Proposed amendment to section 94 temporarily withdrawn

The article titled ‘Good intentions – but at what cost?’ (FTW September 4, 2009) – warning that a proposed amendment to section 94 of the Customs & Excise Act, published in the Taxation Laws Second Amendment Bill, might prove problematic – has been overtaken by legislative developments. And while it was factually correct at the time it was written, this was no longer the case by the time it was published in early September. Author Quintus van der Merwe, head of Customs @ Wylie explains: “The Revenue Law Taxation Bills are published for comment. After receipt of public written responses, the proposed Bill is reconsidered. “According to a report by the Standing Committee on Finance dated 25 August 2009, the proposed amendment to Section 94 of the Customs & Excise Act was held possibly not to be in line with global trends and to be excessively wide. It was agreed to withdraw the proposed amendment for further consideration in consultation with the State law advisers. “SARS is to be commended for dealing with this matter responsibly and taking public comment into consideration,” said Van der Merwe. The proposal and subsequent withdrawal, however, highlights the difficulties faced by law makers. Van der Merwe suggests that our legislature would do well to avoid the urge to over-regulate matters and to rather concentrate on efficient administration, which more often than not would have the same effect.