The current proposal in the 2017 Draft Taxation Laws Amendment Bill (TLAB) on relief for Bargaining Councils will remain in place.
National treasury and the South African Revenue Service (SARS) confirmed this during a recent briefing on the Draft TLAB and the 2017 Draft Tax Administration Laws Amendment Bill in parliament.
Treasury and SARS updated the standing committee on finance on steps taken to address key issues raised during the consultation process on the two bills.
Key issues discussed included the repeal of foreign employment income exemption and the transfer after retirement to preservation funds.
On the latter issue, treasury proposed that the amendment be included in next year’s draft legislation.
As regards relief for Bargaining Councils, treasury indicated that non-compliant Bargaining Councils will be required to come forward and declare information to SARS in order to obtain the relief.
The position regarding PAYE treatment and the income tax treatment of Bargaining Councils will be clarified going forward.
Treasury also pointed out that changes will be made in the 2017 Draft TLAB on debt conversion into equity by “providing that in determining whether there is a debt benefit, taxpayers should consider the increase in value of all classes of shares that a creditor holds in its debtor.”
Changes are also proposed regarding exclusion of impairment adjustments in the determination of taxable income of section 24JB and extending the application of CFC rules to foreign companies held via foreign trusts and foundations.
Treasury and SARS also propose that the loophole in the current tax legislation regarding the use of trusts to defer tax or re-characterise the nature of income will be addressed in the draft 2018 bills.
Meanwhile, in a briefing on the Office of the Chief Procurement Officer, treasury declared that fragmentation and lack of standardisation in supply chain management procurement policies will be addressed in the Draft Public Procurement Bill.
Treasury recently announced that the proposed legislation had been drawn up but is yet to be released for comment.
The Draft TALAB’s explanatory summary was published in Government Gazette 41178.
It will be tabled in parliament on 25 October 2017.
In Notice 170, the Registrar of Securities Services announced that approved amendments to the A2X Trading Rules had been approved.
They kicked in on 13 October 2017.
In Notice 169, approved amendments to the A2X Listing Requirements had also been approved and came into force on 13 October 2017.