Draft Tax Legislation Released

Draft Tax Legislation Released

On 22 July 2015, National Treasury released the 2015 Draft Taxation Laws Amendment Bill (TLAB) and 2015 Draft Tax Administration Laws Amendment Bill (TALAB) for public comment.

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The following tax proposals were announced in the Budget on 25 February 2015.

 

  • The 2015 Draft Taxation Laws Amendment Bill (TLAB) 
                        and
  • The 2015 Draft Tax Administration Laws Amendment Bill (TALAB)

 

Some of the key proposals announced in the Budget that the TLAB gives effect to are:

 

  • Closing a loophole to ensure consistent tax treatment on all retirement funds
  • Closing a loophole to avoid estate duty through excessive contributions to retirement funds
  • The tax implications of the outright transfer of collateral
  • Transitional tax issues resulting from the regulation of hedge funds
  • Measures to counter tax free corporate-migrations
  • Withdrawal of special foreign tax credits for service fees sourced in South Africa
  • Reinstatement of the controlled foreign company diversionary income rules
  • Allowing municipalities to demarcate more areas as Urban Development Zones
  • Monetary threshold adjustments for enterprise supplying commercial accommodation

 

Some of the key proposals announced in the Budget that the TLAB gives effect to are:

 

  • Medical scheme tax credits to be taken into account for PAYE
  • Collection of information by South African financial institutions and an associated obligation on the financial institutions to register with SARS
  • Extension of period of limitations for issuance of assessments under narrow circumstances
  • Clarifying qualifying persons for voluntary disclosure, relaxing the requirements for voluntary disclosure and broadening the ambit of voluntary disclosure relief

 

It should be emphasised that the legislation is only in draft and is subject to change following public comment and debate.

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