Presentation on theme: "Fasset Update March 2013 Welcome and introduction"— Presentation transcript:
1 Fasset Update March 2013 Welcome and introduction Please indicate that no lunch will be served, only light refreshments will be available at the tea break.
2 Seta Funding Regulations Fasset UpdateMarch 2013Overview of major changesWSP submission will be due on 30 April (and not 30 June as with current) as from 2014Mandatory Grants (previously 50% of SDL) is now 20%80% of the Discretionary Grants funding will be allocated to PIVOTAL programmesPIVOTAL is defined as professional, vocational, technical and academic learning programmes that result in qualifications or part-qualifications on the National Qualifications FrameworkThere is a new ‘minimum requirements’ Mandatory Grant formDiscuss major changes to the Seta environment as a result of the new regulations.
3 Fasset’s Strategy 2013 / 2014Fasset UpdateMarch 2013Fasset is focusing on new relationships in order to extend the skills development reach in implementing a career pipeline approachFurther Education Training (FET) CollegesUniversitiesAddressing skills need in the public sectorProvincial footprint, focus on rural areasA PIVOTAL Grant will be introduced for all races, however the transformation agenda will continue to be pursued through specific interventions such as SCG, Bridging Programmes, LCG, NLRG etc.Refer to the partnerships that Fasset intends to develop with various parties.Discuss the transformation agenda and that it will still be addressed through some of the discretionary interventions.
4 Mandatory GrantFasset UpdateMarch 2013Training plan for the upcoming year and training report for the previous year20% of the SDL, paid quarterly2 forms: <50 Employees and >50 Employees (MS Excel format)All training, including short courses, PIVOTAL programmes to be specifiedNo discretionary criteria e.g. any population group, gender etc... appliesCost of training not linked to payout amountTraining committee recommended for employers employing 50 or moreDue 30 June 2013 – to be submitted via hand delivery on FridayWill move to 30 April from 2014Note: Deadline for submission is 30 June 2013 (Sunday), however Fasset will only accept hand deliveries on the last working day before the deadline i.e. Friday 28 June Fax or submissions are welcome over the weekend.
5 Combined Pivotal and Strategic Cash Grant Fasset UpdateMarch 2013Now 50% of the SDL30% of grant may fund any learner on pivotal programme20% of grant to fund Black African learners and people with disabilitiesQualifications (degrees, diplomas), learnerships, internships – to be NQF-registeredLearners currently commencing, undergoing, or completing a pivotal programme in the 2013 calendar yearTariffs are applicableDue date 15 February – to be submitted via hand delivery on FridayStructure of the two grants is the same and will therefore be combined. The criteria for the Strategic Cash Grant remains Black African, however the Pivotal Grant will include all population groups.As the Mandatory Grant was dropped to 20% of the SDL, an employer is able to reclaim the 50% if the full Pivotal Grant of 30% is reached.Deadline for submission is 15 February 2014 (Saturday), however Fasset will only accept hand deliveries on the last working day before the deadline i.e. Friday 14 February Fax or submissions are welcome anytime leading up to the deadline.
6 Learnership Cash Grant Fasset UpdateMarch 2013Entry Grant : On registration of Black African learners on learnershipsExit Grant: On completion of Black African learners on learnershipsSDL payers and non-levy payersFasset learnership or specific other Seta learnership10 entry grants per employer10 exit grants per employerBlack African learners and learners with a disabilityHigher amount for learners with a disabilityEmployers with staff complement under 150Due date 15 February – to be submitted via hand delivery on FridayLength of LearnershipEntry TariffExit Tariff12 monthR 5,00024 monthR 7,000R 13,00036 monthR 20,000Based on a tariff scheme dependant on the status and length of the learnership.Higher tariff is available to learners with a disability as well as if an employer is running a learnership for the first time.
7 NSFAS Loan Repayment Grant Fasset UpdateMarch 2013Ensuring retention of learners on learnerships3 year learnership attracts R 60,000 grant towards NSFAS accountTransformation in the sector: Black African learners and people with disabilitiesLearners currently commencing, undergoing, or completing a learnership in the 2013 calendar year with a Fasset employerEmployed learner or an employer representative may applyBlack African learners will be relieved of the NSFAS financial burdenSalary threshold appliesMay be applied for in tranchesDue date 15 February – to be submitted via hand delivery on FridayNote that the grant will be paid directly to NSFAS and that the learner or employer will not receive the funds.This grant aims to prevent learners from leaving the sector for higher paying salaries before they have completed their learnership.Encourage learners to apply as soon as it opens to decrease the interest calculate.
8 NSFAS Grant Amounts Length Tariff Amount 12 (1 year) On registration Fasset UpdateMarch 2013LengthTariffAmount12 (1 year)On registrationR 5,000In month 12 of the learnershipR 25,00024 (2 year)In month 6 of the 24-month learnershipR 15,000In month 18 of the 24-month learnership36 (3 year)In month 6 of the 36-month learnershipIn month 18 of the 36-month learnershipR 20,000In month 32 of the 36-month learnershipNSFAS Loan Repayment Grant is based on a tariff scheme, dependant on the status and length of learnership.Can be applied for in tranches.
9 Assessor and Moderator Grant Fasset UpdateMarch 2013To ensure the supply of assessors of academic and workplace trainingReimbursement of the cost of trainingMaximum of R 4,500Assessor/moderator to be registered with Fasset in 2013Training can take place before 2013Due date 15 February – to be submitted via hand delivery on Friday
10 Lifelong Learning Fasset Update March 2013MonthTopicsTarget OccupationsMar 2013Budget & Tax Update 2013Legislative (All)Apr 2013Change ManagementHR (SDFs, HR Professionals)May 2013How to Manage your BusinessLeadership and Management (Middle & Senior Managers)Jun 2013Culture and Diversity in the WorkplaceLeadership and Management (Junior and Middle Managers)Jul 2013Project ManagementAug 2013Managing TeamsLeadership and Management (Middle and Senior Managers)Sep 2013Compliance with Changes in Legislation relevant to the Finance SectorOct 2013Mentoring and CoachingNov 2013Conflict ManagementFeb 2014Survive and Thrive in an Office EnvironmentVery Important: From 1 April 2013, only employers that are up-to-date with the Fasset registration i.e. NLPs will be able to register for Lifelong Learning events. NLP forms are available on the website and registration is annual.Only firms with a valid SDL number with Fasset will be able to register for the eventsThis calendar is subject to change
11 Innovations in accreditation Fasset UpdateMarch 2013Whole firm accreditationTo accredit non-credit bearing trainingFirms that offer training that they would like recognised and accreditedNon-credit bearing training i.e. no assessmentFunctions as Approved Provider accreditation i.e. not linked to unit standardsInternshipsInternships that fall into the graduate work-based categoryCompanies apply for programme and site accreditationMay then apply for Fasset grantsClaim points of BEE scorecard
12 Access into Higher Education Bridging Programme:Access into Higher EducationFasset UpdateMarch 2013The funding window opens doors for learners to enter higher education.Black African and all disabled learnersLearners lacking requisite entry requirements into a sector-specific higher education qualificationIncorrect subject choices or followed an unrelated discipline2nd chance learnersComplete programmes and meet entry requirements which allow them to enter sector-relevant higher education qualifications, for progression in the sectorTuition fees, examination support courses and soft skills interventionsMore information on the Bridging Programmes can be found on the Fasset website.Programmes that assist learners in subject choices and gain access to higher education.
13 Academic/Professional Body Qualifications Bridging Programme:Academic/Professional Body QualificationsFasset UpdateMarch 2013The funding window opens doors for learners to enter higher education.Public providers and professional bodies to assist learners to obtain formal qualificationsLearners will be placed in learnerships, internships or full-time employmentNumber of learners with scarce skills qualifications will increaseEmployers will have access to increased numbers of employable learnersBroader economy will benefit with learners who have a cross-cutting skill that is needed to grow the whole economyProgrammes offered by Professional Bodies and HET institutions that assist learners in obtaining the qualification relevant to the sector.
14 Access into Employment Bridging Programme:Access into EmploymentFasset UpdateMarch 2013Designed to assist unemployed learners (NQF levels 6 – 8) and bridge the gap between theoretical learning and workplace experience.Accounting and non-accounting graduatesUnemployed, part of NEET population of learnersMinisterial imperativeWill undergo work readiness programmes e.g. bridging technical, assertiveness, it, English language, attitudeAvailable for employment on learnerships, internships or full-time employmentEmployers will have access to increased numbers of employable learnersBroader economy will benefit with learners who have a cross-cutting skill that is needed to grow the whole economyOnly applicable to certain venues:Training provider available during the breaks o discuss the programme further.NEET: Not in employment education and training
15 Upcoming ResearchFasset UpdateMarch 2013To assist the Board and sector in aligning training to strategic objectives.2012/13 (Year 13) Grant Analysis ReportSector Skills Plan Update for the period commencing 1 April 2014Annual Benchmarking of Training in the SectorLearnership Readiness PackInternship Readiness PackLifelong Learning Learnership Programme (LLLP) Employer Support GuideTracer Study on Development Projects (Academic)Database Update (Employers)Database Update (Learners)Results from the Sector Survey and Customer Satisfaction Survey will be made available and published in the Annual Report.
16 FET Funding WindowFasset UpdateMarch 2013To develop FET colleges, which is also a national and ministerial imperative.Capacitating FET colleges with funding set asideImprovement of relevant courses offered by FET collegesDevelopment of lecturers so as to ensure a quality supply of FET learnersPartnership agreements to be put in place with Waterberg and Sekhukhune FET colleges in Limpopo as part of a broader joint Seta initiative to establish a regional presence in rural areas and townships through FET collegesFasset will support the co-ordinated Seta collaborative effort to establish a regional presence in rural areas and townships through public FET collegesAppointment of a Fasset Provincial Liaison / Brand AmbassadorFasset is the lead Seta in Limpopo and will start the focus of the FET partnerships in this province.
17 Career Guidance and Provincial Strategy Fasset UpdateMarch 2013Fasset has an intensive National Career Guidance campaign:In line with DHET’s National Career Guidance initiativesSetas have a role to play in drawing the youth into the mainstream economyTargeting learners from Grade 9 level onwards, awareness on careers in financeExtend and deepen Fasset’s footprint and reach in rural and impoverished areasFasset Brand AmbassadorsPrint and online advertisingExhibitionsPrint and digital motivational career guidance materialSocial mediaPartnershipsBrand ambassadors are currently being appointed at institutions across the country, and the campaign will run through the 2013 academic year.
18 Stakeholder Engagement Fasset UpdateMarch 2013Engaging with Fasset stakeholders by informing and educating through regular, effective communication, meeting the following strategic imperatives:The promotion of critical and scarce skills areas within our sectorPromotion of skills development within sector through targeted marketingPromoting skills, access to jobs, sustainable livelihoods via development projectsDeveloping a culture of high-quality, lifelong learning and fostering skills development for high-quality jobsFocus on the critical SMME component, specifically levy-exempt employersFostering skills development in the formal economy for productivity and employment growthWe encourage feedback from the sector, should you have any queries or suggestions, please send this through to our Call Centre.
19 Tools Fasset website: www.fasset.org.za Fasset UpdateMarch 2013Fasset website:On the website you can gain access to the following:Download all the application forms you are required to complete for the grantsLatest Fasset informationList of all the relevant Fasset contactsList of Fasset learnershipsApply for Mandatory Grant onlineLifelong Learning calendar
20 or visit www.fasset.org.za Fasset UpdateMarch 2013Thank YouFor more informationplease contact theFasset Call Centreonor visitIntroduce the Speaker
27 Budget – Individual Overview Personal income tax relief of R7 billionIndividuals whose taxable income is from one employer and is below R a year are not required to submit income tax returnsClarity on Retirement reformsTax-preferred savings and investment vehicles are to be introduced by 2015, to encourage greater savingsTax relief on transfer of low cost housing to employeesRules to ensure uniform tax treatment of employee share schemesMonetary threshold for bursaries given to relatives of employees be increasedAlignment of income protection and disability policiesAmendment to exemption when working offshore
31 Budget - Tax-preferred savings and investment vehicles Tax exempt: Returns generated (including interest, capital gains and dividends)Annual contributions limited to R p.a. per taxpayer (no rollover)Lifetime limit of R (to be adjusted for inflation)Interest exemptions to be replaced with interest bearing and equity savings vehiclesPurpose of this is to encourage savings to fund short and medium term expenditureCurrent status: The new accounts will be introduced by April 2015.
32 Budget - Retirement reforms Retirement fund contribution deduction 27.5% of greater of remuneration or taxable income limited to RContributions in excess of the annual capped amounts may be rolled forward to future tax yearsNon-deductible contributions will be exempt on retirement – both annuities & lump sumsProvident fund contributions to be allowed as part of the 27.5% tax deductionEmployer contributions to retirement funds will constitute a taxable fringe benefit, which will qualify for the 27.5% tax deduction.Proposed that provident funds are subject to the same annuitisation rules as pension and retirement annuity funds.
33 Budget - Individuals Trust reform Proposals not apply to special trusts (minor children or disabled persons)Discretionary trusts will no longer operate as flow-through vehiclesTaxable income/(loss) and capital gains/(losses) taxed in trustDistributions treated as deductible expenses iro current taxable incomePossible double taxation of capital gainsReview of trusts as generation skipping devices
34 Budget - Individuals Discretionary Trust Current Proposed Interest Capital profitR20 000Net profit before taxR42 800Less: distribution to beneficiary-R42 800Less: capital profit-R20 000Add: capital gainR13 333Less: tax deductible payment to ben-R36 133Taxable income in trustRNILBeneficiaryCurrentProposedInterestR22 800Interest exemption-R22 800Capital gain (33% inclusion)R6 667Taxable income from trustR36 133Taxable income in beneficiary40%R2 667R14 453
35 Budget - IndividualsDisparity between deduction on disability or income protection policiesProposed treatment is non-deductible contributions and exempt pay-outsCross border servicesCurrent – exemption from SA tax if > 183 days outside SA in 12 monthsProposal indicates possible substitution on of exemption tax credits if SA employer
37 MedicalFor the 2013 (and 2014) tax year there is a combination of rebates and deductionsThe phasing in of the rebate system as opposed to the deduction system will be complete by 1 March 2014 (i.e. the start of the 2015 year of assessment) when the s18 deduction provisions will be deleted
38 Leave pay and other variable cash remuneration Section 23E deleted and section 7B insertedFrom 1 March 2013Leave pay, over-time pay, commission, bonuses and travel reimbursement will shift to a “payment basis”.Payment will triggeremployee gross incomepay-as-you-earn withholding, andemployer deductions.
39 Provision of leased (operating) company cars par 7 7th Schedule: Fringe benefit for car use currently based on premise employer owns the vehicle –determined value based on car valueCompanies increasingly renting cars-rental costs will now form the basis of the fringe benefit valueThe employees can still claim a deduction based on business v private useThe benefit of using an employer’s petrol card will form part of inclusion in cost if linked to specific vehicle
40 Employer owned insurance policies Amendments to clarify when s11(a) deduction on employer owned insurance policies may be claimedSpecific exclusion from 11(w) widened to include:insurance policies against death/ disability /severe illness in the course of employmentThe effect will be to allow 11(a) deduction for these policiesThis will not create a fringe benefit but any pay-out to employee will be taxable
41 Cession Of Employer-owned Insurance Policies (With Investment Values) To Retirement Funds Paragraph (d)(iii)(cc) of the definition of “gross income” in section 1Deferred compensation schemes used as retirement saving vehicleConcession allows for a cession of employer-owned insurance policies (despite any investment element) to a pension or provident fund without triggering tax for employeesDeferred compensation schemes will continue to be discouraged going forward
42 Exemption For Compulsory Annuity Income Stemming From Non-deductible Retirement Contributions Insert section 10C; amend section 11(n); amend paragraphs 5(1) and 6(1)(b) of the Second ScheduleLump sums are exempt to the extent that non deductible contributions were madeThis will be extended to retirement annuities
43 Provisional Tax Amendments Tax Administration Laws Amendment ActClarity that retirement fund lump sum benefit, retirement fund lump sum withdrawal benefit and severance benefit excluded from estimate of taxable incomeCurrent anomaly that creates a potential penalty where actual tax paid exceeds the estimate is addressedClarity that penalties are considered percentage based penalties imposed under Chapter 15 of the Tax Administration Act
45 Budget - CorporateRelief for small businesses corporations and social-impact firmsReforms to the tax regime applicable to small business corporations are proposed.The reforms are aimed at broadening the regime for qualifying entities by increasing the turnover limit from R14 million to R20 million.It is proposed to provide additional tax relief for qualifying companies in the form of an increase in the tax threshold and a reduction in tax payable on the first R550 000 of taxable income.
46 Budget - Corporate Protection of the tax base Closure of artificial and excessive debt has been on the tax policy agenda for more than two yearsRules on artificial debt – will re-characterise to treat as shares (with interest deduction disallowed)Rules on connected person debt – will place limits on interest incurred, with a roll over for interest disallowedRules on acquisition debt – time limits to be imposed for claiming interest
47 Budget - Corporate Tenant improvements to commercial buildings It is proposed that the ownership test for allowance be replaced with “possession and use”Associated amendments to the taxation of the lessor and treatment of leasehold improvements will be effectedThe lack of allowance to commercial tenant was complicating many commercial arrangements
48 Budget - Corporate Special Economic Zones Tax treatment in special economic zones designed to attract investment15% corporate income tax rate for businessesTax deduction for employment of workers earning less than R p.a.Accelerated depreciation allowance for buildingsDonationsDonations to PBOs in excess of the current allowable limit of 10% of taxable income will be carried forward and allowed as a deduction in subsequent yearsClarification of trading stock cost calculationsIt is proposed that the cost price of trading stock automatically agree to IFRS without the need for SARS approval
49 Budget – Corporate Employment Tax Incentive A youth employment tax incentive will be tabled in parliament within the course of this year.This incentive will be aimed at providing the youth with the opportunity to enter the labour market, gain valuable experience and access career opportunities.It will be a graduate tax incentive at the entry-level wage, falling to zero when earnings reach the personal income tax threshold.
51 New Definitions Revised share definition Old: “share” means, in relation to any company, any share or similar equity interest in that companyNew: ‘share’ means, in relation to any company, any unit into which the proprietary interest in that company is dividedDebt terminology consistencyDebt will continue to bear its ordinary meaningSections related to debt have been aligned
52 Dividends tax amendments Section 64EB –New section insertedClosure of dividend conversion schemesSchemes for the benefit of foreign shareholders that arguably reduces the Dividends Tax rate to zero (without any reliance on a tax treaty)The proposed amendment will be effective on 1 September 2012 in respect of transactions entered into on or after that date and to amounts paid on or after 1 October 2012 in respect of transactions entered into before 1 September 2012
53 Dividends tax amendments s64k Tax Administration Laws Amendment Act:Amended to make clear that dividends tax return must be filed when a dividend is paid, regardless of withholding taxs64L Tax Administration Laws Amendment Act:Late rebate allowed if claimed within three years from payment of dividend.declaration AND written undertaking to be submitted for refund.s64M Tax Administration Laws Amendment Act:Refunds in respect of dividends paid by regulated intermediaries-as for 64L
54 Revision of the learnership allowance s12H Amendments to address two practical issues which were limiting the effectiveness of the learnership allowance:Timing of registrationFailed learnerships
55 Repeal of anti-avoidance for the transfer of depreciable assets between connected persons s23J The anti-avoidance rules for connected person sales created certain anomaliesThe increase in the CGT inclusion rate greatly reduced the arbitrage opportunityFor above reasons, anti-avoidance provisions under section 23J wholly deletedConsidering adoption of domestic transfer pricing principles to address larger problem of inflating untaxed gains
56 Allowance amendmentsSection 11(e)(iiA) - requirement for SARS approval of foundation and supporting structure removedSection 12B - supporting structures for electricity generation are now included also at 50:30:20 allowance if fixed to and integrated with the machinery or plantSection 12C - requirement for SARS approval of foundation and supporting structure removedSection 13quat – Urban Development Zones extended from 2014 to 2020
57 Revision Of The Industrial Policy Project Incentive s12I Allowance intended to promote investment in domestic manufacturing sectorClarification that allowance limit is over life of project and not annualScrapping of tax clearance requirementAnnual reporting period will be clarifiedEffective 1 January 2012
58 Government transfers and subsidies s12P Consolidation of tax treatment of government grantsBasic principles-Government grants listed in new 11th Schedule are “exempt” from normal taxIntention for double dipping not to be permittedGenerally, unexpended portion of cash grant = recoupmentEffective years of assessment commencing on/after 1 January 2013
59 Hybrid Equity Instruments –s8E Anti avoidance measure: Any dividend on a share that is a hybrid equity instrument is deemed to be income (formerly deemed to be interest)Exception introduced: where shares issued as a financing tool to acquire substantial interests in a target operating companyThe rule prohibiting “indirect” securities (and even the definition of a prohibited financial instrument) was considered too wide, and amendments narrow the application
60 Third Party Backed Shares s8EA Anti avoidance measure: Any dividend on a share that is a third party backed share is deemed to be incomeAmendments to widen relief for the exception where shares issued as a financing tool to acquire substantial share interests in a target operating companyAmendments to rules specifically catering for multi-tier preference share schemesCertain adjustments to cover certain emerging avoidance gaps
61 Qualifying Interest In Asset-for-share Reorganisations Section 42Minimum threshold for participation exemption reduced to 10%Qualifying interest reduced to 10% to align with participation exemption
62 Debt reductionss20(1)(a) and para 12(5) of the Eight Schedule replaced by s19 and para 12AApplies on or after 1 January 2013If reduction was subject to donations tax, estate duty or was taxed as a fringe benefit no recoupment or gainIf not potential recovery or recoupment (s 19 and 8(4)(a)) or capital gain (para 12A)Position of lender - loss on write off of debt to connected person disregarded unless:Debtor reduces base cost of asset (para 12A)/aggregate capital loss (para 12A)/includes amount in gross income (e.g. a recoupment)Acquirer includes the amount in gross income/aggregate capital gain
63 Debt reductions Y/A commencing after 1 January 2013 Debt used to acquire trading stock still heldReduce “cost” of stock for tax purposesExcess treated as recovery or recoupmentDebt used for expenditure other than trading stock or allowance assetsReduction amount treated as recovery or recoupmentCapital assetsReduce base cost (if still held)Excess reduces assessed capital lossesAny remaining excess is not taxedAllowance assetsFirst applies to capital portion i.e. reduce base cost, excess recouped
64 Debt reductions Y/A commencing after 1 January 2013 Relief from capital gains for:A group of companiesThe debt is reduced in the course of liquidation and if owed to a connected personTo the extent the reduction does not exceed base cost of the connected personNo relief applies if:Debt was reduced as part of a scheme to avoid tax, andThe parties became connected after the debt arose orThe company has not taken steps to liquidate within 36 monthsHas not withdrawn stepsDoes anything to invalidate
65 Incurral of interest in terms of certain debts deemed to be in production of income Section 24O Introduced to provide parity with so called indirect share acquisitions i.t.o s45Deduction will be allowed for interest incurred if that interest is associated with:debt used to acquire controlling share interests and,the acquisition is comparable to those indirectly allowed for indirect share acquisitionsinto operation on 1 January 2013 and applies in respect of acquisition transactions entered into on or after that date
66 Share-for-share recapitalisations s41/43 Par 78 8th Schedule Currently relief in recapitalisation limited to capital gainsUnder new rules rollover will apply to any type of recapitalisations unless consideration other than shares is receivedThe entire "tax profile" of the shares disposed of applies to the new shares acquired, including cost, date of acquisition, and, pre valuation date valuationsThe rules only apply to non equity shares if non equity shares were acquired by means of a subdivision or consolidation
67 Value Mismatches Involving Share Issues s24B(1) and 40CA Deletion of 24B(1) asset received as subscription price for sharescost is lesser of the market value of the asset and the market value of the shares issued40CA introduced-company acquires asset in exchange for shares issued (subject to 24B)deemed to have incurred a cost equal to the market value of the shares issued.If debt is issued, the cost is equal to the amount of the debt
68 Value Mismatches Involving Share Issues s24BA Applies where the company acquires an asset in exchange for the issue of shares and the consideration is not at market valueMV>Value of sharesIssuer of shares has capital gainAcquirer of shares:Capital asset - reduce base costTrading stock - reduce amountMV<Value of sharesexcess deemed dividend for issuer of shares
69 Value Mismatches Involving Share Issues s24BA Will not apply when:transaction where consideration is at arm’s lengthcompany and that person form part of the same group of companiesEffective 1 January 2013Amendment to value shifting rules:because of 24BA no longer necessary for companieswill apply only to a trust or partnership going forwardEffective: 1 January 2014
70 Unified System for Taxing Real Estate Investment Vehicles In order to qualify as a REIT for tax purposes, the entity must be a resident and its securities must be a listed on the JSE as securities in a REITThe REIT may claim deductions in respect of amounts:declared by the REIT as dividends (other than in respect of share buy-backs) to its shareholders;and incurred by it as interest on the debenture portion of a linked unit issued to shareholders (if applicable)Resident shareholders: Dividends distributed by a REIT to its resident shareholders are subject to normal taxForeign shareholders: From1 Jan 2014, dividends distributed to foreign shareholders of a REIT will be subject to dividends tax
71 IT14SD Supplementary disclosure normally issued when: Refund is due As a pre cursor to an auditEssentially a self auditMost of the required reconciliations are not readily available21 calendar days from date of issue option of further 21Failure to comply results in re-assessment or failure to pay refund
72 Micro Business par 11 6th Schedule Gives effect to the turnover tax and employees’ tax aspects of the 2012 Budget proposalMicro-businesses have the option of making tax payments twice-yearlyAligns the relevant provisions of the Income Tax Act with those of the Tax Administration Act, 2011,Clarifies that a penalty under paragraph 11 of the Sixth Schedule is deemed to be a percentage based penalty imposed under Chapter 15 of the Tax Administration Act
74 Budget - VATRegistration of foreign businesses in e-commerce for SA VAT (imported services?)Special time-of-supply rule - services where consideration not determined upfront due to contingent future eventMotor car as defined to include racing and recreational carsTime of supply rules for connected personsConversion date for foreign denominated standard rated invoice
75 Budget - VATFinalisation of export incentive scheme – indirect exports by roadHome-owners associationClaw-back of VAT – debt relief
77 Various issuesSection 1 (paragraph (b) of the ‘instalment credit agreement’ definition)expanded to cater for certain aspects of Sharia compliant (Ijarah) finance leasesCredit and debit notes – s21(1)Allowance to correct mispriced invoicesTransfer duty limitation also does not apply in respect of second-hand fixed property change of use adjustments (backdated to 10 January 2012).
78 Potential Vat Double Charge For Goods Removed From Customs Controlled Areas (CCA) – Existing rules A. Goods imported into a customs controlled area (CCA)VAT on imports exempt on movable goods into a CCA of an IDZOn exit of CCA deemed import triggers VATB. Goods locally supplied to a vendor in a CCA/IDZLocal supplies in CCA are zero ratedVAT relief on temporary (30 day removal)On exit (over 30 days) deemed supply triggers VATC. Personal consumption of goods in a CCAVAT triggered if not wholly consumed in the course of making taxable supplies
79 Potential Vat Double Charge For Goods Removed From Customs Controlled Areas (CCA)-New rules A. Goods imported into a customs controlled area (CCA)Will remain outside of VAT net regardless of 30 day rule when entered for home consumptionB. Goods locally supplied to a vendor in a CCA/IDZCustoms officials will set triggering eventC. Personal consumption of goods in a CCAIf initially converted to private use won’t be taxed again under 30 day rule on removal
80 Imported Goods Sold By Foreign Persons Prior To Entry For Home Consumption Pre-entry sales by foreign persons exempt if occur within South African territory before home consumptionWill eliminate need for registrationTaxpayer may waive with SARS approval
81 Relief For Bargaining Councils and political parties Goods or services supplied by bargaining councils/political parties to any of their members should exempt to the extent that membership contributions are received as considerationDeregistration for councils/parties that solely supply service to members for contributionsDeemed supply reduced to zeroOutstanding VAT assessed reduced to zero on written applicationNo refunds will be paid on outstanding assessments
82 Miscellaneous provisions Abridged tax invoicesThreshold increased to R5 000MicrobusinessOption to pay turnover tax, VAT and employees tax twice a yearE-filingDeemed filed on 25th if filed on last day of the month
84 Budget - International Protection of the tax baseUniform cross-border withholding tax to prevent base erosionService fees now to be included in cross-border withholding framework, together with the existing withholding on interest and royaltiesSubject to treaty reliefInterest, royalties and cross border service fee amendments ALL effective 1 March 2014
85 Budget - International Deferral of expenditure incurred by certain connected personsTo limit potential abuse, deductions will be deferred until paymentStreamlining currency taxationThe current tax calculation of currency gains and losses is extremely complex and not wholly in sync with accounting principlesThe currency taxation rules will continue to be simplified in favour of a more practical approach that aligns more fully with IFRS
87 Rollover relief for CFC intragroup transactions s45 Current tax system fully extends the domestic rollover regime to cross-border transactions except for intra-group transactions (ie section 45 transactions)The domestic intra-group rollover rules will be extended to include:inbound restructuringssame group of companiesbuilt-in gain equity shares at the transferor company leveland foreign-to-foreign restructurings
88 Exit charge on ceasing to be a Resident of South Africa In response to the Tradehold case:Deemed capital gain or deemed capital loss when either:a resident ceases to be a residenta resident becomes a Headquarter Company (“HQC”)A controlled foreign company (“CFC”) ceases to be a CFC (otherwise than by becoming a resident)Achieved by deeming the person/company to have disposed of its assets on the day immediately before it ceases to be a resident/becomes a HQC /ceases to be a CFC, for an amount equal to the market value thereof; andDeemed reacquired at market value to establish new base cost.
89 Exit charge on ceasing to be a Resident of South Africa Prior position:Section 9H only dealt with a resident ceasing to be a resident or becoming a HQC.New position:CFCs now included within the ambit of section 9HSplit between companies and persons other than companiesDetermines the commencement and ceasing of years of assessment, including the foreign tax year in respect of a CFCUpon a company ceasing to be a resident or becoming a HQC – deemed to have declared and paid a dividend in specieSection 9H provides for an exemption in respect of assets which, after a person ceases to be a resident or a CFC, are attributable to a permanent establishment of that person in South Africa – becoming a HQC is specifically excluded now.
90 Resident definition section 1 In terms of the current “resident” definition, a company will be resident in South Africa if it is:incorporated, established or formed in South Africa; orhas its place of effective management (“POEM”) in South Africa.Added proviso that that where any person that is a resident ceases to be a resident during a year of assessment, that person must be regarded as not being a resident from the day on which that person ceases to be a resident
91 Resident definition s1Relief from the effective management test in the case of high-taxed controlled foreign companies (CFCs)“resident” does not include a company if:The company is incorporated, formed or established outside South AfricaThe company’s POEM is located in South AfricaThe company would be a controlled foreign company with a foreign business establishment, had it not been for its POEM being located in South Africa; andThe aggregate amount of tax payable to the government of any other country in respect of any foreign tax year, constitutes at least 75% of the normal tax that would have been payable in respect of the company’s taxable income, had the company been a resident of South Africa for the foreign tax year.
92 Foreign rebates for service fees improperly subject to foreign withholding taxes s6quin Position prior to amendmentsSection 6quin could not be claimed where tax was imposed in violation of a DTA (not legally payable)Position after amendmentsSection 6quin has been broadened to allow for a credit in respect of South African sourced income that has been subject to foreign taxes even if those foreign taxes were improperly imposed.The credit can be claimed in the absence of a DTA.Amendments dealing with improperly imposed foreign withholding taxes will be effective for years of assessment beginning on or after 1 January 2013.
93 Tax treatment of Foreign Exchange Differences s24I(10A) Will only defer unhedged non-current assets or liabilities between group members or connected personsThe meaning of current asset or current liability will follow the meaning in accordance with IFRSThe revised regime will trigger mark-to-market treatment for foreign currency debts hedged by derivatives and back-to-back loan funding stemming from parties outside the group
94 Tax treatment of Foreign Exchange Differences s24I(10) Section 24I(10) exchange items held and not realised will be deemed to have realised (unless into new section 24I(10A)on the last day of the year of the year of assessment which ends before the year of assessment commencing on or after 1 January 2014
95 Removal Of Misplaced Non-monetary And Monetary Foreign Currency Calculations Assets acquired and disposed of in single foreign currencynatural persons and non trading trusts: Calculate gain or loss in foreign currency and convert to Rand at average exchange rateOther persons: acquisition translated into Rands using exchange rate at acquisition, disposal price will be translated to Rands using the exchange rate at disposal.Removal of non monetary matching for loans (and associated hedges)Currency gains and losses on loans used to acquire assets other than monetary assets will no longer be matched for companies and trading trusts
96 Transfer pricing s31(6)Initiatives aimed at facilitating the expansion, global competitiveness and smooth operation of South African multinational companies in other countriesTransfer pricing will not apply to certain cross-border financial assistance transactions (e.g. loans) and certain cross-border uses of intellectual propertyRelief for transfer pricing in the case of controlled foreign companies with foreign business establishments and a 75% hypothetical South African rate
97 Withholding tax on interest paid to non-residents - s37I – s37K Rate increase to 15% (now proposed effective 1 March 2014)Will apply to interest with an SA sourceExemptions from withholding tax:Interest paid by the Government, any bank or Headquarter Company (>10% of equity shares and voting rights)Interest paid in respect of a listed debt in respect of goods imported into the RepublicPayable to non-resident client as defined in the Securities Services ActCollective investment schemesNatural person >183 days in RSAPermanent Establishment in RSA
98 Withholding tax on royalties paid to non-residents Rate increase to 15% (proposed to be effective 1 March 2014)Will apply to royalty with an SA sourceExemptions from withholding tax:Natural person >183 days in RSAPermanent EstablishmentHeadquarter Company with at least 10% of the equity shares and voting rights
100 Budget – Tax Administration Tenders and tax complianceSARS is now testing an automated tax clearance certificate for implementation later this yearThis will enable the real-time tracking of the tax compliance of the person who tenderedSARS is also following up on payments made by the state to tenderers to check whether full tax disclosure was madeUnderstatement penaltiesCurrently – non-waivingProposed - penalty provisions will be refined and relief will be provided for bona fide errors (welcomed!)
102 Introduction High level overview of the TAA Understand certain key transitional issuesHighlight new or interesting changes in each of the chapters of the TAAAwareness of certain practical areas we have encountered to datePurpose of the TAA:Align administration of the general provisions of tax acts into one actPrescribe rights and obligations of tax payersPrescribe powers and duties of persons engaged in the administration of tax act
103 Chapters in the act Chapter 1 11 Recovery 2 12 Interest 3 13 Refunds 4 Definitions11Recovery2General Administration12Interest3Registration13Refunds4Returns and Records14Write off or Compromise of Tax Debts5Information Gathering15Administrative Non-Compliance Penalties6Confidentiality16Understatement Penalties7Advance Tax Rulings17Criminal Offences8Assessments18Reporting of unprofessional conduct9Dispute Resolution19General provisions10Tax Liability & Payment20Transitional provisions
104 Transitional Rules – Frequently Asked Questions What is the impact on the public officer ?s261 states that public officer appointed ito a tax Act and holding office prior to TAA remains the public officerWhich rules for dispute resolution will apply?S269 states that rules (and regulations) issued under the provision of a tax Act remain in forceWhat is the impact on Rulings, interpretation notes, practice notes and other publications?S269 states that regarded as having been issued under the authority of this Act to the extent relevant to and consistent with the TAA
105 Transitional Rules – Frequently Asked Questions What happens to my tax number?Chapter 20 of the TAA provides that any tax number allocated to a taxpayer prior to the TAA taking effect will continue to be applicable until SARS allocates a new number to the taxpayer under the TAAWhen is the new tax ombud coming into existence?Section 259 of the TAA provides that the Minister of Finance must appoint a person as a Tax Ombud within one year of the commencement date of the TAA
106 Transitional Rules - s270(6) Additional tax, penalty or interest which but for the repeal of the legislation in Schedule 1 would have been capable of being imposed, levied, assessed or recovered by the commencement date of the TAA andWhich has not been imposed, levied, assessed or recovered by the commencement date of the TAA, may be—imposed or levied as if the repeal had not been effected; andassessed and recovered under the TAA
107 Definitions – Chapter 1 Assessment – now includes self-assessment Date of assessment – now means date of issue of assessment and not due date for paymentEffective date – determines date from which interest accruesOfficial publication – constitutes SARS's practice generally prevailingPractice generally prevailing - the only sources of SARS’s binding practices will be official publicationsTax – defined for purposes of the administration of the Act & includes penalties & interest
108 Interpretation - Chapter 2 If the TAA is silent with regard to the administration of a tax Act and it is specifically provided for in the relevant tax Act, the provisions of that tax Act applyIf there is an inconsistency between TAA and another tax Act, then the tax Act will prevailTax administration and Promotion of Administrative Justice ActCertain provisions were codifiedCertain provisions where administrative fairness limited
109 Tax Ombud – Chapter 2 Mandate: To review and address any complaint by a taxpayer regarding a service matter or a procedural or administrative matterThe Tax Ombud may not review—(a) legislation or tax policy;(b) SARS policy or practice generally prevailing(c) a matter subject to objection and appeal under a tax Act(d) a decision of, proceeding in or matter before the tax court.
110 Registration – Chapter 3 TAA provides for a single tax account, and it allows SARS to implement a single registration process for all tax types over timeUltimately this will ease the administrative burden on taxpayers as they will need to submit only one form to register for any of the taxes.Taxpayers will have one account that reflects their entire tax liability.The ultimate objective is to create a single view of a taxpayer
111 Returns and records – Chapter 4 Section 30 - Kept in the original form, in an orderly fashion, and in a safe place, or, where retained in electronic form, in the manner to be prescribed by the Commissioner in a public notice, or in a form specifically authorised by a senior SARS official in terms of section 30(2) of the ActThe public notice has been issued and allows taxpayers to keep records in terms of section 29 in an electronic form, so long as the rules contained in the public notice are adhered to.
112 Returns and records – Chapter 4 Retention periodsa period of five years from the date of the submission of a returnmay be longer in certain defined instances (s32)Section 28 - Statement concerning accounts by a preparerThe preparer must, at the request of the taxpayer, submit to that taxpayer a copy of the certificate or statementextent of the examinationwhether disclose the true nature
113 Returns and records – Chapter 4 Reportable arrangementsAll listed arrangements likely to lead to an undue tax benefit are to be identified by the Commissioner by public noticeFailure to report a reportable arrangement will not constitute a criminal offence, but is subject to an administrative non-compliance penaltyPublic notice 1108 identifies the following as arrangements that lead to an undue tax benefit:Any arrangement that would have qualified as a hybrid equity instrument under s8E/ hybrid debt instrument under s8F of the Income Tax Act if the prescribed period had been 10 years (but does not include any instrument listed on an exchange regulated in terms of the Securities Service Act)
114 Information Gathering – Chapter 5 Keeping a taxpayer informed of the auditStage of audit: A taxpayer is entitled to be informed of the stage the audit is at, at intervals specified by the Commissioner in a Public Notice (Government Notice No 788)Letter of audit findings: Within 21 days of the audit being finished the taxpayer must be given a letter of findings or confirmation that audit inconclusive
115 Information Gathering – Chapter 5 Inspections without prior noticeThe inspection may only be done to determine:the identity of the person occupying the premiseswhether the person occupying the premises is registered for taxwhether the person is keeping records in the required format
116 Information Gathering – Chapter 5 Request for relevant materialSARS may require the taxpayer or another person to, within a reasonable period, submit relevant material“relevant material” defined in section one – “foreseeably relevant”
117 Information Gathering – Chapter 5 Notice of field auditprior notice of at least 10 business daysto make available at the person’s premises specified in the notice relevant material that the official may require to auditWhat doesn’t kill you makes you stronger!
118 Information Gathering – Chapter 5 SARS audits and taxpayer feedbackGovernment Notice No 788 sets out the form and manner of a report to be submitted by SARS to a taxpayer on the stage of completion of an audit, in terms of section 42(1) of the TAA.
119 Information Gathering – Chapter 5 Interviews by SARS and travelling distanceGovernment Notice No 789 (1 October 2012)deals with the distance to be taken into account of in determining whether a person may lawfully decline to attend an interview with SARS
120 Advance Rulings – Chapter 7 The advance ruling system currently regulated in the Income Tax Act and the Value-Added Tax Act is incorporated in TAAEstablishes framework for the system and sets out basic rules regarding:Application process & feesExclusions and refusalsEffect of rulingsImpact of subsequent law changesRetrospective applicationPublication of rulings
121 Advance Rulings – Chapter 7 What is the impact on Rulings?S269 states that regarded as having been issued under the authority of this Act to the extent relevant to and consistent with the TAA
122 Assessments – Chapter 8‘‘Assessment’’ means the determination of the amount of a tax liability or refund, by way of self-assessment by the taxpayer or assessment by SARSThroughout the TAA provision is made for a transition to a full self-assessment system to cater for future modernisation of the tax system
123 Assessments – Chapter 8Old “date of assessment” in relation to any assessment, meant the date specified in the notice of such assessment as the due date or, where a due date is not so specified, the date of such notice“date of assessment’’ now means—(a) in the case of an assessment by SARS, the date of the issue of the notice of assessment; or(b) in the case of self-assessment by the taxpayer—if a return is required, the date that the return is submitted; orif no return is required, the date of the last payment of the tax for the tax period or, if no payment was made in respect of the tax for the tax period,the effective date
124 Assessments – Chapter 8 Important to be aware of impact on timing PrescriptionDispute processesWhereas the Income Tax Act merely refers to the "notice of assessment" in the context of the definition of "assessment", the TAA actually prescribes the content of the notice of assessment in s96(1) and (2).In terms of s96(2) if contrary to return must include grounds
125 Assessments – Chapter 8 New provisions Original assessment: Defined term that includes 1st assessment by SARS & return which incorporates the taxpayer’s determination of the amount of a tax liabilityAdditional assessment: New simplified grounds on which additional assessments may be issued to achieve alignment across taxesReduced assessment: Clarity that reduced assessment will also be issued if taxpayer made undisputed errors in returnJeopardy assessment: May be issued before end of tax period to secure early collection of tax at risk e.g. in case of dissipation
126 Assessments – Chapter 8 New provisions Estimation of assessment: Concept of ‘estimated assessment’ replaced with provision that original, additional or reduced assessment may be ‘based on an estimation’Period of limitations for issuance of assessment: SARS assessment 3 years & self-assessment 5 years
127 Assessments – Chapter 8 Old New s77 Assessment and recording thereof Original assessmentsRecording of assessmentss78Estimated assessmentss95Estimation of assessmentss79Additional assessments92s79AReduced assessmentss93s79BWithdrawal of assessmentss98s80Inspection of record of assessmentss94Jeopardy assessmentss96Notice of assessment
128 Dispute Resolution – Chapter 9 Chapter 9 must be read with the rules to be issued under TAA s103 (which remain the rules ito s107A in ITA for now)New rules will be issued by Minister after consultation with the Minister of Justice and Constitutional Development, by public noticeAs the dispute resolution process is procedurally intensive, the Guide on Tax Dispute Resolution has been aligned with TAA and published
129 Dispute Resolution – Chapter 9 Burden of proofThe burden of proof generally lies with a taxpayerTAA now provides that the burden of proof is on SARS to prove—that an assessment based on an estimate is reasonablethe basis for imposing an understatement penalty
130 Income Tax Act to Tax Administration Act OLDNEWs 81Objection against assessmentChapter 9Dispute resolutionPart BObjection and appeals 104—Objection against assessment or decisions 106—Decision on objections 83Appeals to tax court against assessments 107—Appeal against assessment or decisions 83AAppeals to tax board
131 Income Tax Act to Tax Administration Act OLDNEWs 86AAppeals against decisions of a tax courtPart EAppeal against tax court decisionss 133–141s 88Payment of tax pending appealChapter 10Tax liability and paymentPart BPayment of taxs 164—Payment of tax pending objection or appeal
132 Tax liability and payment – Chapter 10 Debt relief measuresUnder certain circumstances the payment of tax may be suspended if a taxpayer intends to pursue a valid objectionIn order to recognise legitimate circumstances where a taxpayer suffers a temporary liquidity problem, SARS may extend the date for paying a tax debt or enter into an instalment payment arrangement with the taxpayerSARS is also authorised to compromise a tax debt that is not disputed, and SARS may also write tax off temporarily or permanently.
133 Tax liability and payment – Chapter 10 Taxpayer account & allocation of paymentFramework for single taxpayer account with rolling balanceFramework for “first in first out” payment allocation rule i.e. payment may be applied to oldest debt first despite taxpayer designation
134 Interest – Chapter 12 Change (but not yet!) Alignment of interest provisions across taxesAccrued daily and compounded monthlyGeneral ruleInterest accrues from ‘effective date’, i.e. normally the date that tax is payable under a tax Act, to date of payment (see s187)Interest rate is the ‘prescribed interest rate’ except in respect of overpayments of provisional tax (4% points below)Remittance of interest discretion retained - limited to specified circumstances beyond the taxpayer’s control
135 Interest – Chapter 12 Refund interest payable by SARS Interest calculated from the later of the ‘effective date’ or date that the excess payment received by SARSTaxpayer thus normally entitled to refund interest from same date that SARS would have been entitled to interest on unpaid taxSome exceptions in tax Act e.g. VAT Act where interest on refund only payable after 21 days of claim
136 non-compliance Penalty B: Understatement penalty Penalties OverviewPenalty system across taxesTAAA: Administrativenon-compliance PenaltyTargets administrative non-complianceChapter 15B: Understatement penaltyTargets serious non-compliance & tax evasionChapter 16C: Criminal offencesGeneral offences across taxesChapter 17
137 Penalties – Chapter 15 & 16 Old New s 75B Administrative penalty in respect of non-compliances208–220Administrative non-compliance penaltiess 76Additional tax in the event of de-fault or omissionSPart A:Understatment Penaltys 80SReportable Arrangement Penaltiess 212Reportable arrangement penaltyFourth Schedulepara 20(4)Additional tax in the event of tax-able income being underestimatedRemains in ITA, deemed percentage based in TA Apara 20(A(3)Additional tax in the event of failure to submit an estimate of taxable income timeouslypara 27(2)Penalty on late payment of provisional taxRemains in ITA, deemed percentage based in TAA
138 Penalties - Chapter 15: Administrative non-compliance penalties Fixed amount penaltyBased on assessed loss or taxable incomeAdministrative non-complianceParticipant failing to disclose information in respect of a reportable arrangement as required by section 37Fixed penalty amounts for promoter and participant respectivelyReportable arrangementImposed if SARS satisfied that an amount of tax was not paid as and when required under a tax ActEqual to percentage of amount of unpaid taxPercentage prescribed in the tax ActPercentage based penalty
139 Penalties – Fixed Penalty s210 If SARS is satisfied that non-complianceNon-compliance is failure to comply with an obligation that is imposed by or under a tax Act and is listed in a public noticeOnly one public notice on this to dateFailure by a natural person to submit an income tax return as and when required under the Income Tax Act, for years of assessment commencing on or after 1st march 2006, where that person has two or more outstanding income tax returns for such year of assessment, will be liable to the fixed-amount penalty.But – the transitional rules in 270(6) seem to catch other areas of non – compliance….
140 Penalties – chapter 15 Remittance of Administrative penalties Very similar requirements to s75B regulations gazetted on 31 December 2008No significant changes, minor amendments to number of days allowed in certain instances
141 Penalties - Chapter 16 New understatement penalty The current open-ended discretion to impose additional tax (now called understatement penalty under TAA) of up to 200% now limited by a new structure whereby percentage of additional tax will be determined by :Taxpayer’s behaviour (e.g. gross negligence, intentional tax evasion, substantial understatement), andOther objective criteria (e.g. voluntary disclosure, repeat case)
142 Penalties - Chapter 16: Understatement penalty New provisions:Imposition triggered by an ‘understatement’ (defined)If understatement is ‘substantial’ (defined) then behaviour irrelevantMethodology for calculation of tax shortfall prescribedOnus to prove grounds for alleged behaviour on SARSAbility to request remittance severely restrictedAdministrative & understatement penalty ‘double jeopardy’ avoided?Permanent ‘Voluntary Disclosure Programme’ – administrative penalty, understatement penalty & criminal charges relief but not interest
143 Penalties - Chapter 16: Understatement penalty 1 Item2 Behaviour3 Standard Case4 If obstructive, or if it is a ‘repeat case’5 Voluntary disclosure after notification of audit6 Voluntary disclosure before notification of audit(i)Substantial understatement25%50%5%0%(ii)Reasonable care not taken in completing return75%(iii)No reasonable grounds for tax position taken100%35%(iv)Gross negligence125%(v)Intentional tax evasion150%200%10%
144 Refund – Chapter 13A refund need not be authorised by SARS until such time that a verification, inspection or audit of the refund has been finalisedIf a taxpayer provides acceptable security SARS must release a refund before a verification, inspection or audit is finalised.A decision not to authorise a refund is subject to objection and appeal
145 Registration of tax practitioners – Chapter 18 Must register with a recognised controlling bodyThe second phase will be the establishment of an independent regulatory board for tax practitionersMay not register if removed from a professional body or convicted for a crime involving dishonesty in the preceding five years
146 Tax clearance certificates – Chapter 19 SARS must issue or decline to issue the certificate within 21 business days from the date the application is duly filedCourt ruling in favour of taxpayer on revocation of tax clearance certificate because the taxpayer was not afforded an opportunity to make representation to SARS
148 Budget – Miscellaneous Proposals Carbon TaxWith effect from 1 January 2015 a carbon tax rate of R120 per ton of CO2 equivalent, with 10 per cent increases a yearPotential phasing out of electricity levy as carbon tax is phased inVehicle CO2 emissions tax (amendment from 1 April 2013)Passenger vehicles: increase from R70 to R90 per gram of emissions/km above 120 gCO2/kmDouble cabs: increase from R100 to R125 per gram/km inexcess of 175 gCO2/km