On 15 October 2015 Sars advised of its and National Treasury’s report back hearings on the draft Taxation Laws Amendments Bill, 2015 (TLAB) and draft Tax Administration Laws Amendment Bill, 2015 (TALAB); and the Draft Response Document from National Treasury and Sars, as presented to SCoF. Final versions of these documents will be published by date of introduction of the Bills.
Consultation process
The 2015 TLAB and TALAB were publicly released on 22 July 2015. National Treasury and Sars briefed the SCoF on 4 August 2015. National Treasury and Sars received written comments from 52 commentators by deadline of 24 August 2015. Workshops were held on 2 September 2015 for Business Tax and International Tax, on 3 September for Individual Tax and Value-added Tax (VAT) and on 4 September 2015 for Tax Administration to discuss the proposed amendments. SCoF’s deadline for written comments was 14 September 2015 and oral presentations were made at a hearing that was held on 16 September 2015. Further meetings were held after the workshops and the public hearings to discuss specific amendments in more detail. National Treasury and Sars today present a draft document to SCoF containing a summary of responses to the comments received on the two draft Bills.
10. CUSTOMS AND EXCISE ACT, 1964 (C&E ACT) (page 43)
10.1. ALIGNMENT OF PRESCRIPTION PERIODS TO GENERAL PRESCRIPTION PERIOD
10. Customs and Excise Act, 1964 (C&E Act)
10.1. Alignment of prescription periods to general prescription period
(Main reference: section 99; clause 24)
Comment: Amend sections 76(4); 76B(1)(b); 76B(1)(d) and 76B(1)(e) accordingly (ie, amend the two-year period to three years).
Response: Noted. Sections 65 and section 66 of the Customs and Excise Amendment Act, 2014, have effected the suggested amendments to sections 76(4); 76B(1)(b); 76B(1)(d) of the C&E Act. A review of the remaining prescription periods will be undertaken with a view to possible amendments in the 2016 legislative cycle.
13. TAX ADMINISTRATION ACT, 2011 (TAA) (page 45)
13.20. Voluntary disclosure programme (VDP)
Comment: Sections 863 to 873 of the Customs Control Act, 2014, provides for voluntary disclosure relief in respect of a duty in terms of the Customs Duty Act, 2014 or a duty or levy in terms of the Excise Duty Act, 1964. Section 873 of the Customs Control Act, 2014, created an anomaly in respect of section 277 in that duty in terms of the Customs Duty Act, 2014, does not extend to value-added tax on importation of goods. The question in this instance is to whom such applications should be directed. In the circumstances it is recommended that section 227(b) be amended to read: “(b) involve a default which has not occurred within five years of a similar default by the applicant or a person referred to in section 226(3), but excluding any unintended default on a customs declaration.”
Response: Not accepted. VDP for customs and excise matters is regulated under the Customs Control Act, 2014, which already provides that that the VDP provisions of the TAA apply mutatis mutandis for customs and excise matters.
