Parliament Seeks Comment on Taxation Laws Bill

Standing Committee on Finance

Parliament has called for comment on the 2018 Draft Taxation Laws Amendment Bill (TLAB).

National treasury sought comment on the proposed legislation in July 2018.

Some of the main tax proposals contained in the draft TLAB include providing more flexibility for the treatment of retirement fund transfers and withdrawals, introducing a fringe benefit exemption for lower-income employees who receive a loan from their employer for low-cost housing, reviewing the International Shipping exemption for purposes of accommodating the use of replacement ships, shortening the write-off period for electronic communications cables, refinements and clarification for the conversion of debt to equity, the refinement of the interaction between the anti-avoidance rules for dividend stripping with corporate re-organisation rules, inserting rules addressing the use of trusts to defer tax or recharacterise the nature of income, introduction of a one year income characterisation rule for amounts accrued to portfolios of collective investment schemes to provide certainty and limit potential abuse.

The standing committee on finance has also called for comment on the 2018 Draft Tax Administration Laws Amendment Bill (TALAB).

The main tax proposals contained in the draft TALAB include the removal of the requirement to submit tax returns for individuals receiving a tax-exempt dividend, anti-forestalling amendments for excise duties, clarifications on handling incorrect invoices for value-added tax refunds and allowing the collection of value-added tax payments to apply across branches and divisions.

Other issues dealt with that arise from previous legislative commitments include extension of the employment tax incentive, annuitisation for provident fund members and review panel for VAT zero-rated items.

Written comment is invited until 17 August 2018.

Public hearings will also be held in parliament on 21 August 2018.

Sabinet Cape Town Office

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