the Marketable Securities Tax Act, 1948, is hereby amended by the substitution for paragraphs (b) and (c) of subsection (l) of the following paragraphs, 15 respectively: . ' .. 1 "(b) [refuses or neglects] without just cause shown by him, refuses or neglects to-- [produce any account or document which he has under paragraph (a) of sub-section (1) of section nine been required to produce] · (i) furnish, produce or make available any information, documents or 20 things; (ii) reply to or answer truly and fully, any questions put to him; or (iii) attend and give evidence, as and when required in terms of this Act; or · 25 (c) [fails to attend at the time and place specified in any notice addressed to him under paragraph (b) of sub-section (1) of section nine, or having so attended refuses to be sworn or to affirm as a witness, or without just cause shown by him to answer to the best of his ability nny question put to him, or. in reply to any such question knowingly gives information 30 . which is false] obstructs or hinders any officer in the carrying out of his duties,". Amendment of section 11 of Act 40 of 1949

4. Section 11 of the Transfer Duty Act, .1949, is.hereby amended by the substitution for subsection (1) of the. following subsection: . ·'(l) The Commissioner may. 35 [(a) call upon any person to furnish to him, under oath or not as he may direct, any informati«?n or to produce :any . documents ; which the Commissioner may consider.necessary for the purpose of determining the amount of the duty: payable in respect of the acquisition of any 40 ·property; · . . (b) . require the person liable to pay the duty. or. the Government Mining Engineer or any other person to appear before him for. the purpose of , ·. clarifying any valuation made by any such person; (c)]· decline to accept any payment of duty otherwise than as a deposit on account 45 of duty until ·the appropriate declarations referred to in . section · I 4 are submitted to him.". . Insertion of sections llA, llB, llC, llD and HE in Act 40 of 1949 . • : 5. The following sections are hereby insert~d in the Transfer Duty Act, 1949, after section 11: . . ·; 50 "General provisions with regard to information, documents or things , • • i I llA. (l) For the purposes of this section and sections liB; 11 C, liD and liE- 14 No. 17463 Act No. 46, 1996 GOVERNMENT GAZETTE, 30 SEPTEMBER 1996 REVENUE tAWS AMENDMENT ACT, 1996 , 'administration of this Act' means the-. : (a) obtaining of full information in relation to the. ~tquisilion 8f. any property by any person or the enhancement. of, the val'ue o.f any . , property of any person; . . . ,. . , (b) ascertaining of the correc!IJess,of..any return, financial statement, .. 5 document, declaration of facts or valuation; · (c) determination of the liability of any person for any duty and any penalty in relation thereto leviable !Jnder this Act;, · · . · (d) . collecting of any such liability; . . . : . (e), ascertaining whether an offence .in terms of .!his Act has been 10 , ' (f) ' ' . ' '. committed· ,, ' ' . ' ' ·, ' ascertaining whelher a person has, other than in relation to a matter contemplated in paragraphs (a), (b), (c), (d) and (e) of this definition, complied with the provisions of this Act; . . ·. .... ,.' . . . .·· ..... ' .. . ... ,, .· :· (g) enforcement of any of !he Commissioner's remedies under this Act to 15 en~ure that any obligation imposed upon any person by ,this ,A,ct, is complied with; and . · · ·.·. · · · · · . (h) performance of any other administrative function which is necessary for the carrying out of the provisions of this Act; . · ' ·. ' . 'authorisation letter' means . a written authorisation gianted by the Commissioner, or any chief director, receiver of revenue or chief revenue inspector under the control, direc_tion or supervision of the Commissioner, '.to ari officer' to inspect; audit, exa~ine of obtain, as CO?templated in section ll C, ariy information, documents ·or thirigs; · '- · · · - "'· ·_ 30 ·· · · . · ' . . ' · · ' · · · • ' ' · .. ._. · · · 'documents' include any document, agreement, declaration, book, record, account, deed, plan, instrument, trade list, stock list, affidavit; certificate, photograph, map, drawing and any 'computer print-out' as defined in section 1 of the Computer Evidence Act, 1983 (Act No. 57 of 1983); 'information' includes any data stored by means of a 'computer' as defined in section 1 of the Computer Evidence Act, 1983; '' ·'judge' means a judge of the' Supreme Court 'and includes a judge in chambers; 'officer' means 3.n officer contemplated in' section 10(2);. _: . 'premises' include any building, premises, aircraft; vehicle, vessel or place; . 'Ihings' inClude any corporeal or incorporeal Ihing and any document 35 relating !hereto; -' .' 'warrant' means a written authorisation issued by a judge to search for and .. seize any information, documents or things under .section 11E. (2) For the purposes of sections liB, liC, llD and liE, where any information, documents or Ihings are not in one of !he official languages, 40 the Commissioner or any officer may by notice in writing require the person liable for the duty or, on such person's default, any other person, to produce, within a reasonable period, a translation Ihereofin one of the official languages 'deterrriined by the CommHisioner 'or such 'officer:.: '. ·. (3) Any translation referred to in subsection (2) shall be:_::: ' ' : '"' ·. · ' . ·, . . ' . ' . · 45 ... , ' I ~ •. : (a) produced at' such time. and premises as may be specified by the · . . Commissioner or any officer;' and · ·- '- · '·(b). prepared and certified by a sworn·' translator or anolher 'person · . delegate !he powers vested in him. by those sections,' to 'ariy other officer. ... · approved by the Commissioner or such officer: !·· (4) Fo'r. the purposes of sections '11D' and· liE, 'the Commissioner may 50 ' ' . ·: · .' · · - . · . '" •. . •' . ' • ' ! ; • • . . ' •• . . • - ~ : Furni;hing 'or i~formation, document~ or things by any person ,,- . ' ,.·: , UB. The Commissioner or any officer may, for the p1.1rposes of !he administration of ibis 'Act in relation to any' person liable for the. duty; require ~~ch perso_n or anY,. olher perso,n to furnish such_ information 55 :•' .,: ,,.,. . ' ' 16 No. 17463 Act No. 46, 1996 GOVERNMENT GAZETTE, 30 SEPTEMBER 1996 REVENUE LAWS AMENDMENT ACT, 1996 (whether orally or in writing), documents or things as the Commissioner or such officer may require. Obtaining of information, documents or things at certain premises llC. (I) The Commissioner, or.an officer named in an authorisation . letter, may, for the purposes of the administration of this Act in relation to the person liable for the duty, require such person or any other person, with reasonable prior notice, to furnish, produce or make available any such information, documents or things as the Commissioner or such officer may 5 . require to inspect, audit, examine or obtain; . .. . . (2) For the purposes of the inspection, audit, examination or obtaining of 10 any such information, documents or things, the Commissioner or an officer contemplated in subsection (1), may call on any person- (a) at any premises; and .. (b) at any time during such person's normal business hours. (3) For the purposes of subsection (2), the Commissioner or any officer 15 · contemplated in subsection. (1), -shall not enter any dwelling-house or domestic premises (except any part thereof as may be occupied or used for the purposes of trade) without the consent of the occupant. ( 4) Any officer exercising any power under this section, shall on demand . ·produce the authorisation letter issued to him. 20 · · Inquiry · -:, ~ , · llD. (l)The Commissioner or an officer contemplated in section 11A(4) may authorise any person to conduct an inquiry for the purposes of the administration of this Act. ·' (2) Where the Commissioner, or any officer contemplated in section 25 .11A(4), authorises a person to conduct an inquiry, the Commissioner or such officer shall apply to a judge for an order designating a presiding . . . officer before whom the inquiry is to be held. _ -.· (3) A judge may, on ex parte application by the Commissioner or any · . officer contemplated in section llA(4), grant an order in terms of which a 30 . person contemplated in subsection (7) is designated to act as presiding officer at the inquiry contemplated in this section. (4) An application under subsection (2) shall be supported by informa tion supplied under oath or solemn declaration, establishing the facts on which the application is based. . (5) A judge may grant the order referred to in subsection (3) if he is 35 satisfied that there are reasonable grounds to believe that- . _- (a) (i) , there has been non-compliance by any person with his obliga tions in terms of this Act; or ·- . (b) · (c) (ii) . an offence in terms of this Act has been committed by any person; 40 information, documents or things are likely to be revealed which may afford proof of- (i) (ii) the inquiry. referred to in the application is likely to reveal such 45 . information, documents or things. . · · . · · such non-compliance; or the committing of such offence; and . · · (6) An order under subsection (3) shall, inter alia- .. . (a) name the presiding officer; .. (b) refer to the alleged non-compliance or offence to be inquired into; (c) identify the person alleged to have failed to comply with the 50 · provisions of the Act or to have committed the offence; and (d) be reasonably specific as to the ambit of the inquiry. (7) Any presiding officer shall be a person appointed by the Minister of Finance in terms of .section 83A( 4) of the Income Tax Act, 1962 (Act No. 58 of 1962). 55 ( 18 No. 17463 GOVERNMENT GAZETTE, 30 SEPTEMBER 1996 Act No. 46, 1996 REVENUE LAWS AMENDMENT ACf, 1996 (8) For the· purposes of an inquiry contemplated in this section, a presiding officer designated under subsection (3) shall- ( a) determine the proceedings as he may think fit; (b) have the same powers to enforce the attendance ofwitnesses and to compel them to give evidence or to produce evidential material as are 5 vested in a President of the Special Court contemplated in section 83 of the Income Tax Act, 1962; and record the proceedings and evidence at an inquiry in such manner as he may think fit. (c) (9) Any person may, by written notice issued by the presiding officer, be 10 required to appear before him in order to be questioned under oath or solemn declaration for the purposes of an inquiry contemplated in this section .. (10) The notice contemplated in subsection (9) shall specify the- ( a) . place where such inquiry will be conducted; (b) date and time of such inquiry; and · (c) . reasons for such inquiry. 15 ( 11) Any person whose affairs are investigated in the course of an inquiry contemplated in this section, shall be entitled to be present throughout the inquiry, unless on application by the person contemplated in subsection (I), 20 the presiding officer directs otherwise on the ground that the presence of the person and his representative, or either of them, would be prejudicial to the · effective conduct of the inquiry. (12) Any person contemplated in subsection (9) has the right to a representative of his choice. (13) An inquiry contemplated in this section shall not be public and the presiding officer shall at any time on application of the person whose affairs · are investigated or any .other person giving evidence, exclude from such inquiry or require to withdraw therefrom, all or any persons whose attendance is not necessary for the inquiry. 30 (14) Any person may, at the discretion of the presiding officer, be compensated for his reasonable expenditure related to the attendance of an inquiry, by way of witness fees in accordance with the tariffs prescribed in terms of section 5Ibis of the Magistrates' Courts Act, 1944 (Act No. 32 of 1944). Search and seizure llE. (I) For the purposes of the administration of this Act, a judge may, on ex parte application by the Commissioner or any officer contemplated in section 11A(4), issue a warrant, authorising the officer named therein to, without prior notice and at any time- (a) (i) enter and search any premises; and " ... 40 (ii) search any person present on the premises, provided that such ' . search is conducted by an officer of the same gender as the person :: beingsearched, . , for any information, documents or·things, that may afford evidence as 45 to the non-compliance by any person with his obligations in terms of this Act; (b) seize any such information, documents or things; and (c) in carrying out any such search, open or cause to be opened or . removed and opened, anything in which such officer suspects any information, documents or things to be contained. · (2) An application under.subsection (1) shall be supported by informa tion supplied under oath or solemn declaration, establishing the facts on · which the application is based. • .. 20 No. 17463 GOVERNMENT GAZETTE, 30 SEPTEMBER 1996 Act No. 46, 1996 REVENUE LAWS AMENDMENT ACT, 1996 .. (3) A judge may issue the warrant referred to in subsection (1) if he is satisfied that there are reasonable grounds to believe that- · (a) (i) there has been non-compliance by any person with his obliga tions in terms of this Act; or (b) · . (c) (ii) an offence in terms of this Act has been committed by any person; information, documents or things are likely to be found which may afford evidence of- ' (i) (ii) the premises specified in the application are likely to contain such 10 information, documents or things. such non-compliance; or the committing of such offence; and 5 --l (4) A warrant issued under subsection (1) shall__: (a) refer to the alleged non-compliance or offence in relation to which it is (b) (c) issued; identify the premises to be searched; identify the person alleged· to have failed. to comply with the provisions of the Act or to have committed the offence; and (d) be reasonably specific as to any information, documents or things to be 15 . searched for and seized . . (5) .Where the officer named in the warrant has reasonable grounds to 20 believe that-· (a) such information; documents or things are- (i) at any premises not identified in such warrant; and (ii) about to be removed or destroyed; and (b) a warrant cannot be obtained timeously to prevent such removal or 25 destruction, such officer may search such premises and further exercise all the powers granted by this section, as if such premises had been identified in a warrant. (6) Any officer who executes a warrant may seize; in addition to the information, documents or things referred to in the .warrant, any other 30 information, documents or things that such officer believes on reasonable grounds afford evidence of the non-compliance with the relevant obliga tions or the committing of an offence in terms of this Act.· (7) The officer exercising any power under this section shall on demand produce the relevant warrant (if any). 35 (8) The Commissioner, who shall take reasonable care to ensure that the information, documents or things are preserved, may retain them until the conclusion of any investigation into the non-compliance or offence in relation to which the information, documents or things were seized or until they are required to be used for. the purposes of any legal proceedings under 40 this Act, whichever event occurs last. (9)(a) Any person may apply to the relevant division of the Supreme Court for the return of any information, documents or things seized under , this section. , : (b) The court hearing such application may, on good cause shown, make 45 such order as it deems fit. · (I 0) The person to whose affairs any information, documents or things seized under this section relate, may examine and make extracts therefrom and obtain one copy thereof at the expense of the State during normal business hours under such. supervision as determine." .. · the . Commissioner may 50 , Amendment of section 17 of Act 40 of 1949, as amended by section 5 of Act 77 of 1964· '

6. Section 17 of the. Transfer Duty Act, 1949, is hereby amended by the substitution for subsection (I) of the following subsection: 55 {E). "(l) Any person who- · fails to comply with any requirement or demand [by the Commissioner] under this Act; [or] f.!!l [who] knowingly submits or causes to be submitted to the Commissioner a 22 No. 17463 Act No. 46, 1996 GOVERNMENT GAZETJ'E, 30 SEPTEMBER 1996 REVENUE LAWSAMENDMENTACf, 1996 · declaration referred to in section 14 which fails to disclose any material fact relevant to the nature of the transaction by which property has been acquired or to the consideration payable in respect of any property or to the value on which duty is payable; (c) ·without good cause, fails to- · 5 . (i) comply with any requirement; or (ii) reply to or answer truly and fully any questions put to him, by any person acting under section IIC, liD or liE; or (d) obstructs or hinders any officer in the carrying out of his duties, shall be guilty of an offence and liable on conviction to a fine [not exceeding R200] 10 or to imprisonment for a period not exceeding one year.". ·Substitution of section Sbis of Act 45 of 1955, as inserted by section 13 of Act 77 of 1962 and amended by section 5 of Act 81 of 1965

7. The following sections are hereby substituted for section 8bis of the Estate Duty Act, 1955: · 15 "General provisions with regard to information, documents or things SA. (I) For the purposes of this section and sections 8B, 8C, 80, 8E and 28- 'administration of this Act' means the- ( a) obtaining of full information in relation to all property of the estate of 20 any deceased person as at the date of his death or property which is deemed to be property of that person; · . · · · · · (b) ascertaining of the . correctness of any return, fimincial statement, document, declaration of facts or valuation; penalty or interest in relation thereto leviable under this Act; (c) determination of the liability of' any person for any duty and any 25 ( d r collecting of any such liability; (e) ascertaining whether . an offence in tenns of this Act has been •' . . ' I ' committed; · · (f) · ascertaining whether a person has; other than in relation to a matter 30 contemplated in paragraphs (a), (b), (c); (d) and (e) of this definition, complied with the provisions of this Act; · . (g) enforcement of any of the Commissioner's remedies under this Act to ensure that any obligation imposed upon any person by or under this Act, is complied with; and ·. ·. · · 35 · (h) performance of any other administrative function which is necessary ··' for the carrying out of the provisions of this Act; · 'authorisation· Jetter' means a. written authorisation granted by the Commissioner, any chief director or chief revenue inspector under the control, direction or supervision of the Commissioner, to an officer to 40 inspect, audit, examine or obtain, as contemplated in section 8C, any information, documents or things; : . 'documents' include any document, book, record, account, deed, plan, instrument, trade list; stock list, affidavit, certificate, photograph, map, · drawing and ·any 'computer print-out' as defined ·in section 1 of the 45 Computer Evidence Act, 1983 (Act No. 57 of 1983); ' ., . 'information' includes any data stored by ineansof a 'computer' as defined · : · in section 1 of the Computer EvidenceAct, 1983; 'judge' means a judge of the Supreme Court and includes a judge in chambers; 'officer' means an officer contemplated in section 6(2);'. 'premises' include any building, premises, aircraft, vehicle, vessel or place; 'things' include any corporeal or incorporeal thing and any document relating thereto; 'warrant' means a written authorisation issued by a judge to search for and 55 seize any information, documents or things in terms ofsection 8E. · 50 . (2) For · the ' purposes of sections 8B, 8C, 80 and 8E, where any information, documents or things are not in one of the official languages, the Commissioner or any officer. may by notice in writing require the . 24 No. 17463 Act No. 46, 1996 GOVERNMENT GAZETTE, 30 SEPTEMBER 1996 REVENUE LAWS AMENDMENT ACf, 1996 executor of the estate or, on such executor's default, any other person, to produce, within a reasonable period, a translation thereof in one of the official languages determined by the Commissioner or such officer. (3) Any translation referred to in subsection (2) shall be- ( a) produced at such time and premises as may be .specified by the . 5 Commissioneror any officer; and · · , · (b) prepared and certified by a. sworn translator or another person approved by the Commissioner or such officer . . (4) For the purposes of sections 80 and 8E, the Commissioner may delegate the powers vested in him by those sections, to any other officer. 10 Furnishing of information, documents or things by. any person , SB. The Commissioner or any officer may,. for the purposes of the administration of this Act in relation to the estate ofany deceased person, require the executor of such estate or any other person to furnish such ,information (whether orally or in writing) documents or things as the 15 Commissioner or such officer may require. Obtaining of information, documents ilr things at certain premises __j SC. (1) The Commissioner, or an officer named in an authorisation letter, may, for the purposes of the administration of this Act in relation to the estate of a deceased person, require the executor of such estate or any other 20 person, with reasonable prior notice, to furnish, produce or make available any such information, documents or things as the Commissioner or such officer may require to inspect, audit, examine or obtain. (2) For the purposes of the ins{lectiori, audit, examination or obtaining of any such information, documents or things, the Commissioner or an officer 25 contemplated in subsection (1), may call on any person- ( a) at any premises; and (b) at any time during such person's normal business hours. · · (3) For the purposes of subsection (2), the Commissioner or any officer ·contemplated in subsection (1), shall not enter· ariy dwelling-house or 30 · domestic premises (except any part thereof as may be occupied or used for the purposes of trade) without the ·consent of the occupant. · ( 4) Any officer exercising any power under this section; shall on demand produce the authorisation letter issued to him. Inquiry 35 SD. (1) The Commissioner or an officer contemplated in section 8A(4) may authorise any person to· conduct an inquiry for the purposes of the administration of this Act. · · · · (2) Where the Commissioner, or.any officer contemplated in section SA( 4), authorises a person to conduct an inquiry, the Commissioner or such 40 officer shall apply to ajudgefor an order designating a presiding officer before whom the inquiry is to be held. (3) A judge. may, on ex parte application by the Commissioner or any officer contemplated in section 8A( 4), grant an order in· ternis of which a person contemplated in subsection (7) is designated to act as presiding 45 officer.at the inquiry contemplated in this section. (4) An application under subsection (2) shall be supported by informa tion supplied under oath or solemn declaration, establishing the facts on which the application is based. · ' (5) A judge may grant the order referred to in subsection (3) if he is 50 satisfied that there are reasonable grounds to believe that~ (a) (i) . there has been non-compliance by any person with his obliga- tioris in terms of this A.ct; or 26 No. 17463 Act No. 46, 1996 GOVERNMENT GAZETTE, 30 SEPTEMBER 1996 REVENUE LAWS AMENDMENT ACf, 1996 (b) , .. (ii) an offence in terms of this Act has been committed by any person; information, documents or things are likely to be revealed which may afford proof of- (i) . (ii) . the committing of such offence; and the inquiry referred to in the application is likely to reveal such such non-compliance; or (c) 5 .· information, documents or things. (6) An order under subsection (3) shall, inter alia ( a)' name the presiding officer; ·(b) refer to the alleged non-compliance or offence to be inquired into; (c) identify . the person alleged to have failed to comply with the provisions of the Act or io have committed the offence; and (d) be reasonably specific as to the ambit of the inquiry. · (7) Any presiding officer shall be a person appointed by the Minister of Finance in terms of section 83A(4) of the Income Tax Act, 1962 (Act No. 15 58 of 1962). (8) For the purposes of an inquiry contemplated in this section, a presiding officer designated under subsection (3) shall- ( a) determine the proceedings as he may think fit; (b) have the same powers to enforce the attendance of witnesses and to 20 compel them to give evidence or to produce evidential material as are vested in a President of the Special Court contemplated in section 83 of the Income Tax Act, 1962; and (c). record the proceedings and evidence at an inquiry in such manner as he may think fit. 25 (9) Any person may, by written notice issued by the presiding officer, be required to appear before him in order to be questioned under oath or solemn declaration for the purposes of an inquiry contemplated in this section. (10) The notice contemplated in subsection (9) shall specify the- 30 (a)t place where such inquiry will be conducted; (b) date and time of such inquiry; and (c) reasons for such inquiry . . (II) The executor of the estate of the deceased person whose affairs are investigated in the course of an inquiry contemplated in this section, shall 35 . be entitled to be present throughout the inquiry, unless on application by the person contemplated in subsection ( 1 ), the presiding officer directs .otherwise on the ground that the presence of the executor and his representative, or either of them, would be prejudicial to the effective conduct of the inquiry. 40 ( 12) Any person contemplated in subsection (9) has the right to a representative of his choice. (13) An inquiry contemplated in this section shall not be public and the presiding officer shall at any time on application of the executor or any other person giving evidence, exclude from such inquiry or require to 45 withdraw therefrom, all or any persons whose attendance is not necessary for the inquiry. · (14) Any person may, at the discretion of the presiding officer, be compensated for his reasonable expenditure related to the attendance of an inquiry, by way of witness fees in accordance with the tariffs prescribed in 50 terms of section 51bis of the Magistrates' Courts Act, 1944 (Act No. 32 of 1944). Search and seizure 8E. ( 1) For the purposes of the administration of this Act, a judge may, on ex parte application by the Commissioner or any officer contemplated in 55 section 8A( 4), issue a warrant, authorising the officer named therein to, without prior notice and at any time- 28 No. 17463 GOVERNMENT GAZETTE, 30 SEPTEMBER 1996 Act No. 46, 1996 REVENUE LAWS AMENDMENT ACT, 1996 (a) (i) enter and search any premises; and (ii) search any person present on the premises, provided that such search is conducted by an officer of the same gender as the person being searched, for any information, documents or things, that may afford evidence as to the non-compliance by any person with his obligations in terms of this Act; · 5 (b) seize any such information, documents or things; and (c) in carrying out any such search, open or cause to be opened or removed and opened, anything in which such officer suspects any 10 information, documents or things to be contained. (2) An application under subsection (1) shall be supported by informa tion supplied under oath or solemn declaration, establishing the facts on which the application is based. (3) A judge may issue the warrant referred to in subsection (I) if he is 15 satisfied that there are reasonable grounds to believe that- ( a) · (i). there has been non-compliance by any person with his obliga tions in terms of this Act; or . (b) (c) (ii) an offence in terms of this Act has been committed by any person; information, documents or things are likely to be found which may 20 afford evidence of- (i) (ii) the premises specified in the application are likely to contain such information, documents or things. such non-compliance; or the committing of such offence; and 25 . (4) A warrant issued under subsection (1) shall- ( a) refer to the alleged non-compliance or offence in relation to which it is (b) (c) issued; identify the premises to be searched; identify the person alleged to have failed to comply with· the 30 provisions of the Act or to have committed the offence; and (d) be reasonably specific as to any information, documents or things to be searched for and seized. (5) Where the officer named in the warrant has reasonable grounds to ~~~~ (a) such information, documents or things are- - (i) at any premises not identified in such warrant; and (ii) about to be removed or destroyed; and (b) a warrant cannot be obtained timeously to prevent such removal or destruction, ~ 40 such officer may search such premises and further exercise all the powers granted by this section, as if such premises had been identified in a warrant. (6) Any officer who executes a warrant may seize, in addition to the information, documents or things referred to in· the warrant, any other information, documents or things that such officer believes on reasonable 45 grounds afford evidence of the non-compliance with the relevant obliga tions or the committing of an offence in terms of this Act. (7) The officer exercising any power under this section shall on demand produce the relevant warrant (if any). (8) The Commissioner, who shall take reasonable care to ensure that the 50 · information, documents or things are preserved, may retain them until the conclusion of any investigation into the non-compliance or offence in -relation to which the information, documents or things were seized or until they are required to be used for the purposes of any legal proceedings under this Act, whichever event occurs last. (9)(a) Any person may apply to the relevant division of the Supreme Court for the return of any information, documents or things seized under this section. · (b) The court hearing such application may, on good cause shown, make such order as it deems fit. · 55 60 30 No. 17463 GOVERNMENT GAZETTE, 30 SEPTEMBER 1996 Act No. 46, 1996 · REVENUE LAWS AMENDMENT ACT, 1996 (10) The executor of the estate to which the information, documents or things seized under this section relate; may examine and make extracts ' therefrom and obtain one copy thereof at the expense of the State during normal business hours under such supervision as the Commissioner may · ·. determine.".' . Amendment of section 28 of Act 45 of 1955, as amended by section 17 of Act 77 of . 1962, section 7 of Act 81 of 1965, section 9 of Act 81 of 1985 and section 12 of Act · 97 of 1993 · · · · · · · · · · · ··

8. Section 28 of the Estate Duty Act; 1955, is hereby amended by the substitution for paragraph (b )bis of subsection (2) of the following paragraph: . "(b )bis without just cause shown by him, [fails to comply with imy requirement of the Commissioner made under su~-section (1) or (2) of section eight 0 his] refuses orne lects to-:--'- . ·' . . . . •. ' ' · ,., · · . (i) · furnish; produce or make available any information, documents or ' : · ·'things;· 0 (ii) reply to or answer truly and fully, any questions put to him; or • · ' : • • • • • • • : ' · 5 10 15 ~. · '·(iii):auend and give evidence, . as and when required in terms of this Act; or" .. . ': · · ''.- .· ,. Amendment of section 10 of Act 58 of 1962; as amend~d by section 8 of Act 90 of . 1962, section 7 of Act 72 of 1963,section 8 of Act 90 of 1964, section 10 of Act 88 of 20 : 1965, section '11 of Act 55 of1966, section 10 of Act 95 of 1967, 'section 8 of Act 76 ' of 1968, section 13 of Act 89 of 1969, section 9 of Act 52 of 1970, section 9 of Act 88 . of 1971, section7 of Act 90 of 1972, section7 of Act 65 of 1973, seCtion 10 of Act 85 · of 1974, section 8 of Act 69 of 1975, section 9 of Act 103 of 1976, section 8 of Act 113 • of1977, section 4 of Act 101 of 1978, section 7 of Ad 104 of 1979, section 7 of Act 104 25 · of 1980, section 8 of Act 96 of 1981, section 6 of Aci 91 of1982; section 9 of Act 94 of1983, section 10 of Act 121 of1984, section 6 of Act 96 of1985; section 7 of Act 65 of1986, section 3 of Act 108 of1986, se'ction 9 of Act 85 of 1987, section 7 of Act 90 of 1988; section 36 of Act 9 of 1989, section 7 of Act 70 of 1989, section 10 of Act 101 · of 1990, section 12 of Act 129 of 1991, section 10 of Act 141 of 1992, section 7 of Act 30 113 of 1993, section 4 of Act 140 of 1993, section 9 of Act 21 of 1994; section 10 of Act • 21 of 1995 and section 8 of Act 36 of 1996 -,, - · " 9. (1) Section 10 of the Income Tax Act,' 1962, is hereby' amended- ( a) by the deletion of subpar'agraph (viii) ofparagraph (t) of subsection (1); and (b) ·by the'deletionof subparagraph (ix) of paragraph '(t) of subsection (1). . ' commencement of years of assessment commencing ori or after 1 July 1996. (2)(a) Subsection (1)(a) shall. be deemed to have come into operation as from the (b) Subsection (l)(b) shall come into operation as from the commencement of years of assessment commen~ing on or after 1 January 1997. ' 35 ., ' Amendment of section 12C of Act 58 of 1962, as inserted by section i4 of Act 101 of 40 1990 and amended by section 11 of Ad113 of.1993, section 7 of Act 140 of 1993, ' section 11 of Act 21 of 1994 and section 13 of Act 21 of 1995 · . . 10. (1)·Se~tion- l2C. of'the~Income Tax Act, 1962, is hereby amended by the !: • ,, I ; ; _.. ,;• ' substitution in subsection ( 1) for the proviso of the following proviso: . · · ' "Provided that where- · ' · · · : · : · · · · · ·v• · '!!U suchasset is a ship or aircraft; the deduction shall be calculated on the adjustable cost as determined in terms of section 14 or I4bis, as the case may . . .' be; and . ' ' ... . ; . . . ' · · · ·(b) imy new or unused machinery or plant referred to in paragraph (a) or (b), as the case may be, of this subsection was or is:_ (i) (aa) acquired by the taxpayer under an agreement (whether conditional :! C' ·L, ' ;, ' . ' , • ;, . r ' ) (· 45 50 . ' ; '. 32 No. 17463 Act No. 46, 1996 GOVERNMENT GAZETTE, 30 SEPTEMBER 1996 REVENUE LAWS AMENDMENT ACf, 1996 or not) concluded during the period commencing on I July 1996 . and ending on 30 September 1999; and (bb) brought into use by the taxpayer or the lessee, as .the case may be, during such period; or (ii) ( aa) acquired by the taxpayer under an agreement formally and finally signed by every party to the agreement during the period commenc- ing on I July 1996 and ending on 30 September 1999; and (bb) brought intq use by the taxpayer or the lessee, as the case may be, during the period commencing on I October 1999 and ending on · ·

31 March 2000, 5 10 the deduction under this subsection shall be increased to 33 \13 per cent of the cost of such machinery or plant in respect of the year of assessment during . which the plant or machinery was or is so brought into use· and in each of ihe two immediately succeeding years of assessment.". . . (2) Subsection (I) shl}ll be deemed to have come into operation on I July 1996. 15 Amendment of section 13 of Act 58 of 1962, as amended by section 12 of Act 90 of 1962, section 5 of Act 6 ofl963, section 11 of Act72 of 1963, section 12 of Act 90 of 1964, section 14 of Act 88 of 1965, section 17 of Act 55 of 1966, section 13 of Act 52 • of 1970, section 13 of Act 88 of 1971, section 12 of Act 90 of 1972, section 13 of Act 65 of 1973, section 16 of Act 85 of 1974, section 13 of Act 69 of 1975, section 7 of Act 20 101 of 1978, section 10 of Act 104 of 1980, se~tion 14 of Act 96 of 1981, section 10 of Act 96 of 1985, section 12 of Act 85 of 1987, section 12 of Act 90 of 1988 and section ., . 12of Act 113 of 1993 . , , . 11. (I) Section 13ofthe Income Tax Act, 1962, is hereby amended by the substitution in subsection (I) for the first and second provisos of the following provis(): . . · "Provided that- . · · {E). no allowance shall be made. under this subsection in respect of such portion of .. ,the cost of any building the erection of which was commenced on or after .. : I July 1961, or any improvements effected thereto as has been taken into . · .account in the calculation of any allowance to the taxpayer under section II (g) 30 25 @ (c) .. 1 · . whether in the current or any previous year of assessment; . [Provided further that] in the case of any such building the erection of which has or is commenced on or after I January 1989 and imysuch improvements which have or are commenced on or after that date, other than any building or improvements contemplated in paragraph (c) of this proviso, the allowance 35 under this subsection shall be increased to 5 per cent of the cost (after the deduction of any amount as provided in subsection (3)) to the taxpayer of such building or improvements; =an:.::d=--------------------, in the case of any such- (i) building the erection of which has or is commenced during the period 40 commencing on I July 1996 and ending on 30 September 1999; or (ii) improvements which have or are commenced during such period; l!fld, where such building has or is or such improvements have been or are brought into use on or before 31 March 2000, the allowance under this . subsection shall be increased to I 0 per cent of the cost (after the deduction of any amount 45 as provided for in subsection (3)) to the taxpayer of such building or improvements.~·. (2) Subsection (I) shall be deemed to have come into operation on !July 1996. Insertion of section 37H in Act 58 of 1962 . 12. (1) The following section is hereby inserted in the Income Tax Act, 1962, after 50 section 37G: 34 No. 17463 Act No. 46, 1996 GOVERNMENT GAZETTE, 30 SEPTEMBER 1996 REVENUE LAWS AMENDMENT ACf, 1996' · "Tax holiday scheme for certain companies · .· 37H. 1 For the u oses of this section ' board' means the board established by section 2 of the Regional Industrial Development Act, 1993 (Act No. 187 of.1993); 'commencement date~ means 1 October 1996; 'goods • means goods as defined in. section 31 (1 ); 'project' means a project which in the opinion of the board- ( a) represents'the manufacturing of any products, goods, articles or any · ·:other things as classified in 'Major Division 3: Manufacturing' of the '' 5 Standard Industrial Classification of alLEconomic Activities (Fifth 10 .Edition) issued by the Central Statistical Services in January 1993; and · ·, · · · (b) meets the investment requirements prescribed by the regulations under · subsection ( 14)( a); 'qualifying company' means any company which- · :: • (a) . is incorporated on or after the. commencement. date; (b) commences the carrying on of one qualifying project for the first time .. . -.on or after the commencement date; and . '(c) . has the sole object of carrying on one qualifyiqg project as from the . ·' :. . . . . . , .. , , .. .. . .. 15 . :date of such incorporation and \Vhich .does not carry on any .trade other 20 ' than such qu_alifying project; ' . '): . . . . . .··.: 'qu~lifying project'. means a project \Vhich pas be~n approv~d. by the board_ • ' '·" '> ., . . •. . • - ' r in.terms of subsection (2)(a); ·:,, '! ,r .: :. ; · .,;•;;seryices' means servjce.s as defined in section 31(1); , · :•, , ..... : · · ,: , . :. ,'State'.means th~ Departments and Administration~ as listed_in Column 1 of Schedule 1 to the Public Service Act, 1994 (Proclamation l'{o. 103of 1994); 'tax holiday scheme' means a scheme in terms of which qualifying ;.:.•, ,"·\··: ...... • . :· . companies enjoy tax holiday status; . ; ; 'tax. holiday status'. means the status whereby in:respect of a year,~f .. , . . . , . . . . assessment ending- (a) during the period of six months ending 31 March 19Q7, the income of a qualifying company. is reduced in accordance with subsection (12); or . . . (b) ·after 31 March 1997, the rate of normal tax on each rand of the taxable 25 30 . income receiv~d by or accrued to or in favour of a qualifying company 35 is fixed at a rate of zero per cent in ~erms of section 5. (2) The board may- _JaL evaluate and approve any project, .to be carried on by a company, as a (b) qualifying project; investigate or ca~se to be investigated any, project for the purposes of 40 this section; . , .. · . (c) · monitor the tax holid~y scheme to- achieved; and. (i) determine whether the objectives of that scheme are being , (ii) advise the Minister of Finance and the Minister of Trade and 45 · Industry on any future proposed amendment or adjustment · . thereof; . . . . . . . . , . . . . . . . , . . · .. . ' . , . , ._,, j . , • • ,.. . (d) direct that .. where this sectionisapplicable to any company, the company shall be excluded from any such further assistance from the ~tate as the board may determine; , ,· , require any company contemplated in subsection (4) to furnish the . board with any s11ch information or documents as are nece§sary for the .board to perform its functions in termsof thi.s_section; and (e) ; : (f) perform such_ other functions as are assigne~ to it under this section. . (3) The board shall. not approye.any project as a qualifying project- if it isof the opinion that the project to be carried on by any company ( a) ... ,: is substantially the same manufacturing conc_em as, was or is carried on by any other person within the Republic on or before the submission of the application for approval pf the project in terms of sub.section ( 4); or 50 ' ' f i 36 No. 17463 GOVERNMENT GAZETTE, 30 SEPTEMBER 1996 Act No. 46, 1996 REVENUE LAWS AMENDMENT ACf, 1996 (b) after the commencement of the carrying on of ·such project by any company. (4) Any application by a company for the approval by the board of any project to be carried on by .such company as a qualifying project, shaH be made directly to the board in such form as the board may prescribe. (5) This section shaH apply to any project which has been approved by the board as a qualifying project in respect of any application received by the board from the relevant company on or before 30 September 1999. 5 (6) An application contemplated in subsection (4) shaH be in respect of a project which shaH consist of one or more of the fo11owing components- 10 (a) a spatial component as contemplated in subsection (14)(b); (b) · an industry component as contemplated in subsection (14)(c); and '-'. f . .... (c) ahuinan resource component as contemplated in subsection (14)(d). (7)"In determining whether a project is a qualifying project, the board shaH- (a) have regard to the-·· ' (i) financial viability of the project; (ii) effect on. national competitiveness; • · .. : (iii) utilisation of resources;· .. : " · ;,_ (iv) utilisation of competitive technology; and (v) commitment to the upgrading and training of local skills; and , ' · . 15 20 (b) . subject to subsection (8)- ! . • ' , · .. (i) • analyse each component of the project; and (ii) where it is satisfied that- such component is a component as , · . . i 'contemplated in subsection ( 14 )(b), (c) or (d), as the case may be, 25 certify such component accordingly .. : , · . ~: (8) Where the project consists solely of a human resource component or · · where one of'the components of a project consists of a human resource · .. . · coniponellt, the board shaH- • (a) subject to paragraph (b), carry out an initial analysis and certification · . · .. of such humanresource component oil application for approval of the • · · .. -.... project; and . . : I ! · (b) ·review such initial analysis and certification.:_ (i) where the project consists solelyofa human resource component, within six months after. the end of the first year of assessment 35 · · during which the qualifying company commences its tax holiday status; and · · .. · · :._, . ~-; (ii) where the project consists of more than one component, one of which is a human resource component, before the expiration of the• tax holiday status of the qualifying company attributable to 40 the certification by the board of another components of such · project. · . " (9) Where the board has approved a project to 'be' carried on by. a company as a qualifying project, the tax holiday status of such company ·shaH, subject to subsections (10) and (15), be a period of- . (a) two consecutive years of assessment where the board has certified one · · .. · component of the project; ... · · · (b) four consecutive years of assessment where the board has certified two · :·,. ,: · · "'-; , .. ·· • :.r: "components of the project; or .. · ' ;~: (c). six consecutive years of assessmei1t where the board has certified three 50 . ·· •. · components of the project. · · " ' • ; 1 •'• (10) Where a project consists of more than one component, one of which is a human resource component, the·period of the tax-holiday status in respect of such human resource component shaH, for the purposes of this :·section, be deemed to commence as from the commencement of the year of 55 ... assessment immediately subsequent to the expiration of the period of the .ti . ,_, . ; tax holiday status in respect of every other component.' ' ~ : ;·;i.' . ·. ' l' ) 't,.· i i : · ",!' !,• . . . ,, : . '\ i .. ' :·. ';- '' , ' I : , · I J.·· ;*..' • (I .... :.·• ;:1; i. ·. ·; i·. '· 38 No. 17463 Act No~ 46, 1996 GOVERNMENT GAZETTE, 30 SEPTEMBER 1996 REVENUE LAWS AMENDMENT ACf, 1996 (11) The tax holiday status of a qualifying company shall commence as from the commencement of the first year of assessment during which such qualifying company derives a taxable income. (12) Where a qualifying company has a year of assessment ending during the period of six months ending 31 March 1997, there shall be allowed to be deducted from the income of such company in respect of such year of ' assessment, an amount equal to the taxable income .in respect of such year of assessment of such company as determined before granting a deduction under this subsection. 5 (13) Notwithstanding the provisions· of this section, a qualifying 10 company shall no longer enjoy tax holiday status ·after the expiry of 10 years as from the commencement of the year of assessment during which the project which is carried on by the qualifying .company was approved as a qualifying project by the board. · (14) .The Minister of Trade and Industry may in consultation with the 15 Minister of Finance make regulations to-- (a) prescribe the investment requirements for any project having regard to the amount of capital invested in- · (i) land whereon and buildings .wherein the process of manufacture is to be carried on; and 20 · (ii) machinery and plant to be used directly in the process of manufacture;· (b) provide for the demarcation of a location· with an existing specialisation and advantage in manufacturing within which a project is to be carried on (in this section referred to as the spatial component), 25 having regard to the- (i) (ii) reinforcement of key urban nodes along any development corridor which qualifies as a spatial development initiative; reinforcement of secondary cities; ' (iii) consolidation of emerging agglomeration areas where a sufficient 30 supply of appropriate infrastructure is available; and . (iv) supporting of the diversification of local economies where a sufficient supply. of appropriate infrastructure is available as a ·result of the restructuring of existing manufacturing activities; (c). identify-any manufacturing group (as contemplated in the Standard 35 Industrial Classification of all Economic Activities (Fifth Edition) issued by the Central Statistical Services in January 1993) that, on an · ·average basis, is likely to contribute most significantly to the achievement of sustainable economic growth and employment cre ation in the medium to longer term through enhanced international 40 competitiveness; as a qualifying industry (in this section referred to as the industry component), having regard to the- (i) ·. employment and output linkages throughout the economy; (ii) · capital to human resource ratio; (iii) generation of increased output; and ' ·' (iv) potential to experience an increase in international demand for such group's products, goods, articles or any other things over the short to medium term; ,, · ' . - 45 ·· · ·(d) prescribe a ratio in respect of human resource remuneration to value added (in this section referred to as the human resource component); 50 (e) · prescribe criteria in order to determine for the purposes of- (i) subsection (3)(a); whether the project to be carried on by the company is substantially the'same manufacturing concern as is or was carried on by any other person within the Republic. having regard to the- (aa) scale and scope of the project; ·55 'J '. 40 No. 17463 Act No. 46, 1996 GOVERNMENT GAZETTE, 30 SEPTEMBER 1996 REVENUE LAWS AMENDMENT ACT, 1996 (bb) extent of the utilisation of . (A) machinery and plant; or (B) human resources; ( cc) influence thereof on the national normal tax base in existence on the date on which the application for approval . is considered by the board; and (dd) relationship between such company or its shareholders and any previous owner of such manufacturing concern; and 5 (ii) subsection (3)(b ), when the carrying on of a project commences; (j) define any expression referred to in this subsection, if necessary; (g) further describe and define the issues as contemplated in subsection 10 (7)(a) to which the board shall have regard; and (h) prescribe and define any condition as he may deem necessary for the .· evaluation, approval or monitoring of a project or the monitoring of the tax holiday scheme. (15) Where the- · 15 (a) board is satisfied that the approval of the project was obtained by fraud or as a result of any misrepresentation or failure to disclose any material fact by the company, the board shall, unless it otherwise directs, withdraw such approval if it is satisfied that in the light of the 20 full facts such approval should not have been granted and, in such a . ·.case, such approval shall be deemed to have been withdrawn as from the date on which such project was approved as a qualifying project; (b) board, in reviewing its initial analysis and certification of the human resource component as contemplated in subsection (8)(b), is satisfied 25 that such human resource component is not a human resource component as contemplated in subsection (l4)(d), the board shall, unless it otherwise directs; withdraw~ the certification of such human resource component and such certification . shall, where it was reviewed in terms of- (i) subsection (8)(b)(i); be deemed to have been withdrawn as from the commencement of the year' of assessment wherein such review takes place; and · 30 (ii) subsection (8)(b )(ii), be deemed to be withdrawn as from the date of the board's initial certification of such human resource 35 · · · component; (c) board is satisfied that a spatial component or an industry component no longer constitutes a spatial component or- an. industry component, as the case may be, as contemplated in subsection (J4)(b) or (c), as the case may be, as a result of any reason other than a reason contemplated 40 in paragraph (a), the board shall, unless it otherwise directs, withdraw the certification of such spatial component or industry component, as the case may be, and such certification shall be deemed to have been withdrawn from the commencement of the year of assessment during which such spatial component or industry component, as the case may 45 be, no longer constitutes such a spatial component or such an industry component, as the case may be, as originally certified by the board; or (d) Commissioner is satisfied that a qualifying company has entered into or carried out any transaction, operation or scheme whereby any goods or services are, directly or indirectly- (i) . supplied to a connected person in relation to the qualifying • · 50 company; or (ii) acquired from a connected person· in relation to the qualifying company,. and the goods or services are supplied or acquired, as the case may be, 55 .. at.a price which is either-• • • (aa) less than the price which such goods or services might have been ' ·'· . ~ . . '· ... ,, I . : ~ . 42 No. 17463 Act No. 46, 1996 GOVERNMENT GAZETTE, 30 SEPTEMBER 1996 REVENUE LAWS AMENDMENT ACf, 1996 expected to fetch if the . parties to the transaction had been independent persons dealing at arm's length (such price being the arm's length price); or (bb) greater than the arm's length. price, the tax holiday .status of such qualifying company shall, unless the Commissioner otherwise directs, lapse from the commencement of the year of assessment during which such qualifying company entered into or carried out such transaction, operation or scheme. 5 (16) Where subsection (15)(a) has been applied, the company shall pay, · in addition to the tax chargeable in respect of its taxable income for each of 10 the years of assessment during which the tax holiday status was previously granted, an amount equal to twice the tax chargeable in respect of its taxable income.Jor each of such years of assessment. .. · (17)(a) The. Commissioner may in his discretion remit the additional ~ i • charge imposed by subsection (16) or any part thereof. .15 (b) Notwithstanding the provisions of this subsection, the Commissioner may either before or after an assessment is issued agree with the company on the amount of the additional charge to be paid, and the amount so agreed .:upon shaH not be subject to any objection and appeal. (18)( a) The board shaH notify the company and the Commissioner of any 20 • decision taken in accordance with subsection (2), (3), (7) or (15)(a), (b) or (c)-within a period of 30 days after. the approval of the minutes of the meeting whereat such decision was taken. (b) The board shaH furnish the company with reasons for any decision . contemplated in paragraph (a) simultaneously with the notification of such 25 decision. (19)(a) Notwithstanding the provisions of section 4, the Commissioner · may disclose to the board such information relating to the company's affairs ·as is necessary to enable the board to perform its functions in terms of this section. · (b) Before disclosing such information the Commissioner shall deliver or send to the company. a written notification of his intended action setting forth particulars of the said information. 30 (c) The company may V!ithin 30 days after the date of such written notification or such further period as the Commissioner may approve, lodge 35 in writing with the Commissioner ·any objection it may have to the ., ' . .; ' . _, disclosure of the information . (d) If, on the expiry of the said period of 30 days or the said further . period, no objection has been lodged as contemplated in paragraph (c) or, if an objection has been lodged and the Commissioner is not satisfied that the 40 objection should be sustained, the Commissioner may thereupon disclose .•. such information as contemplated in paragraph (a). (20)( a) The members and employees of the board shall preserve and aid · in preserving secrecy with regard to all matters that may come to their knowledge in the performance of their functions in terms of this section, 45 . i . and shaH not communicate any such matter to any person whatsoever other than the company concerned or its legal representative nor suffer or permit any such person to have access to any records in the possession or custody of the Commissioner, except in the performance· of their functions as members and employees of the board or by order of a competent court. 50 :· - (b) Every member and employee of the board shall take and subscribe . before a magistrate or justice of the peace or an officer of the South African Revenue Service who is a commissioner of oaths, such oath or solemn . declaration, as the case may be_. of fidelity or secrecy as may be prescribed. (c) Any member or employee of the board who contravenes a provision 55 :; of paragraph (a), shaH be guilty of an offence and liable on conviction to a fine or to imprisonment for'a period not exceeding two years. .. (21)Where- (a) the certification of a component in respect of a qualifying company has been withdrawn in terms of subsection (15)(b) or (c); or the tax holiday status of a qualifying company has lapsed in terms of subsection (15)(d); . :··; ... (b) 60 44 No. 17463 GOVERNMENT GAZETTE, 30 SEPTEMBER 1996 Act No. 46, 1996 REVENUE LAWS AMENDMENT Acr, 1996 the Commissioner may, notwithstanding the provisions of section 79, raise assessments in respect of the company as if ·such company were not a qualifying company. (22) Any decision of the Commissioner under this section shall be subject to objection and appeal. 5 (23) The relevant division of the Supreme Court may, on the application of a company which has made any ·application in terms of this section and which feels aggrieved by a decision made by the board in connection with that application, review the decision on the following grounds- ( a) interest in the application, bias, malice or corruption on the part of any 10 member of the board; .. , · (b) gross irregularity in the proceedings; ·and (c) exercise of a power in an arbitrary, mala .fide or unreasonable manner . . (24) The court in reviewing a decision of the board in terms of subsection (23) may, if the court is satisfied that- · . (a) any of the grounds for review referred to in the said subsection has 15 been proved; and . the applicant has been substantially prejudiced by the decision, (b) set aside the decision, and shall, in setting aside the decision, unless in its opinion exceptional circumstances warrant another order, issue an order 20 that the board consider afresh the matter in respect of. which the decision was made. · (25)(a) A company which has made any application in terms of this section and which feels aggrieved by a decision on a question of law made by the board in connection with the application, may appeal to the relevant '25 division of the Supreme Court against the decision. · (b) Such an appeal shall be noted and prosecuted as if it were an appeal against a judgment in a magistrate's court in civil proceedings. : (c) If the court, after considering the appeal, is satisfied that the board has misdirected itself in the making of the decision concerned, the court may set 30 aside that decision, and shall, in setting aside the decision, unless in its opinion exceptional circumstances warrant another order, issue an order that the board consider afresh the matter in respect of which the decision was made.". · .. ... ·. . .. •. , , · · (2) Subsection (I) shall come into operation on I October 1996: ·' ·' · 35 Amendment of section 64B of Ad 58 of 1962; as inserted by section 34 of Act 113 of 1993 and amended by section 12 of Act 140 of 1993, section 24 of Act 21 of 1994, section 29 of Act 21 of 1995 and section 21 of Act 36 of 1996 · 13; ( 1) Section 64B of the Income Tax Act, 1962,' is hereby amended..:_ (a) by the deletion:of the word "arid" at the end'of paragraph (g) of subsection 40 ' · (b) by the addition to subsection (5) of thefollowing paragraphs: · (5); and : · ·· · · "(i) · in the case of any coinpany which is a 'qualifying company' as defined in section 3 7H,' any dividend declared by such company during the period ending six months after · the· end of the last year of assessment 45 during which such company qualifies for the taX holiday·status referred to in that section out of profits derived during the period during which . such company qualifies for such tax holiday status; and ··· (j) ·any dividend declared by a company contemplated in paragraph (e) of . · the definition of 'company' in section I.". '· • ·' ;... 50 (2) Subsection (l)(b) shall; in so far as it adds paragraph (j) to section 64B(5) of the Income Tax Act,·l962, be deenied to have come into OPeration on17 M~ch 1993; Substitution of section 74ofAct 58 of1962, as amended by section 24 of Act 88 ofl965 · ·· · ··•·· · ·

14. The following sections are hereby substituted for section 74 of the Income Tax 55 Act, 1962: · 46 No. 17463 GOVERNMENT GAZETfE, 30 SEPTEMBER 1996 Act No. 46, 1996 · REVENUE LAWS AMENDMENT Acr, 1996 ··. "General provisions with regard to information, documents or things 74. (l) For the purposes of this section and sections 74A, 74B, 74C, ' ~· · . ; ' ; .74D and 75- . · 'administration of this Act' means the- ( a) obtaining of full information in relation to any- · · · . ·. · . . amount received by or accrued to any person; (i) (ii) property disposed of under a donation by any person; and (iii)- dividend declared by any company; · · · .. . ( . , (b) ·ascertaining ·of the· correctness . of any return; .financial statement, document, declaration of facts or .valuation; .. ~ ;; , :: . ' . ~ ·. (c). • determination of the liability of any person for any tax, duty or levy · and any interest _or penalty in relation the!eto leviable under this Act; (d) collecting of any such liability; . . · .. : r , . . •' . (e) ascertaining whether an offence in terms of ' this Act has been committed; .;. ' . •< · ·. , . . . : . (j) .. . ascertaining whether a person has, other than in relation to a matter contemplated in paragraphs (a), (b), (c), (d) and (e) of this definition, complied with the provisions of this Act; · .: · .• . · ,. • 5 lO 15 j ;; . ' .. , - ~. . . ensure that any obligation imposed upon any person by or under this 20 (g): enforcement of any of the Commissioner's remedies under this Act to ' -. ·- ;, Act, is complie~ with; and ··: (h) performance of any other administrative function which is necessary · :: • · · . . : , ·, : . . for the carrying out of the prov is~ons. of this Act; : · '. : .:.·:: ·• i · .. 'authorisation:· letter' means a written _authorisation • granted by the · • ·: ·. · ! :. . · Commissioner, or any chief director, receiver of revenue. or chief revenue 25 inspector under the control; direction Of supervision of the. Commissioner, : :.. :;·1 to an officer toinspect, audit, examine or. obtain, !iS contemplated in section . . : · .:.· '.<1 74B, any inf9rmation, documents or. things;: . > ~documents'.-include any document,- book, ·record,.· account, deed, plan, · ·• .. ··. · instrument, trade , list, stock list, ·affidavit, 'certificate; photograph, map, 30 ·. • • · ·•, ,. , ("1 . '' . . . . • . . . ,:.•: ... drawing . and any 'computer: print-out' as defined in section 1 of the Computer Evidence Act; 1983 (Act No. 57 ofd 983); .'information' includes any data stored by means of a .'computer' as defined in section 1 of the Computer.~vide'!cej\c:t, 1_9~3: . . • .. :·_··' .· · 'judge' means a judge. of , the Supreme, ~ourt . and . i~clud~s ,a judge . in 35 · chambers~ · · :'o.flC\!f',meaJ}S an officer CO~te~p]atedin. Section)(!);. 'prep1ises' ~~elude any bu\lding, premises, fi.irFraft, vehicl~,ves~e1 orplace; . , _'thipgs' .. in~lud~, any, c,orpore~~ . or incorpo~eal: thi!lg ap.,d any . 4ocu,!llent · ·· · · · · · .. · · . 1 . •• . · · •• • • 40 , . relating thereto; 'warranC mean sa written authorisation issued by a j4dge to ~earch for and ·. ' seize any infonnation, document~ or·t~ings under se~iion 740. ~ '·i: . · · (2) For the purposes of sections ·74A, 74B, 74C and 74D,~where any information, documents or things are not in one of the ·official languages, . the Commissioner or any :officer may by notice ir1 writing ~equire the 45 .-lax payer or.".~nthe ta~paye~.·s default, arty o~~r person, to· produce, within . ~eiennine.d .bY ~e c~~mi.ssicmer.~r,sllch.offiFer.·' · ~· > · .. : . a reasonable period, a , tr~slation ther:eofjn one of. the c;>fficiallanguages (3) Any translation. referred to in subsectiqn (2) shall.be- .' ~{a), pr~~u':ed at ~u~h)iipe a?.~. im;m.lses;·,as W~Y be_.'~Pecified by the 50 •. ,. , Commiss~oner;orany()fficer;·!ll'\4 . .. , : !·. , .: ,:_. ~ :,o<i · (b) prepaJ'ed •. and _ceJ1ified, .. bY, ~uswom: •. transl~t..<?r OJ; ,.another person ' approve-d by th<:.Commissioper,orsuc.~officer .. , .. .~ . · . ·• ,,, ... ; ~ t , , , ! •· . : . (4)f()r the. purposes. of sections74Ca~d74D, th¢ , Cp~miss}o.ner,may . , • ... delegate the powers vested in him by those. sections, ,to any other officer. · 55 I • •. . 1 • - • • • • ' • • • - • • • · 1 • • • , • - . ' • •• , • ' • - ~ • •:- ' • " ' • ' .I ' ' • ' • • -• . • \ . ~·

74A. The Commissioner or any officer may, for the purp~s~s of the : ?tdrnin,is,tration,of.this_Act in r~lati()n to anyt~xpayer, require su~h.taxpayer . . : ' ·•· ~ AJ. _ . . . · . ,·-· , · 48 No. 17463 Act No. 46, 1996 GOVERNMENT GAZETTE, 30 SEPTEMBER 1996 REVENUE LAWS AMENDMENT ACf, 1996 .. · • or any other person to furnish such information (whether orally or in writing) documents or things as the Commissioner or such officer may require, • · · · · Obtaining of information, documents or things at certain premises I 74B. (I) The Commissioner, or an officer named in an authorisation 5 letter, may, for the purposes of the administration of this Act in relation to any taxpayer, require such taxpayer or any other person, with reasonable prior notice, to furnish, produce or make available any such information, ·. documents. or things • as the Commissioner or such officer may require to inspect, audit, examine or obtain. · (2) For the purposes of the inspection, audit, examination or obtaining of .• any such information, documents or things, the Commissioner or an officer contemplated in subsection (I),' may call on any· person- (a) at any premises; and.·.. (b). at any time.during such person's normal business hours. : .. · 10 15 (3) For the purposes of subsection (2), the Commissioner or any officer ::• ' : c contemplated in subsection (1), shall not enter any dwelling-house or .-domestic premises (except any part thereof as may be occupied or used for . the purposes of trade) without the consent of the occupant. · · · ·. ; ( 4) Any officer exercising any power under this section, shall on demand 20 produce the authorisation letter. issued to him. · :. . : ' ' ! ; ~ ! ; ' ',I•-. ., Inquiry,-. .... '.j,• .:. ' : · ': '.-, ·., ' - .. ,., , __ ' .. . ,·_., i"' :,. ·~··· • 74C. (1) The Commissioner or an officer contemplated in section 74(4) · may. authorise any person. 19; conduct aninquiry! for. the purposes of the . administration of this Act;·:: • .~. :·. ·': · · •.:•'' • .: • .; · .. . · '" 25 .· •(2) ·Where the Commissioner, .or:any·.officer contemplated in section . 74(4);authorises a person to conduct an inquiry; the Commissioner or such officer shall apply to a judge for an order designating a. presiding officer ·before whom the inquiry is to be held.. ., (3) A judge may, on ex parte application by the Commissioner or any 30 officer contemplated in section:74(4), grant an order in terms of which a · ·, person contemplated in subsection (7) is designated to act as presiding officer at the inquiry contemplated in this section. " · · • (4) An application under subsection (2) shall be. supported by informa tion supplied·under oath or solemn declaration, establishing the facts on which the application is based.·>·. · · : . "• . . . . . (5) A judge may grant the order. referred to in subsection (3) if he is · satisfied that there are reasonable grounds to believe that- . (a) . (i) there has been non-compliance by any person with his obliga- tions in terms of this Act; or - . ·: .· • 40 (ii) · an offence in _terms of this Act has been committed by any person; (b)· information, documents or things are likely to be revealed which may afford.proof of- .: (i) : such non-compliance; or : : (c) (ii) · the committing of such offence; and · the inquiry referred to in the application is likely •to reveal such information;documents or things .. : ... : 45 (6) An order under subsection (3) shall; inter alia- ( a) name the presiding officer; (b) · refer to the alleged non-compliance or offence to be inquired into; . identify .the. person .alleged to have failed to comply with the (c) . , . ·, ·. . provisions of the Act or to have committed the offence; and . (d) . be reasonably specific as to. the ambit of the inquiry.· (7) Any presiding officer shall be a person appointed by: the Minister of Finance in terms of section 83A(4). ; ';·. : . t.' '1: ..... : , t'.< .: ·: :·. ·;, .. : .. · II 55 ' .. 50 · No. 17463 Act No. 46, 1996 GOVERNMENT GAZETTE, 30 SEPTEMBER 1996 REVENUE LAWS AMENDMENT ACf, 1996 (8) For the purposes of an inquiry contemplated in this section, a presiding officer designated under subsection (3) shall- ( a) determine the proceedings as he may think fit; (b) have the same powers to enforce the attendance of witnesses and to compel them to give evidence or to produce evidential material as are 5 vested in a President of the Special Court contemplated in section 83; and· record the proceedings and evidence at an inquiry in such manner as he may think fit .. (c) (9) Any person may, by written notice issued by the presiding officer, be 10 · ,1required to appear before him in order to be questioned under oath or solemn declaration for the purposes of an inquiry contemplated in this section. · · (10) The notice contemplated in subsection (9) shall specify the- ( a) place where such inquiry will be conducted; (b) date and time of such inquiry; and (c) reasons for such inquiry. 15 (11) Any person whose affairs are investigated in the course of an inquiry ·contemplated in this section, shall be entitled to be present throughout the inquiry, unless on application by the person contemplated in subsection ( 1 ), 20 the presiding officer directs otherwise on the ground that the presence of the person and his representative, or either of them, would be prejudicial to the ·effective conduct of the inquiry. · _ (12) Any person contemplated in subsection (9) has the right to a representative of his choice. 25 · · (13) An inquiry contemplated in this section shall not be public and the presiding officer shall at any time on application of the person whose affairs are investigated or any other person giving evidence, exclude from such ; inquiry or require to withdraw therefrom, all or any persons whose attendance is not necessary for the inquiry. · (14) Any person may, at the discretion of the presiding officer, be compensated for his reasonable expenditure related to the attendance of an inquiry, by way of witness fees in accordance with the tariffs prescribed in terms of section 51bis of the Magistrates! Courts Act, 1944 (Act No. 32 of . 19~. . ( 15) Where the person referred to in subsection ( 1) is a person other than an officer contemplated in section 3(1 ), the provisions of section 4 shall mutatis mutandis apply to such person with regard to the preservation of secrecy. Search and seizure 74D. ( 1) For the purposes of the administration of this Act, a judge may, on ex parte application by the Commissioner or any officer contemplated in section 74(4), issue a warrant, authorising·the.officer named therein to, without prior notice and at any time- · (a) (i) enter and search any premises; and (ii) search any person present on the premises, provided that such search is conducted by an officer of the same gender as the person being searched, 30 ~ 40 45 for any information, documents or things, that may afford evidence as to the non-compliance by any taxpayer with his obligations in terms of 50 this Act; (b) seize any such information, documents or things; and (c) in carrying out any such search, open or cause to be opened or removed and opened, anything in which such officer suspects any information, documents or things to be contained. 55 52 No. 17463 Act No. 46, 1996 GOVERNMENT GAZETTE, 30 SEPTEMBER 1996 REVENUE LAWS AMENDMENT ACf, 1996 (2) An application under subsection (l) shall be supported by informa tion supplied under oaih or solemn declaration, establishing the facts on which the application is based. (3) A judge may issue the warrant referred to in subsection (1) if he is satisfied that there are reasonable grounds to believe that- ·(a) (i) there has been non-compliance by any person with his obliga tions in terms of this Act; or 5 (b) (c) (ii) an offence in terms of this Act has been committed by any person; information, documents or things are likely to be found which may . afford evidence of- (i) (ii) the premises specified in the application are likely to contain such information, documents or things. such non-compliance; or the committing of such offence; and (4) A warrant issued under subsection (l) shall- (a) refer to the alleged non-compliance or offence in relation to which it is (b) (c) issued; identify the premises to be searched; identify the person alleged to have failed to comply with the provisions of the Act or to have committed the offence; and · . (d) be reasonably specific as to any information, documents or things to be · searched for and seized. (5) Where the officer named in the warrant has reasonable grounds to ·believe that- ( a) ·such information, documents or things are,- . (i) · at any premises not identified in such warrant; and (ii) about to be removed or destroyed; and (b) a warrant cannot be obtained timeously to prevent such removal or 10 15 20 25 destruction, such officer may search such premises and further exercise all the powers 30 granted by this section, as if such premises had been identified in a warrant. (6) Any officer who executes. a warrant may seize, in addition to the information, documents or things referred to in the warrant, any other information, documents or things that such officer believes on reasonable grounds afford evidence of the non-compliance with the relevant obliga- 35 tions or the committing of an offence in terms of this Act .. (7) The officer exercising any power under this section shall on demand produce the relevant warrant (if any). (8) The Commissioner, who shall take reasonable care to ensure that the information, documents or things are preserved, may retain them until the 40 conclusion of any investigation into the non-compliance or offence in relation to which the information, documents or things were seized or until they are required to be used for the purposes of any legal proceedings under this Act, whichever event occurs last. (9)(a) Any person may apply to the relevant division of the Supreme 45 Court for the return of any information, documents or things seized under this section. (b) The court hearing such application may, on good cause shown, make such order as it deems fit. (10) The. person to whose affairs any information, documents or things 50 - seized under this section relate, may examine and make extracts therefrom and obtain one copy thereof ~t the expense of the State during normal business hours under such supervision as the Commissioner may deter mine.". · Amendment of section 75 of Act 58 of 1962, as amended by section 40 of Act 101 of 55 1990, section 34 of Act 129 of 1991, section 30 of Act 141 of 1992, section 35 of Act ·113 of 1993 and section 27 of Act 21 of 1994

15. Section 75 of the Income Tax Act, 1962, is hereby amended by the substitution for paragraph (b) of subsection (1) of the following paragraph: 54 No. 17463 Act No. 46, 1996 GOVERNMENT GAZETTE, 30 SEPTEMBER 1996 -REVENUE LAWS AMENDMENT ACf, 1996 "(b) without just cause shown by him, refuses or neglects to- . ill -furnish, produce or make available any information, documents or things; [or] @ . reply to or answer truly and fully, any questions put to him; or (iii) [to] attend and give evidence, as and when required [by the Commissioner or any officer duly authorised by him or to answer truly and fully any questions put to him or to produce any . books or papers required of him by the Commissioner or any such _officer] in terms of this Act; or"~ · Insertion of section 28B in Act 77 of 1968

16. The following section is hereby inserted in the Stamp Duties Act, 1968, after section 28A: 5 10 ."Offences in respect of .furnishing, producing and making available information, documents or things, as well as inquiries and searches and seizures 15 . 28B. Any person who- ((l) without just cause shown by him, refuses or neglects to- (i) , furnish, produce or make available any infqrmation, documents or things; , . , (ii) reply to or answer truly and fully, any questions put to him; or (iii) attend and give evidence, as and when required in terms of this Act; or · 20 (b) obstructs or hinders any officer in the carrying out of his duties, shall be guilty -of an offence and liable on conviction to a fine or to imprisonment for a period not exceeding one year.". 25 Repeal of section. 29 of Act. 77. of 1968 . J 7. Section 29 of the Stamp Duties Act, 1968, is hereby, repealed. Substitution of section 31 of Act 77. of 1968, as amended by section 7 of Act 72 of 1970 '

18. The following sections are hereby substituted for section 31 of the Stamp Duties 30 Act, 1968: ".General provisions with regard to information, documents or things ' , , r '31. (I) For the purposes of this section and sections 31A, 31B, 3IC, 31D and 28B- 'administration of this Act: means the- (a) obtaining of full information in relation to any instrument that is 35 :subject to stampduty in terms,of this Act; , (b). ascertaining· of the correctness of any statement, financial statement, document; declaration of facts or valuation; (c) . determination of the liability of any person for any duty or any penalty 40 in relation thereto leviable under this Act; (d) collecting of any such liability; (e) ascertaining whether an :offence in terms of this Act has been , ' 1. , (j) , committed;_ • ·ascertaining whether a person has, other than in relation to a matter 45 contemplated in paragraphs (a), (b), (c), (d) and (e) of this definition, complied with the provisions of this Act; - · -- - (g) enforcement of any of the Commissioner.'s remedies _under this Act. to 'ei-isure that ~ny obligatio!limp~sedupon any pei-sonby 0~ untler this . Act, is ~om plied wjth; ~nd . . , :· , '.: ~· _ , .· ::•. •. 50 (h) performance of any other administrative function which is necessary for. the carrying out of the provisions of this Act; -' . _. 56 No. 17463 Act No. 46, 1996 GOVERNMENT GAZETTE, 30 SEPTEMBER 1996 REVENUE LAWS AMENDMENT ACT, 1996 'authorisation letter' means a written authorisation granted by the Commissioner, or any chief director, receiver of revenue or chief revenue inspector under the control, direction or supervision of the Commissioner, to an officer to inspect, audit, examine or obtain, as contemplated in section 31B, any information, documents or things; ·'documents' include any document, book, record, account, deed, plan, instrument, trade list, stock list, affidavit, certificate, photograph, map, drawing, any 'computer print-out' as defined in section 1 of the Computer Evidence Act, 1983 (Act No. 57 of 1983), stamp and instrument contemplated in Schedule 1; 'information' includes any data stored by means of a 'computer' as defined in section 1 of the Computer Evidence Act, 1983; 'judge' means a judge of the Supreme Court and includes a judge in chambers; 'officer' means an officer contemplated in section 2(1); 'premises' include any building, premises, aircraft, vehicle, vessel or place; 'things' include any corporeal or incorporeal .thing and any document relating thereto; 'warrant' means a written authorisation issued by a judge to search for and seize any information, documents or things under section 31 D. _ 5 10 15 20 (2) For the purposes of sections 31A, 31B, 31C and31D, where any ·information, documents or things are not in one of the official languages, the Commissioner or any officer may by notice in writing require the person liable for the duty or, on such person's default, any other person, to produce, within a reasonable period, a translation thereof in one of the official 25 languages determined by the Commissioner or such officer. (3) Any translation referred to in subsection (2) shall be- ( a) produced at such time and premises as may be specified by the Commissioner or any officer; and (b) prepared and certified by a sworn translator or another person 30 approved by the Commissioner or such officer. (4) For the purposes of sections 31Cand 31D, the Commissioner may delegate the powers vested in him by those sections, to any other officer. Furnishing of information, documents or things by any person

31A. The Commissioner or any officer may, for the purposes of the 35 administration of this Act in relation to any person liable for the· duty, require such person or any other person to furnish such information (whether orally or in writing), documents or things as the Commissioner or such officer may require. Obtaining of information, documents or things at certain premises 40 31B. (I) The_ Commissioner, or an officer named in an authorisation Jetter, may, for the purposes of the administration of this Act in relation to the person liable for the duty, require such person or any other person, with reasonable prior notice, to furnish, produce or make available any such information, documents or things as the Commissioner or such officer may 45 require to inspect, audit, examine or obtain. (2) For the purposes of the inspection, audit, examination or obtaining of any such information, documents or things, the Commissioner or an officer contemplated in subsection (1), may call on any person- ( a) at any premises; and (b) at any time during such person's normal business hours. (3) For the purposes of subsection (2), the Commissioner or any officer contemplated in subsection (1 ), shall not enter any dwelling-house or domestic premises (except any part thereof as may be occupied or used for the purposes of trade) without the consent of the occupant. 50 55 58 No. 17463 Act No. 46, 1996 GOVERNMENT GAZETTE, 30 SEPTEMBER 1996 REVENUE LAWS AMENDMENT ACT, 1996 ( 4) Any officer exercising any power under this section, shall on demand produce the authorisation letter issued to him. Inquiry 31C. (1) The Commissioner or an officer contemplated in section 31(4) may authorise any person to conduct·an inquiry for the purposes of the administration of this Act. · 5 (2) Where the·Commissioner, or any officer contemplated in section 31(4), authorises a person to conduct an inquiry, the Commissioner or such officer shall apply to a judge for an order designating a presiding officer before whom the inquiry is to be held. · (3) A judge may, on ex parte application by the Commissioner or any ·officer contemplated in section 31(4), grant an order in terms of which a person contemplated in subsection (7) is designated to act as presiding . officer at the inquiry contemplated in this section: 10 (4) An application under subsection (2) shall be supported by informa- tion supplied under oath or solemn declaration, establishing the facts on which the application is based. · 15 (5) A judge may grant the order referred to in subsection (3) if he is (i) satisfied that there are reasonable grounds to believe that- o, (a) there has been non-compliance by any person with his obliga- 20 tions in terms of this Act; or im offence in terms of this Act has been committed by any person; .. (b) : information; documents or things are likely to be revealed which may (ii) \. ' such non-compliance; or afford proof of- (i) (ii) ··the committing of such offence; and the inquiry referred to in the application is likely to reveal such information, documents or things. (c) (6) An order under subsection (3) shall, inter alia- , 1 • (a) 0 name the presiding officer; (b) : refer to the alleged non-compliance or offence to be inquired into; (c) identify the person alleged to have failed to comply with the provisions of the Act or to have committed the offence; and · (d) . be reasonably specific as to the ambit of the inquiry. 0 ' 25 30 (7) Any presiding officer shall be a person appointed by the Minister in 35 terms of section 83A( 4) of the Income Tax Act; 1962 (Act No. 58 of 1962). (8) For the ·purposes of an inquiry contemplated in this section, a presiding officer designated under subsection (3) shall- ( a) determine the proceedings as he niay think fit;· (b) have the same powers to enforce the attendance of witnesses and to 40 compel them to give evidence or to produce evidential material as are vested in a President of the Special Court contemplated in section 83 of the Income Tax Act, 1962; and record the proceedings and evidence at an inquiry in such manner as he may think fit. (c) 45 . ' (9) Any person may, by written notice issued by the presiding officer, be required to appear before him in order to be questioned under oath or ·solemn declaration for the· purposes of an inquiry contemplated in this section. (10) The notice contemplated in subsection (9) shall specify the- 50 (a) place where such inquiry will be conducted; (b) date and time of such inquiry; and : (c) reasons for such inquiry. · 1 : · (II) Any person whose affairs are investigated in the course of an inquiry · contemplated in this section, shall be entitled to be present throughout the 55 . inquiry; unless on application by the person contemplated in subsection (1), i'· 60 No. 17463 Act No. 46, 1996 GOVERNMENT GAZETTE, 30 SEPTEMBER 1996 REVENUE LAWS AMENDMENT ACf, 1996 the presiding officer directs otherwise on the ground that the presence of the person and his representative, or either of them, would be prejudicial to the effective conduct of the inquiry. (12) Any person contemplated in subsection (9) has the right to a representative of his choice. (13) An inquiry contemplated in this section shall not be public and the presiding officer shall at any time on application of the person whose affairs are investigated or any other person giving evidence, exclude from such inquiry or require to withdraw therefrom, all or any persons whose attendance is not necessary for the inquiry. (14) Any. person may,_ at the discretion of. the presiding officer, be compensated for his reasonable expenditure related to the attendance of an inquiry, by way of witness fees in accordance with the tariffs prescribed in terms of section 51bis of the Magistrates' Courts Act, 1944 (Act No. 32 of 1944). 5 10 Search and seizure 31D. (1) For the purposes of the administration of this Act, a judge may, -- on ex parte application by the Commissioner or any officer contemplated in section 31 ( 4), issue a warrant, authorising the officer named therein to, without prior notice and at any time- (a) (i) enter and search any premises; and 20 (ii) search any person present on the premises, provided that such search is conducted by an officer of the same gender as the person being searched, for any information, documents or things, that may afford evidence as 25 to the non-compliance by any person with his obligations in terms of this Act; (b) seize any such information, documents or things; and (c) in carrying out any· such search, open or cause to be opened or removed and opened, anything in which such officer suspects any 30 information, documents or things to be contained. (2) An application under subsection (1) shall be supported by informa tion supplied under oath or solemn declaration, establishing the facts on which the application is based. (3) A judge may issue the warrant referred to in subsection (I) if he is 35 satisfied that there are reasonable grounds to believe that- ( a) (i) there has been non-compliance by any person with his obliga tions in terms of this Act; or (b) (c) (ii) an offence in terms of this Act has been committed by any person; information, documents or things are likely to be found which may 40 afford evidence of- (i) (ii) the premises specified in the application are likely to contain such . information, documents or things. such non-compliance; or the committing of such offence; and 45 (4) A warrant issued under subsection (1) shall-. (a) ·- refer to the alleged non-compliance or offence in relation to which it is . (b) · (c) issued; identify the premises to be searched; identify the person alleged to have failed to comply with the 50 provisions of the Act or to have committed the offence; and (d) be reasonably specific as to any information, documents or things to be . searched for and seized. (5) Where the officer named in the warrant has reasonable grounds to believe that-,- (a) such information, documents or things are- (i) at any premises not identified in such warrant; and (ii) about to be removed or destroyed; and 55 62 No. 17463 Act No. 46, 1996 GOVERNMENT GAZETIE, 30 SEPTEMBER 1996 REVENUE LAWS AMENDMENT ACf, 1996 (b) a warrant cannot be obtained timeously to prevent such removal or . destruction, _ such officer may search such premises and further exercise all the powers granted by this section, as if such premises had been identified in a warrant. (6) Any officer who executes a warrant may seize, in addition to the information, documents or things referred to in the warrant, any other information, documents or things that such officer believes on reasonable · grounds afford evidence of the non-compliance with the relevant obliga 5 tions or the committing of an offence in terms of this Act. (7) :The officer exercising any power under this section shall on demand 10 produce the relevant warrant (if any). (8) The Commissioner, who shall take reasonable care to ensure that the information, documents or things are preserved, may retain them until the . . conclusion of any investigation into the non-compliance or offence in relation to which the information, documents or things were seized or until 15 they are required to be used for the purposes of any legal proceedings under this Act, whichever event occurs last. (9)(a) Subject to subsection (10), any person may apply to the relevant division of the Supreme Court for the return of any information, documents or things seized under this section. . (b) The court hearing such application may, subject to subsection (I 0), on good cause shown, make such order as it deems fit. . , . 20 (I 0) Where there is good reason to suspect that any person is guilty of an offence, the information, documents or things so seized, may be placed in safe custody and be adjudged to be forfeited to the State by the court having 25 · .. ' · :~ jurisdiction as to: the offence and thereafter shall be dealt with as the .• : . Commissioner- may direct: , Provided that nothing contained in this subsection shall affect the rights of any person who is otherwise entitled by law to the possession or custody of any such information, documents or , · things stolen or improperly obtained. · . (11) The person to whose affairs any information, documents or things seized under this section relate, may examine. and make extracts therefrom and obtain one copy thereof. at the expense of the State during normal business hours under such supervision as the Commissioner may deter mine. , (12) Where any stamps are seized under a warrant, the person authorised by the warrant shall, if required, give to the person in whose custody or possession the stamps are found, an acknowledgment .of the number, · particulars and amount of the stamps and permit the stamps to be marked on the back thereof before the removal thereof.";', . . 30 · · 35 40 ' A~end~ent of Item 1S ~f Schedule 1 to Act 7,7 ofl968, as substituted by section 13 of Act 89 of 1972 and amended by section 16 of Act 66 van 1973, section 21 of Act '88 of 1974; section 3 of Act 104 of 1976~ section 20 of Act 114 of 1977~ section 8 of Act 95 of 1978, section 8 of Act 102 of 1979, section 21 of Act 106 of 1980, section 9 of Act 99 of 1981, section 7 of Act 87 of 1982, section 14 of Act 92 of 1983, section 11 45 of Act 118 of 1984, section 11 of Act 81 of 1985, section 5 of Act 71 of 1986, section 13 of. Act 108 of 1986, section 1i of Act. 86 ·or 1987, section 33 of Act 87 of 1988, section 14 of Act 69 of 1989~ section 83 of Act 89 of 1991, section 9 of Act 136 of 1991, section 8 of Act 136 of 1992, section 17 of Act 9i of 1993, section 17 of Act 140 of 1993, section ~ of Act 20 of 1~94 and ~ectio~ 17 of Act 37 ,of 1996 · · 50 19. (l) Item 15 of Schedule 1, to the Stamp DutiesAct, 1968, is hereby amended by . the insertion after paragraph (h) of "Exemptions from the duty under.paragraph (3)" of . . the following paragraph: . · · · ... "(hA) Any registration of transfer of any marketable security registered in the name of- . 55 64 No. 17463 Act No. 46, 1996 GOVERNMENT GAZETIE. 30 SEPTEMBER 1996 . REVENUE LAWS AMENDMENT ACT, 1996 (i) any pension fund established · by law to any other pension fund , which is registered under the Pension Funds Act, I956; or , (ii) any previous fund as contemplated in section 14(5) ·of the Govemment .Employees Pension ·Fund Law, 1996 (Proclamation No. 21 of 1996), to the GovernmentEmployees Pension Fund as 5 contemplated in section 2 of that Law.". (2) Subsection (1) shall, iri so far as it relates to ariy registration of transfer of marketable securities to- . . . . . (a) any pension fund which is registered in terms of the Pension Funds Act, 1956, ' .. . be deemed to have come into operation on I July I995; and the Government Employees Pension Fund, be deemed to have come into (b) . operation on I May 1996.'· ·· · · iO Amendment of section 8 of Act 89 of 1991, as amended by section 24 of Act 136 of 1991, section 4 of Government Notice 2695 of 8 November 1991, section 15 of Act 136 of 1992, Section 24 of Act 97 of 1993 and section 11 of Act 20 of 1994 · 15 20: Section 8 of the Value-Added Tax Act, 1991, is hereby amended by the insertion after subsection ( 13) of the following subsection: . " ( 13A) For the purposes of this Act, except section 16(3 ), where any vendor who makes taxable supplies of services contemplated in subsection (13) of this section, receives any amount paid by any other vendor as a prize or 'winnings in 20 cqnsequence of a supply of such services made by the last-mentioned vendor to the first-mentioned vendor, the first-mentioned vendor shall be deemed to supply a service tci the last-mentioned vendor.". ' ·. · Amendment of section 9 of Act 89 of 1991,·as amended by section· 25 of Act 136 of 1991 and section 25 of Act97 of 1993 · · · ' · · : 25 21.· Section 9 of the Value-Added Tax Act, •I991, is hereby amended by the addition to subsection (3) of the following paragraph: . "CO where ·any supply of a service is deemed to be made as contemplated in section 8(13A), the supply shall be deemed to take place whenever any · amount is paid out as a prize or winnings by the supplier of the services 30 · · · ·contemplated in section 8(13) .. ". Amendment of section 10 of Act 89 of 1991, as amended by section 26 of Act 136 of 1991, section 5 of Government Notice 2695 of 8 November 1991, section 16 of Act 136 of 1992, section 26 of Act 97 of 1993, section 12 of Act 20 of 1994 and section 21 of Act 37 ofl996 · · , · · · · 35

22. Section 10 of the Value-Added Tax Act, 1991, is hereby amended by the insertion after subsection (17) of the following subsection: · · · · . "(17A) Where a service is deemed by section '8(13A) to be supplied to any vendor, the consideration in money for such supply shall be deemed to be the amount that is received as a prize or winnings.".. 40 ' ' ·. '! Rep~al _of sec~ion 56 of Act 89 of 1991 . . -. ~ _,. . . ' .. 23. Section.56 of theyaiue-AddedTax A~t. 1991, is hereby repealed. . . Substitution of s'ection 57 of Act 89 of 1991 · . ) ' • . ' ... . . 24; The following . sectio~s are hereby substituted for sectio~ 57 of th·e ,Value-Added . Tax Act, 1991: · · • : :, ; • · . ;. • ·, · . . • ' •• : . . ; 1 ,45 "General provisions with regard to information; documents or things 57. (I) For the purposes of this section and sections 57 A, 57B, 57C, 570 and 58- · 'administration of this Act' means, the- 66 No. 17463 Act No. 46, 1996 GOVERNMENT GAZETTE, 30 SEPTEMBER -1996 REVENUE LAWS AMENDMENT ACT, 1996 . ' (a)· obtaining of full information in relation to the- .. (i) supply by any vendor of goods and services supplied by him in the course or furtherance of any enterprise carried on by him; . (ii) ·.importation of any goods into the Republic by any person; and (iii). supply of any imported services by any person; · (b) ascertaining of the correctness of any return, financial statement, document, declaration of facts or valuation; . . (c) deterinination of the liability of any person for any tax iffi'd ~ny interest or penalty in relation thereto leviable under this Act; · (d) collecting of any such liability; (e) ascertaining whether an offence. in terms of. this .Act has been . . . committed; .. (f) ascertaining whether a person has, other than in relation to a matter , contemplated in paragraphs (a), (b), (c), (d) and (e) of this definition, complied with the provis_ion~ of this Act; . , , . . ·~ ·. ,; . . .. 5 10 15 , .· . , -. .. , · (g) . enforcement of any of the Commissioner:s remedies under this Act to ensure that any obligation imposed upon any person by or under this Act, is complied with; and (h). performance of any other,administratiye function which is n,ecessary for the carrying out of the provisions of this Act; . . . . 'authorisation letter~ means a written authorisation, granted by the ; Commissioner, or any chief director, receiver of revenue or chief revenue inspector under the control, direction or supervision of the Commissioner, to an officer to inspect, audit, ex.amine or obtain, as contemplated in section .. 57B, any informatioq, documents or: things; . . . . . " 25 'documents' include any document, book, record, account, deed,. plan, instrument, trade list, stock list;· affidavit;certificate, photograph, map, drawing and any 'computer print-out' as. defined in secotion.l _of the Computer Evidence Act,.l983 (Act No. 57 of 1983);. ! 'information' includes any data stored by means of a 'computer' as defined 30 .. . . . . .. : in section 1 of the Computer Evidence Act, 1983; . . . , " . 'judge' means. a judge of the Supreme Court and includes a judge in chambers; .. . : 'officer' means an officer contemplated insection5(1); . :premises: include any building, premises, aircraft, vehicle, yessel or place; ·'things' 'include any corporeal or incorporeal thing and any document relating thereto; :·· · · . . '·· ... ·,'warrant' means a w,ritten authorisation issued by a judge to search for and ·. :. . ; . , .. . seize any information, documents or.things under section 57D. . , .•. (2) For.the purposes of sections 57 A, 57B, 57C and 57D, where any 40 information, documents or things are not in one of the official languagt;s, the Commissioner or any officer may by notice in writing require the . v,endor or, on the vendor's default, any other person, to produce, wi.thin a reasonable period, a translation thereof in one of the official, languages · , determined by the Commissioner or such officer. . · . . : . · 45 (3) Any translation referred to in subsection (2) shall be-. (a) produced at such 'time and premis~s as may be specified by the Commissioner or any officer; and · · · · · · · · · (b) prepared and certified by. a sworn translator or .an~ther person approved by the Commissioner or such officer. · 50 . !•·.~':i 1_,•·, (4) For t11e purpose~ ofsections 57C and 57D, the Commissioner f!!ay delegate the powers vested in him by those sections, to any other officer. Furnishing of information, docume.nts or things !>Y any pt;rson. ,, . "' , .57 A •. ,The Commissioner or. any officer may, for ,the purposes of:. the administration of this ACt in relation to any vendor, require such.vendor or 55 any other person 'to furnish such information (whether orally or in writing), . do~:;uments. or t~ings as th~ Cqmmi~sioner,or. such officer .may require. · ... 68 No. 17463 Act No. 46, 1996 GOVERNMENT GAZETfE, 30 SEPTEMBER 1996 REVENUE LAWS AMENDMENT ACT, 1996 Obtaining of information, documents or things at certain premises . ' 57B. (1) The Commissioner, or an officer. named in an authorisation letter, may, for the purposes of the administration of this Act in relation to any vendor, require such vendor or any other person, with reasonable prior notice, to furnish, produce or make available any. such information, 5 documents or things as the Commissioner or such officer may require to inspect, audit, examine or obtain .. (2) For the purposes of the inspection, audit, examination or obtaining of any such information; documents or things, the Commissioner or an officer contemplated in subsection (1), may call on any person- (a) at any premises; and· · (b) at any time during such person's normal business hours: 10 (3) For the purposes of subsection (2), the Commissioner or any officer contemplated in subsection (1), shall not enter any. dwelling-house or domestic premises (except any part thereof as may be occupied or used for 15 the purposes of trade) without the consent of the occupant. ·. ( 4) Any officer exercising any power under this section, shall on demand produce the authorisation letter issued to him. : ' j ' . Inquiry · ! 57C. (1) The Commissioner o~ an officer contemplated in section 57(4) 20 · . may authorise any person to conduct an inquiry for the purposes of the · administration of this Act. · · • (2) ·Where the· Commissioner, or any· officer contemplated in section ·57(4), authorises a person to conduct an inquiry, the Commissioner or such officer shall apply to a judge for an order designating a presiding officer 25 before whom the inquiry is to be held. ·· (3) A judge _may, on ex parte application by the Commissioner or any officer contemplated in section 57(4), grant an order in terms of which a person contemplated in subsection (7) is designated to act as presiding officer· at the inquiry contemplated in this section. . (4) An application under subsection (2) shall be supported by informa tion supplied under oath or solemn declaration, establishing the facts on 30 .. 35 40 45 · . which the application is based: (5) A judge may grant the order referred to in subsection (3) if he is .. ,, satisfied that there are reasonable grounds to believe that- :· (a)· (i) there has been non-compliance by any person with his obliga tions in terms of this Act; or : .. (ii) · an offence in terms of this Act has been committed by any person; (b) · information, documents or things are likely to be revealed which may · .. : . , ' afford proof of- (i) · such non-compliance; or- . • . · · · ' ·. . · • · ' (ii) · the committing of such offence; and · ' . (c) the inquiry referred to ·in the· application :is ·likely to reveal such . information, documents or things .. · . " ' ' (6) An order under subsection (3) shall, inter alia"7" ·,_.- · ·(a)· name the presiding officer; · · • (b) refer to the alleged non-compliance or offence to be inquired into; (c) identify the person alleged to have failed to comply with the ·· · ,, . ' provisions of the Act or to have committed the offence; and (d) be reasonably specific as to the ambit of the inquiry .. (7) Any presiding officer shall be a person appointed by the Minister in terms of section 83A( 4) of the Income Tax Act, 1962 (Act No. 58 of 1962). (8) For the purposes of an inquiry contemplated in this presiding officer designated under subsection (3) shall-· ·: ' (a) determine the proceedings as he m~y think fit; . ' ··;·· 70 No. 17463 Q.OVERNMENT GAZETTE, 30 SEPTEMBER In? Act No. 46, 199/) · REVENUE LA}Y§ AMENDMENT ACf, 1996 (b )c have the s_\\We pq~ers to enforce the attend~Qc;e of witnesses and to compel th_epl ,t9 giv.e evidence or to produce evisJe,n,tial material as are vested in a !:?,resident of the Special Court contell,lplated in section 83 of the Income Tax Act; and record the proceedings and evidence at an inquiry in such manner as he may think fit. · · ·- ' · · · · · · (c) ' " j · ' . l - · · . · .(9) Any person may, by written nc,>tice issued by the presiding officer, be .. required to appear before him 'in .o!<\.er ~0 be questioned under oath 'or solemn declaration for the purposes c,>f an inquiry contemplated in this sectiOn: ' \ ; . ' ' I • . . ' 5 l 0 (10) The .'W.~ce contemplated in subsection (9) s!Jall specify the- ( a) place ~.J,1.er.e such inquiry will be conducted;' (b) date anci time of such inquiry; and . (c) reasons for such inquiry. ' · · (11) Any person whose affairsare investigated in the course of an inquiry 15 contemplated in thi~ ·s~ctio~: ~hjl;ll be entitled to be present ~r(mglig~t',ilie inquiry, unless on appli~atiqp :'?~ !Re person contemplated in subsection (l ), the presiding officer directs qtherwise on t!Je ground that the presence of the person and his representative, or either of them, would be prejudicial to the , effect,ive '_conduct of the inquiry. • . . -·· . ·._. 20 (12) 'j\ny person contemplated in sub~t;ction (',)) has the right to a represe,ntative of his choice. . · · · ' · ' :'· 1 • '03) An inquiry contemplated in this section shall not be public and the ' rr~siding officer shall at'any time on application of the person whose fltl'airs !1fe jnvestigated or ~ny other person giving evidence, exclude frorri 1 ~~\Ich 25 inquiry or require "to withdraw therefrom, all- of any persons whose attendance is not necessary for the inquiry. . ' ' ·. (11) Any person may, at ,the .~iscretion of the presiding officer, be compensated for his reasona.J;l!e' e,xpenditure related .to the attendance of an inqui,Ij, by way of witness fees in accordance with ,the tariffs prescribed in 30 terms Ofs_ection 5lbis of the !\fa.gistrates' Cow'~s Ad, 1944 (Act No. 32 of .· · . , · 1C0?44) .. _,.' · · (15) .\V\Jere the person referred to in subsec.tion,(1) is a person other than an offic~,f'contemplated in section 5(1 ), thqii:ovisions of section' 6 shall -mutatis mutandis apply to such person with regard to the preservation of 35 _secrecy. : .. ·~ ·. · , .. : . · · l·; :~, ' .•. _, _' ,, · ){, Search and seizure · I ~' . i ' J ••• .J · 57D. (1) For the purpo,ses of the administration of this Act, a judge may, on ex parte application by the Commiss'ioner or any officer contemplatedini ·section 57(4), issue· a Wl1ffant, authorising the-officer named therein tb,' ,f> without prior notice and at any time-· '' ,_ . . :. (a) (i) ,enter and search any premises; a.11d · : · r ·· (ii) search any person present on the ,premises, provid~d that such . search is conducted by an officer¢fthe same gender)ts.the person :. · · · ,':: ·. being searched,-. . ,.;. ·• · · ' ..r ' 45 for any informatioJ1, documents or things, that may afford evidence as to the non-compliance .by any person-with his obligations· in terms of this Act; · · : · - . · . (b),: seize any such information, documents or things; and (c) in carrying out any stich search, open or. cause to be opened or ~? ·,removed and opened, anything in which such officer suspects any information, documents or things to be contained. ' '~'-' · · ·:. ' . u . · · . . (2) An app'Iitation under subsection (I) shall )Je'supported by ,i~forma­ tion supplie~ 'under oath or solemn declara~i'on, es~ab1i~hi,ng the facts on which the ap~Jieation is based. . (3) A judge' .ITiay issue the warrant referred to in subsection (I) if he is satisfied that ,there are reason~ble grounds to believe thai~- ,, . · ' : · .. · · •" '" ' · · . :, ' - ~:-. · . . 72 No. 17463 GOVERNMENT GAZETTE, 30 SEPTEMBER 1996 Act No. 46, 1996 REVENUE LAWS AMENDMENT ACf, 1996 (a) (i) · there has been non-compliance by any person with his obliga . tions in terms of this Act; or (b) (ii) an offence in terms of this Act has been committed by any person; information, documents or things ardikely to be found which may afford evidence of- (i) (ii) such non-compliance; or the committing of such offence; and (c) . the premises specified in the application are likely to contain such information, documents or things. (4) A warrant issued under subsection (1) shall- · (a). refer to the alleged non-compliance or offence in relation to which it is (b) (c) issued; identify the premises to be searched; identify the person alleged to have failed to· comply with the provisions of the Act or to have committed the offence; and ... ·. · . (d) be reasonably specific as to any information, documents or things to be : searched for and seized. (5) Where the officer named in the warrant has reasonable grounds to · believe that- ( a) such information, documents or things are- (i) · at any premises not identified in such warrant; and . (ii) about to be removed or destroyed; and (b) a warrant cannot be obtained timeously to prevent such removal or 5 10 15 20 destruction, such officer may search such premises and further exercise all the powers 25 granted by this section, as if such premises had been identified in a warrant. (6) Any officer who executes a warrant may seize, in addition to the information, documents or things referred to in the warrant, any other information, documents or things that such officer believes on reasonable grounds afford evidence of the non-compliance with the relevant obliga- 30 tions or the committing of an offence in terms of this Act. (7) The officer exercising any power under this section shall on demand . · produce the relevant warrant (if any). (8) The Commissioner, who shall take reasonable care to ensure that the information, documents or things are preserved, may retain them until the 35 conclusion of any investigation into. the non-compliance or offence in relation to which the information, documents or things were seized or until they are required to be used for the purposes of any legal proceedings under this Act, whichever event occurs last. (9)(a) Any person may apply to the relevant division of the Supreme 40 Court for the return of any information, documents or things seized under this section. . . (b) The court hearing such application may, on good cause shown, make such order as it deems fit. (10) The person to whose affairs any information, documents or things 45 · seized under this section relate, may examine and make extracts therefrom and obtain one copy thereof at the expense of the State during normal business hours under such supervision as the Commissioner may determine.". ·Amendment of section 58 of Act 89 of 1991, as amended by section 41 of Act 136 of 50 1991 and section 39 of Act 97 of 1993

25. Section 58 of the Value-Added Tax Act, 1991, is hereby amended ( a) by the substitution for paragraph (b) of the following paragraph: "(b) holds himself out as an officer authorised by the Commissioner or a judge for the purposes of the obtaining of information, documents or things, an 55 inquiry or entry and search as contemplated in section [57(1)] 57B, 57C or 57D, as the case may be; or"; 74 No. 17463 Act No. 46, 1996 GOVERNMENT GAZETTE, 30 SEPTEMBER 1996 REVENUE LAWS AMENDMENT ACT, 1996 \(b) by th~ substitution for paragraphs (g) and (h)of the: following paragraphs, respectively: · • · " ~'(g)." [fails to comply with any requirement of section 56] without ·ust cause ... shown by him, refuses or neglects to-- (i) furnish, produce or make available any information, documents or · 5 things; reply to or answer truly and fully, any questions put to him; or (ii) (iii) attend and give evidence, as and when required in terms of this Act; or (h) hinders or obstructs or assaults any officer engaged in carrying out his 10 duties under section [57(1)] .578 or 57D [or wilfully fails to comply with any lawful demand made by such officer in the performance of his duties or the exercise of his powers]; or"; ' I . ' -. . Amendment of section 2 of Act .187 of 1993, as amended by section 24 of Act 11 of . · 15 • 1995 :t • . ·, • I• . 26. (1) Section 2 of the Regionallndustrial Development Act, 1993, is hereby · amended by the insertion after subparagraph (i) of paragraph (b) of subsection (2) of the following subparagraph: :.:-· . "(ii) the South African Revenue Service designated by· the Director-General: South African Revenue Service;'.'. (2) Subsection ( 1) shall come· into operation on .1 October 1996. 20 Amendment. of section 5 of Act 187 of 1993 27. (1) Section 5 of the Regional Industrial Development Act, 1993, is hereby , ., . amended-... ···. · (a) by the addition to subsection (2) of the following paragraph:- 25 ,, ' ,, . "(i) exercise the powers conferred on it by section 37H of the Income Tax .·Act, 1962 (Act No. 58 of 1962)."; and ' (b) by the insertion after paragraph (c) of subsection (3) of the following ·.·;!paragraph: .... ; l ·'i'' ·· "( cA) perform the functions assigned to it by section 37H of the Income Tax 30 Act, 1962; ": (2) Subsection (1) shall come into operation on 1 October 1996, · Amendment of section 39 of Act 20 of 1994, as amended by section 7 of Act 37 of 1995 and section 35 of Act. 37 of1996 ' · ·.· '· " ::_r:·:· ' 28. (1) Section 39 of the Taxation Laws Amendment Act, 1994, is hereby amended- 35 -(a) by the substitution .in subsection (1) for the words preceding paragraph (a) of ',· -· the defi_nition of"controlling company·~- of the following words: . " 'controlling company', iri relation to any other. company, means a listed 2! holding company which.,-"; · _ .. , . (b) by the substitution in subsection (1) for the proviso to the. definition of 40 . .. ·~controlling company" of the following proviso:. : . __ ... _. :.:• .. i' . "Provided that for the purposes of a. scheme contemplated in paragraph .. (a)(iii) of the definition of 'rationalisation scheme'. in this subsection, the company.may also be a company other than a listed or holding company;"; and .-.,. (c) by the insertion in subsection-(!) after the definition of "group of companies" . •. ; .of: the follo\:Ving definition:,,. . · ... .. 45 the fixed ca ita) " 'holdin com an 'means a com an eino share ca ital share premium, accumulated profits, whether of a capital nature or not, or any other permanent owners', capital) of which amounted ,to more, than R250 50 million at the end of the year of assessment immediately preceding the year of assessment, during which the _ agreement referred to 'in . the: definition of 'rationalisation scheme' has been concluded;". , .. ' . ... . ' · - \~- ' 76 No. 17463 GOVERNMENT GAZETTE, 30 SEPTEMBER 1996 Act No. 46, 1996 REVENUE LAWS AMENDMENT ACf, 1996 (2) Subsection (1) shall come into operation on the date of promulgation of this Act. Amendment of section 24 of Act 36 of 1996. .. ,• ' .. 29. (1) Section 24 of the Income Tax Act, 1996, is hereby amended by the substitution ' for subsection (2) of the following subsection: "(2) Subsection (1) shall come into operation on [the date of promulgation of 5 this Act] 3 July 1996 and shall apply to any interest attributable to any tax arising from the application of the provisions of section [103(1)] 103 of the principal Act to any transaction; .·operation or scheme· entered into or carried out,. or any agreement entered into or effected on or after that date." .. · · · (2) Subsection (1) shall be deemed to have come into operation on 3 July 1996. 10 . j · . Amendment of section 29 of Act 36 of, 1996 • . 30. (1) Section 29 of the Income Tax Act, 1996, is hereby amended by the substitution for subsection (2) of the following subsection: "(2) Subsection (1) shall come into operation on [the date of promulgation of this Act] 3 July 1996 and shall apply to any transaction, operation or scheme 15 ·entered into or carried out, or any agreement entered into or effected on or after that date: Provided that the provisions of section · 103 of the principal Act shall, in relation to any transaction, operation or scheme entered into or carried out; or any · · ·agreement entered into or effectedbefore that date, continue: to. apply as if subsection ( 1) had not been enacted.". 20 (2) Subsection (1) shall be deemed to have come into operation on 3 July 1996 .. Amendmentofsection1ofAct38of1996 . . ':;: '' · •· .; .... ' · ·'3lo (1) Section 1 of the Tax on Retirement Funds Act, 1996, is hereby amended by the deletion of paragraph (b) of the definition of "retirement fund". (2) Subsection (1) shall be deemed to have come into operation on 1 March.1996. 25 Amendment of section 4 of Act 38 of 1996 · - . - . - - -- - . - ' -- - - -

32. Section 4 of the Tax on Retirement Funds Act, 1996, is hereby amended- ( a) by the substitution for subparagraph (ii) _of paragraph (d) of the following subparagraph: ·. ' : "(ii) equal to the statutory actuarial value of liabilities under guaranteed 30 ·. annuities; and~-·; and . · ; .. · · '· (b) by the substitution for paragraph (f) of the following paragraph: "(f) , '-i ; ' .. ~. 'F' represents the value represented by symbol 'D' less the sum of the ,:actuarial value of the liabilities relating to the assets contemplated in- ill section 29(4)(a)(ii) [and (iii)] of the Income Tax Act (excluding 35 :assets in respect of amounts allocated to retirement funds contem- . plated in paragraph (c) and assets representing guaranteed annuities :contemplatedinparagraph·(d));and' .,, .. · (ii) section 29( 4)( a)(iii) of t11e Inc()~e Tax Act (excluding assets- ~: f1 I .; .,i,' . . ' . . . . . plated.inparagraph(c); ·. (aa) in respect of amounts allocated to retirement funds contem- 40 .. : ... '''· •.: (bb) representing guaranteed annuities contemplated in paragraph .. (d); and 1 • • • • • : • • • .• '· (cc) contemplated in subparagraph (i)).". 1, (2) Subsection (1) shall. be deemed to have come into operation on I March 1996. 45 Short title , ''I ;t . . ' ' .

33. Th!s Act shall be _called the Revenue Laws Amendment Act, 1996., · · r·. 1 ,,' .. ': !.· ~'. ·. ·.,: