South Africa Act or statute

Parliament of the Republic of South Africa

Tax Administration Laws Amendment Act, 2012

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Jurisdiction: South Africa
Structure: 76 provisions
Citation: Act 21 of 2012
Dates: updated 20 Dec 2012

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Dates: updated 20 Dec 2012

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Official source

Purpose and legislative effect

“This section amends tax rules: it redefines who counts as a representative taxpayer in some disability/trust cases, lets the Commissioner raise an additional assessment if R&D approval is withdrawn, and requires certain industrial policy project companies to report progress within 12 months after each year of assessmen”

This section amends tax rules: it redefines who counts as a representative taxpayer in some disability/trust cases, lets the Commissioner raise an additional assessment if R&D approval is withdrawn, and requires certain industrial policy project companies to report progress within 12 months after each year of assessment. This section adds a rule that certain people managing relevant organisations must not intentionally fail to comply with the section or related governing documents, or they commit an offence. A person managing or controlling the income and assets of an approved public benefit organisation must not intentionally fail to comply with the section or the organisation’s governing documents as they relate to it. A person responsible in a fiduciary capacity for an approved recreational club’s income and assets must not intentionally fail to comply with section 30A or related governing documents; doing so is an offence. This section requires withholding tax on interest paid to a foreign person, sets limited exceptions and reduced-rate rules, and requires payment to the Commissioner by the end of the next month. It also creates an offence for intentional non-compliance by fiduciaries of approved associations.

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Section 1 of the Income Tax Act, 1962, is hereby amended by the substitution in the

Section 4

Section 28 of the Value-Added Tax Act, 1991, is hereby amended—

This section amends VAT return and payment timing for vendors.

Section 31

Section 61 of the Tax Administration Act, 2011, is hereby amended by the

A SARS official using a section 60 warrant must show the warrant, and if the premises owner or controller is absent, leave a visible copy on the premises.

Section 52

The Tax Administration Act, 2011, is hereby amended by the substitution for

SARS must impose the appropriate penalty under section 211 when it is satisfied that a listed non-compliance exists.

Section 70

Paragraph 167 of Schedule 1 to the Tax Administration Act, 2011, is hereby

This provision amends paragraph 167 of Schedule 1 to the Tax Administration Act, 2011, and states when the amendments come into force.

Section 93

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Showing 76 of 76 provisions

Substitution 46Amendment 16Commencement 13Short title

Part

Schedule 1 to Act 28 of 2011

§ 4Section 1 of the Income Tax Act, 1962, is hereby amended by the substitution in theCommencement

4. Section 1 of the Income Tax Act, 1962, is hereby amended by the substitution in the deﬁnition of ‘representative taxpayer’ for paragraph (c) of the following paragraph: Reproduced by Sabinet Online in terms of Government Printer’s Copyright Authority No. 10505 dated 02 February 1998 6 No. 36036 Act No. 21 of 2012 GOVERNMENT GAZETTE, 20 December 2012 Tax Administration Laws Amendment Act, 2012 6 ‘‘(c) in respect of income which is the subject of any trust or in respect of the income of any minor or mentally disordered or defective person or any other person under legal disability, the trustee, guardian, curator or other person entitled to the receipt, management, disposal or control of such income or remitting or paying to or receiving moneys on behalf of such person under disability;’’. Amendment of section 11D of Act 58 of 1962, as inserted by section 13 of Act 20 of 2006 and amended by section 13 of Act 8 of 2007, section 3 of Act 9 of 2007, section 19 of Act 35 of 2007, section 11 of Act 3 of 2008, section 19 of Act 60 of 2008, section 16 of Act 17 of 2009, section 20 of Act 7 of 2010, section 32 of Act 24 of 2011, section 1 of Act 25 of 2011 and paragraph 34 of Schedule 1 to Act 28 of 2011 5. (1) Section 11D of the Income Tax Act, 1962, is hereby amended by the substitution for subsection (19) of the following subsection: ‘‘(19) [For the purposes of subsection (1), the] The Commissioner may, notwithstanding the provisions of sections 99 and 100 of the Tax Administration Act, raise an additional assessment for any year of assessment with respect to a deduction in respect of research and development which has been allowed, where approval has been withdrawn in terms of subsection (10).’’. (2) Subsection (1) is deemed to have come into operation on 1 October 2012 and applies in respect of expenditure incurred in respect of research and development on or after that date but before 1 October 2022. Amendment of section 12I of Act 58 of 1962, as inserted by section 26 of Act 60 of 2008 and amended by section 24 of Act 17 of 2009, section 26 of Act 7 of 2010 and section 37 of Act 24 of 2011 5 10 15 20 6. (1) Section 12I of the Income Tax Act, 1962, is hereby amended by the substitution 25 for subsection (11) of the following subsection: ‘‘(11) Within 12 months after the close of each year of assessment, starting with the year in which approval is granted in terms of subsection (8), a company carrying on an industrial policy project must report to the adjudication committee with respect to the progress of the industrial policy project in terms of the requirements of subsections (7) and (8) within such time, in such form and in such manner as the Minister of Finance may prescribe.’’. (2) Subsection (1) is deemed to have come into operation on 1 January 2012 and applies in respect of industrial policy projects approved on or after that date. Amendment of section 18A of Act 58 of 1962, as amended by section 16 of Act 88 of 1971, section 13 of Act 90 of 1972, section 14 of Act 65 of 1973, section 16 of Act 69 of 1975, section 13 of Act 104 of 1980, section 16 of Act 96 of 1981, section 14 of Act 91 of 1982, section 16 of Act 94 of 1983, section 16 of Act 121 of 1984, section 15 of Act 90 of 1998, section 17 of Act 101 of 1990, section 20 of Act 129 of 1991, section 11 of Act 36 of 1996, section 24 of Act 30 of 2000, section 20 of Act 30 of 2002, section 34 of Act 45 of 2003, section 26 of Act 31 of 2005, section 16 of Act 20 of 2006, section 18 of Act 8 of 2007, section 1 of Act 3 of 2008, section 6 of Act 4 of 2008, section 34 of Act 60 of 2008, section 37 of Act 7 of 2010 and section 44 of Act 24 of 2011

Section 4Verify source

§ 7Section 18A of the Income Tax Act, 1962, is hereby amended by the addition of theAmendment

This section adds a rule that certain people managing relevant organisations must not intentionally fail to comply with the section or related governing documents, or they commit an offence.

7. Section 18A of the Income Tax Act, 1962, is hereby amended by the addition of the following subsection: ‘‘(7) Any person who is— (i) (ii) in a ﬁduciary capacity responsible for the management or control of the income and assets of any public beneﬁt organisation, institution, board or body contemplated in this section; or the accounting officer or accounting authority contemplated in the Public Finance Management Act, 1999 (Act 1 of 1999), or the Local Government: Municipal Finance Management Act, 2003 (Act 56 of 2003), as the case may be, for any institution in respect of which that Act applies, 30 35 40 45 50 Reproduced by Sabinet Online in terms of Government Printer’s Copyright Authority No. 10505 dated 02 February 1998 8 No. 36036 Act No. 21 of 2012 GOVERNMENT GAZETTE, 20 December 2012 Tax Administration Laws Amendment Act, 2012 8 who intentionally fails to comply with any provisions of this section, or a provision of the constitution, will or other written instrument under which such organisation is established to the extent that it relates to the provisions of this section, shall be guilty of an offence and liable on conviction to a ﬁne or to imprisonment for a period not exceeding 24 months.’’. Amendment of section 30 of Act 58 of 1962, as amended by section 16 of Act 19 of 2001, section 22 of Act 30 of 2002, section 31 of Act 74 of 2002, section 45 of Act 45 of 2003, section 28 of Act 32 of 2004, section 36 of Act 31 of 2005, section 24 of Act 20 of 2006, section 25 of Act 8 of 2007, section 43 of Act 35 of 2007, section 22 of Act 3 of 2008, section 24 of Act 20 of 2006, section 22 of Act 3 of 2008, section 41 of Act 60 of 2008, section 41 of Act 17 of 2009, section 53 of Act 7 of 2010

Section 7Verify source

§ 8Section 30 of the Income Tax Act, 1962, is hereby amended by the insertion afterAmendment

A person managing or controlling the income and assets of an approved public benefit organisation must not intentionally fail to comply with the section or the organisation’s governing documents as they relate to it.

8. Section 30 of the Income Tax Act, 1962, is hereby amended by the insertion after subsection (10) of the following subsection: the ‘‘(11) Any person who is in a ﬁduciary capacity responsible for management or control of the income and assets of any approved public beneﬁt organisation and who intentionally fails to comply with any provision of this section or of the constitution, will or other written instrument under which such organisation is established to the extent that it relates to the provisions of this section, shall be guilty of an offence and liable on conviction to a ﬁne or to imprisonment for a period not exceeding 24 months.’’. Amendment of section 30A of Act 58 of 1962, as amended by section 26 of Act 8 of 2007, section 42 of Act 60 of 2008, section 42 of Act 17 of 2009 and section 54 of Act 7 of 2010

Section 8Verify source

§ 9Section 30A of the Income Tax Act, 1962, is hereby amended by the addition of theAmendment

A person responsible in a fiduciary capacity for an approved recreational club’s income and assets must not intentionally fail to comply with section 30A or related governing documents; doing so is an offence.

9. Section 30A of the Income Tax Act, 1962, is hereby amended by the addition of the following subsection: ‘‘(9) Any person who is in a ﬁduciary capacity responsible for the management or control of the income and assets of any approved recreational club and who intentionally fails to comply with any provision of this section or of the constitution, or other written instrument under which such recreational club is established to the extent that it relates to the provisions of this section, shall be guilty of an offence and liable on conviction to a ﬁne or to imprisonment for a period not exceeding 24 months.’’. Amendment of section 30B of Act 58 of 1962, as amended by section 56 of Act 24 of 2011 5 10 15 20 25 30

Section 9Verify source

§ 10Section 30B of the Income Tax Act, 1962, is hereby amended by the addition ofAmendment

This section requires withholding tax on interest paid to a foreign person, sets limited exceptions and reduced-rate rules, and requires payment to the Commissioner by the end of the next month. It also creates an offence for intentional non-compliance by fiduciaries of approved associations.

10. Section 30B of the Income Tax Act, 1962, is hereby amended by the addition of 35 the following subsection: ‘‘(10) Any person who is in a ﬁduciary capacity responsible for the management or control of the income and assets of any approved association and who intentionally fails to comply with any provision of this section or of the constitution, or other written instrument under which such association is established to the extent that it relates to the provisions of this section, shall be guilty of an offence and liable on conviction to a ﬁne or to imprisonment for a period not exceeding 24 months.’’. 40 Insertion of sections 37L, 37M, 37N and 37O in Act 58 of 1962 11. (1) The following sections are hereby inserted in the Income Tax Act, after section 45 37K: Reproduced by Sabinet Online in terms of Government Printer’s Copyright Authority No. 10505 dated 02 February 1998 10 No. 36036 Act No. 21 of 2012 GOVERNMENT GAZETTE, 20 December 2012 Tax Administration Laws Amendment Act, 2012 10 ‘‘Withholding of withholding tax on interest by payers of interest 37L. (1) Subject to subsections (2) and (3), any person who makes payment of any amount of interest to or for the beneﬁt of a foreign person must withhold an amount as contemplated in section 37J from that payment. (2) A person must not withhold any amount from any payment contemplated in subsection (1)— (a) to the extent that the interest is exempt from the withholding tax on interest in terms of section 37K(1); or if the foreign person to or for the beneﬁt of which that payment is to be made has— (b) (i) (ii) by a date determined by the person making the payment; or if the person making the payment did not determine a date as contemplated in subparagraph (i), by the date of the payment, submitted to the person making the payment a declaration in such form as may be prescribed by the Commissioner that the foreign person is, in terms of section 37K(3), exempt from the withholding tax on interest in respect of that payment. (3) The rate referred to in subsection (1) must, for the purposes of that subsection, be reduced if the foreign person to or for the beneﬁt of which the payment contemplated in that subsection is to be made has— (a) by a date determined by the person making the payment; or (b) if the person making the payment did not determine a date as contemplated in paragraph (a), by the date of the payment, submitted to the person making the payment a declaration in such form as may be prescribed by the Commissioner that the interest is subject to that reduced rate of tax as a result of the application of an agreement for the avoidance of double taxation. Payment and recovery of tax 37M. (1) If, in terms of section 37JA, a foreign person is liable for any amount of withholding tax on interest in respect of any amount of interest that is paid to or for the beneﬁt of the foreign person, that foreign person must pay that amount of withholding tax by the last day of the month following the month during which the interest is paid, unless the tax has been paid by any other person. (2) Any person that withholds any withholding tax on interest in terms of section 37L must pay the tax to the Commissioner by the last day of the month following the month during which the interest is paid. Refund of withholding tax on interest 5 10 15 20 25 30 35

Section 10Verify source

§ 37NNotwithstanding chapter 13 of the Tax Administration Act, if—Amendment

The Commissioner must refund part of a withheld amount of interest tax if the required declaration was late but is filed with the Commissioner within three years after payment.

37N. Notwithstanding chapter 13 of the Tax Administration Act, if— (a) an amount is withheld from a payment of an amount of interest as 40 contemplated in section 37L(1); (b) a declaration contemplated in section 37L(2)(b) or (3) in respect of that interest is not submitted to the person paying that interest by the date of the payment of that interest; and a declaration contemplated in section 37L(2)(b) or (3) is submitted to the Commissioner within three years after the payment of the interest in respect of which the declaration is made, (c) so much of that amount as would not have been withheld had that declaration been submitted by the date contemplated in the relevant subsection is refundable by the Commissioner to the person to which the interest was paid. 45 50 Reproduced by Sabinet Online in terms of Government Printer’s Copyright Authority No. 10505 dated 02 February 1998 12 No. 36036 Act No. 21 of 2012 GOVERNMENT GAZETTE, 20 December 2012 Tax Administration Laws Amendment Act, 2012 12 Currency of payments made to Commissioner

Section 37NVerify source

§ 37OIf an amount withheld by a person in terms of section 37L(1) isCommencement

If a withheld amount under section 37L(1) is in a foreign currency, it must be translated into the Republic’s currency at the spot rate on the day it was withheld for purposes of payment to the Commissioner.

37O. If an amount withheld by a person in terms of section 37L(1) is denominated in any currency other than the currency of the Republic, the amount so withheld must, for the purposes of determining the amount to be paid to the Commissioner in terms of section 37M(2), be translated to the currency of the Republic at the spot rate on the date on which the amount was so withheld.’’. (2) Subsection (1) comes into operation on 1 July 2013 and applies in respect of— (a) (b) interest that accrues; or interest that is paid or that becomes due and payable, on or after that date. Insertion of sections 49E, 49F and 49G in Act 58 of 1962 5 10 12. (1) The Income Tax Act, 1962, is hereby amended by the insertion of the following sections after section 49D: ‘‘Withholding of withholding tax on royalties by payers of royalties 15 49E. (1) Subject to subsections (2) and (3), any person making payment of any royalty to or for the beneﬁt of a foreign person must withhold an amount as contemplated in section 49B from that payment. (2) A person must not withhold any amount from any payment contemplated in subsection (1) if the foreign person to or for the beneﬁt of which that payment is to be made has— (a) by a date determined by the person making the payment; or (b) if the person making the payment did not determine a date as contemplated in paragraph (a), by the date of the payment, submitted to the person making the payment a declaration in such form as may be prescribed by the Commissioner that the foreign person is, in terms of section 49D, exempt from the withholding tax on royalties in respect of that payment. (3) The rate referred to in section 49B(1) must, for the purposes of that subsection, be reduced if the foreign person to or for the beneﬁt of which the payment contemplated in that subsection is to be made has— (a) by a date determined by the person making the payment; or (b) if the person making the payment did not determine a date as contemplated in paragraph (a), by the date of the payment, submitted to the person making the payment a declaration in such form as may be prescribed by the Commissioner that the royalty is subject to that reduced rate of tax as a result of the application of an agreement for the avoidance of double taxation. Payment and recovery of tax 49F. (1) If, in terms of section 49C, a foreign person is liable for any amount of withholding tax on royalties in respect of any royalty that is paid to or for the beneﬁt of the foreign person, that foreign person must pay that amount of withholding tax by the last day of the month following the month during which the royalty is paid, unless the tax has been paid by any other person. (2) Any person that withholds any withholding tax on royalties in terms of section 49E must pay the tax to the Commissioner by the last day of the month following the month during which the royalty is paid. 20 25 30 35 40 45 Reproduced by Sabinet Online in terms of Government Printer’s Copyright Authority No. 10505 dated 02 February 1998 14 No. 36036 Act No. 21 of 2012 GOVERNMENT GAZETTE, 20 December 2012 Tax Administration Laws Amendment Act, 2012 14 Refund of withholding tax on royalties

Section 37OVerify source

§ 49GNotwithstanding Chapter 13 of the Tax Administration Act, if—Commencement

If a royalty has withholding tax deducted, a related declaration must be given on time for the payer, and a later declaration to the Commissioner can trigger a refund of the amount that would not have been withheld.

49G. Notwithstanding Chapter 13 of the Tax Administration Act, if— (a) an amount is withheld from a payment of a royalty as contemplated in section 49E(1); (b) a declaration contemplated in section 49E(2) or (3) in respect of that royalty is not submitted to the person paying that royalty by the date of the payment of that royalty; and a declaration contemplated in section 49E(2) or (3) is submitted to the Commissioner within three years after the payment of the royalty in respect of which the declaration is made, (c) so much of that amount as would not have been withheld had that declaration been submitted by the date contemplated in the relevant subsection is refundable by the Commissioner to the person to which the royalty was paid.’’. (2) Subsection (1) comes into operation on 1 July 2013 and applies in respect of royalties that are paid or that become due and payable on or after that date, but only to the extent that the amount of the royalties was not subject to tax in terms of section 35 of the Income Tax Act, 1962. 5 10 15 Amendment of section 61 of Act 58 of 1962, as amended by section 25 of Act 90 of 1988 and section 57 of Act 45 of 2003 20 13. (1) Section 61 of the Income Tax Act, 1962, is hereby amended by the substitution for paragraph (d) of the following paragraph: ‘‘(d) the reference in paragraphs (b) and (c) of the deﬁnition of ‘representative taxpayer’ in section [one] 1 to the income under the management, disposition or control of an agent or to income which is the subject of any trust, as the case may be, shall be deemed to include a reference to any property disposed of under a donation which is under the management, disposition or control of the agent or to property disposed of under a donation which is the subject of the trust, as the case may be;’’. 25 (2) Subsection (1) comes into operation on 1 January 2013 and applies in respect of 30 years of assessment commencing on or after that date. Amendment of section 64K of Act 58 of 1962, as inserted by section 56 of Act 60 of 2008, substituted by section 53 of Act 17 of 2009 and amended by section 84 of Act 24 of 2011

Section 49GVerify source

§ 14Section 64K of the Income Tax Act, 1962, is hereby amended by the substitutionCommencement

A person who has paid a dividend must submit a return to the Commissioner, and dividend-withholding refund and recovery claims are time-limited.

14. Section 64K of the Income Tax Act, 1962, is hereby amended by the substitution 35 in subsection (1) for paragraph (d) of the following paragraph: ‘‘(d) If, in terms of this Part, a person [is required to make payment of any amount of dividends tax] has paid a dividend[,] that person must[, together with that payment,] submit a return to the Commissioner.’’. Amendment of section 64L of Act 58 of 1962, as substituted by section 53 of Act 17 of 2009 40 15. (1) Section 64L of the Income Tax Act, 1962, is hereby amended— (a) by the substitution in subsection (1) for paragraph (c) of the following paragraph: ‘‘(c) [a] both the declaration and the written undertaking contemplated in section 64G(2)(a) or (3)[is] are submitted to the company within three years after the payment of the dividend in respect of which [it is] they are made,’’; (b) by the insertion after subsection (1) of the following subsection: ‘‘(1A) If— (a) an amount is withheld by a company from the payment of a dividend in terms of section 64G(1); and (b) a rebate in respect of foreign taxes paid on that dividend should have been deducted from that amount in terms of section 64N, 45 50 Reproduced by Sabinet Online in terms of Government Printer’s Copyright Authority No. 10505 dated 02 February 1998 16 No. 36036 Act No. 21 of 2012 GOVERNMENT GAZETTE, 20 December 2012 Tax Administration Laws Amendment Act, 2012 16 so much of that amount as would not have been withheld had that rebate been deducted from the amount, is refundable to the person to whom the dividend was paid: Provided such rebate is claimed within three years after the payment of the relevant dividend.’’; and (c) by the substitution for subsections (2), (3) and (4) of the following 5 subsections, respectively: ‘‘(2) Any amount that is refundable in terms of subsection (1) or (1A) must be refunded by the company that withheld that amount to the person to whom the dividend was paid— (a) from any amount of dividends tax withheld by that company within a period of one year after the submission of the declaration contemplated in subsection (1)(c) or the claim of a rebate contemplated in subsection (1A); or to the extent that the amount that is refundable exceeds the amount of dividends tax withheld as contemplated in paragraph (a), from an amount recovered by the company from the Commissioner in terms of subsection (3). (b) (3) Subject to subsection (4), if any amount is refundable to any person by a company in terms of subsection (1) or (1A) and that amount exceeds the amount of dividends tax withheld as contemplated in subsection (2)(a), the company contemplated in subsection (2) may recover the excess from the Commissioner. (4) No amount may be recovered in terms of subsection (3) if the company submits the claim for recovery to the Commissioner after the expiry of a period of four years reckoned from the date of the payment contemplated in subsection (1)(a) or (1A)(a).’’. (2) Subsection (1)(a) is deemed to have come into operation on 1 April 2012. Amendment of section 64M of Act 58 of 1962, as inserted by section 53 of Act 17 of 2009

Section 14Verify source

§ 16Section 64M of the Income Tax Act, 1962, is hereby amended—Commencement

This section changes tax rules for dividend refunds, proof of foreign tax paid, records for controlled foreign companies, and employee tax withholding on variable remuneration.

16. Section 64M of the Income Tax Act, 1962, is hereby amended— (a) by the substitution in subsection (1) for paragraph (c) of the following paragraph: ‘‘(c) [a] both the declaration and the written undertaking contemplated in section 64H(2)(a) or (3) [is] are submitted to the regulated intermediary within three years after the payment of the dividend in respect of which [it is] they are made,’’; (b) by the insertion after subsection (1) of the following subsection: ‘‘(1A) If— (a) an amount is withheld by a regulated intermediary from the payment of a dividend in terms of section 64H(1); and (b) a rebate in respect of foreign taxes paid on that dividend should have been deducted from that amount in terms of section 64N, so much of that amount as would not have been withheld had that rebate been deducted from the amount, is refundable to the person to whom the dividend was paid: Provided such rebate is claimed within three years after the payment of the relevant dividend.’’; and (c) by the substitution for subsection (2) of the following subsection: ‘‘(2) Any amount that is refundable in terms of subsection (1) or (1A) must be refunded by the regulated intermediary contemplated in subsection (1)(a) or (1A)(a) from any amount of dividends tax withheld by the regulated intermediary after the submission of the declaration as contemplated in subsection (1)(c) or the claim of a rebate contemplated in subsection (1A).’’. (2) Subsection (1)(a) is deemed to have come into operation on 1 April 2012. 10 15 20 25 30 35 40 45 50 Reproduced by Sabinet Online in terms of Government Printer’s Copyright Authority No. 10505 dated 02 February 1998 18 No. 36036 Act No. 21 of 2012 GOVERNMENT GAZETTE, 20 December 2012 Tax Administration Laws Amendment Act, 2012 18 Amendment of section 64N of Act 58 of 1962, as inserted by section 54 of Act 17 of 2009 17. (1) Section 64N of the Income Tax Act, 1962, is hereby amended by the addition of the following subsection: ‘‘(5) A company or regulated intermediary must obtain proof of any tax paid to any sphere of government of any country other than the Republic and deducted from the dividend tax payable in terms of this section, in the form and manner prescribed by the Commissioner.’’. 5 (2) Subsection (1) is deemed to have come into operation on 1 April 2012. Amendment of section 72A of Act 58 of 1962, as substituted by section 65 of Act 45 of 2003 and amended by section 11 of Act 32 of 2005 and section 13 of Act 4 of 2008 10 18. (1) Section 72A of the Income Tax Act, 1962, is hereby amended by the substitution for subsection (2) of the following subsection: ‘‘(2) A resident must have available for submission to the Commissioner when so requested, a copy of the ﬁnancial statements of the controlled foreign company for the relevant foreign tax year[, as deﬁned in section 9D,] of that controlled foreign company.’’. (2) Subsection (1) is deemed to have come into operation on 1 January 2012 and applies in respect of foreign tax years ending during years of assessment commencing on or after that date. Amendment of paragraph 2 of Fourth Schedule to Act 58 of 1962, as added by section 19 of Act 6 of 1963 and amended by section 23 of Act 72 of 1963, section 29 of Act 55 of 1966, section 38 of Act 88 of 1971, section 48 of Act 85 of 1974, section 30 of Act 103 of 1976, section 28 of Act 113 of 1977, section 29 of Act 104 of 1980, section 40 of Act 90 of 1988, section 21 of Act 70 of 1989, section 45 of Act 101 of 1990, section 45 of Act 129 of 1991, section 38 of Act 21 of 1995, section 45 of Act 28 of 1997, section 53 of Act 30 of 2000, section 54 of Act 59 of 2000, section 20 of Act 19 of 2001, section 21 of Act 16 of 2004, section 50 of Act 31 of 2005, section 40 of Act 20 of 2006, section 55 of Act 8 of 2007, section 65 of Act 35 of 2007, section 18 of Act 18 of 2009 and section 94 of Act 24 of 2011 19. (1) Paragraph 2 of the Fourth Schedule to the Income Tax Act, 1962, is hereby amended— (a) by the insertion after subparagraph (1A) of the following subparagraph: ‘‘(1B) Notwithstanding the provisions of subparagraph (1), a person shall deduct or withhold employees’ tax in respect of any amount payable in respect of variable remuneration, as deﬁned in section 7B(1), on the date on which the amount is paid to the employee by the employer as contemplated in section 7B(2).’’; 15 20 25 30 35 (b) by the deletion in subparagraph (4) of item (d); and (c) by the substitution in subparagraph (4)(f) for subitem (i) of the following 40 subitem: ‘‘(i) as does not exceed 5 per cent of that remuneration after deducting therefrom the amounts contemplated in items (a) to [(d)](cA); and’’. (2) Paragraph (a) of subsection (1) comes into operation on 1 March 2013 and applies in respect of amounts received or accrued on or after that date. (3) Paragraphs (b) and (c) of subsection (1) come into operation on 1 March 2014 and apply in respect of years of assessment commencing on or after that date. Amendment of paragraph 14 of Fourth Schedule to Act 58 of 1962, as amended by section 40 of Act 88 of 1971, section 50 of Act 101 of 1990, section 57 of Act 74 of 2002, section 22 of Act 4 of 2008, section 16 of Act 61 of 2008, section 21 of Act 18 of 2009, section 22 of Act 8 of 2010 and paragraph 85 of Schedule 1 to Act 28 of 2011 45 50

Section 16Verify source

§ 20Paragraph 14 of the Fourth Schedule to the Income Tax Act, 1962, is herebySubstitution

This provision replaces paragraph 14(6) and says an employer who misses the required return deadline may be penalized by the Commissioner.

20. Paragraph 14 of the Fourth Schedule to the Income Tax Act, 1962, is hereby amended by the substitution for subparagraph (6) for the following subparagraph: Reproduced by Sabinet Online in terms of Government Printer’s Copyright Authority No. 10505 dated 02 February 1998 20 No. 36036 Act No. 21 of 2012 GOVERNMENT GAZETTE, 20 December 2012 Tax Administration Laws Amendment Act, 2012 20 ‘‘(6) If an employer fails to render to the Commissioner a return referred to in subparagraph (3) within the period prescribed in that subparagraph, the Commis- sioner may impose [under Chapter 15 of the Tax Administration Act] on that employer a [percentage based] penalty, which is deemed to be a percentage based penalty imposed under Chapter 15 of the Tax Administration Act, for each month that the employer fails to submit a complete return which in total may not exceed 10 per cent of the total amount of employees’ tax deducted or withheld or which should have been deducted or withheld by the employer from the remuneration of employees for the period described in that subparagraph.’’. Amendment of paragraph 18 of Fourth Schedule to Act 58 of 1962, as amended by section 28 of Act 90 of 1964, section 42 of Act 88 of 1971, section 49 of Act 58 of 1974, section 19 of Act 104 of 1979, section 26 of Act 65 of 1986, section 9 of Act 108 of 1986, section 24 of Act 19 of 2001, section 58 of Act 74 of 2002, section 34 of Act 30 of 2002, section 24 of Act 16 of 2004, section 47 of Act 32 of 2004, section 53 of Act 31 of 2005, section 1 of Act 3 of 2008, section 22 of Act 18 of 2009 and section 96 of Act 24 of 2011

Section 20Verify source

§ 21Paragraph 18 of the Fourth Schedule to the Income Tax Act, 1962, is herebyAmendment

A company’s taxable capital gain from the section 29B deemed disposal rules is exempt from provisional tax for the stated 2012 assessment period.

21. Paragraph 18 of the Fourth Schedule to the Income Tax Act, 1962, is hereby amended by the insertion after subparagraph (1) of the following subparagraph: ‘‘(2) Any taxable capital gain of a company resulting from the application of the deemed disposal rules under section 29B of the Act for years of assessment ending on or after 29 February 2012 but not later than 31 October 2012, is exempt from provisional tax.’’. Amendment of paragraph 19 of Fourth Schedule to Act 58 of 1962, as amended by section 28 of Act 88 of 1965, section 46 of Act 89 of 1969, section 43 of Act 88 of 1971, section 50 of Act 85 of 1974, section 49 of Act 94 of 1983, section 52 of Act 101 of 1990, section 44 of Act 21 of 1995, section 37 of Act 5 of 2001, section 87 of Act 45 of 2003, section 54 of Act 31 of 2005, section 46 of Act 3 of 2008, section 18 of Act 61 of 2008, section 23 of Act 18 of 2009 and paragraph 90 of Schedule 1 to Act 28 of 2011 5 10 15 20 25

Section 21Verify source

§ 22Paragraph 19 of the Fourth Schedule to the Income Tax Act, 1962, is herebySubstitution

Certain provisional taxpayers must submit an estimated taxable income return to the Commissioner if required, and the estimate must exclude specified retirement and severance benefits.

22. Paragraph 19 of the Fourth Schedule to the Income Tax Act, 1962, is hereby 30 amended by the substitution in subparagraph (1) for item (a) of the following item: ‘‘(a) Every provisional taxpayer (other than a company) shall, during every period within which provisional tax is or may be payable by that provisional taxpayer as provided in this Part, submit to the Commissioner (should the Commissioner so require) a return of an estimate of the total taxable income which will be derived by the taxpayer in respect of the year of assessment in respect of which provisional tax is or may be payable by the taxpayer: Provided that such estimate will not include any retirement fund lump sum beneﬁt, retirement fund lump sum withdrawal beneﬁt or any severance beneﬁt received by or accrued to or to be received by or accrue to the taxpayer during the relevant year of assessment.’’. Amendment of paragraph 20 of Fourth Schedule to Act 58 of 1962, as amended by section 25 of Act 72 of 1963, section 29 of Act 88 of 1965, section 47 of Act 89 of 1969, section 44 of Act 88 of 1971, section 51 of Act 85 of 1974, section 36 of Act 69 of 1975, section 50 of Act 94 of 1983, section 39 of Act 121 of 1984, section 19 of Act 61 of 2008, section 24 of Act 18 of 2009 and paragraph 91 of Schedule 1 to Act 28 of 2011

Section 22Verify source

§ 23Paragraph 20 of the Fourth Schedule to the Income Tax Act, 1962, is herebySubstitution

This provision changes when penalties apply for underestimated tax estimates and lets the Commissioner remit all or part of a penalty in some cases.

23. Paragraph 20 of the Fourth Schedule to the Income Tax Act, 1962, is hereby amended— (a) by the substitution in subparagraph (1) for item (a) of the following item: ‘‘(a) more than R1 million and such estimate is less than 80 per cent of the amount of the actual taxable income the Commissioner [may, if he or she is not satisﬁed that the amount of such estimate was seriously calculated with due regard to the factors having a 35 40 45 50 Reproduced by Sabinet Online in terms of Government Printer’s Copyright Authority No. 10505 dated 02 February 1998 22 No. 36036 Act No. 21 of 2012 GOVERNMENT GAZETTE, 20 December 2012 Tax Administration Laws Amendment Act, 2012 22 bearing thereon or was not deliberately or negligently under- stated, subject to the provisions of subparagraph (3),] must impose, in addition to the normal tax chargeable in respect of the taxpayer’s taxable income for such year of assessment, a penalty, which is deemed to be a percentage based penalty imposed under Chapter 15 of the Tax Administration Act, equal to 20 per cent of the difference between [the amount of normal tax as calculated in respect of such estimate and]— (i) (ii) the amount of normal tax calculated, at the rates applicable in respect of such year of assessment, in respect of a taxable income equal to 80 per cent of such actual taxable income; and the amount of employees’ tax and provisional tax in respect of such year of assessment paid by the end of the year of assessment;’’; (b) by the substitution in subparagraph (1) for item (b) of the following item: ‘‘(b) in any other case, less than 90 per cent of the amount of such actual taxable income and is also less than the basic amount applicable to the estimate in question, as contemplated in paragraph 19(1)(d), the taxpayer shall, subject to the provisions of subparagraphs (2) and (3), be liable to pay to the Commissioner, in addition to the normal tax chargeable in respect of his or her taxable income for such year of assessment, a penalty, which is deemed to be a percentage based penalty imposed under Chapter 15 of the Tax Administration Act, equal to 20 per cent of the difference between [the amount of normal tax as calculated in respect of such estimate and] the lesser of [the following amounts, namely]— (i) (ii) the amount of normal tax calculated, at the rates applicable in respect of such year of assessment, in respect of a taxable income equal to 90 per cent of such actual taxable income; and the amount of normal tax calculated in respect of a taxable income equal to such basic amount, at the rates applicable in respect of such year of assessment, and the amount of employees’ tax and provisional tax in respect of such year of assessment paid by the end of the year of assessment.’’; (c) by the insertion of the following proviso to subparagraph (1) at the end of item (e): ‘‘Provided that any retirement fund lump sum beneﬁt, retirement fund lump sum withdrawal beneﬁt or any severance beneﬁt received by or accrued to or to be received by or accrue to the taxpayer during the relevant year of assessment shall not be taken into account for purposes of this subparagraph;’’; and (d) by the substitution for subparagraph (2) of the following paragraph: ‘‘(2) Where the Commissioner is satisﬁed that the amount of any estimate referred to in subparagraph (1)[(b)] was seriously calculated with due regard to the factors having a bearing thereon and was not deliberately or negligently understated, or if the Commissioner is partly so satisﬁed, the Commissioner may in his or her discretion remit the penalty or a part thereof.’’. 5 10 15 20 25 30 35 40 45 50 Reproduced by Sabinet Online in terms of Government Printer’s Copyright Authority No. 10505 dated 02 February 1998 24 No. 36036 Act No. 21 of 2012 GOVERNMENT GAZETTE, 20 December 2012 Tax Administration Laws Amendment Act, 2012 24 Amendment of paragraph 20A of Fourth Schedule to Act 58 of 1962, as amended by section 25 of Act 52 of 1970, section 45 of Act 88 of 1971, section 52 of Act 85 of 1974, section 40 of Act 121 of 1984, section 88 of Act 45 of 2003 and paragraph 92 of Schedule 1 to Act 28 of 2011

Section 23Verify source

Part

Chapter 15 of the Tax Administration Act, equal to 20 per cent of the

§ 24Paragraph 20A of the Fourth Schedule to the Income Tax Act, 1962, is herebySubstitution

A provisional taxpayer who misses the required estimate deadline may have to pay a 20% penalty to the Commissioner, unless the Commissioner has already estimated or increased the taxable income.

24. Paragraph 20A of the Fourth Schedule to the Income Tax Act, 1962, is hereby 5 amended by the substitution for subparagraph (1) of the following subparagraph: ‘‘(1) Subject to the provisions of subparagraphs (2) and (3), where any provisional taxpayer is liable for the payment of normal tax in respect of any amount of taxable income derived by that provisional taxpayer during any year of assessment and the estimate of [his or her] the taxpayer’s taxable income for that year required to be submitted by [him or her] the taxpayer under paragraph 19(1) during the period contemplated in paragraph 21(1)(b), 22(1) or 23(b), as the case may be, was not submitted by [him or her] the taxpayer on or before the last day of that year the taxpayer shall, unless the Commissioner has estimated the said taxable income under paragraph 19(2) or has increased the amount thereof under paragraph 19(3), be required to pay to the Commissioner, in addition to the normal tax chargeable in respect of such taxable income, a penalty, which is deemed to be a percentage based penalty imposed under Chapter 15 of the Tax Administration Act, equal to 20 per cent of the amount by which the normal tax payable by [him or her] the taxpayer in respect of such taxable income exceeds the sum of any amounts of provisional tax paid by [him or her] the taxpayer in respect of such taxable income within any period allowed for the payment of such provisional tax under this Part and any amounts of employees’ tax deducted or withheld from [his or her] the taxpayer’s remuneration by [his or her] the taxpayer’s employer during such year.’’. 10 15 20 25 Amendment of paragraph 27 of Fourth Schedule to Act 58 of 1962, as amended by section 43 of Act 121 of 1984, section 29 of Act 65 of 1986, section 48 of Act 32 of 2004 and paragraph 95 of Schedule 1 to Act 28 of 2011

Section 24Verify source

§ 25Paragraph 27 of the Fourth Schedule to the Income Tax Act, 1962, is herebyCommencement

This section amends tax rules so late-paying provisional taxpayers face a 10% penalty, some registered micro businesses may use special payment timing, and the Commissioner may waive certain penalties in full or part.

25. Paragraph 27 of the Fourth Schedule to the Income Tax Act, 1962, is hereby amended by the substitution for subparagraph (1) of the following subparagraph: 30 ‘‘(1) If any provisional taxpayer fails to pay any amount of provisional tax for which he or she is liable within the period allowed for payment thereof in terms of paragraph 21 or 23, or paragraph 25(1), the Commissioner must, under Chapter 15 of the Tax Administration Act, impose a penalty, which is deemed to be a percentage based penalty imposed under Chapter 15 of the Tax Administration Act, equal to ten per cent of the amount not paid.’’. Amendment of paragraph 11 of Sixth Schedule to Act 58 of 1962, as amended by paragraph 99 of Schedule 1 to Act 28 of 2011 26. (1) Paragraph 11 of the Sixth Schedule to the Income Tax Act, 1962, is hereby amended— (a) by the insertion of the following subparagraph after subparagraph (4): ‘‘(4A) For purposes of paragraph 2(1) of the Fourth Schedule and section 89bis (2), a registered micro business may elect to pay the amounts deducted or withheld in terms of that paragraph or section to the Commissioner— (i) with regard to amounts deducted or withheld during the ﬁrst six calendar months from the ﬁrst day of the year of assessment, by the end of such period; and (ii) with regard to amounts deducted or withheld within the next six calendar months following the period in item (i), by the last day of the year of assessment.’’; 35 40 45 50 Reproduced by Sabinet Online in terms of Government Printer’s Copyright Authority No. 10505 dated 02 February 1998 26 No. 36036 Act No. 21 of 2012 GOVERNMENT GAZETTE, 20 December 2012 Tax Administration Laws Amendment Act, 2012 26 (b) by the substitution for subparagraph (6) of the following subparagraph: ‘‘(6) Where the estimate described in subparagraph 4(a) is less than 80 per cent of the taxable turnover for the year of assessment, a penalty, which is deemed to be a percentage based penalty imposed under Chapter 15 of the Tax Administration Act, equal to 20 per cent of the difference between the tax payable on 80 per cent of the taxable turnover for the year of assessment and the tax payable on that estimate must be charged.’’; and (c) by the substitution for subparagraph (7) of the following subparagraph: ‘‘(7) Where the Commissioner is satisﬁed that the estimate described in subparagraph (4)(a) was not deliberately or negligently understated and was seriously made based on the information available, or is partly so satisﬁed, the Commissioner must waive the [additional tax] penalty charged in terms of subparagraph (6) in full or in part.’’. 5 10 (2) Subsection (1) is deemed to have come into operation on 1 March 2014 and 15 applies in respect of years of assessment commencing on or after that date. Amendment of section 3 of Act 91 of 1964, as amended by section 114 of Act 60 of 2001, section 42 of Act 30 of 2002, section 132 of Act 45 of 2003 and section 25 of Act 18 of 2009

Section 25Verify source

§ 27Section 3 of the Customs and Excise Act, 1964, is hereby amended by theSubstitution

Certain customs officers and the Commissioner may withdraw or amend decisions, notices, or communications made or issued by those officers.

27. Section 3 of the Customs and Excise Act, 1964, is hereby amended by the 20 substitution in subsection (2) for paragraph (a) of the following paragraph: ‘‘(a) Any decision made and any notice or communication signed or issued by [any] such officer or person may be withdrawn or amended by— (i) the officer or person concerned; (ii) the branch manager to whom the officer or person in (i) reports; (iii) the officer or person in charge of customs operations or excise operations; or (iv) the Commissioner personally, [the Commissioner or by the officer or person concerned (] with effect from the date of making such decision or signing or issuing such notice or communication or the date of withdrawal or amendment thereof [)] and shall, until it has been so withdrawn, be deemed, except for the purposes of this subsection, to have been made, signed or issued by the Commissioner.’’. 25 30 Continuation of amendments made under section 119A of Act 91 of 1964

Section 27Verify source

§ 28Any rule made under section 119A of the Customs and Excise Act, 1964, or anyAmendment

Rules made under section 119A, and changes to them during 1 August 2011 to 31 July 2012, do not lapse because of section 119A(3).

28. Any rule made under section 119A of the Customs and Excise Act, 1964, or any amendment or withdrawal of or insertion in such rule during the period 1 August 2011 up to and including 31 July 2012 shall not lapse by virtue of section 119A(3) of that Act. 35 Amendment of section 20 of Act 89 of 1991, as amended by section 25 of Act 136 of 1992, section 33 of Act 97 of 1993, section 35 of Act 27 of 1997, section 94 of Act 30 of 1998, section 91 of Act 53 of 1999, section 157 of Act 60 of 2001, section 175 of Act 45 of 2003, section 47 of Act 16 of 2004, section 104 of Act 32 of 2004, section 38 of Act 21 of 2006, section 14 of Act 9 of 2007, section 1 of Act 3 of 2008, section 35 of Act 18 of 2009 and section 30 of Act 8 of 2010 40

Section 28Verify source

§ 29Section 20 of the Value-Added Tax Act, 1991, is hereby amended by theCommencement

This section amends VAT rules so an abridged tax invoice is allowed where the consideration for a supply does not exceed R5 000, and the invoice must be in the currency of the Republic and include the required particulars.

29. Section 20 of the Value-Added Tax Act, 1991, is hereby amended by the substitution in subsection (5) of the words preceding paragraph (a) of the following words: 45 ‘‘Notwithstanding anything in subsection (4), where the consideration in money for a supply does not exceed [R3 000] R5 000, a tax invoice (abridged tax invoice) shall be in the currency of the Republic and shall contain the particulars speciﬁed in that subsection or the following particulars:’’. Reproduced by Sabinet Online in terms of Government Printer’s Copyright Authority No. 10505 dated 02 February 1998 28 No. 36036 Act No. 21 of 2012 GOVERNMENT GAZETTE, 20 December 2012 Tax Administration Laws Amendment Act, 2012 28 Amendment of section 27 of Act 89 of 1991, as amended by section 34 of Act 136 of 1991, section 28 of Act 136 of 1992, section 78 of Act 30 of 2000, section 11 of Act 10 of 2005, section 50 of Act 9 of 2006, section 1 of Act 3 of 2008, section 25 of Act 4 of 2008 and paragraph 120 of Schedule 1 to Act 28 of 2011 30. (1) Section 27 of the Value-Added Tax Act, 1991, is hereby amended by the 5 substitution for subsection (4) of the following subsection: ‘‘(4) A vendor shall fall within Category D if— (a) (i) [(b)] (ii) [(c)](iii) [(d)](iv) [(e)] (v) the vendor’s enterprise consists solely of agricultural, pastoral or other farming activities or the vendor is a branch, division or separate enterprise which is deemed by subsection (5) of section 23 to be a separate person for the purposes of that section and is as such registered under that section or the vendor is a branch, division or a separate enterprise registered as a separate vendor under section 50(2); the activities of any such branch, division or separate enterprise consist solely of agricultural, pastoral or other farming activities and activities of that kind are not carried on in any other branch, division or separate enterprise of the vendor or the association not for gain, as the case may be, by whom a written application referred to in [paragraph (e)] subparagraph (v) is made; the total value of the taxable supplies of the vendor from agricultural, pastoral or other farming activities— [(i)](aa) has in the period of 12 months ending on the last day of any month of the calendar year not exceeded R1,5 million; and [(ii)](bb) is not likely to exceed that amount in the period of 12 months commencing at the end of the period referred to in [subpara- graph (i)] item (aa); the vendor does not fall within Category C; and the vendor whose enterprise consists solely of agricultural, pastoral or other farming activities or the vendor referred to in section 50(2) or the association not for gain referred to in section 23(5), as the case may be, has made a written application to the Commissioner, in such form as the Commissioner may prescribe, for such ﬁrst-mentioned vendor or the branch, division or separate enterprise in question, as the case may be, to be placed within Category D[,]; or (b) the vendor is a micro business that is registered in terms of the Sixth Schedule to the Income Tax Act and has made written application in such form as the Commissioner may prescribe, to be placed in Category D, and the Commissioner has directed that, with effect from the commencement date or such later date as may be appropriate, the vendor shall fall within Category D: Provided that a vendor falling within Category D shall cease to fall within that Category with effect from the commencement of a future period notiﬁed by the Commissioner, if written application is made by the person who made the application referred to in [paragraph (e)] subparagraph (v) for the vendor to be placed within Category A, B, C, E or F or the Commissioner is satisﬁed that by reason of a change in circumstances that vendor should be placed within Category A, B, C, E or F.’’. (2) Subsection (1) is deemed to have come into operation on 1 March 2014 and applies in respect of tax periods commencing on or after that date. 10 15 20 25 30 35 40 45 Reproduced by Sabinet Online in terms of Government Printer’s Copyright Authority No. 10505 dated 02 February 1998 30 No. 36036 Act No. 21 of 2012 GOVERNMENT GAZETTE, 20 December 2012 Tax Administration Laws Amendment Act, 2012 30 Amendment of section 28 of Act 89 of 1991, as amended by section 29 of Act 136 of 1992, section 79 of Act 30 of 2000, section 44 of Act 5 of 2001, section 158 of Act 60 of 2001, section 118 of Act 74 of 2002, section 179 of Act 45 of 2003, section 37 of Act 32 of 2005, section 32 of Act 36 of 2007, section 41 of Act 61 of 2008, section 31 of Act 8 of 2010 and paragraph 121 of Act 28 of 2011

Section 29Verify source

§ 31Section 28 of the Value-Added Tax Act, 1991, is hereby amended—Substitution

This section amends VAT return and payment timing for vendors.

31. Section 28 of the Value-Added Tax Act, 1991, is hereby amended— (a) by the substitution in subsection (1) for the words preceding paragraph (a) of the following words: ‘‘[Subject to subsection (4) every] Every vendor shall, within the period ending on the twenty-ﬁfth day of the ﬁrst month commencing after the end of a tax period relating to such vendor or, where such tax period ends on or after the ﬁrst day and before the twenty-ﬁfth day of a month, within the period ending on such twenty-ﬁfth day—’’; and (b) by the substitution in subsection (1) for paragraph (iii) of the proviso of the following paragraph: ‘‘(iii) a vendor registered with the Commissioner to submit returns electronically is deemed to have submitted the return and made payment within the period contemplated in subsection (1) if the vendor submits the returns and makes full payment of the amount of tax electronically in the prescribed form and manner within the period ending on the last business day of the month during which that twenty-ﬁfth day falls;’’. Amendment of section 10 of Act 4 of 2002

Section 31Verify source

§ 32Section 10 of the Unemployment Insurance Contributions Act, 2002, is herebyCommencement

Employers covered by sections 8 and 9 must submit employee information to the Unemployment Insurance Commissioner each month before the seventh day.

32. Section 10 of the Unemployment Insurance Contributions Act, 2002, is hereby amended by the substitution in subsection (3) for the words preceding paragraph (a) of the following words: ‘‘[The] Each employer contemplated in sections 8 and 9, must, before the seventh to the [Commissioner or the] Unemployment day of each month, submit Insurance Commissioner[, whichever is applicable to such employer in terms of section 8 or 9,] such information relating to its employees as the Minister may prescribe by regulation, including details relating to—’’. Amendment of section 19 of Act 29 of 2008, as amended by section 39 of Act 8 of 2010 33. (1) Section 19 of the Mineral and Petroleum Resources Royalty (Administration) Act, 2008, is hereby amended— (a) by the substitution in subsection (1) for the words preceding paragraph (a) of the following words: ‘‘In respect of a year of assessment an extractor must annually submit to the Minister of Finance a report in the form and manner that the Minister may prescribe advising the Minister of—’’; (b) by the addition in subsection (1) of the following paragraphs: (h) ‘‘(g) the amounts of the royalty imposed in terms of section 2 of the Royalty Act in respect of reﬁned minerals and unreﬁned minerals, respectively; the amount of earnings before interest and taxes determined in accordance with section 5(1) and (2) of the Royalty Act, respec- tively; the amount of the royalty that would have been imposed on an extractor in respect of mineral resources transferred had that extractor not been exempt from the royalty in terms of section 7(1)(a) of the Royalty Act; the amount of the royalty that would have been imposed on an extractor in respect of mineral resources transferred had that (i) (j) 5 10 15 20 25 30 35 40 45 50 Reproduced by Sabinet Online in terms of Government Printer’s Copyright Authority No. 10505 dated 02 February 1998 32 No. 36036 Act No. 21 of 2012 GOVERNMENT GAZETTE, 20 December 2012 Tax Administration Laws Amendment Act, 2012 32 (k) extractor not been exempt from the royalty in terms of section 7(1)(b) of the Royalty Act; and the amount of the royalty that would have been imposed on an extractor had that extractor not been exempt from the royalty in terms of section 8 of the Royalty Act.’’. 5 (2) Subsection (1) comes into operation on 1 January 2013. Repeal of section 1 of Act 18 of 2009

Section 32Verify source

§ 34Section 1 of the Taxation Laws Second Amendment Act, 2009, is hereby repealed.Commencement

This section repeals Section 1 of the Taxation Laws Second Amendment Act, 2009, and also amends a 2011 Act provision about when a subsection starts applying to research and development.

34. Section 1 of the Taxation Laws Second Amendment Act, 2009, is hereby repealed. Amendment of section 1 of Act 25 of 2011 35. (1) Section 1 of the Taxation Laws Second Amendment Act, 2011, is hereby 10 amended by the substitution for subsection (2) of the following subsection: ‘‘(2) Subsection (1) comes into operation on [1 April 2012 unless a later date is determined by the Minister by notice in the Gazette] 1 October 2012 and applies in respect of research and development on or after [1 April 2012, or such later date determined by the Minister by notice in the Gazette] 1 October 2012, but on or before 1 [April] October 2022.’’. 15 (2) Subsection (1) is deemed to have come into operation on 14 December 2011. Amendment of section 1 of Act 28 of 2011

Section 34Verify source

§ 36Section 1 of the Tax Administration Act, 2011, is hereby amended—Substitution

This section amends several definitions in the Tax Administration Act, 2011.

36. Section 1 of the Tax Administration Act, 2011, is hereby amended— (a) by the insertion of the following deﬁnition after the deﬁnition of ‘‘assess- 20 ment’’: ‘‘ ‘asset’ includes— (a) property of whatever nature, whether movable or immovable, corporeal or incorporeal; and (b) a right or interest of whatever nature to or in the property;’’; 25 (b) by the substitution for the deﬁnition of ‘‘effective date’’ of the following deﬁnition: ‘‘ ‘effective date’ is the date described in section 187(3), (4) and (5) of this Act, or the date from when interest is otherwise calculated under a tax Act;’’; 30 (c) by the insertion of the following deﬁnition after the deﬁnition of ‘‘reduced assessment’’: ‘‘ ‘registered tax practitioner’ means a person registered under section 240;’’; (d) by the substitution for paragraph (c) of the deﬁnition of ‘‘SARS official’’ of the 35 following paragraph: ‘‘(c) a person contracted or engaged by SARS for purposes of the administration of a tax Act and who carries out the provisions of a tax Act under the control, direction or supervision of the Commis- sioner;’’; and (e) by the substitution for the deﬁnition of ‘‘shareholder’’ of the following deﬁnition: ‘‘ ‘shareholder’ means a person who holds a beneﬁcial interest [in a share] in a company as deﬁned in the Income Tax Act;’’. Amendment of section 3 of Act 28 of 2011

Section 36Verify source

§ 37Section 3 of the Tax Administration Act, 2011, is hereby amended—Substitution

SARS may obtain information for transmission to another country’s competent authority, must treat it as taxpayer information, and may investigate tax offences, lay criminal charges, and provide required assistance.

37. Section 3 of the Tax Administration Act, 2011, is hereby amended— (a) by the substitution in subsection (2) for paragraph (f) of the following paragraph: ‘‘(f) investigate whether [an] a tax offence has been committed [in terms of a tax Act], and, if so— (i) (ii) to lay criminal charges; and to provide the assistance that is reasonably required for the 40 45 50 Reproduced by Sabinet Online in terms of Government Printer’s Copyright Authority No. 10505 dated 02 February 1998 34 No. 36036 Act No. 21 of 2012 GOVERNMENT GAZETTE, 20 December 2012 Tax Administration Laws Amendment Act, 2012 34 investigation and prosecution of the tax [offences or related common law offences]offence;’’; and (b) by the substitution in subsection (3) for paragraph (a) of the following paragraph: ‘‘(a) information, SARS may obtain the information requested for transmission to the competent authority of the other country as if it were relevant material required for purposes of a tax Act and must treat the information obtained as [if it were] taxpayer informa- tion;’’. Amendment of section 6 of Act 28 of 2011

Section 37Verify source

§ 38Section 6 of the Tax Administration Act, 2011, is hereby amended—Substitution

This section amends Section 6 so that certain powers and duties may be exercised by a SARS official.

38. Section 6 of the Tax Administration Act, 2011, is hereby amended— (a) by the substitution in subsection (3) for paragraph (c) of the following paragraph: ‘‘(c) a SARS official occupying a post designated by the Commissioner in writing for this purpose.’’; (b) by the substitution in subsection (4) for paragraph (a) of the following paragraph: ‘‘(a) [an] a SARS official under the control of the Commissioner or a senior SARS official; or’’; and (c) by the substitution for subsection (5) of the following subsection: ‘‘(5) Powers and duties not speciﬁcally required by this Act to be exercised by the Commissioner or by a senior SARS official, may be exercised by a SARS official [employed or contracted to exercise or perform powers or duties for purposes of the administration of a tax Act].’’. Amendment of section 8 of Act 28 of 2011

Section 38Verify source

§ 39Section 8 of the Tax Administration Act, 2011, is hereby amended by theSubstitution

SARS may issue identity cards to its officials, and officials must show the card when requested while exercising tax-administration powers or duties off SARS premises.

39. Section 8 of the Tax Administration Act, 2011, is hereby amended by the substitution for subsections (1) and (2) of the following subsections, respectively: ‘‘(1) SARS [must] may issue an identity card to each SARS official exercising powers and duties for purposes of the administration of a tax Act. (2) When a SARS official exercises a power or duty for purposes of the administration of a tax Act in person outside SARS premises, the official must produce the identity card upon request by a member of the public.’’. Amendment of section 11 of Act 28 of 2011 5 10 15 20 25 30

Section 39Verify source

§ 40Section 11 of the Tax Administration Act, 2011, is hereby amended by theSubstitution

This amendment says a cost order in favour of SARS from civil proceedings under the Act counts as funds of SARS.

40. Section 11 of the Tax Administration Act, 2011, is hereby amended by the 35 substitution for subsection (3) of the following subsection: ‘‘(3) A [senior SARS official may lay a criminal charge relating to a tax offence described in section 235] cost order in favour of SARS resulting from any civil proceedings under this Act constitutes funds of SARS within the meaning of section 24 of the SARS Act.’’. 40 Amendment of section 26 of Act 28 of 2011

Section 40Verify source

§ 41The Tax Administration Act, 2011, is hereby amended by the substitution forSubstitution

The Commissioner may require certain people to file a return by notice, and the person required must file it in the prescribed form, with the prescribed information, as a full and true return.

41. The Tax Administration Act, 2011, is hereby amended by the substitution for section 26 of the following section: ‘‘Third party returns 26. (1) The Commissioner may by public notice require a person who employs, pays amounts to, receives amounts on behalf of or otherwise transacts with another person, or has control over assets of another person, to submit a return [with the required information in the prescribed form and manner and] by the date speciﬁed in the notice. (2) A person required under subsection (1) to submit a return must do so in the prescribed form and manner and the return must contain the information prescribed by the Commissioner and must be a full and true return.’’. 45 50 Reproduced by Sabinet Online in terms of Government Printer’s Copyright Authority No. 10505 dated 02 February 1998 36 No. 36036 Act No. 21 of 2012 GOVERNMENT GAZETTE, 20 December 2012 Tax Administration Laws Amendment Act, 2012 Amendment of section 27 of Act 28 of 2011 36

Section 41Verify source

§ 42The Tax Administration Act, 2011, is hereby amended by the substitution forSubstitution

SARS may require a person to submit further or more detailed tax returns, and the person must file them in the prescribed form and manner with full and true information.

42. The Tax Administration Act, 2011, is hereby amended by the substitution for section 27 of the following section: ‘‘Other returns required 27. (1) SARS may require a person to submit further or more detailed returns regarding any matter for which a return is required or prescribed by a tax Act. (2) A person required under subsection (1) to submit a return must do so in the prescribed form and manner and the return must contain the information prescribed by SARS and must be a full and true return.’’. 5 10 Amendment of section 29 of Act 28 of 2011

Section 42Verify source

§ 43Section 29 of the Tax Administration Act, 2011, is hereby amended—Substitution

This section amends section 29 of the Tax Administration Act, 2011, changing when record-keeping requirements apply and how long records may need to be kept.

43. Section 29 of the Tax Administration Act, 2011, is hereby amended— (a) by the substitution in subsection (1) for paragraph (b) of the following paragraph: ‘‘(b) are speciﬁcally required under a tax Act or by the Commissioner by 15 public notice; and’’; (b) by the substitution in subsection (2) for the words preceding paragraph (a) of the following words: ‘‘The requirements of this Act to keep records, books of account or documents for a tax period apply to a person who—’’; and (c) by the substitution for the words in subsection (3) that precede paragraph (a) of the following words: ‘‘Records, books of account or documents need not be retained by the person described in—’’. Amendment of section 32 of Act 28 of 2011

Section 43Verify source

§ 44Section 32 of the Tax Administration Act, 2011, is hereby amended—Substitution

Section 32 is amended so a person must keep relevant records, books of account, or documents until the audit or investigation ends, or until the assessment or decision becomes final.

44. Section 32 of the Tax Administration Act, 2011, is hereby amended— (a) by the substitution for paragraph (a) of the following paragraph: ‘‘(a) records, books of account or documents are relevant to an audit or investigation under Chapter 5 which the person, subject to the audit or investigation has been notiﬁed of or is aware of; or’’; and (b) by the substitution in subsection (1) for the words following paragraph (b) of the following words: ‘‘the person must retain the records, books of account or documents relevant to the audit, investigation, objection or appeal until the audit or investigation is concluded or the assessment or the decision becomes ﬁnal.’’. Amendment of section 34 of Act 28 of 2011

Section 44Verify source

§ 45Section 34 of the Tax Administration Act, 2011, is hereby amended by theAmendment

This provision amends section 34 of the Tax Administration Act, 2011 by adding single quotes around the word “arrangement” where they are missing.

45. Section 34 of the Tax Administration Act, 2011, is hereby amended by the inclusion of single quotes around the word ‘arrangement’ where they do not appear;’’. Amendment of section 36 of Act 28 of 2011

Section 45Verify source

§ 46Section 36 of the Tax Administration Act, 2011, is hereby amended by theSubstitution

This provision amends section 36 of the Tax Administration Act, 2011 by replacing wording in subsection (1)(a).

46. Section 36 of the Tax Administration Act, 2011, is hereby amended by the substitution in subsection (1)(a) for the words preceding item (i) of the following words: ‘‘a [loan, advance or] debt in terms of which—’’. Amendment of section 37 of Act 28 of 2011 20 25 30 35 40

Section 46Verify source

§ 47Section 37 of the Tax Administration Act, 2011, is hereby amended by theSubstitution

A participant need not disclose the specified information if the participant obtains a written statement.

47. Section 37 of the Tax Administration Act, 2011, is hereby amended by the substitution in subsection (3) for the words preceding paragraph (a) of the following words: 45 Reproduced by Sabinet Online in terms of Government Printer’s Copyright Authority No. 10505 dated 02 February 1998 38 No. 36036 Act No. 21 of 2012 GOVERNMENT GAZETTE, 20 December 2012 Tax Administration Laws Amendment Act, 2012 38 ‘‘A ‘participant’ need not disclose the information [in respect of the ‘arrange- ment’] if the ‘participant’ obtains a written statement from—’’. Amendment of section 42 of Act 28 of 2011

Section 47Verify source

§ 48Section 42 of the Tax Administration Act, 2011, is hereby amended—Substitution

SARS officials handling an audit must give the taxpayer a report on the audit’s stage of completion, in the form and manner set by the Commissioner by public notice.

48. Section 42 of the Tax Administration Act, 2011, is hereby amended— (a) by the substitution for subsection (1) of the following subsection: ‘‘(1) A SARS official involved in or responsible for an audit under this [Part] Chapter must, in the form and in the manner as may be prescribed by the Commissioner by public notice, provide the taxpayer with a report indicating the stage of completion of the audit.’’; and (b) by the substitution for subsection (6) of the following subsection: ‘‘(6) SARS may under the circumstances described in subsection (5) issue the assessment or make the decision referred to in section 104(2) resulting from the audit and the grounds of the assessment or decision must be provided to the taxpayer within 21 business days of the assessment or the decision [referred to in section 104(2)], or the further period that may be required based on the complexities of the audit or the decision.’’. 5 10 15 Amendment of section 43 of Act 28 of 2011

Section 48Verify source

§ 49Section 43 of the Tax Administration Act, 2011, is hereby amended by theSubstitution

If an audit suggests a taxpayer may have committed a serious tax offence, the matter is referred to a senior SARS criminal investigations official, and material gathered after referral must be kept separate and cannot be used in related criminal proceedings.

49. Section 43 of the Tax Administration Act, 2011, is hereby amended by the substitution for subsections (1) and (2) of the following subsections, respectively: 20 ‘‘(1) If at any time before or during the course of an audit it appears that a [person] taxpayer may have committed a serious tax offence, the investigation of the offence must be referred to a senior SARS official responsible for criminal investigations for a decision as to whether a criminal investigation should be pursued. (2) Relevant material [gathered during an audit] obtained under this Chapter from the taxpayer after the referral, must be kept separate from the criminal investigation [and may not be used in criminal proceedings instituted in respect of the offence].’’. Amendment of section 46 of Act 28 of 2011

Section 49Verify source

§ 50Section 46 of the Tax Administration Act, 2011, is hereby amended—Substitution

SARS’s request for relevant material from a non-taxpayer is limited to information about records that person keeps, or should reasonably keep, about the taxpayer. SARS may also extend the submission period if the person shows reasonable grounds for an extension.

50. Section 46 of the Tax Administration Act, 2011, is hereby amended— (a) by the substitution for subsection (3) of the following subsection: ‘‘(3) A request by SARS for relevant material from a person other than the taxpayer is limited to relevant information related to the records maintained or that should reasonably be maintained by the person in relation to the taxpayer.’’; and (b) by the substitution for subsection (5) of the following subsection: ‘‘(5) If reasonable grounds for an extension are submitted by the person, SARS may extend the period within which the relevant material must be submitted [on good cause shown].’’. Amendment of section 49 of Act 28 of 2011

Section 50Verify source

§ 51Section 49 of the Tax Administration Act, 2011, is hereby amended—Substitution

People on premises where an audit or criminal investigation is being carried out must give SARS reasonable assistance, and the person may recover photocopying costs from SARS.

51. Section 49 of the Tax Administration Act, 2011, is hereby amended— (a) by the substitution in subsection (1) for the words preceding paragraph (a) of the following words: ‘‘The person on whose premises an audit or criminal investigation is carried out and any other person on the premises, must provide such reasonable assistance as is required by SARS to conduct the audit or investigation, including—’’; and (b) by the substitution for subsection (3) of the following subsection: ‘‘(3) The person may recover from SARS after completion of the audit or criminal investigation (or, at the person’s request, on a monthly basis) the cost for the use of photocopying facilities in accordance with the fees 25 30 35 40 45 50 Reproduced by Sabinet Online in terms of Government Printer’s Copyright Authority No. 10505 dated 02 February 1998 40 No. 36036 Act No. 21 of 2012 GOVERNMENT GAZETTE, 20 December 2012 Tax Administration Laws Amendment Act, 2012 40 prescribed in section 92(1)(b) of the Promotion of Access to Information Act.’’. Amendment of section 61 of Act 28 of 2011

Section 51Verify source

§ 52Section 61 of the Tax Administration Act, 2011, is hereby amended by theSubstitution

A SARS official using a section 60 warrant must show the warrant, and if the premises owner or controller is absent, leave a visible copy on the premises.

52. Section 61 of the Tax Administration Act, 2011, is hereby amended by the substitution for subsection (1) of the following subsection: ‘‘(1) A SARS official exercising a power under a warrant referred to in section 60 must produce the warrant, and if the owner or person in control of the premises is not present, the SARS official must affix a copy of the warrant to the premises in a prominent and visible place.’’. Amendment of section 63 of Act 28 of 2011 5 10

Section 52Verify source

§ 53Section 63 of the Tax Administration Act, 2011, is hereby amended by the additionAmendment

If the owner or person in control of premises is not present, the SARS official must tell that person the circumstances referred to in subsection (2) as soon as reasonably possible after the search and seizure.

53. Section 63 of the Tax Administration Act, 2011, is hereby amended by the addition of the following subsection: ‘‘(5) If the owner or person in control of the premises is not present, the SARS official must inform such person of the circumstances referred to in subsection (2) as soon as reasonably possible after the execution of the search and seizure.’’. 15 Amendment of section 71 of Act 28 of 2011

Section 53Verify source

§ 54Section 71 of the Tax Administration Act, 2011, is hereby amended by theSubstitution

Section 71(3)(b) is amended so the information must likely be material to the prosecution of the offence or to avoiding the risk.

54. Section 71 of the Tax Administration Act, 2011, is hereby amended by the substitution in subsection (3) for paragraph (b) of the following paragraph: ‘‘(b) the information will likely be [critical] material to the prosecution of the offence or avoidance of the risk; and’’. Amendment of section 72 of Act 28 of 2011

Section 54Verify source

§ 55The Tax Administration Act, 2011, is hereby amended by the substitution forSubstitution

A taxpayer cannot refuse to file required returns or applications just because doing so might incriminate them; related admissions may be used in criminal proceedings unless a competent court orders otherwise.

55. The Tax Administration Act, 2011, is hereby amended by the substitution for section 72 of the following section: ‘‘Self incrimination 72. (1) A taxpayer may not refuse to comply with his or her obligations in terms of legislation to complete and ﬁle a return or an application on the grounds that to do so might incriminate him or her, and an admission by the taxpayer contained in a return, application, or other document submitted to SARS by a taxpayer is admissible in criminal proceedings against the taxpayer for [an] a tax offence [under a tax Act], unless a competent court directs otherwise. (2) An admission by the taxpayer of the commission of [an] a tax offence [under a tax Act] obtained from a taxpayer under Chapter 5 is not admissible in criminal proceedings against the taxpayer, unless a competent court directs otherwise.’’. Amendment of section 79 of Act 28 of 2011

Section 55Verify source

§ 56Section 79 of the Tax Administration Act, 2011, is hereby amended—Amendment

Section 79 is amended to require certain applicants to provide statements about registration compliance, filed returns, and tax payment or acceptable arrangements.

56. Section 79 of the Tax Administration Act, 2011, is hereby amended— (a) by the deletion in subsection (4) of the word ‘‘and’’ after paragraph (l); and (b) by the addition in subsection (4) of the following paragraphs: ‘‘(n) a statement conﬁrming that the ‘applicant’ complied with any registration requirements under a tax Act, with regard to any tax for which the ‘applicant’ is liable, unless the ‘application’ concerns a ruling to determine if the ‘applicant’ must register under a tax Act; and (o) a statement conﬁrming that all returns required to be rendered by that ‘applicant’ in terms of a tax Act have been rendered and any tax 20 25 30 35 40 45 Reproduced by Sabinet Online in terms of Government Printer’s Copyright Authority No. 10505 dated 02 February 1998 42 No. 36036 Act No. 21 of 2012 GOVERNMENT GAZETTE, 20 December 2012 Tax Administration Laws Amendment Act, 2012 42 has been paid or arrangements acceptable to SARS have been made for the submission of any outstanding returns or for the payment of any outstanding tax.’’. Amendment of section 80 of Act 28 of 2011

Section 56Verify source

§ 57Section 80 of the Tax Administration Act, 2011, is hereby amended by theSubstitution

This section amends section 80 of the Tax Administration Act, 2011.

57. Section 80 of the Tax Administration Act, 2011, is hereby amended by the 5 substitution in subsection (1)(a) for item (vi) of the following item: ‘‘(vi) a matter which can be resolved by SARS issuing a directive under the Fourth Schedule or the Seventh Schedule to the Income Tax Act;’’. Amendment of section 91 of Act 28 of 2011

Section 57Verify source

Part

Schedule or the Seventh Schedule to the Income Tax Act;’’.

§ 58Section 91 of the Tax Administration Act, 2011, is hereby amended—Substitution

A taxpayer’s obligation to file a return is not removed by an assessment, and the taxpayer may request SARS to issue a reduced or additional assessment within 30 business days by filing a complete and correct return.

58. Section 91 of the Tax Administration Act, 2011, is hereby amended— (a) by the substitution for subsection (5) of the following subsection: ‘‘(5) If a tax Act requires a taxpayer to submit a return— (a) (b) (c) the making of an assessment under subsection (4) does not detract from the obligation to submit a return; [and] the taxpayer in respect of whom the assessment has been issued may, within [the period described in section 104] 30 business days from the date of assessment, request SARS to issue a reduced assessment or additional assessment by submitting a complete and correct return[.]; and an assessment under subsection (4) is not subject to objection or appeal unless the taxpayer submits the return and SARS does not issue a reduced or additional assessment.’’; and (b) by the addition of the following subsection: ‘‘(6) A senior SARS official may extend the period referred to in subsection (5)(b) within which the return must be submitted, for a period not exceeding the period for which a penalty may be automatically increased under section 211(2).’’. Amendment of section 99 of Act 28 of 2011

Section 58Verify source

§ 59Section 99 of the Tax Administration Act, 2011, is hereby amended by theSubstitution

This section amends section 99 of the Tax Administration Act, 2011 by replacing item (aa) in subsection (1)(d)(i).

59. Section 99 of the Tax Administration Act, 2011, is hereby amended by the substitution in subsection (1)(d)(i) for item (aa) of the following item: ‘‘(aa) amount which should have been assessed to tax under the preceding assessment was, in accordance with the practice generally prevailing at the date of the preceding assessment, not assessed to tax; or’’. Amendment of section 107 of Act 28 of 2011 10 15 20 25 30

Section 59Verify source

§ 60Section 107 of the Tax Administration Act, 2011, is hereby amended by theAmendment

SARS may concede an appeal in whole or in part before it is heard by the tax board, tax court, or on further appeal.

60. Section 107 of the Tax Administration Act, 2011, is hereby amended by the 35 addition of the following subsection: ‘‘(7) SARS may concede an appeal in whole or in part before— the matter is heard by the tax board or the tax court; or (a) (b) an appeal against a judgment of the tax court or higher court is heard.’’. Amendment of section 130 of Act 28 of 2011

Section 60Verify source

§ 61Section 130 of the Tax Administration Act, 2011, is hereby amended by theAmendment

Section 130 of the Tax Administration Act, 2011 is amended by deleting subsection (3).

61. Section 130 of the Tax Administration Act, 2011, is hereby amended by the deletion of subsection (3). Amendment of section 135 of Act 28 of 2011

Section 61Verify source

§ 62Section 135 of the Tax Administration Act, 2011, is hereby amended by theSubstitution

If an intending appellant wants to appeal a tax court decision to the Supreme Court of Appeal, the registrar must send the notice of intention to appeal to the president of the tax court, who must then decide whether to grant or refuse leave to appeal.

62. Section 135 of the Tax Administration Act, 2011, is hereby amended by the substitution for subsection (1) of the following subsection: ‘‘(1) If an intending appellant wishes to appeal against a decision of the tax court to the Supreme Court of Appeal, the ‘registrar’ must submit the notice of intention to appeal lodged under section 134(1) to the president of the tax court, who must 40 45 Reproduced by Sabinet Online in terms of Government Printer’s Copyright Authority No. 10505 dated 02 February 1998 44 No. 36036 Act No. 21 of 2012 GOVERNMENT GAZETTE, 20 December 2012 Tax Administration Laws Amendment Act, 2012 44 make an order granting or refusing leave to appeal having regard to the grounds of the intended appeal as indicated in the notice.’’. Amendment of section 142 of Act 28 of 2011

Section 62Verify source

§ 63Section 142 of the Tax Administration Act, 2011, is hereby amended by theSubstitution

This section amends the definition of “settle” in section 142 of the Tax Administration Act, 2011.

63. Section 142 of the Tax Administration Act, 2011, is hereby amended by the substitution for the deﬁnition of ‘settle’ of the following deﬁnition: ‘‘ ‘settle’ means[, after the lodging of an appeal under this Chapter,] to resolve a ‘dispute’ by compromising a disputed liability, otherwise than by way of either SARS or the person concerned accepting the other party’s interpretation of the facts or the law applicable to those facts or of both the facts and the law, and ‘settlement’ must be construed accordingly.’’. 5 10 Amendment of section 164 of Act 28 of 2011

Section 63Verify source

§ 64Section 164 of the Tax Administration Act, 2011, is hereby amended by theSubstitution

This provision amends section 164(5)(d) of the Tax Administration Act, 2011 by replacing the wording on when a material change triggers the suspension-payment decision.

64. Section 164 of the Tax Administration Act, 2011, is hereby amended by the substitution in subsection (5) for paragraph (d) of the following paragraph: ‘‘(d) there is a material change in any of the factors referred to in subsection (3), upon which the decision to suspend payment of the amount involved was based.’’. 15 Amendment of section 166 of Act 28 of 2011

Section 64Verify source

§ 65Section 166 of the Tax Administration Act, 2011, is hereby amended by theSubstitution

SARS may allocate a tax payment to penalties, interest, or the oldest outstanding tax amount, despite anything to the contrary in a tax Act.

65. Section 166 of the Tax Administration Act, 2011, is hereby amended by the substitution in subsection (1) for the words preceding paragraph (a) of the following words: 20 ‘‘Despite anything to the contrary contained in a tax Act, SARS may allocate payment made in terms of a tax Act against an amount of penalty or interest or the oldest amount of outstanding tax at the time of the payment, other than amounts—’’. Amendment of section 187 of Act 28 of 2011 25

Section 65Verify source

§ 66Section 187 of the Tax Administration Act, 2011, is hereby amended by theSubstitution

This section amends the Tax Administration Act so that the payment date for a fixed amount penalty is the date of assessment, and the payment date for an increment of the penalty is the date of the increment.

66. Section 187 of the Tax Administration Act, 2011, is hereby amended by the substitution in subsection (3) for paragraph (d) of the following paragraph: ‘‘(d) a ﬁxed amount penalty referred to in section 210, is the date [for payment speciﬁed in the notice] of assessment of the penalty, and in relation to an increment of the penalty under section 211(2), the date of the increment.’’. 30 Amendment of section 189 of Act 28 of 2011

Section 66Verify source

§ 67Section 189 of the Tax Administration Act, 2011, is hereby amended by theCommencement

If interest is payable and the interest rate changes, interest for an earlier tax period must be worked out as if the old rate still applied.

67. Section 189 of the Tax Administration Act, 2011, is hereby amended by the substitution for subsection (5) of the following subsection: ‘‘(5) If interest is payable under this Chapter and the rate at which the interest is payable has with effect from any date been altered, and the interest is payable in respect of any [tax] period or portion thereof which commenced before the said date, the interest to be determined in respect of— (a) the[tax] period or portion thereof which ended immediately before the said date; or the portion of the [tax] period which was completed before the said date, must be calculated as if the rate had not been altered.’’. (b) 35 40 Amendment of section 192 of Act 28 of 2011

Section 67Verify source

§ 68Section 192 of the Tax Administration Act, 2011, is hereby amended by theAmendment

This section amends section 192 of the Tax Administration Act, 2011 by deleting the definition of “asset”.

68. Section 192 of the Tax Administration Act, 2011, is hereby amended by the deletion of the deﬁnition of ‘‘asset’’. Reproduced by Sabinet Online in terms of Government Printer’s Copyright Authority No. 10505 dated 02 February 1998 46 No. 36036 Act No. 21 of 2012 GOVERNMENT GAZETTE, 20 December 2012 Tax Administration Laws Amendment Act, 2012 Amendment to Chapter 14 of Act 28 of 2011 46

Section 68Verify source

§ 69Chapter 14 of the Tax Administration Act, 2011, is hereby amended by theAmendment

This section amends Chapter 14 of the Tax Administration Act, 2011 by deleting single quotes from the word “asset.”

69. Chapter 14 of the Tax Administration Act, 2011, is hereby amended by the deletion of single quotes from the word ‘asset’. Amendment of section 210 of Act 28 of 2011

Section 69Verify source

§ 70The Tax Administration Act, 2011, is hereby amended by the substitution forSubstitution

SARS must impose the appropriate penalty under section 211 when it is satisfied that a listed non-compliance exists.

70. The Tax Administration Act, 2011, is hereby amended by the substitution for 5 section 210 of the following section: ‘‘Non-compliance subject to penalty 210. (1) If SARS is satisﬁed that non-compliance by a person referred to in subsection (2) exists, [excluding the non-compliance referred to in section 213,] SARS must impose the appropriate ‘penalty’ in accordance with the Table in section 211. (2) Non-compliance is failure to comply with an obligation that is imposed by or under a tax Act and is listed in a public notice issued by the Commissioner, other than— (a) the failure to pay tax subject to a percentage based penalty under Part C; [or] (b) non-compliance [subject to] in respect of which an understatement (c) penalty under Chapter 16 has been imposed; or the failure to disclose information subject to a reportable arrangement penalty under section 212.’’. Amendment of section 211 of Act 28 of 2011

Section 70Verify source

§ 71Section 211 of the Tax Administration Act, 2011, is hereby amended by theSubstitution

This section amends section 211 so that the penalty assessment delivery date depends on SARS having the person’s current address and being able to deliver it, with a 35-month limit from the assessment date.

71. Section 211 of the Tax Administration Act, 2011, is hereby amended by the substitution in subsection (2) for paragraph (a) of the following paragraph: ‘‘(a) the date of [the delivery of the ‘penalty] assessment[’] of the penalty, if SARS is in possession of the current address of the person and is able to deliver the assessment, but is limited to 35 months from the date of the [delivery] assessment; or’’. Amendment of section 217 of Act 28 of 2011 10 15 20 25

Section 71Verify source

§ 72Section 217 of the Tax Administration Act, 2011, is hereby amended—Substitution

This section amends section 217 so that SARS may remit a penalty, or part of it, in certain cases.

72. Section 217 of the Tax Administration Act, 2011, is hereby amended— (a) by the substitution in subsection (1) for paragraph (a) of the following 30 paragraph: ‘‘(a) a ‘ﬁrst incidence’ of [the] non-compliance [described in section 210, 212 or 213]; or’’; and (b) by the substitution for subsection (3) of the following subsection: ‘‘(3) [In the case of a penalty] If a ‘penalty’ has been imposed under section 213, SARS may remit the ‘penalty’ or a portion thereof, if SARS is satisﬁed that— (a) the ‘penalty’ has been imposed in respect of a ‘ﬁrst incidence’ of [the] non-compliance [described in section 210, 212 or 213], or involved an amount of less than R2 000; reasonable grounds for the non-compliance exist; and the non-compliance in issue has been remedied.’’. (b) (c) Amendment of section 223 of Act 28 of 2011

Section 72Verify source

§ 73Section 223 of the Tax Administration Act, 2011, is hereby amended by theSubstitution

This section amends a tax rule so that a taxpayer must have a qualifying opinion from a registered tax practitioner.

73. Section 223 of the Tax Administration Act, 2011, is hereby amended by the substitution in subsection (3) for paragraph (b) of the following paragraph: ‘‘(b) was in possession of an opinion by a registered tax practitioner[, as deﬁned in section 239,] that— (i) was issued by no later than the date that the relevant return was due; (ii) [took account of the arrangement] was based upon full disclosure of the speciﬁc facts and circumstances of the arrangement and, in the case of any opinion regarding the applicability of the substance over form doctrine or the the speciﬁc facts and circumstances of 35 40 45 50 Reproduced by Sabinet Online in terms of Government Printer’s Copyright Authority No. 10505 dated 02 February 1998 48 No. 36036 Act No. 21 of 2012 GOVERNMENT GAZETTE, 20 December 2012 Tax Administration Laws Amendment Act, 2012 48 anti-avoidance provisions of a tax Act, this requirement cannot be met unless the taxpayer is able to demonstrate that all of the steps in or parts of the arrangement were fully disclosed to the tax practitioner, whether or not the taxpayer was a direct party to the steps or parts in question; and (iii) conﬁrmed that the taxpayer’s position is more likely than not to be 5 upheld if the matter proceeds to court.’’. Amendment of section 224 of Act 28 of 2011

Section 73Verify source

§ 74The Tax Administration Act, 2011, is hereby amended by the substitution forSubstitution

This section amends section 224 so it is titled “Objection and appeal against decision not to remit understatement penalty.”

74. The Tax Administration Act, 2011, is hereby amended by the substitution for section 224 of the following section: ‘‘Objection and appeal against decision not to remit understatement penalty 10

Section 74Verify source

§ 224A decision by SARS not to remit an understatement penalty underAmendment

A SARS decision not to remit an understatement penalty can be objected to and appealed under Chapter 9.

224. A decision by SARS not to remit an understatement penalty under section 223(3) is subject to objection and appeal under Chapter 9.’’. Amendment of section 229 of Act 28 of 2011

Section 224Verify source

§ 75Section 229 of the Tax Administration Act, 2011, is hereby amended by theSubstitution

Section 229 is amended so that paragraph (a) says not to pursue criminal prosecution for a tax offence arising from a default or related common-law offence.

75. Section 229 of the Tax Administration Act, 2011, is hereby amended by the 15 substitution for paragraph (a) of the following paragraph: ‘‘(a) not pursue criminal prosecution for a [statutory] tax offence [under a tax Act] arising from the ‘default’ [or a related common law offence];’’. Amendment of section 231 of Act 28 of 2011

Section 75Verify source

§ 76Section 231 of the Tax Administration Act, 2011, is hereby amended by theSubstitution

This provision amends section 231 so paragraph (c) now says criminal prosecution may be pursued for a tax offence, including a tax Act offence or related common-law offence.

76. Section 231 of the Tax Administration Act, 2011, is hereby amended by the 20 substitution in subsection (1) for paragraph (c) of the following paragraph: ‘‘(c) pursue criminal prosecution for a [statutory] tax offence [under a tax Act or a related common law offence].’’. Amendment of section 234 of Act 28 of 2011

Section 76Verify source

§ 77Section 234 of the Tax Administration Act, 2011, is hereby amended—Substitution

This section amends section 234 of the Tax Administration Act, 2011 to add two new kinds of conduct: issuing an erroneous, incomplete, or false required document to another person, and failing or neglecting to withhold and pay tax to SARS when required.

77. Section 234 of the Tax Administration Act, 2011, is hereby amended— (a) by the substitution for paragraph (g) of the following paragraph: 25 ‘‘(g) issues an erroneous, incomplete or false document required to be issued under a tax Act [to be issued] to another person;’’; and (b) by the addition after paragraph (o) of the following paragraph: ‘‘(p) fails or neglects to withhold and pay to SARS an amount of tax as 30 and when required under a tax Act;’’. Amendment of section 235 of Act 28 of 2011

Section 77Verify source

§ 78Section 235 of the Tax Administration Act, 2011, is hereby amended by theSubstitution

A senior SARS official may lay a complaint with the South African Police Service or the National Prosecuting Authority about an offence under this section.

78. Section 235 of the Tax Administration Act, 2011, is hereby amended by the substitution for subsection (3) of the following subsection: ‘‘(3) A senior SARS official may lay a complaint with the South African Police Service or the National Prosecuting Authority regarding an offence [contemplated in subsection (1)] under this section.’’. 35 Amendment of section 237 of Act 28 of 2011

Section 78Verify source

§ 79The Tax Administration Act, 2011, is hereby amended by the substitution forSubstitution

This section amends the Tax Administration Act, 2011 by replacing section 237 with a section about criminal offences relating to filing a return without authority.

79. The Tax Administration Act, 2011, is hereby amended by the substitution for section 237 of the following section: 40 Reproduced by Sabinet Online in terms of Government Printer’s Copyright Authority No. 10505 dated 02 February 1998 50 No. 36036 Act No. 21 of 2012 GOVERNMENT GAZETTE, 20 December 2012 Tax Administration Laws Amendment Act, 2012 50 ‘‘Criminal offences relating to ﬁling return without authority

Section 79Verify source

§ 237A person who—Commencement

A person must not submit false or unauthorized returns, documents, or communications to SARS using a forged or another person's signature.

237. A person who— (a) submits a return or other document to SARS under a forged signature; (b) uses an electronic or digital signature of another person in an electronic communication to SARS without the person’s consent and authority; or (c) otherwise submits to SARS a communication on behalf of another 5 person without the person’s consent and authority, [without the person’s consent and authority,] is guilty of an offence and, upon conviction, is subject to a ﬁne or to imprisonment for a period not exceeding two years.’’. 10 Amendment of heading of Chapter 18 of Act 28 of 2011 80. (1) Chapter 18 of the Tax Administration Act, 2011, is hereby amended by the substitution for the heading of the following heading: ‘‘REGISTRATION OF TAX PRACTITIONERS AND REPORTING OF UNPROFESSIONAL CONDUCT’’. 15 (2) Subsection (1) comes into operation on the date of promulgation of this Act. Amendment of section 239 of Act 28 of 2011 81. (1) Section 239 of the Tax Administration Act, 2011, is hereby amended— (a) by the insertion of the following deﬁnition after the deﬁnition of ‘controlling 20 body’: ‘‘ ‘recognised controlling body’ means a ‘controlling body’ recognised by the Commissioner under section 240A.’’; and (b) by the deletion of the deﬁnition of ‘‘registered tax practitioner’’: (2) Subsection (1) comes into operation on the date of promulgation of this Act. 25 Amendment of section 240 of Act 28 of 2011 82. (1) Section 240 of the Tax Administration Act, 2011, is hereby amended— (a) by the substitution in subsection (1) for paragraph (b) of the following paragraph: ‘‘(b) completes or assists in completing a [document to be submitted to SARS] return by another person [in terms of a tax Act],’’; 30 (b) by the substitution in subsection (1) for the words following paragraph (b) of the following words: ‘‘must— (i) (ii) register with or fall under the jurisdiction of a ‘recognised controlling body’ by the later of 1 July 2013 or 21 business days after the date on which that person for the ﬁrst time provides the advice or completes or assists in completing the return; and register with SARS as a tax practitioner[,] in [such] the [as the Commissioner may prescribed form and manner determine], within[30] 21 business days after the date on which that person for the ﬁrst time provides the advice or completes or assists in completing [any such document] the return.’’; (c) by the substitution in subsection (2) for paragraph (a) of the following paragraph: ‘‘(a) provides the advice or completes or assists in completing a [document] return solely for no consideration to that person or his or her employer or a connected person in relation to that employer or that person;’’; 35 40 45 Reproduced by Sabinet Online in terms of Government Printer’s Copyright Authority No. 10505 dated 02 February 1998 52 No. 36036 Act No. 21 of 2012 GOVERNMENT GAZETTE, 20 December 2012 Tax Administration Laws Amendment Act, 2012 52 (d) by the substitution in subsection (2) for paragraph (d) of the following paragraph: ‘‘(d) provides the advice or completes or assists in completing a [document]return solely— (i) to or in respect of the employer by whom that person is employed on a full-time basis or to or in respect of [that] the employer and connected persons in relation to [that] the employer; or (ii) under the direct supervision of a person who is a registered [as a] tax practitioner [in terms of subsection (1)].’’; and (e) by the substitution in subsection (3) for paragraph (a) of the following paragraph: ‘‘(a) during the preceding ﬁve years has been removed from a related profession by a ‘controlling body’ for serious misconduct; [and] or’’. (2) Subsection (1) comes into operation on the date of promulgation of this Act. Insertion of section 240A in Act 28 of 2011 83. (1) The Tax Administration Act, 2011, is hereby amended by the insertion of the following section after section 240: ‘‘Recognition of controlling bodies 240A. (1) The Commissioner must recognise as a ‘recognised control- ling body’— (a) the Independent Regulatory Board for Auditors established in terms of section 3 of the Auditing Professions Act, 2005 (Act No. 26 of 2005); (b) a Law Society established in terms of Chapter 3 of the Attorneys Act. (c) 1979 (Act No. 53 of 1979); the General Council of the Bar of South Africa, a Bar Council and a Society of Advocates referred to in section 7 of the Admission of Advocates Act, 1964 (Act No. 74 of 1964); and (d) a statutory body that the Minister is satisﬁed is similar to the statutory bodies in this subsection and the details of which are published in the Gazette. (2) The Commissioner may recognise a ‘controlling body’, for natural persons who provide advice with respect to the application of a tax Act or complete returns, as a ‘recognised controlling body’ if the body— (a) maintains relevant and effective— (i) minimum qualiﬁcation and experience requirements; continuing professional education requirements; (ii) codes of ethics and conduct; and (iii) disciplinary codes and procedures; (iv) (b) is approved in terms of section 30B of the Income Tax Act for purposes of section 10(1)(d)(iv) of the Act; and (c) has at least 1 000 members when applying for recognition or reasonable prospects of having 1 000 members within a year of applying. (3) A body recognised under subsection (2) must submit a report on its members and compliance with this Chapter within the time period and in the form and manner as prescribed by the Commissioner. (4) The Minister may appoint a panel of retired judges or persons of similar stature and competence one or more of whom may decide, on behalf of a body recognised under subsection (2), complaints lodged under section 241— (a) at the request of the body; or (b) if the Minister is satisﬁed that the body’s disciplinary process is ineffective. (5) The costs of the panel in deciding complaints will be borne equally by such a body and SARS. (6) If a body recognised under subsection (2) no longer meets the listed requirements, the Commissioner must notify it that if it does not take 5 10 15 20 25 30 35 40 45 50 55 Reproduced by Sabinet Online in terms of Government Printer’s Copyright Authority No. 10505 dated 02 February 1998 54 No. 36036 Act No. 21 of 2012 GOVERNMENT GAZETTE, 20 December 2012 Tax Administration Laws Amendment Act, 2012 54 corrective steps within the period speciﬁed in the notice, its recognition will be withdrawn at the end of the period.’’. (2) Subsection (1) comes into operation on the date of promulgation of this Act. Substitution of section 241 of Act 28 of 2011 84. (1) The Tax Administration Act, 2011, is hereby amended by the substitution for 5 section 241 of the following section: ‘‘Complaint to controlling body [of tax practitioner] 241. (1) A senior SARS official may lodge a complaint with a ‘controlling body’ if a [‘registered tax practitioner’ or] person who carries on a profession governed by the ‘controlling body’, did or omitted to do anything with respect to the affairs of a taxpayer, including that person’s affairs, that in the opinion of the official— (a) was intended to assist the taxpayer to avoid or unduly postpone the performance of an obligation imposed on the taxpayer under a tax Act; (b) by reason of negligence on the part of the person resulted in the avoidance or undue postponement of the performance of an obligation imposed on the taxpayer under a tax Act;[ or] constitutes a contravention of a rule or code of conduct for the profession which may result in disciplinary action being taken against the [‘registered tax practitioner’ or] person by the body[.]; or (d) constitutes conduct under subsection (2) by a registered tax practi- (c) tioner. (2) A senior SARS official may lodge a complaint with a ‘recognised controlling body’ if a registered tax practitioner has, in the opinion of the official— (a) without exercising due diligence prepared or assisted in the prepara- tion, approval or submission of any return, affidavit or other document relating to matters affecting the application of a tax Act; (b) unreasonably delayed the ﬁnalisation of any matter before SARS; (c) given an opinion contrary to clear law, recklessly or through gross incompetence, with regard to any matter relating to a tax Act; (d) been grossly negligent with regard to any work performed as a registered tax practitioner; (f) (e) knowingly given false or misleading information in connection with matters affecting the application of a tax Act or participated in such activity; or directly or indirectly attempted to inﬂuence a SARS official with regard to any matter relating to a tax Act by the use of threats, false accusations, duress, or coercion, or by offering gratiﬁcation as deﬁned in the Prevention and Combating of Corrupt Activities Act, 2004 (Act No. 12 of 2004).’’. 10 15 20 25 30 35 40 (2) Subsection (1) comes into operation on the date of promulgation of this Act. Amendment of section 244 of Act 28 of 2011

Section 237Verify source

§ 85Section 244 of the Tax Administration Act, 2011, is hereby amended by theSubstitution

This section amends another tax administration provision to allow a delay where reasonable grounds exist and the application is filed within 21 business days of the deadline.

85. Section 244 of the Tax Administration Act, 2011, is hereby amended by the substitution in subsection (3) for paragraph (a) of the following paragraph: 45 ‘‘(a) reasonable grounds exist for the delay and the application is submitted within 21 business days of the deadline; or’’. Reproduced by Sabinet Online in terms of Government Printer’s Copyright Authority No. 10505 dated 02 February 1998 56 No. 36036 Act No. 21 of 2012 GOVERNMENT GAZETTE, 20 December 2012 Tax Administration Laws Amendment Act, 2012 Amendment of section 246 of Act 28 of 2011 56

Section 85Verify source

§ 86Section 246 of the Tax Administration Act, 2011, is hereby amended by theSubstitution

This section amends section 246 so that a company without a public officer is treated under the tax Act as if the Act did not require one.

86. Section 246 of the Tax Administration Act, 2011, is hereby amended by the substitution for subsection (4) of the following subsection: ‘‘(4) A company [covered by this section] that has not appointed a public officer is subject to a tax Act[, the same] as if a tax Act did not require the public officer to be appointed.’’. 5 Amendment of section 252 of Act 28 of 2011

Section 86Verify source

§ 87Section 252 of the Tax Administration Act, 2011, is hereby amended by theSubstitution

This provision amends section 252 of the Tax Administration Act, 2011 by replacing wording about delivery with wording that says it must be handed to the public officer of the company.

87. Section 252 of the Tax Administration Act, 2011, is hereby amended by the substitution for paragraph (a) of the following paragraph: ‘‘(a) [delivered] handed to the public officer of the company;’’. 10 Amendment of section 255 of Act 28 of 2011

Section 87Verify source

§ 88Section 255 of the Tax Administration Act, 2011, is hereby amended by theCommencement

The Commissioner may make rules on electronic tax returns and communications, and taxpayers may apply for a tax clearance certificate; SARS must decide the application within 21 business days unless a longer reasonable period is justified, and SARS may withdraw or invalidate a certificate in specified cases.

88. Section 255 of the Tax Administration Act, 2011, is hereby amended by the substitution for subsection (1) of the following subsection: ‘‘(1) The Commissioner may by public notice make rules prescribing— (a) (b) (c) the procedures for submitting a return in electronic format, electronic record retention and [for] other electronic communications between SARS and other persons; [and] requirements for an electronic or digital signature of a return or communication; and the procedures for electronic record retention by SARS.’’. 15 20 Substitution of section 256 of Act 28 of 2011 89. (1) The Tax Administration Act, 2011, is hereby amended by the substitution for section 256 of the following section: ‘‘Tax clearance certiﬁcate 256. (1) A taxpayer may apply to SARS for a tax clearance certiﬁcate in 25 the prescribed form and manner. (2) SARS must issue or decline to issue the certiﬁcate within 21 business days from the date the application is [duly ﬁled] submitted or such longer period as may reasonably be required if a senior SARS official is satisﬁed that the issuing of a tax clearance certiﬁcate may prejudice the efficient and effective collection of revenue. (3) A senior SARS official may provide a taxpayer with conﬁrmation of the taxpayer’s tax compliance status and may conﬁrm that the taxpayer is tax compliant by issuing a tax clearance certiﬁcate only if satisﬁed that the taxpayer is registered for tax and does not have any— (a) tax debt outstanding, excluding a tax debt contemplated in section 167 or 204 or a tax debt that has been suspended under section 164 or does not exceed the amount referred to in section 169(4); or (b) outstanding return unless an arrangement acceptable to SARS has been made for the submission of the return. (4) A tax clearance certiﬁcate must be in the prescribed form and include at least— (a) (b) the original date of issue of the tax clearance certiﬁcate [reference number assigned to the certiﬁcate and reﬂected in the records of SARS]; the name, taxpayer reference number, address and identity number or company registration number of the taxpayer; the date of the application for a certiﬁcate; (c) (d) a statement that the taxpayer [has no outstanding tax debts] is tax compliant as [at] determined on the original date of issue of the certiﬁcate; and 30 35 40 45 50 Reproduced by Sabinet Online in terms of Government Printer’s Copyright Authority No. 10505 dated 02 February 1998 58 No. 36036 Act No. 21 of 2012 GOVERNMENT GAZETTE, 20 December 2012 Tax Administration Laws Amendment Act, 2012 58 (e) the expiry date of the certiﬁcate. (5) Despite the provisions of Chapter 6, SARS may conﬁrm the taxpayer’s tax compliance status [validity and expiry date of the certiﬁcate upon] as at the date of a request by a sphere of government, [or] parastatal or other person to whom the taxpayer has presented the certiﬁcate. (6) SARS may withdraw a certiﬁcate with effect from the date of the issue thereof if the certiﬁcate— (a) was issued in error; or (b) was obtained on the basis of fraud, misrepresentation or non- 5 10 disclosure of material facts. (7) A certiﬁcate is invalid for the period commencing on the date that the taxpayer no longer complies with a requirement under subsection (3) and ending on the date that the taxpayer remedies the non-compliance.’’. (2) Subsection (1) comes into operation on the date of promulgation of this Act. 15 Amendment of section 257 of Act 28 of 2011

Section 88Verify source

§ 90Section 257 of the Tax Administration Act, 2011, is hereby amended—Substitution

This section amends section 257 so that, for tax clearance certificates, the Minister may make regulations about when a certificate is required or issued, its validity period, and related issue or withdrawal procedures.

90. Section 257 of the Tax Administration Act, 2011, is hereby amended— (a) by the substitution in subsection (2)(b) for the words preceding subparagraph (i) of the following words: ‘‘the limitations on the [jurisdiction]mandate of the Tax Ombud, having regard to—’’; 20 (b) by the insertion of the following subsection after subsection (2): ‘‘(2A) For purposes of the issue of a tax clearance certiﬁcate under section 256, the Minister may make regulations regarding— (a) the circumstances when a tax clearance certiﬁcate may be required from a person or be issued by SARS; the period of validity of a tax clearance certiﬁcate; or any procedure to further regulate the issue or withdrawal of a tax clearance certiﬁcate.’’. (b) (c) Amendment of section 269 of Act 28 of 2011

Section 90Verify source

§ 91Section 269 of the Tax Administration Act, 2011, is hereby amended by theCommencement

Existing tax rules, notices, and regulations continue in force after the Act starts, treated as if issued under the equivalent provisions of the Act, but only to the extent they are consistent with the Act and until new rules are issued.

91. Section 269 of the Tax Administration Act, 2011, is hereby amended by the substitution for subsection (1) of the following subsection: ‘‘(1) Rules, notices and regulations issued under the provisions of a tax Act repealed by this Act that are in force immediately before the commencement date of this Act, remain in force as if they were issued under [section 103 or 257, respectively,] the equivalent provisions of this Act, to the extent consistent with this Act, until new rules, notices and regulations are issued under such provisions.’’. Deletion of paragraph 78 of Schedule 1 to Act 28 of 2001 25 30 35

Section 91Verify source

§ 92Paragraph 78 of Schedule 1 to the Tax Administration Act, 2011, is hereby deleted.Amendment

Paragraph 78 of Schedule 1 to the Tax Administration Act, 2011 is deleted.

92. Paragraph 78 of Schedule 1 to the Tax Administration Act, 2011, is hereby deleted. 40 Amendment of paragraph 167 of Schedule 1 to Act 28 of 2011

Section 92Verify source

§ 93Paragraph 167 of Schedule 1 to the Tax Administration Act, 2011, is herebyShort title

This provision amends paragraph 167 of Schedule 1 to the Tax Administration Act, 2011, and states when the amendments come into force.

93. Paragraph 167 of Schedule 1 to the Tax Administration Act, 2011, is hereby amended— (a) by the substitution for paragraph (c) of the following paragraph: ‘‘(c) by the addition after subsection [(1)](2) of the following subsection: ‘[(2)] (3) Unless the context indicates otherwise, a word or expression to which a meaning has been assigned in the Tax Administration Act bears that meaning for purposes of this Act.’ ’’; and (b) by the deletion of paragraph (d). 45 50 Reproduced by Sabinet Online in terms of Government Printer’s Copyright Authority No. 10505 dated 02 February 1998 60 No. 36036 Act No. 21 of 2012 GOVERNMENT GAZETTE, 20 December 2012 Tax Administration Laws Amendment Act, 2012 Short title and commencement 60 94. (1) This Act is called the Tax Administration Laws Amendment Act, 2012. (2) Save in so far as is otherwise provided for in this Act, amendments to the Tax Administration Act, 2011, will be deemed to have come into operation on 1 October 2012. (3) Subject to subsection (2), and save in so far as is otherwise provided for in this Act, or the context otherwise indicates, the amendments effected by this Act come into operation on the date of promulgation of this Act. 5 Reproduced by Sabinet Online in terms of Government Printer’s Copyright Authority No. 10505 dated 02 February 1998

Section 93Verify source

Legislative relationships

13 referenced instruments

Names are derived from the stored provision headings and citation-enrichment layer. Treat this as a research index and verify each relationship against the source text.

A–F

3 instruments

Chapter 18 of Act
Section 237
Customs and Excise Act, 1964
Sections 27, 28
Fourth Schedule to the Income Tax Act, 1962
Sections 20, 21, 22, 23, 24, 25

G–M

4 instruments

Government Printer’s Copyright Authority No. 10505 dated 02 February 1998 14 No. 36036 Act
Section 37O
Government Printer’s Copyright Authority No. 10505 dated 02 February 1998 36 No. 36036 Act
Section 41
Government Printer’s Copyright Authority No. 10505 dated 02 February 1998 50 No. 36036 Act
Section 79
Income Tax Act, 1962
Sections 4, 7, 8, 9, 10, 14, 16

N–S

1 instrument

Schedule 1 to the Tax Administration Act, 2011
Sections 92, 93

T–Z

5 instruments

Tax Administration Act
Sections 37N, 49G
Tax Administration Act, 2011
Sections 36, 37, 38, 39, 40, 43, 44, 45, 46, 47, 48, 49, 50, 51, 52, 53, 54, 56, 57, 58, 59, 60, 61, 62, 63, 64, 65, 66, 67, 68, 69, 71, 72, 73, 75, 76, 77, 78, 85, 86, 87, 88, 90, 91
Taxation Laws Second Amendment Act, 2009
Section 34
Unemployment Insurance Contributions Act, 2002
Section 32
Value-Added Tax Act, 1991
Sections 29, 31

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13 referenced instruments

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