Exchange Control Amnesty and Amendment of Taxation Laws Act

1. For purposes of this Chapter, unless the context indicates otherwise, any meaning ascribed to any word or expression in section 1 of the Income Tax Act, 1962, must bear 40 the meaning so ascribed, and- “amnesty unit” means the amnesty unit established in terms of section 22; “applicant” means any person contemplated in section 3( l ) ( a ) or (b); “application” means the application contemplated in section 5 ; “authorised dealer” means an authorised dealer as defined Regulations; in the Exchange Control 45 8 No. 25037 GOVERNMENT GAZETTE. 3 1 MAY 2003 Act No. 12,2003 EXCHANGE CONTROL AMNESTY AND AMENDMENT OF TAXATION LAWS ACT, 3003 "Commissioner" means the Commissioner for the South African Revenue Service appointed in terms of section 13 of the South African Revenue Service Act, 1997 (Act No. 34 of 1997); "date of approval" means the date on which the notice of approval was delivered by the amnesty unit to the applicant as contemplated in section 9(6); '*deliver'.. in relation to a document, means- ( a ) handing that document to the relevant person: ( 0 ) sending that document to the relevant person by registered post to that person's last known address. which may be his or her last known place of residence. office. place of business or post office box number: (c) transmitting that document to the relevant person by facsimile: or (di transmitting that document to the relevant person by electronic means: Pro\.ided that in the case of paragraphs ( c ) and (d). the document must be handed to the relevant person or sent by registered post to that person as contemplated in paragraph ( b l . within ten days of it being so transmitted by facsimile or electronic means: "domestic tax amnesty levy" means the levy imposed in terms of section 16; "Estate Duty Act. 1955" means the Estate Duty Act. 1955 (Act No. 45 of 195.5); "exchange control amnesty levy" means the levy imposed in terms of section 11; "Exchange Control Regulations'' means the Exchange Control Regulations, 196 1, issued in terms of section 9 of the Currency and Exchanges Act. 1933 (Act No. 9 of 1933): "facilitator" means a person contemplated in section 3( l)(c): "foreign asset'' means- ( a i any funds held in foreign current!': and 0 7 1 an!- asset transferred from or accumulated outside the Republic, but does not include an)' foreign bearer instrument: "foreign b x c r instrument" means a financia! instrument issued by a person who is not a resident where the identity of the beneficial owner thereof cannot be determined by reference to either that instrument or the person who issued that financial instrument. but does not include an instrument if the beneficial owner can pro1.e that the financial instrument is derived from that beneficial owner's own funds which had been held for a period of at least 18 months prior to the acquisition of that financial instrument: "General Manager" means the General h4anager of the Exchange Control Department of the South African Reserve Bank or any person to whom the powers, the Minister in terms of the Exchange funcrions and duties have been delegated b! Control Regulations: the person appointed as the Governor of the South African "Governor" means Reserve Bank under section 4 or 6( 1 iicc! oC the South African Reserve Bank Ac:. 1989 (Act No. 90 of 1989): "held". "hold" or "holding" in relation to a foreign asset means direct beneficial ownership in that foreign asset, and includes a deemed holding of that foreign asset in terms of section 4: "Income Tax. Act. 196'1" means the Income Tax Act. 1961 (Act No. 58 of 1962): "ie\,iabic amount" means the leviable amuunt contemplated i n section 1 i(2j: "market value" in relation to a foreigr. asst! of a person. means the maket value as contemplated in paragraph 31 of the Eighth Schedule to the Income Tax Act. 1969: "Minister" means the Minister of Finance: "relaLed party" in relation to an applicant means- ( a ) a company. none of the shares or interests of which is held by any person other 5 10 15 20 35 30 3s 40 45 so than- (i) that applicant; or (ii) in the case where the applicant is a natural person, by that applicant or 5s relatives of that amlicant: or .& ( b ) a trust or deceased estate of which the applicant is a beneficiary: 10 No. 25047 Act No. 12,2003 GAZETTE, GOVERNMENT 3 I MAY 2003 EXCHANGE CONTROL AMNESTY AND AMENDMENT OF TAXATION LAWS ACT, 2003 “resident” means- ( a ) for purposes of tax matters, a resident as defined in section 1 of the Income Tax Act, 1962; and (6) for purposes of exchange control matters, a person whether of South African or other nationality, who has taken up residence or is domiciled in the Republic, for purposes of the Exchange Control Regulations; 5 South African Revenue Service “South African Revenue Service” means the established in terms of the South African Revenue Service Act, 1997 (Act No. 34 of 1997); “unauthorised asset” means any foreign asset which was accumulated as foreign 10 assets or transferred from the Republic in contravention of the Exchange Control Regulations; and “unlawful activity” means Organised Crime Act, 1998 (Act No. 121 of 1998), other than- ( a ) any exchange control contravention or failure to comply with the Estate Duty 15 an unlawful activity as defined in the Prevention of Act, 1955, or the Income Tax Act, 1962; or (6) any activity constituting a misrepresentation or non-disclosure that was necessan to facilitate the contravention or failure contemplated in paragraph ( a ) . Administration of Chapter

2. The amnesty process of this Chapter is administered by the Chairperson of the amnesty unit. Persons who may apply for exchange control or tax relief in terms of amnesty 3. ( 1 ) The following persons who are resident on 28 February 2003 may apply for amnesty in terms cf this Chapter: 20 25 ( a ) Any natural person (including the deceased estate of a natural person), a close corporation or trust, holding any foreign asset on 28 February 2003, the value of which has been wholly or partly derived from any unauthorised asset; ( 6 ) Any natural person (including the deceased estate of a natural person), a close corporation or trust, holding any foreign asset on 28 February 2003, the value 30 of which has been wholly or partly derived from any amount that was not declared to the Commissioner as required in terms of the Estate Duty Act, 1955, or the Income Tax Act, 1962; and ( c ) Any naturai person (including the deceased estate of a natural person) or any related party in relation to an applicant Contemplated in paragraph ( a ) , which 35 on or before 28 February 2003 assisted that applicant (otherwise than solely in an a d v i s q capacity)- (i) by accumulating foreign assets: or (ii) by transferring funds or assets from the Republic, for the benefit of that applicant in a manner that involves either contravention of the Exchange Control Regulations or a failure to comply \I>ith the Estate Duty Act. 1955. or the Income Tzx Act, 1962, and those foreign assets. funds or assets are no longer held by that natural person or reiated part). (2) This Chapter does not apply in respect of any amount not declared to the 45 any 40 Commissioner or any failure to comply with the requirements of the Income Tax Act, 1962, as contemplated in subsection (l)(b) and (c) where that amount constitutes, or that failure relates to- ( a ) an amount withheld or deducted by the natural person, close corporation, trust or facilitator. as the case may be, from an employee in terms of paragraph 2 of 50 the Fourth Schedule to the Income Tax Act, 1962; or ( 6 ) an amount of withholding tax on royalties which must be paid to the Commissioner in terms of section 35 of the Income Tax Act, 1962. 12 No. 35017 GAZE?TE, GOVERNMENT 31 MAY 2003 Act No. 12,2003 EXCHANGE CONTROL AMNESTY AND AMENDMENT OF TAXATION LAWS ACT. 2003 Special rules for donors to discretionary trust 4. ( 1 ) A person who is a donor (or the deceased estate of a donor) in relation to a discretionary trust which is not a resident, may elect that any foreign asset contemplated in subsection (2). which was held by that discretionary trust on 28 February 2003, must be deemed to be held by that person. 5 ( 2 ) Subsection (1) applies in respect of a foreign asset of a discretionary trust which- ( a ) was acquired by that discretionary trust by way of a donation made by the person contemplated in subsection (1); ( b ) has been wholly or partly derived from any unauthorised asset or from any amount not declared by that donor to the Commissioner as required by the 10 Estate Duty Act, 1955. or the Income Tax Act. 1962: and ( c ) has not at the time of that election vested in any beneficiary of that discretionary trust. (3) Where a person has made an election as contemplated in subsection (1) in relation foreign to a asset- ( u ) that person must be deemed to have held that foreign asset- (i) for purposes of this Chapter. from the date that the discretionary trust acquired that foreign asset: and (ii) for the purposes of the Income Tax Act, 1962. from the first day of the last year of assessment ending on or before 18 February 2003, until that foreign asset is disposed of by that discretionary trust to any other person. in which case that person shall be deemed to have disposed of that foreign asset for consideration equal to its market value on the date of disposal; and 15 10 f b ) the provisions of sections 7 ( 5 ) , 7(8) and 25B of the Income Tax Act, 1962, and 2 5 paragraphs 70.72 and 80 of the Eighth Schedule to that Act. shall not apply in respect of any income. expenditure or capital gain relating to that foreign asset. nhile it is so deemed to be held by that person. (1) In order to make the election contemplated in subsection ( I ) , the person must submit the founding document of the discretionary trust as at 28 February 2003 with the 30 application in terms of section 5. Part B Application, Evaluation and Approval Process Application for amnesty and period for application

5. An applicant or facilitator applying for amnesty contemplated in this Chapter must 35 submit an application bl, wa> of a sworn affidavit or solemn declaration which must be delivered to the amnesty unit during the period commencing 1 June 1003 and ending 30 November 2003. at the address and in the form and manner as may be prescribed by the amnesty unit. application Required information for h? applicant 40 6. ( 1 An applicant contemplated in section 3( l)(aJ who applies for exchange control relief. as contemplated in Part C, in respect of any foreign asset which is held by that applicant on 28 February 3003 wholly or partly in contravention of the Exchange Control Regulations. must- luJ disclose the market value on that date of that foreign asset in the foreign 45 currency of the country in which that foreign asset is situated: Ib) include a description of the identifying characteristics and the location of that foreign asset: i c / submit in respect of the market value in foreign currency of that foreign asset- ( i ) a valuation certificate by a valuator of the country where that foreign 50 asset is located: 14 No. 25047 Act No. 12.2003 GAZETTE, GOVERNMENT 3 1 M.4Y 2003 EXCHANGE CONTROL AMNESTY AND AMENDMENT OF TAXATION LAWS ACT. 2003 (ii) a valuation by a sphere of government of the country where that foreign asset is located; (iii) which constitutes a financial instrument, an original or certified copy of a statement of account indicating the balance or market value as at 28 February 2003; or (iv) any other form of proof of value of that foreign asset as the amnesty unit may on good cause shown allow. (2) An applicant contemplated in section 3(l)(bj who applies for the tax relief in respect of foreign income, as contemplated in section 15, must- ( a ) disclose the receipts and accruals for the last year of assessment of that applicant ending on or before 28 February 2003, which relate to any foreign asset held by that applicant on 28 February 2003, the value of which has been wholly or partly derived from receipts or accruals from a source outside the Republic that were not declared to the Comnlissioner in any previous year of assessment, as required by the Income Tax Act, 1962; and ( b , include a description of the identifying characteristics and the location of that foreign asset. ( 3 ) An applicant contemplated in section 3(l)(bj who applies for the domestic tax relief, as contemplated in section 17, must- ( a ) disclose the amounts that were not declared to the Commissioner. as required by the Estate Duty Act, 1955. or the Income Tax Act, 1961. (other than receipts and accruals contemplated in subsection (2)ia)), to the extent that those amounts were accumulated as or converted to foreign assets: ( b ) disclose the dates on which those amounts were initially accumulated as or converted to foreign assets: and (c) submit documentary proof of those dates and those amounts which were accumulated as or converted to foreign assets after 28 February 1998. ( I ) An applicant contemplated in subsections (11, (2) and (3) must confirm in the appiication that no foreign asset or foreign bearer instrument held by that applicant on 18 February 3,033 was derived wholly or partly from the proceeds of any unlawful activities. Statement of foreign assets and liabilities for tax relief 7. (1) An applicant contemplated in section 6 ( 2 ) and (3) applying for tax relief contemplated in Part D, must attach to the application a statement of assets and liabilities as at tie last day or^ the last year of assessment ending on or before 28 February 2001. in respect of all disciosed foreign the Republic. reflecting all such foreign assets at both historic cost and estimated market value in the foreign currency of the countn' in which that foreign asset is situated or liability is incurred. assets and liabilities of that applicant outside (2) "here an applicant fails to comply with subsection (1). the Commissioner may. for purposes of the Income Tax Act, 1961. estimate the historic cost and market value of all foreign assets and the amount of liabilities of that applicant outside the Republic as x the last dag' of the ias: year of assessmez! cozkmpiated i:: su?xec:ion (1 ). 5 10 15 20 25 30 35 40 Required information for application by faciiitator

8. A facilitator who applies for the amnesty in terms of this Chapter. must- 45 apply jointly with an applicant on the prescribed form submitted by that applicant: confirm that there is no reason for that facilitator to believe that any of the foreign assets. funds or assets contemplated in section 3(i)(c) represented or were derived proceeds of unlawful activities; and from where that facilitator applies for the domestic tax relief. as contemplated in section 17, with respect to a foreign asset of the applicant contemplated in paragraph la)- (i) disclose the amounts that were not declared to the Commissioner, as 50 required by the Estate Duty Act, 1955, or the Income Tax Act, 1962, to 55 16 KO. 250.47 GAZETTE. GOVERNMENT 3 I MAY 2003 . Act No. 12,.2003 EXCHANGE CONTROL AMNESTY AND AMEKDMENT OF TAX.ATI0N LAWS .4CT. 2003 the extent those amounts were accumulated as assets: or converted to foreign ( i i ) disclose the dates on which those amounts were so accumulated as or converted to foreign assets: and ( i i i ) submit documentary proof of those dates and those amounts which were accumulated as or converted to foreign assets after 28 February 1998. Evaluation and Approval 9. ( 1 ) If an applicant applying for exchange control relief. as contemplated in Part C. complies with section 6( 1 ) in relation to a foreign asset. the amnesty unit must. subject to section 10. grant appro~~al that Part C applies to the extent of the disclosure in terms of section 6( I ) in respect of that foreign asset. (1) To the extent that an applicant applying for tax relief in respect of foreign income, as contemplated in sectlon 15. complies with section 6(3) in respect of any forei, on asset. the amnest!. unit must. sub.ject to section 10. grant approval that section 15 applies i n respect of the receipts or accruals from a source outside the Republic from which that f o r e i p asset ha5 been derived. ( 3 ) To the extent that an applicant applying for domestic tax relief a5 contemplated i n section 17. complies aith section 6(3j in respect of an!' amount not declared to the Commissioner as required by the Estate Dut), Act. 1955. or the Income Tax Act. 1962. which relates to a foreign asset. the amnest!' unit must. subject to section 10. :rant approval that section 17 applies in respect of that amount. 14) To the extent that a facilitator applying for exchange control relief. as contemplated in Pan C. complies with section 8. the amnesty unit must. subject to section 1 0 . grant approval that Part C applies in respect of that facilitator. ( 5 j To the extent that a facilitator applying for domestic tax relief, as contemplated in section 17. complies with secrion 8 in respect of any amount not declared to the the Estate Duty Act. 1955. or the Income Tax Act. 1961. Commissioner as required b!, the amnest! unit must. subject to section 10. grant approval that section 17 applies in respect of that amount. 5 10 15 20 35 (6) The amnest!. unit must deliver to an applicant or facilitator a notice of its decision 30 to appro\ t the application. ( 7 ) The approval contemplated in subsections ( I ). ( 3 ) . (1) and (5) is granted subject to payment of the full amount of the exchange control amnesty levy or the domestic tax amnest!' lev!.. as the case may be. within the period prescribed in this Chapter. Circumstances wherc amnest!. unit may no: grant approval IO. (1 The zmnest)' unit shall gran: approva! in terns of section 9 in respect of an applicant. only where- I C ! that applicant delivered the application to the amnest!' unit Lvithin the period commencing 1 June 7003 and ending 30 November 3003: i!)j ncither C J ~ the General hslanager nor the Commissioner has. before the thr applicaiio1.1 in terms of scctjori 5 . dejjvered a notice tO iliat ~ ~ b ~ l l i > > i ~ i i to t h x qpiican!. as the case may be. (or appiixn: or any faciiitator in relatic!! their r=presentatj\e<i that the applicant or facilitator. as the case ma! be. is subject to an audit. investigation or other enforcement action relating to- ( i ) an! contravention of the Exchange Control Regulations; or tii) failure to comply with the Income Tax Act. 1962. in respect of his or her foreign asset:, or foreign bearer instruments: or (iii 1 undeclared amounts arising in the Republic v;hich were accumulated as or converted to foreign assets as contemplated in section 6(3)(a), unles5 that notice is subsequently withdrawn by the General Manager or the Commissioner. as the case may be. by the last da), of the period contemplated in paragraph I n ) : and . . 35 30 45 50 18 KO. 25047 .Act No. 12,2003 GAZETTE, GOVERNMENT 3 1 MAY 2003 EXCHANGE CONTROL AMNESTY AND AMENDMENT OF TAXATION LAWS ACT. 200.1 (c) that applicant or facilitator, as the case may be. has confirmed that no foreign assets or foreign bearer instruments have been derived wholly or partly from the proceeds of any unlawful activities, as respectively required by sections 6(4) and 8(b). ( 2 ) The amnesty unit shall not grant approval in terms of section 9 in respect of an applicant or facilitator, as the case may be, for tax relief contemplated in Part D, if the Commissioner has indicated that the applicant or facilitator, as the case may be, has not yet submitted an income tax return for the last year of assessment ending on or before 28 February 2003 and no extension for the submission of that return was granted by the Commissioner. (3) The amnesty unit shall grant approval in terms of section 9 in respect of a facilitator in relation to an applicant. only where- (a) that facilitator submits the application jointly with that applicant as contemplated in section 8(a); and (b) the application of that applicant is approved. (4) The amnesty unit must deliver to an applicant or facilitator a notice of its decision not to approve the application and must set out the reasons therefor. Part C Exchange Control Relief in terms of Amnesty Imposition of exchange control amnesty levy 11. (1) An applicant with approval in terms of section 9( 1 ) is subject to an exchange control amnesty levy in respect of the leviable amount determined in terms of subsection ( 2 1. I 2 i The leviable amouni equals the total market value of all foreign assets disclosed 2: c ~ ~ m p l a t e d s=c:ion in 6( I)(a): reduced by- 5 10 15 20 25 ( a ) so much of the market value of all those foreign assets as is proved by the applicant not to be held by that applicant in contravention of the Exchange Control Regulations; and f b ) in the case of a natural person. the permissible foreign capital allowance in terms of the Exchange Control Regulations, translated to the relevant foreign 30 currency at the exchange rate as published by the South African Reserve Bank for 38 February 2003 (to the extent that the allowance has not otherwise been a\.ailed of by the applicant). Arnoun: of exchange controi amnesty levy 13. ; !,I The e x c h a p contro! amnesty ley). is equa! t o - 35 ! a ) 5 per cent of so much of the leviable amount as is repatriated to the Republic through an authorised dealer within three months after the date of approval (otherwise than for purposes of paying the levy contemplated in paragraph ( b ) from foreigr! assets as required by section 13C)ib)): and ! 0 ?er cent of the ieviabk amount remaining after deducting the amount 40 repatriated as contemplated in parayraph (ai. ! i) 1 ( 2 ) The amnesty unit may extend the period contemplated in subsection (l)(a) by a further period of no more than three months- ( a ) to the extent that an applicant proves that an amount which that applicant wishes to repatriate cannot reasonably be converted into Rand within that 45 period; O r (bj in anticipation of an amendment to the Income Tax Act, 1962. in respect of the exemption of certain foreign dividends, where the repatriation will be effected by way of a foreign dividend. (3) The leviable amount on which the levy is calculated in terms of subsection (1 1, is 50 determined before taking into account any fees or commissions. 70 No. 250.17 GAZE'ITE, GOVERNMENT 3 1 MAY 2003 Act No. 12,2003 EXCHANGE CONTROL AMNESTY AND AMENDMENT OF TAXATION LAWS ACT. 2003 Payment of exchange control amnesty levy 13. (1) All amounts of the exchange control amnesty levy must be paid by an applicant to an authorised dealer by no later than- ( a ) in the case of the exchange control amnesty levy contemplated in section 1?( I)(a). the date of repatriation and must be converted into Rand by using the ruling spot exchange rate on the date of repatriation: and ( b ) in the case of the exchange control amnesty levy contemplated in section 13( l ) ( b ) . three months after the date of approval and must be converted into Rand by using the ruling spot exchange rate on the date of payment. ( 2 ) The exchange control amnesty levy- ( a ) contemplated in section 12( 1 )(a). must be paid from foreign funds repatriated: 5 I 0 and ( b ) contemplated in section 12( 1 )(6). must be paid- [ i ) from any foreign funds not otherwise repatriated in terms of section ( i i I 12( 1 )(a). u2hich are accepted by an authorised dealer: or to the extent that the applicant no longer holds any foreign assets. from any foreign funds so repatriated. 15 ( 3 The authorised dealer must pay all amounts received in terms of subsection (1 ) into an account held for that purpose at the Corporation for Public Deposits established in terms of section 3 ofthe Corporation for Public Deposits Act. 1984 (Act No. 46 of 30 1984). within the period and under the terms prescribed by the Chairperson of the amnesty unit. for subsequent transfer to the National Revenue Fund. (4) The amnesty unit may extend the period contemplated in subsection (I)(b) by a further period of no more than three months- (ai to the extent that an applicant proves that an amount which that applicant must 25 pay from foreign funds cannot reasonably be converted to Rand within that period: or 0 1 ) in anticipation of an amendment to the Income Tax Act, 1962, in respect of the exemption of certain foreign dividends, where the payment ofthe levy will be effected by way of a foreign dividend. 30 (5) For the purposes of this section. "foreign funds" excludes any funds denominated in the currency of an!. country which forms part of the Common Monetary Area for purposes of the Exchange Control Regulations or any assets held in any such country Exchange Control Relief 14. i l An applicant with approval in terms of section 9(1) is deemed not to have 35 contravened the Exchange Control Regulations in respect of- i c ~ i so much of the market value of any foreign assets disclosed in terms of section 611 i : and (6) all other foreign asets which are no longer held by that applicant as at 28 February 2003. otherwise than as a result of a donation of that foreign asset 40 b!, that applicant. ( 2 ) A facilitator \i,ith a p p m d in t e r m of seciion 9(4) is deemed not io have contravened the Exchange Control Regularions in respect of' any foreign ase! contemplated in subsection ( 1 I of an applicant in relation to that facilitator. Part D 35 Tux Relief in terms of Amnesty Exemption for undeclared foreign income

15. An applicant a i t h approval in terms of section 9(1). shall not be liable for the payment of any amount in terms of the Income Tax Act. 1962. and shall be deemed not to have committed any offence in terms of that Act, in respect of any receipts or accruals 50 from a source outside the Republic during any year of assessment ending on or before 28 Februan 2003. which were not declared to the Commissioner, to the extent that those receipts or accruals represent or are included in- 12 No. 25037 3 GAZETTE, GOVERNMENT 1 MAY 2003 Act No. 12.2003 EXCHANGE CONTROL AMNESTY AND AMENDMENT OF TAXATION LAWS ACT, 2003 ( a ) any foreign asset in respect of which that applicant has made disclosure in terms of section 6(2); or (b) any other foreign asset which is no longer held by that applicant as at 28 February 2003. otherwise than as a result of a donation of that foreign asset by that applicant. 5 Imposition and payment of domestic tax amnesty levy 16. ( 1 )An applicant or facilitator with approval in terms of section 9(3) or 9(5). as the case may be. is subject to a domestic tax amnesty levy equal to 2 per cent of the amount disclosed in terms of section 6(3) or 8(cJ, as the case may be, converted to Rand at the exchange rate as accumulation or conversion contemplated in that section. published by the South African Reserve Bank for the date of 10 ( 2 ) The applicant or facilitator, as the case may be, must pay the domestic tax amnesty levy into the account contemplated in section 13(3) held at the Corporation for Public Deposits. within a period of three months after the date of approval, for subsequent transfer to National Revenue Fund. 15 Exemption for undeclared amounts arising in Republic 17. ( 1 ) An applicant with approval in terms of section 9(3) shall not be liable for the payment of any tax or duty- ( a ) in respect of any amount which is equal to the amount accumulated as or converted to foreign assets. as disclosed in terms of section 6(3); and (hi which could have been imposed in terms of the Estate Duty Act, 1955. or the or Income Tax Act. 1962, on or before the date of that accumulation conversion. 20 and that applicant shall be deemed not to have committed any offence in terms of those extent hcts to tbe ( 2 ) A facilitator v:ith approval in terms of section 9:s) shall not be liable for the of any amouni 50 disclosed. 25 payment of any tax or duty- ( a ) in respect of any amount which is equal to the amount accumulated as or converted to foreign assets. as disclosed in terms of section 8(c); and ( h 1 which could have been imposed in terms of the Estate Duty Act, 1955, or the 30 Income Tax Act. 1962. on or conversion, before the date of that accumulation or and that faciiiraror shall be deemed not to have committed any offence in terms of those Acts to tne extent of any amount so disclosed. apply not does Circumstances where relief tax 35

18. This Part does not apply in respect of any amount which- ( u ) had already been paid as at the date of application contemplated in section 5: (.h) r-: -I- -I or is na\fahlP nr becomes pz:'zble b), 19 applicznt or facilitator in consequence of an) return or information furnished to the Commissioner by tiat appiicant or 40 facilitator. as the case may be. or any represenrative of that applicant or faciiirator, as h e case may be, before the date of fnat application. Disallowance of deductions, allowances, losses and rebates

19. An applicant or facilitator may not claim any- (CL) deduction, allowance, assessed loss or assessed capital loss; or (b,! rebate in respect of any foreign taxes payable, which relates to any amount in respect of which section 15 or 17 applies. 45 shall 15017 24 No. ~ ~~ GAZETTE. GOVERNMENT 3 I MAY 2003 , Act No. 12,2003 EXCHANGE CONTROL AMNESTY AND AMENDMENT OF TAXATION LAWS ACT. 7003 Part E Invalidity of Approval and Review of Decision Invalidity of approval 20. ( 1 ) An), approval granted in terms of section 9 in respect of an applicant or facilitator be void- ( a ) in respect of the tax relief contemplated in section 15 or 17. where the applicant or facilitator. as the case may be. fails to submit the tax return for the last year of assessment ending on or before 78 February 2003 b) 29 February 2004; or 5 (0) where it is at any stage determined that any foreign asset or foreign bearer instrument of an applicant wholly or partly represents or has been derived from the proceeds of any unlawful activities. 1 0 12) Where any approval is void by virtue of the provisions of subsection ( 1 ) ( / I ) . any amount of the exchange control amnesty levy or domestic tax amnesty levy which has been paid by an applicant or facilitator based on any such approval shall not be refunded 15 to that applicant or facilitator, as the case may be. Objection against decision of amnesty unit 21. ( 1 ) Any applicant or facilitator aggrieved by a decision of the amnesty unit under this Chapter to den? appro\d. may lodge an objection to the Chairperson of the amnest! unit and must deliver notice of the objection to the Chairperson within 30 days after the 20 date of delivery of the notice contemplated in section lO(3). ( 2 ) The Chairperson must refer the matter to a panel consisting of one senior person each from the South African Rzvenue Service and the Exchange Control Department respe~ivel).. co-opted b! the amnest!. unit for the purpose of rsconsidering the application. ( 3 ) An applicant or facilitator who is dissatisfied with the decision of the panel contemplated in subsection ( 2 ) . may appeal against the decision of the Chairperson to in section 8 3 7 ) of the Income Tax Act. 1967. and the the tax court contemplated provision5 of Part 111 of Chapter I11 of that Act and the rules relating thereto shall apply mrur;.s nzuta,~di~. (4) The tax court contemplated in subsection (3) shall have the jurisdiction to hear an)' appea! nom! in I e r m of this Chapter. Establishment 12. ( 1 I There is hereb! established a bod! ( 2 1 The amnesr!' unir a m as an independent body tinat evaluates ail appiications Io1 to be kno~vn as the amnest! mi:. amnest?' and grants or denies apprm.a! in respect d any such application. Constitution 23. ( 1 The amnest! unit consists of- 75 30 35 40 a Chairperson appointed by the Minister: / a j ( b ) at least four persons from the South .4frican Reserve Bank and at least four persons from the South African Revenue Service. respectively appointed by the Minister to evaluate the applications for amnesty; ic) support personnel seconded by the South African Reserve Bank and.the South 45 African Revenue Service. functions of the amnesty unit: and respectively, to deal with the administrative (dJ any other support personnel appointed by the Chairperson. (2) The Minister must consult the Governor and the Commissioner before appointing the persons contemplated in subsection (1 )(a j and (b). 50 26 No. 25047 Act No. 12,2003 G O V E W E h T GAZETTE, 3 1 MAY 2003 EXCHANGE CONTROL AMNESTY AND AMENDMENT OF TAXATION LAWS ACT, 2003 Powers, functions and duties 24. (1) The amnesty unit- (a) evaluates all applications for amnesty contemplated in section 5; and (b) grants or denies approval of an application in terms of this Chapter. ( 2 ) The powers and functions of the amnesty unit must not, subject to Parts C and D, be construed to interfere with the powers and functions assigned to the General Manager by the Minister in terms of the Exchange Control Regulations or assigned to the Commissioner in terms of any Act administered by him or her, in so far as those powers and functions of the General Manager or Commissioner relate to- (a) the interpretation of those Regulations or any such Act; ( b ) the exercise of a discretion conferred on the General Manager or Commis- 5 10 (c) sioner by those Regulations or any such Act; or the determination by the Commissioner of the liability of a person for any tax or duty in terms of any such Act. (3) The provisions of section 4 of the Income Tax Act, 1961, (but excluding section 15 4( l)(c)(iii)) relating to secrecy and the waiver thereof shall, subject to the provisions of this Chapter. apply mutatis mutandis in respect of any member of the amnesty unit. (4) Despite section 4 of the Income Tax Act, 1962, and section 33 of the South African Reserve Bank Act. 1989 (Act No. 90 of 1989), the Commissioner and the General Manager may provide such information perform its functions in terms of this Chapter. to the amnesty unit as is necessary for it to 20 ( 5 ) Any action taken by the amnesty unit outside its authority under this Chapter shall be void. Disclosure of interest

25. A member of the amnesty unit who has a personal or financial interest in any 25 matie: on which the amnesty unit must decide, must disclose that interest and withdraw from the proceedings of the amnesty unit when that matter is being considered and evaluated. Records, provision and use of information 26. ( 1 ) A copy of the approved application (including all information submitted therewith. but without reflecting any names of persons who have not jointly applied with the applicant for amnesty) granted in terms of- 30 ( a / section 9( 1 ) and 9(4) must be submitted to the General Manager, which shall be used by the General Manager to amend the records of the South African Reserve and i h ! section 9(2). 9(3) and 9(5) must be submitted to the Commissioner to update 35 the register of the South African Revenue Service, to sive effect to the objectives of the exchange control amnesty and accompanying tax measures. ( 2 ) Notwithstanding any provision of an)' other .4ct. thc amncsty unit. the 40 P ~-amp;lissic)ner and the General Manager may no: request detaiis from the applicant or faciiitator with regard to an!- person- ( a ) who advised an applicant in respect of whom approval has been granted on the method of accumulating foreign assets or transferring funds or assets from the Republic: or ( b ) who assisted that applicant by accumulating foreign assets or transferring funds or assets from the Republic. other than a facilitator in respect of whom approval is granted. 45 ( 3 ) ,4ny information submitted 1?> an applicant in terms of section 6 or 7 or by a facilitator in terms of section 8, may not be disclosed to any person where approval in 50 respect of that applicant was not approved as contemplated in section 10; and that information must be submitted to the National Treasury on the date of termination of the existence of the amnesty unit to be retained by the National Treasury for a period of at Bank: 28 No. 25037 GOVERNMENT GAZEITE. 3 1 MAY 2003 Act No. 12.2003 EXCHANGE CONTROL AMNESTY AND AMENDMENT OF TAXATION LAWS ACT. 2003 least five years after that date and the secrecy provisions as applicable to the amnesty unit shall continue to apply to the National Treasury in respect of that information. Termination of existence of amnesty unit

27. The Minister shall terminate the existence of the amnesty unit by notice in the or the appeals in Ga:c.rre at the later of all applications having been either approved respect of those applications which have not been approved. having been finalised. 5 Limitation for purposes of Income Tax Act Miscellaneous 28. ( 1 ) For purposes of section 22 of the Income Tax Act. 1961. the value or cost of 10 any foreign asser on 28 February 2003 in respect of which approval for amnesty was granted in terms of section 9. ma! not exceed the value in foreign currency of that foreign asset as disclosed for purposes of the determination of the exchange control amnesty le\,!-. ( 2 ) For purposes of the Eighth Schedule to the Income Tax Act. 1962. the base cost of 15 in terms of any foreign asset in respect of which approval for amnesty was granted section 9. ma!. not exceed the sum of the \ d u e in foreign currency of that foreign asset on 28 Februar! 2003 as disclosed for purposes of the detennination of the exchange control amnesty levy and an!^ expenditure allowable in terms of paragraph 20 of the Eighth Schedule t o the Income Tax Act. 1962. as is incurred after that date. 20 ( 3 ) The aggregate of deductions and allowmce in terms of the Income Tax .4ct, 1962. in respect of an ullowance asset. as defined in section 31 of that Act. for all years of assessment ending on or after 3 Februar! 7003. shall not exceed the sum of the value in foreiyn currcnc! of that foreign asset ab disclosed for purposes of the determination of the exchange control amnest)' lev!; and the cost of any additions and improvements 25 after 28 Februan 2003. Reporting 29. ( 1 The Chairpcrson of the amnest! unit must provide t O - / a ) the Minister a list oi ali appiications for the exchange contl-oi relief in terms of the amnesty- ( i ) indicating in respect of each application whether or not i t was approved: ( i i \ containing the detaiis of the amounts of the relief granted: and ( i i i ) con:amin_c details of the amounts of ie\,!, payable in terms of Part C in 30 respect of each such application: and ( h ) the Minister and the Auditor-General a list of all applications for the tax relief 35 in term\ of the amnest!- rrspcc! cf each apF!icsion \!.h-,ther or nor it !.vas 2pprol:pd: ( i ) jz6icsi:;g i:: (ii i containing the aeraiis 0;' the total amount of receips and accruals from foreign sourcch disclosed i n terms of section 6 ( 2 ) l c 1 ~ and amounts disclosed in terms of section 6t3)(a): and ( i i i ) containing details of the amounts of lev). payable in terms of Part D in respect of each such application. ( 2 ) The list conlemplated in subsection i I I n u t - ( a ) be in a form that does not disclose the identit!. of any applicant or facilitator concerned: and ((11 be subn1it;ed at such times as ma!- be agreed between the Chairperson and the h4inister or Auditor-General. as the case may be. 13) The Minister must report to Parliament on- 40 4s ( N ) the number of applicants and facilitators, respectively, who have applied for amnesty: 50 30 No. 25037 Act No. 12,2003 GOVERNMENT GAZETTE, 3 1 MAY 2003 EXCHANGE CONTROL AMNESTY AND AMENDMENT OF TAXATION LAWS ACT, 2003 (hi the total market value of all foreign assets which have been disclosed in terms of the amnesty; the total amount of all levies payable by all applicants and facilitators; and (c) (d) the total amount of receipts and accruals from foreign sources disclosed in terms of section 6 ( 2 ) ( a ) and amounts disclosed in terms of section 6(3)(a). 5 Regulations

30. The Minister may make regulations for generally giving effect to the objects and purposes of this Chapter. including to address any unintended consequences, anomalies or incongruities that may arise with regard to- ( a ) the application of these provisions to foreign assets held by a discretionary 10 trust which is not a resident, as contemplated in section 4; (6) foreign assets held by an applicant indirectly by way of shareholding in a (c) company which is not a resident: the change in residence of any applicant or determination of residence of a discretionary trust contemplated in section 4: or 1.5 (di the determination of the extent to which any foreign asset represents or was derived from- (i) any unauthorised assets; or (ii) any amount which was not declared to the Commissioner in terms of the Estate Duty Act. 19.55, or the Income Tax .4ct, 1962, as contemplated in 20 section 6 . 7 or 8(c). CHAPTER I1 GENER4L AMENDMENTS TO T.4XATION LAWS Amendment of section 2 of Act 40 of 1949. as substituted by section 2 of Act 77 of 1964 and amended by section 1 of Act 56 of 1966, section 2 of Act 66 of 1973, section 2.5 3 of Act 88 of 1974, section 5 of Act 106 of 1980, section 3 of Act 87 of 1988, section 2 of .4ct 136 of 1992, section 3 of Act 97 of 1993, section 1 of Act 37 of 1995, section 9 of Act 37 of 1996. section 2 of Act 32 of 1999 and section 2 of Act 30 of 2002 31. ( 1 ) Section 2 of the Transfer Dut! Act. 1949. is hereby amended by the substitution in subsection i 1 for paragraph ib) of the following paragraph: 30 '.<b 1 sub-iect to the provisions of subsection (5 1- (i) 0 per cent of so much ~f the said value or the said amount. as the case may be. as does not exceed [R100 0001 R140 000; !ii) 5 per cent of so much of the said value or the said amount. as the cast may he. as exceeds [R100 0001 R140 000 [R300 000; R320 000; and hut does not exceed 35 iiii) 8 per cent of so much of the said value or the said amount. as the case ma). be. as exceeds [R300 0001 R320 000. if the per so^ [by \i-fi~mj who acquires the proper+ [is acquired; or in whose h v o u r or for urhnse benefit the said inreresr or restriction is renounced is a 40 natural person.", ( 3 ) Subsection ( 1) shall be deemed to have come into operation on 1 March 2003 and shall apply in respect of any property acquired. or interest or restriction in any property renounced. in terms of an agreement formally and finally signed on or after that date. Fixing of rates of normal tax in terms of Act 58 of 1962 45

32. The rates of normal tax to be levied in terms of section 5(2) of (ne Income Tax .4ct. 1962, in respect of- ( a ) the taxable income of any person (other than a company) for the year of assessment ending on 29 February 2004: and (h) the taxable income of any company for any year of assessment ending during 50 the period of 12 months ending on 31 March 2004. shall be as set out in Schedule 1 to this Act. 32 No. 25017 Act No. 12.2003 GAZETTE, GOVERNMENT 3 I MAY 2003 EXCHANGE CONTROL AMNESTY AND AMENDMENT OF TAX.4TION LAWS ACT. 2003 Amendment of section 1 of Act 58 of 1962, as amended by section 3 of Act 90 of 1962, section 1 of Act 6 of 1963, section 4 of Act 72 of 1963, section 4 of Act 90 of 1964, section 5 of Act 88 of 1965, section 5 of Act 55 of 1966, section 5 of Act 95 of 1967, section 5 of Act 76 of 1968, section 6 of Act 89 of 1969, section 6 of Act 52 of 1970, section 4 of Act 88 of 1971, section 4 of Act 90 of 1972, section 4 of Act 65 of 1973, section 4 of Act 85 of 1974, section 4 of Act 69 of 1975, section 4 of Act 103 of 1976, section 4 of Act 113 of 1977. section 3 of Act 101 of 1978, section 3 of Act 104 of 1979, section 2 of Act 104 of 1980, section 2 of Act 96 of 1981, section 3 of Act 91 of 1982, section 2 of Act 91 of 1983, section 1 of Act 30 of 1984, section 2 of Act 121 of 1984, section 2 of Act 96 of 1985, section 2 of Act 65 of 1986, section 1 of Act 108 of 1986, section 2 of Act 85 of 1987, section 2 of Act 90 of 1988, section 1 of Act 99 of 1988, Government Notice No. R.780 of 14 April 1989, section 2 of Act 70 of 1989, section 2 ofAct 101 of 1990. section 2 ofAct 129 of 1991, section 2 ofAct 141 of 1992, section 2 of Act 113 of 1993, section 2 of Act 21 of 1994, section 2 of Act 21 of 1995, section 2 of Act 36 of 1996. section 2 of Act 28 of 1997, section 19 of Act 30 of 1998, section 10 of Act 53 of 1999, section 13 of Act 30 of 2000, section 2 of Act 59 of 2000, section 5 of Act 5 of 2001. section 3 of .4ct 19 of 2001, section 17 of Act 60 of 2001, section 9 of Act 30 of 2002 and section 6 of Act 74 of 2002 33. i 1 1 Section 1 of the Income Tax Act. 1962. is hereby amended by the addition after paragraph 101 of the definition of "resident" of the following words: "but does not include an! person \vho is deemed to be exclusively a resident of another countr) into between the governments of the Republic and that other country for the avoidance of double taxation:". for purposes of the application of any ayreement entered ( 2 1 Subsection ( 1 ) shall be deemed to ha\.e come into operation on 26 February 2003. Amendment of section 4 of Act 58 of 1962. as amended by section 6 of Act 55 of 1966. section 4 of Act 104 of 1979, section 32 of Act 104 of 1980, section 3 of Act 96 of 1981, section 3 of Act 85 of 1987. section 3 of Act 70 of 1989, section 4 of Act 21 of 1991. section 3 of k t 36 of 1996. section 34 ofAct 34 of 1997, section 21 of Act 30 of 1998. section 11 of.Act 53 of 1999. section 14 of Act 30 of 2000, section 19 of Act 60 of 2001 and section S of Act 74 of 2002

33. Section 1 o f the Income Tax Act. 1962. is hereby amended b! the addition in subsxtion i 1 J t o paragraph ( ( ' 1 of the follou.ing subparagraph: ..( i i i di-elosinr to the Goi.ernor of the South African Reserve Bank or an!. other person 10 whom the powers. function$ and duties have been delegated by the ~ \liniqter in terms of Exchange Control Regulations. 1961. issued in terms of I sectior: ? ~ l f the Currency and Exchanges Act. 3933 (Act No. 9 of 1933). such 1 infommation as ma!. be required for purposes of exercising any power or ~ performin! an\ function or duty in terms of those Regulations.". Amendment of section 6 of Act 58 of 1962. as inserted by section 5 of Act 104 of 1980 and rimended b:, s e d i ~ n 5 (jf'.%ct 96 i;f 1981. sectiw 5 o f a c t 91 of 1982, section 4 of Act 94 of' 1YS3. sectic.m 4 of'.4cl 121 of' 1984, section 3 of Act 96 of 1985, section 4 of Act 85 of 1987. section 4 of Act 90 of 1988, section 4 of Act 70 of 1989, section 3 of .4ct 101 of 1990, section 3 of Act 129 of' 1991, section 4 of Act 141 of 1992, section 5 of Act 21 of 1995. section 4 of Act 36 of 1996. section 3 of Act 28 of 1997, section 22 of Act 30 of 1998. section 5 of Act 32 of 1999, section 15 of Act 30 of 2000, section 6 of Act 19 of 2001 and section 11 of Act 30 of 2002

35. Section 6 of the Income Tax Act. 1962. is hereby amended by the substitution in subsection ( 2 1 Ior paragraphs and (0) of the folioning paragraphs: " ( n ) a primary rebate. an amount of [R4 8601 RS 400: and ( h i a secondary rebate. if the taxpayer was or, had the taxpayer lived. would have been over the age of' 65 years on the last day of the year of assessment. an anmount of [R3 0001 R3 100.". 34 No. 25047 GOVERNMENT GAZETIE, 3 1 MAY 2003 .Act No. 12,2003 EXCHANGE COhTROL AMNESTY AND AMENDMENT OF TAXATION LAWS ACT, 2003 Amendment of section 10 of Act 58 of 1962, as amended by section 8 of Act 90 of 1962, section 7 of Act 72 of 1963, section 8 of Act 90 of 1964, section 10 of Act 88 of 1965, section 11 of Act 55 of 1966, section 10 of Act 95 of 1967, section 8 of Act 76 of 1968, section 13 of Act 89 of 1969, section 9 of Act 52 of 1970, section 9 of Act 88 of 1971, section 7 of Act 90 of 1972, section 7 of Act 65 of 1973, section 10 of Act 85 of 1974, section 8 of Act 69 of 1975, section 9 of Act 103 of 1976, section 8 of Act 113 of 1977, section 4 of Act 101 of 1978, section 7 of Act 104 of 1979, section 7 of Act 104 of 1980, section 8 of Act 96 of 1981, section 6 of Act 91 of 1982, section 9 of Act 94 of 1983, section 10 of Act 121 of 1984, section 6 of Act 96 of 1985, section 7 of Act 65 of 1986, section 3 of Act 108 of 1986, section 9 of Act 85 of 1987, section 7 of Act 90 of 1988, section 36 of Act 9 of 1989, section 7 of Act 70 of 1989, section 10 of Act 101 of 1990, section 12 of Act 129 of 1991, section 10 of Act 141 of 1992, section 7 of Act 113 of 1993, section 4 of Act 140 of 1993, section 9 of Act 21 of 1994, section 10 of Act 21 of 1995, section 8 of Act 36 of 1996, section 9 of Act 46 of 1996, section 10 of Act 28 of 1997, section 29 of Act 30 of 1998, section 18 of Act 53 of 1999, section 21 of Act 30 of 2000, section 13 of Act 59 of 2000, section 9 of Act 19 of 2001, section 26 of Act 60 of 2001, section 13 of Act 30 of 2002 and section IS of Act 74 of 2002

36. Section 10 of the Income Tax Act, 1962, is hereby amended by the substitution in subsection (1) for subitems (A) and (B) of item (bb) of subparagraph (xv) of paragraph f i ) of the 20 "(A)in the case of any person who was or. had he or she lived. would have been at least 65 years of ape on the last day of the year of assessment. the amount of [RlO 0001 R I S 000: or (B) in any other case. the amount of [R6 0001 R10 000.". Amendment of section 12E of Act 58 of 1962, as inserted by section 12 of Act 19 of 25 2001 and amended by section 17 of Act 30 of 2002 and section 21 of Act 74 of 2002 subitems: following 37. ( i 1 Section i?E of the Income Tax Act, 1961, by the substitution in subsection ( 3 ) for the expression "R3 million" wherever it may occur in subparagraph ii) of paragraph f a ) of the expression "RS million". is hereby amended ( 2 ) Subsection (1 j shall be deemed to have come into operation on 1 April 2003 and 30 shall apply in respect of any year of assessment ending on or after that date. .4mendment of section 64C of Act 58 of 1962, as inserted bJ- section 34 of Act 113 of I993 and amended by sectioc 13 of .4ct 140 of 1993. section 25 of Act 21 of 1994. section 30 of-4ct 21 of 1??5, section 22 o f k t 36 of 1896, section 40 o f k t 30 of 1998. section 36 of .4ct 53 of 1999, section 40 of Act 30 of 2000, section 43 of Act 59 of 2000 35 and sectior? 37 of Act 74 of 20(!2 38. ( 1 ) Section 63C of the income Tax Act, 1962, is hereby amended- l a ) by the deletion of the word "or" at the end of paragraph (d) of subsection (3) and the addition of the word "or" at the end of paragraph (e) of that w i x c l i o n : and 4r? t h i 't?! tit addition to subsection ( 3 ) of the fo!lowing pa:agraph: "L~"I tine company ceases to be a resident to the extent profits and reserves of that company are available for distribution immediately before so ceasing to be a resident (including any amount deemed in terms of the definition of distribution): Provided that any prohibition or limitation on any distribution contained in the company's memorandum and articles of association or founding statement or any agreement must be disre- earded.". 'dividend' in section 1 to be a profit available for 45 - 36 N o . 25047 Act KO. 12.2003 GOVERNMENT GAZETTE. 3 1 MAY 2003 EXCHANGE CONTROL AMNESTY AND AMENDMENT OF TAXATION LAWS ACT, 2003 ( 3 ) Subsection i I 1 shall be deemed to have come into operation on 26 February 2003 and shall apply in respect of any company that ceases to be a resident on or after that date. Amendment of section 4 of Act 91 of 1964, as amended by section 2 of Act 105 of 1969, section 2 of.4ct 110 of 1979, sections 3 and 15 of Act 98 of 1980, section 2 of Act 84 of 1987, section 4 of Act 59 of 1990, section 1 of Act 105 of 1992, section 1 of Act 98 of 1993, section 2 of Act 45 of 1995, Schedule 3 to Act 34 of 1997, section 58 of Act 30 of 1998. section 47 of Act 53 of 1999, section 115 of Act 60 of 2001 and section 43 of Act 30 of 2002 5

39. Section 4 of the Customs and Excise Act. 1961. is hereby amended bj, the addition I O in subsection ( 3 ) to paragraph I h ) of the following subparagraph: '.( \ J disclosinr t o the Governor of the South African Reserve Bank or an)' other person IO whom the powers. functions and duties have been delerated by the I Minister i n terms of Exchanpe Control Regulations, 1961. issued in terms of section 9 of the Currency and Exchanges Act. 1933 (Act No. 9 information as ma!. be required for purposes of exercising any power performing an!' function or duty in terms of those Regulations.". or Amendment of section 47B of Act 91 of lY64, as inserted by section 59 of Act 30 of 2000 40. ( I I Secrion 37B of the Customs and Excise Act. 1963. is hereby amended by the 20 substitutior? in suhection ( 3 ) for the n w d s i n subparagraph ( i ) of paragraph ([I) preceding the pro\.iso of the following words: ..( i Tne tax shali be charged at the rate of [R100] R1 10 on the carriage of each __ charrrcable pa\senFer departing on a flight:". ( 3 ) Suivcction ( 1 ) shali come into operation on i July 2003. and shall apply to any 1.5 carriage ci' 2 cnargeabie passenger on any Right which commences on or after that date: Prolided that the pro\,isions of subsection \ 1 shall not appl!, in respect ofthe carriage of' an!' charzsahle passenger. where the tichet in respect of that flight was purchased and issued h:fox rhr date of promulgation of this ,Act. Amendment of Schedule No. 1 to .4ct 91 of 1961. as amended by section 19 of Act 30 95 of 1965. section 15 of Act 57 of 1966. section 2 of Act 96 of 1967. section 22 of Act 85 of 1968. srction Si of Act 105 of' 1969. section 9 of Act 98 of 1970, section 2 of Act 89 of 2971. sectiop 22 of.4ct 103 of 2972. sectior? 6 of act 68 of 1973, section 3 of.4ct 64 of 1974. section 13 of Act 71 of 1975, section 13 of Act 105 of 1976, section 38 of .4ct 112 d !977. sectior! 3 of Act 114 of 1981. section 77 of.4ct 86 of 2982, section 10 35 ofrtct 8Q of 19% section 13 of Act 101 of 1985. sectior? 11 of.4ct 69 of 1988. section 19 oPAcr 68 of' IY84, section 40 of Act 59 of 199C. section 3 of Act 111 of 1991. section 15 of Act 105 of 1992, section 13 of Act 98 of 1993, section 12 of Act 19 of 1994, section 74 ul'Acl41 of !'?os, section 8 oP.lict 43 of 1996. section 15 of Act 27 of 1997, sectiolr 75 o:'.kcl . X i OF is%. section 7 oriict X of' 1889. hection 64 oi'Act 39 0f'200\i, 4ci section 13 of'.~.cr 19 of' ?!){!I and section 53 of Act 3(:r of 2OG2 41. t 1 I Schedule No. 1 to the Customs and Excise Act. 1964. is hereby amended as set OUI in Scneduie 3 to thiq Act. ( 2 ) Subject t o the proyisions of section 58( 1) of the Customs and Excise Act. 1964. subsection ! shal! h- deemed to h a w come into optration on 26 February 2003. 45 38 N o 25047 Act No. 12.2003 GAZETTE. GOVERNMENT 3 1 MAY 2003 EXCHANGE CONTROL AMNESTY AND AMENDMENT OF T~4XATJOh' LAWS ACT. 2003 Amendment of section 1 of Act 77 of 1968, as amended by section 16 of Act 103 of 1969, section 5 of Act 66 of 1973, section 7 of Act 88 of 1974, section 19 of Act 106 of 1980, section 3 of Act 118 of 1984, section 17 of Act 87 of 1988, section 36 of Act 9 of 1989, section 3 of Act 69 of 1989, section 5 of Act 136 of 1991, section 4 of Act 20 of 1994, section 77 of Act 30 of 1998, section 74 of Act 53 of 1999, section 40 of Act 5 of 2001, section 54 of Act 19 of 2001 and section 141 of Act 60 of 2001 42. (1 1 Section 1 of the Stamp Duties Act, 1968 is hereby amended- ( a ) by the substitution for the definition of "fixed deposit" of the following definition: '. 'fixed deposit' means a negotiable certificate of deposit"; and (b) by the deletion of the definition of "policy of life insurance". ( 7 ) Subsection (1) shall be deemed to have come into operation on 1 April 2003. 5 10 Amendment of section 7 of Act 77 of 1968, as amended by section 18 of Act 103 of 1969, section 10 of Act 89 of 1972, section 8 of Act 66 of 1973, section 3 of Act 70 of 1975. section 5 of Act 87 of 1982, section 7 of Act 118 of 1984, section 5 of Act 69 of 15 1989 and section 55 of Act 19 of 2001 43. i 1 ) Section 7 of the Stamp Duties Act. 1968 is hereby amended by the deletion in subsection ( I of paragraph (ij. ( 3 ) Subsection (1 ) shall be deemed to have come into operation on 1 April 2003. Repeal of section 24 of Act 77 of 1968 20 44. ( 1 Section 24 of the Stamp Duties Act, 1968 is hereby repealed. ( 2 1 Subsection ( 1 I shall be deemed to have come into operation on 1 April 2003 Repeal of Item 18 of Schedule 1 to Act 77 of 1968 45. ( 1 J Item 18 of Schedule 1 to the Stamp Duties Act. 1968. is hereby repealed. ( 2 ) Subsection (1 1 is deemed to have come into operation on 1 April 2003. ' 5 Amendment of section 33 of -4ct 90 of 1989, as amended by section 3 of Act 39 of 1997

46. Section 33 of the South African Reserve Bank .4ct. ! 9851. is hereby amended by the inscTti3n after subsxtioz : ! ! cf the fa!lowing subsection: "( 1.4) The proIrisions of subsection ( 1 ) shall not be construed z5 preventing any director. officer GT emplnyee of the Eank Mrhc is responsible f D i exercising an!. power or performin: ar.! fmction or duty under the Exchange Contro! Rcgula- tions. 1961. issued i n ter;;ls of section 9 of the Currenc) and Exchanges Act. 1933 (.4ct No. 9 of 1933). from disclosing to the Commissioner for the South African Revenue Service an! iniomation as ma! be require6 for purposes of excrcising an! power or performing an!. runction or aut!, in terms of an!. Acr administered by the Comml:~sio;;e;..". Amendment of section 1 of Act 89 of 1991, as amended by section 21 of Act 136 of 1991. paragraph 1 of Government IVotice 2695 of 8 November 1991, section 12 of Act 136 of 1992, section 22 of Act 97 of 1993, section 9 of Act 20 of 1994, section 18 40 of Act 37 of 1996. section 23 of Act 27 of 1997. section 81 of Act 53 of 1993. section 76 of Act 30 of 2000, section 64 of .4ct 59 of 2000, section 65 of Act 19 of2001, section 148 of Act 60 of 2001 and section 114 of Act 74 of 2002

47. Section 1 of the Value-Added Tax Act. 1991. is hereby amended by the substitution for paragraph ( u ) of the definition of "commercial accommodation" of the 45 following paragraph: ' - ( a ) lodging or board and lodging, together with domestic goods and services, in any house. flat. apartment. room. motel, hotel. inn, guest house. boarding house. residential establishment. holiday accommcdation unit. chalet. tent. I - 40 No. 25037 GAZETTE. GOVERNMENT 3 1 MAY 2003 Act No. 12,2003 EXCHANGE CONTROL AMNESTY AND AMENDMENT OF TAXATION LAWS ACT, 1003 caravan, camping site, houseboat or similar establishment, which is regularly or systematically supplied and where the total annual receipts from the supply thereof exceeds [R48 0001 R60 000 per annum or is reasonably expected to exceed [R48 0001 R60 000 per annum, but excluding a dwelling supplied in terms of an agreement for the letting and hiring thereof;". 5 Amendment of section 6 of Act 89 of 1991, as amended by section 20 of Act 37 of 1996, section 34 of Act 34 of 1997, section 88 of Act 30 of 1998, section 66 of Act 19 of 2001. section 150 of Act 60 of 2001 and section 116 of Act 74 of 2002

48. Section 6 of the Value-Added Tax Act. 1991. is hereby amended- ( a ) by the addition of the word "or" at the end of paragraph (e) of subsection ( 2 ) : 10 and ( 6 1 by the addition to subsection ( 2 ) of the following paragraph: " ( f ) disclosing to the Governor of the South African Reserve Bank or any other person to whom the powers. functions and duties have been delegated by the Minister in terms of Exchange Control Regulations, 1961. issued in terms of section 9 of the Currency and Exchanges Act, 1933 (Act No. 9 of 1933). such information as may be required for purposes of exercising any power or performing any function or duty in terms of those Regulations.". 15 Amendment of section 2 of Act 38 of 1996, as amended by section 107 of Act 30 of 1998 20 19. ( 1 ) Section 2 of the Tax on Retirement Funds Act. 1996. is hereby amended by the substitution in the words preceding paragraph ( a ) for the expression " 2 5 per cent" of the expression * ' 18 per cent". ( 2 ) Subsection ( 1 ) shall he deemed to have come into operation on 1 March 2003. 25 Continuation of certain amendments of Schedules Nos. 1 to 6 and 8 to Act 91 of 1961 50. i 1 ) Ever\, amendment or withdra\val of or insertion in Schedules Nos. 1 to 6. inclusive. and 8 to the Customs and Excise Act. 1964, made under section 38. 56. 60(3) or 7 3 15) of that Act during the calendar year ending on 31 December 3002 shall not 30 lapse by vinue of the provisions of section 48(6). 5h(?). 60(3) or 7 3 16) of that Act. ( 2 ) The amendments of Part 2 and Part 5 of Schedule No. 1 of the Customs and Excise Act. 1963. made under section 48 of that .4ct by Government Notice R.379 of 1 April 3003 in respect of the said Part 2 and Government Notice R.480 of 3 April 200.3 in respect of the said Part 5 . shall not lapse by \.irtue of the provisions of section 4 3 6 ) of 35 that Act. Short title and commencement 51. ! i 1 Thiq Act u h r r i i be called the E~change Control Amnest! and Amendmeni o i Taxxion Laws Act. 200'. ( 2 ) S a w in so far as is otherwise provided in this Act or the context otheruise 40 indicates. the amendments effected to the lncome Tax Act, 1962. by this Act shall for purposes of assessments in respect of normal tax under the Income Tax Act. 1962. be deemed to have come into operation as from the commencement of years of assessment ending on or after I January 2004. 47 No. 25017 GAZETTE. GOVERNMENT 3 I MAY 2003 Act No. 12.2003 EXCHANGE CONTROL AMNESTY AND .4MENDMENT OF TAXATION LAWS ACT. XI03 SCHEDULE 1 RATES OF NORMAL TAX PAYABLE BY PERSONS (OTHER THAN COMPA- NIES) IN RESPECT OF THE YEARS OF ASSESSMENT ENDIh'G 29 FEBRU- ARY 2003, AND BY COMPANIES IN RESPECT OF YEARS OF ASSESSMENT ENDING DURING THE PERIOD OF 12 MONTHS ENDING 31 MARCH 2004 (Section 32)

1 . The rates of normal tax referred to in section 32 of this Act in respect of persons (other than companies) are as follows:- fa) in respect of the taxable income of any person (other than a person in respect of which paragraph ( 1 7 ) applies). an amount of tax calculated in accordance with the table beloM,: I Taxable Income i M.here the taxable income- i does not exceed R70 000 I 1 exceeds R70 000 hut does not exceed R110 000 R a m of Tal IS per cent of each R1 of the taxable income: R12 600 plus 25 per cent of the amount by which the taxahk income exceeds R70 000: R22 600 pluk 30 per cent of the amount b!. [vhich the taxable income exceeds RllO 000: R31 600 plus 35 per cent of the amount by which the taxable income exceeds R140 000: R74 100 plus 10 per cent of the amount by which the taxable income exceeds R255 000. t h ! in respect of the taxable income of any trust (other than a special trust). an amount of 30 cents on each ;and of taxable income.

2. The rates of normal tax referred to in section 31 of this .Act in respect of companies are. subject to the pro\isions of ?ar;_rraph 4. as fdlov.5:- :r/: income of an) coInpaI;> (exziuding taxabie 011 each r a d of the t , ~ ~ b l e income referred to in subparagraphs ib). (c-I. i d ) . fr J. fji. ,,g) and (h)). 30 cents. or. i n the C ~ I C o f a cornpan! x,hich mines for gold on any gold mine and which i r in tern\ of an option exercised hy it exemp; f ~ o n ; the payment of secondan tax on companies. 38 cents: i h ) i n respect of the taxable income of any compan! a.hich qualifies as a small business corporatior! as &tined in secrion !X of tne income Tax .4cr. 1962. on each rand oftn: t n a h l e incone as does no: exzec! R150 OOU. 15 cents. and on each rand of the t a x b i e income of such cornpan!' as exceeds RISG i)i)u. 30 cents: / r . ) on each rand of the taxable income of any employment company as defined in section 12E of the Income Tax ,4ct. 1961, 35 cents: ( d l on each rand o f the taxable income derived by any company from mining for rnld on an) :old mine \A:ith the exclusion of so much of the taxabie income as the Commissioner for the South African Revenue Service determines to be attributable to the inclusion in the gross income of any amount referred to in paragraph ( j ) of the definition of ''gross income" in section 1 of the Income Tax Act. 1962. but after the set-off of any assessed loss in terms of section 301 1 of that Act. a percentage determined in accordance with the formula: y = 3 7 - l & X 44 No. 25047 GAZETTE, GOVERNMENT 3 1 MAY 2003 ~ ~ ~- Act No. 12,2003 EXCHANGE CONTROL AMNESTY AND AMENDMENT OF TAXATION LAWS ACT, 2003 or, in the case of a company which is in terms of an option exercised by it exempt from the payment of secondary tax on companies, in accordance with the formula: y=46-23J X in which formulae y represents such percentage and x the ratio expressed as a percentage which the taxable income so derived (with the said exclusion, but before the set-off of any assessed loss or deduction which is not attributable to the mining for gold from the said mine) bears to the income so derived (with the said exclusion): ( e ) on each rand of the taxable income of any company, the sole or principal business of which in the Republic is, or has been, mining for gold and the determination of the taxable income of which for the period assessed does not result in an assessed loss, which the Commissioner for the South African to be attributable to the inclusion in its gross Revenue Service determines income of any amount referred to in paragraph ( j ) of the definition of “gross income” in section 1 of the Income Tax Act. 1962. a rate equal to the average rate of normal tax or 30 cents. whichever is higher: Provided that for the purposes of this subparagraph. the average rate of normal tax shall be determined by dividing the total normal tax (excluding the tax determined in period assessed) paid by the accordance with this subparagraph for the company in respect of its aggregate taxable income from mining for gold on any gold mine for the period from which that company commenced its gold mining operations on that gold mine to the end of the period assessed. by the number of rands contained in the said aggregate taxable income; !f) on each rand of the taxable income derived by any company from carrying on long-term insurance business in respect of its individual policyholder fund. company policyholder fund and corporate fund, 30 cents; on each rand of the taxable income (excluding taxable income referred to in subparagraphs f h ) . ic). (d). (e). ( f i and ( h ) ) derived by a company which has its place of effective management outside the Republic and which cames on a trade through a branch or agency within the Republic, 35 cents; ( 1 7 ) on each rand of the taxable income derived by a qualifying company as contemplated in section 37H of the Income Tax Act, 1962, subject to the provisions of the said section. zero cents: Provided that the tax determined in accordance with any of subparagraphs ( a ) to (hi, inclusive. shall be payable in addition to the tax determined in accordance with any other of the said subparagraphs.

3. The rates set forth in paragraphs 1 and 2 shall be the rates required to be fixed by Parliament in accordance with the provisions of section 5Q) of the Income Tax Act. 1967.

4. For the purposes of paragraph 2. income derived from mining for gold shall include any income derived from silver. osmiridium. uranium, pyrites or other minerals which may be won in the course of mining for sold. and any other income which results directl! from mining for gold. 5. 111 this Schedule. unless the COnKeXt otherwisc indicates. any word or expression to a.hich a meaning has been assigned in the Income Tax Act. 1962. bears the meaning so assigned. No. 46 GOVERNMENT 25047 GAZETTE, 3 1 MAY 2003 Act No. 12,2003 EXCHANGE CONTROL AMNESTY AND AMENDMENT OF TAXATION LAWS ACT, 2003 SCHEDULE 2 AMENDMENTS TO SCHEDULE NO. 1 TO THE CUSTOMS AND EXCISE ACT, 1964 (Section 41) Tariff item Tariff head- Description Prepared foodstuffs; beverages, spirits and vin- egar: tobacco 19.01 Malt extract; food preparations of flour, meal, starch or malt extract, not containing cocoa powder or containing cocoa powder in a pro- portion, by mass, of less than 50 per cent, not elsewhere specified or included; food prepara- tions of goods of headings nos. 04.01 to 04.04, not containing cocoa powder or containing co- coa powder in a proportion, by mass. of less than I O per cent, not elsewhere specified or included: 1 Preparations, based on sorghum flour. put up for making beverages 22.03 Beer made from malt .IO - 104.11 - 101.1: 21.04 22.05 22.04 - . I O .40 - S O .60 - .70 .80 Wine of fresh grapes, including fortified wines; grape must, other than that of heading no. 20.09 Vermouths and other wine of fresh grapes flavoured with plants or aromatic substances Other fermented beverages (for example, cider, 1 peny and such mead: water, etc.) Sorghum beer (excluding beer made from preparations based on sorehum flour) as- mixtures of wine and 1 still wine Other still fermented beverages, unfortified still fermented beverages. fortified Sparkline wine fermented beverages (excluding sorghum - - I beer) Present rate of duty Proposed rate of duty Excise Customs Excise Customs 34.7crkg 2563cfl of absolute alcohol alcohol alcohol alcohol I I i I 7.82cA 7.82cfl 7.82cfl 7.82cfl 80.7cfl Unfortified 182.5cfl Fortified still wine 13(1.5c/l 23 1.4cfl Other 182.5cll 130.5cfl 231.4cfl 227.6cfl 227.6cfl 275.2c/1 2752cfl Other 252.6ch ,302.72c/l 143.55cA 89.6cfl 89.6cfl 80.7cfl 200.75ch 200.75cfl 143.55cfl 254.54cfl 251.54cfl 252.6cfl 302.72cfl 29.07 Undcnatured eiipl alcohol oi an alcoholic strength by volume of 80 per cent volume or higher; ethyl alcohol and other spirits. dena- tured. of any strenpth 22.08 Undenatured ethyl alcohol of an alcoholic strength by volume of less than 80 p e r cent vol- ume; spirits. liqueurs and other spirituous bev- 1 erapes: 1 the dlstiilation of wine ab5oiute ~ W i n t s p r i : ~ , rnxxfxturcd in the Republic b) Splrits. manufactured in the Republic by the distillation of any sugar cane product Spirits. manufactured in the Republic by the distillation of any grain product \3,67icfi of j- I aicohol aicohol - 3 671cfl of absolute alcohol 3 671cfl of absolute alcohol - 4 O X i c i l of absolute i - - - 4038.lcfl of absolute alcohol 4038.1cfl of absolute alcohol 48 No. 25017 GAZETTE, GOVERNMENT 3 1 MAY 2003 Act No. 12.2003 EXCHANGE CONTROL AMNESTY AND AMENDMENT OF TAXATION LAWS ACT. 1003 - Tariff rariff lead- item ng Description Present rate of duty Proposed rate of duty Other spirits. manufactured in the Republic Imported spirits of any nature, including spirits in imported spirituous beverages (excluding and similar spirituous bever- ages containing added sugar) and in compound alcoholic preparations of an alcoholic strength exceedme I .7 1.3 per cent alcohol bv volume Spirits of any nature I n imported liqueurs, cor- dials and similar spirltuous beverages contain- in,o added sugar. with or without flavouring Clgars. cheroots. cigarillos and cigarettes. of tobacco or of tobacco substitutes j Clear\ !l,o? substances Cigarettes I j Other manufactured tobacco and manufactured 1 1 tobacco substmtes. "homogenlsed" or "recon- 1 stituted" tohacco estract? and essences

1 P ~ p e tobacco 1 0 i1.03 Customs Excise 3 671c/l of absolute alcohol of absolute alcohol 3 575cfl of absolute alcohol or liqueurs, cordials 1 5 3 7 d of absolute alcohol or 1 695c/l 3 m c n of absolute alcohol 76 net I cigarettes I j 3 932. I c/l of absolute 1 alcohol 106 IO6 600c/kg 670c/kg 600c/kg net net 191.25~/10 191.25c/10 175.40c/l0 1 ciparettes I clparette\ I 76 670ckg net 175.30c/10 1 cigarettes 1 0 297ckq , 5 2 5 1 c k g 5 ?5lc/kg 5 8 2 4 c k g 5 823ckp I O 297ckq 12 U 7 c k p 4 3 7 c k g 12