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NO. 46 OF 1996: REVENUE LAWS AMENDMENT ACT, 1996
PRESIDENT'S OFFICE
No. 1586. 30 September 1996
NO. 46 OF 1996: REVENUE LAWS AMENDMENT ACT, 1996
It is hereby notified that the President has assented to
the following Act which is hereby published for general
information:-
GENERAL EXPLANATORY NOTE:
Words in bold type indicate omissions from existing
enactments.
Words in italics indicate insertions in existing
enactments.
ACT
To amend the Marketable Securities Tax Act, 1948,
so as to further define a certain expression; and to
further regulate the furnishing and production of, the
search for and the seizure of any information, documents or
things, as well as the making of inquiries for the purposes
of the administration of the said Act; to amend the
Transfer Duty Act, 1949, so as to further regulate the
furnishing and production of, the search for and the
seizure of any information,
documents or things, as well as
the making of inquiries for the purposes of the
administration of the said Act;
to amend the Estate Duty
Act, 1955, so as to further regulate the furnishing and
production of, the search for
and the seizure of any
information, documents or things, as well as the making of
inquiries for the purposes
of the administration of the
said Act; to amend the Income Tax Act, 1962, so as to
withdraw certain exemptions;
to further regulate the
granting of depreciation allowances in respect of certain
machinery, plant and buildings;
to provide for a tax
holiday scheme in respect of certain companies; to provide
for certain exemptions from secondary
tax on companies; and
to further regulate the furnishing and production of, the
search for and the seizure of
any information, documents or
things, as well as the making of inquiries for the purposes
of the administration
of the said Act; to amend the Stamp
Duties Act, 1968, so as to further regulate the furnishing
and production
of, the search for and the seizure of any
information, documents or things, as well as the making of
inquiries
for the purposes of the administration of the
said Act; and to repeal certain provisions; to amend the
Value-Added
Tax Act, 1991, so as to deem certain vendors to
have supplied a service in certain circumstances; to
further
regulate the time and value of such deemed supplied
services; to repeal certain obsolete provisions; and to
further
regulate the furnishing and production of, the
search for and the seizure of any information, documents or
things,
as well as the making of inquiries for the purposes
of the administration of the said Act; to amend the
Regional Industrial Development Act, 1993, so as to further
regulate the composition, powers and functions of the
Regional Industrial Development Board;
to amend the
Taxation Laws Amendment Act, 1994, so as to insert certain
expressions and to further define certain
others; to amend
the Income Tax Act, 1996, so as to further regulate the
date of commencement of certain provisions of that Act; and
to amend the Tax on
Retirement Funds Act, 1996, so as to
further define certain expressions; and to further regulate
the determination
of the taxable amount of an untaxed
policyholder fund; and to provide for matters connected
therewith.
(English text signed by the President.)
(Assented to 27 September 1996.)
BE IT ENACTED by the Parliament of the Republic of South
Africa, as follows-
Amendment of section 1 of Act 32 of 1948, as substituted
by section 1 of Act 37 of 1996
1. Section 1 of the Marketable Securities Tax Act, 1948,
is hereby amended by the substitution for the definition of
"stockbroker" of the following definition:
" 'stockbroker' means any natural person who
carries on the business of buying and selling marketable
securities
and who is a practising member of the South
African Institute of Stockbrokers a stockbroker as defined
in section
1 of the Stock Exchanges Control Act, 1985 (Act
No. 1 of 1985);".
Substitution of section 9 of Act 32 of 1948
2. The following sections are hereby substituted for
section 9 of the Marketable Securities Tax Act, 1948:
"General provisions with regard to information,
documents or things
9. (1) For the purposes of this section and sections 9A,
9B, 9C, 9D and 10-
'administration of this Act' means the-
(a) obtaining of full information in relation to the
purchase of any marketable security;
(b) ascertaining of the correctness of any return,
financial statement, document, declaration of facts or
valuation;
(c) determination of the liability of any person for any
tax and any penalty in relation thereto leviable under this
Act;
(d) collecting of any such liability;
(e) ascertaining whether an offence in terms of this Act
has been committed;
(f) ascertaining whether a person has, other than in
relation to a matter contemplated in paragraphs (a), (b),
(c), (d) and (e) of this definition, complied with the
provisions of this Act;
(g) enforcement of any of the Commissioner's remedies
under this Act to ensure that any obligation imposed upon
any person by this Act, is complied with; and
(h) performance of any other administrative function
which is necessary for the carrying out of the provisions
of this Act;
'authorisation letter' means a written authorisation
granted by the Commissioner, or any chief director,
receiver
of revenue or chief revenue inspector under the
control, direction or supervision of the Commissioner, to
an
officer to inspect, audit, examine or obtain, as
contemplated in section 9B, any information, documents or
things;
'documents' include any document, book, marketable
security, record, account, deed, plan, instrument, trade
list,
stock list, brokers note, affidavit, certificate,
photograph, map, drawing and any 'computer print-out' as
defined
in section 1 of the Computer Evidence Act, 1983
(Act No. 57 of 1983);
'information' includes any data stored by means of a
'computer' as defined in section 1 of the Computer Evidence
Act, 1983;
'judge' means a judge of the Supreme Court and includes
a judge in chambers;
'officer' means an officer contemplated in section 3(1)
of the Income Tax Act, 1962 (Act No. 58 of 1962);
'premises' include any building, premises, aircraft,
vehicle, vessel or place;
'things' include any corporeal or incorporeal thing and
any document relating thereto;
'warrant' means a written authorisation issued by a
judge to search for and seize any information, documents or
things under section 9D.
(2) For the purposes of sections 9A, 9B, 9C and 9D,
where any information, documents or things are not in one
of the official languages, the Commissioner or any officer
may by notice in writing require the person liable for the
tax or, on such person's default, any other person, to
produce, within a reasonable period, a translation thereof
in one of the official languages determined by the
Commissioner or such officer.
(3) Any translation referred to in subsection (2) shall
be-
(a) produced at such time and premises as may be
specified by the Commissioner or any officer; and
(b) prepared and certified by a sworn translator or
another person approved by the Commissioner or such
officer.
(4) For the purposes of sections 9C and 9D, the
Commissioner may delegate the powers vested in him by those
sections,
to any other officer.
Furnishing of information, documents or things by any
person
9A. The Commissioner or any officer may, for the
purposes of the administration of this Act in relation to
any
person liable for the tax, require such person or any
other person to furnish such information (whether orally or
in writing), documents or things as the Commissioner or
such officer may require.
Obtaining of information, documents or things at certain
premises
9B. (1) The Commissioner, or an officer named in an
authorisation letter, may, for the purposes of the
administration
of this Act in relation to the person liable
for the tax, require such person or any other person, with
reasonable
prior notice, to furnish, produce or make
available any such information, documents or things as the
Commissioner
or such officer may require to inspect, audit,
examine or obtain.
(2) For the purposes of the inspection, audit,
examination or obtaining of an), such information,
documents or
things, the Commissioner or an officer
contemplated in subsection (1), may call on any person-
(a) at any premises; and
(b) at any time during such person's normal business
hours.
(3) For the purposes of subsection (2), the Commissioner
or any officer contemplated in subsection (1), shall not
enter any dwelling-house or domestic premises (except any
part thereof as may be occupied or used for the purposes
of
trade) without the consent of the occupant.
(4) Any officer exercising any power under this section,
shall on demand produce the authorisation letter issued to
him.
Inquiry
9C. (1) The Commissioner or an officer contemplated in
section 9(4) may authorise any person to conduct an inquiry
for the purposes of the administration of this Act.
(2) Where the Commissioner, or any officer contemplated
in section 9(4), authorises a person to conduct an inquiry,
the Commissioner or such officer shall apply to a judge for
an order designating a presiding officer before whom
the
inquiry is to be held.
(3) A judge may, on ex parte application by the
Commissioner or any officer contemplated in section 9(4),
grant
an order in terms of which a person contemplated in
subsection (7) is designated to act as presiding officer at
the inquiry contemplated in this section.
(4) An application under subsection (2) shall be
supported by information supplied under oath or solemn
declaration,
establishing the facts on which the
application is based.
(5) A judge may grant the order referred to in
subsection (3) if he is satisfied that there are reasonable
grounds
to believe that-
(a) (i) there has been non-compliance by any person with
his obligations in terms of this Act; or
(ii) an offence in terms of this Act has been committed
by any person;
(b) information, documents or things are likely to be
revealed which may afford proof of-
(i) such non-compliance; or
(ii) the committing of such offence; and
(c) the inquiry referred to in the application is likely
to reveal such information, documents or things.
(6) An order under subsection (3) shall, inter alia-
(a) name the presiding officer;
(b) refer to the alleged non-compliance or offence to be
inquired into;
(c) identify the person alleged to have failed to comply
with the provisions of the Act or to have committed the
offence; and
(d) be reasonably specific as to the ambit of the
inquiry.
(7) Any presiding officer shall be a person appointed by
the Minister of Finance in terms of section 83A(4) of the
Income Tax Act, 1962 (Act No. 58 of 1962).
(8) For the purposes of an inquiry contemplated in this
section, a presiding officer designated under subsection
(3) shall-
(a) determine the proceedings as he may think fit;
(b) have the same powers to enforce the attendance of
witnesses and to compel them to give evidence or to produce
evidential material as are vested in a President of the
Special Court contemplated in section 83 of the Income Tax
Act, 1962; and
(c) record the proceedings and evidence at an inquiry in
such manner as he may think fit.
(9) Any person may, by written notice issued by the
presiding officer, be required to appear before him in
order
to be questioned under oath or solemn declaration for
the purposes of an inquiry contemplated in this section.
(10) The notice contemplated in subsection (9) shall
specify the-
(a) place where such inquiry will be conducted;
(b) date and time of such inquiry; and
(c) reasons for such inquiry.
(11) Any person whose affairs are investigated in the
course of an inquiry contemplated in this section, shall be
entitled to be present throughout the inquiry, unless on
application by the person contemplated in subsection (1),
the presiding officer directs otherwise on the ground that
the presence of the person and his representative,
or
either of them, would be prejudicial to the effective
conduct of the inquiry.
(12) Any person contemplated in subsection (9) has the
right to a representative of his choice.
(13) An inquiry contemplated in this section shall not
be public and the presiding officer shall at any time on
application of the person whose affairs are investigated or
any other person giving evidence, exclude from such inquiry
or require to withdraw therefrom, all or any persons whose
attendance is not necessary for the inquiry.
(14) Any person may, at the discretion of the presiding
officer, be compensated for his reasonable expenditure
related to the attendance of an inquiry, by way of witness
fees in accordance with the tariffs prescribed in terms of
section 51 bis of the Magistrates' Courts Act, 1944 (Act
No. 32 of 1944).
Search and seizure
9D. (1) For the purposes of the administration of this
Act, a judge may, on ex parte application by the
Commissioner
or any officer contemplated in section 9(4),
issue a warrant, authorising the officer named therein to,
without
prior notice and at any time-
(a) (i) enter and search any premises; and
(ii) search any person present on the premises, provided
that such search is conducted by an officer of the same
gender as the person being searched, for any information,
documents or things, that may afford evidence as to the
non-compliance by any person with his obligations in terms
of this Act;
(b) seize any such information, documents or things; and
(c) in carrying out any such search, open or cause, to
be opened or removed and opened, anything in which such
officer suspects any information, documents or things to be
contained.
(2) An application under subsection (1) shall be
supported by information supplied under oath or solemn
declaration,
establishing the facts on which the
application is based.
(3) A judge may issue the warrant referred to in
subsection (1) if he is satisfied that there are reasonable
grounds
to believe that-
(a) (i) there has been non-compliance by any person with
his obligations in terms of this Act; or
(ii) an offence in terms of this Act has been committed
by any person;
(b) information, documents or things are likely to be
found which may afford evidence of-
(i) such non-compliance; or
(ii) the committing of such offence; and
(c) the premises specified in the application are likely
to contain such information, documents or things.
(4) A warrant issued under subsection (1) shall-
(a) refer to the alleged non-compliance or offence in
relation to which it is issued;
(b) identify the premises to be searched;
(c) identify the person alleged to have failed to comply
with the provisions of the Act or to have committed the
offence; and
(d) be reasonably specific as to any information,
documents or things to be searched for and seized.
(5) Where the officer named in the warrant has
reasonable grounds to believe that-
(a) such information, documents or things are-
(i) at any premises not identified in such warrant; and
(ii) about to be removed or destroyed; and
(b) a warrant cannot be obtained timeously to prevent
such removal or destruction, such officer may search such
premises and further exercise all the powers granted by
this section, as if such premises had been identified in a
warrant.
(6) Any officer who executes a warrant may seize, in
addition to the information, documents or things referred
to in the warrant, any other information, documents or
things that such officer believes on reasonable grounds
afford evidence of the non-compliance with the relevant
obligations or the committing of an offence in terms of
this Act.
(7) The officer exercising any power under this section
shall on demand produce the relevant warrant (if any).
(8) The Commissioner, who shall take reasonable care to
ensure that the information, documents or things are
preserved,
may retain them until the conclusion of any
investigation into the non-compliance or offence in
relation to which
the information, documents or things were
seized or until they are required to be used for the
purposes of any
legal proceedings under this Act, whichever
event occurs last.
(9)(a) Any person may apply to the relevant division of
the Supreme Court for the return of any information,
documents
or things seized under this section.
(b) The court hearing such application may, on good
cause shown, make such order as it deems fit.
(10) The person to whose affairs any information,
documents or things seized under this section relate, may
examine
and make extracts therefrom and obtain one copy
thereof at the expense of the State during normal business
hours
under such supervision as the Commissioner may
determine.".
Amendment of section 10 of Act 32 of 1948
3. Section 10 of the Marketable Securities Tax Act,
1948, is hereby amended by the substitution for paragraphs
(b) and (c) of subsection (1) of the following paragraphs,
respectively:
"(b) refuses or neglects without just cause shown
by him, refuses or neglects to-
produce any account or document which he has under
paragraph (a) of sub-section (1) of section nine been
required
to produce
(i) furnish, produce or make available any information,
documents or things;
(ii) reply to or answer truly and fully, any questions
put to him; or
(iii) attend and give evidence, as and when required in
terms of this Act; or
(c) fails to attend at the time and place specified in
any notice addressed to him under paragraph (b) of
sub-section
(1) of section nine, or having so attended
refuses to be sworn or to affirm as a witness, or without
just cause
shown by him to answer to the best of his
ability any question put to him, or in reply to any such
question knowingly
gives information which is false
obstructs or hinders any officer in the carrying out of his
duties,".
Amendment of section 11 of Act 40 of 1949
4. Section 11 of the Transfer Duty Act, 1949, is hereby
amended by the substitution for subsection (1) of the
following subsection:
"(1) The Commissioner may
(a) call upon any person to furnish to him, under oath
or not as he may direct, any information or to produce any
documents which the Commissioner may consider necessary for
the purpose of determining the amount of the duty payable
in respect of the acquisition of any property;
(b) require the person liable to pay the duty or the
Government Mining Engineer or any other person to appear
before him for the purpose of clarifying any valuation made
by any such person;
(c) decline to accept any payment of duty otherwise than
as a deposit on account of duty until the appropriate
declarations referred to in section 14 are submitted to
him.".
Insertion of sections 11A, 11B, 11C, 11D and HE in Act
40 of 1949
5. The following sections are hereby inserted in the
Transfer Duty Act, 1949, after section 11:
General provisions with regard to information, documents
or things
11A. (1) For the purposes of this section and sections
11B, 11C, 11D and 11E-
'administration of this Act' means the-
(a) obtaining of full information in relation to the.
acquisition of any property by any person or the
enhancement
of the value of any property of any person;
(b) ascertaining of the correctness of any return,
financial statement, document, declaration of facts or
valuation;
(c) determination of the liability of any person for any
duty and any penalty in relation thereto leviable under
this Act;
(d) collecting of any such liability;
(e) ascertaining whether an offence in terms of this Act
has been committed;
(f) ascertaining whether a person has, other than in
relation to a matter contemplated in paragraphs (a), (b),
(c), (d) and (e) of this definition, complied with the
provisions of this Act;
(g) enforcement of any of the Commissioner's remedies
under this Act to ensure that any obligation imposed upon
any person by this Act, is complied with; and
(h) performance of any other administrative function
which is necessary for the carrying out of the provisions
of this Act;
'authorisation letter' means a written authorisation
granted by the Commissioner, or any chief director,
receiver
of revenue or chief revenue inspector under the
control, direction or supervision of the Commissioner, to
an
officer to inspect, audit, examine or obtain, as
contemplated in section 11 C, any information, documents or
things;
'documents' include any document, agreement,
declaration, book, record, account, deed, plan, instrument,
trade
list, stock list, affidavit, certificate, photograph,
map, drawing and any 'computer print-out' as defined in
section 1 of the Computer Evidence Act, 1983 (Act No. 57 of
1983);
'information' includes any data stored by means of a
'computer' as defined in section 1 of the Computer Evidence
Act, 1983;
'judge' means a judge of the Supreme Court and includes
a judge in chambers;
'officer' means an officer contemplated in section
10(2);
'premises' include any building, premises, aircraft,
vehicle, vessel or place;
'things' include any corporeal or incorporeal thing and
any document relating thereto;
'warrant' means a written authorisation issued by a
judge to search for and seize any information, documents or
things under section 1 1 E.
(2) For the purposes of sections 11B, 11C, 11D and 11E,
where any information, documents or things are not in one
of the official languages, the Commissioner or any officer
may by notice in writing require the person liable for the
duty or, on such person's default, any other person, to
produce, within a reasonable period, a translation thereof
in one of the official languages determined by the
Commissioner or such officer.
(3) Any translation referred to in subsection (2) shall
be-
(a) produced at such time and premises as may be
specified by the Commissioner or any officer; and
(b) prepared and certified by a sworn translator or
another person approved by the Commissioner or such
officer.
(4) For the purposes of sections 11D and 11E, the
Commissioner may delegate the powers vested in him by those
sections, to any other officer.
Furnishing of information, documents or things by any
person
11B. The Commissioner or any officer may, for the
purposes of the administration of this Act in relation to
any
person liable for the duty, require such person or any
other person to furnish such information (whether orally or
in writing), documents or things as the Commissioner or
such officer may require.
Obtaining of information, documents or things at certain
premises
11C. (1) The Commissioner, or an officer named in an
authorisation letter, may, for the purposes of the
administration
of this Act in relation to the person liable
for the duty, require such person or any other person, with
reasonable
prior notice, to furnish, produce or make
available any such information, documents or things as the
Commissioner
or such officer may require to inspect, audit,
examine or obtain.
(2) For the purposes of the inspection, audit,
examination or obtaining of any such information, documents
or
things, the Commissioner or an officer contemplated in
subsection (1), may call on any person-
(a) at any premises; and
(b) at any time during such person's normal business
hours.
(3) For the purposes of subsection (2), the Commissioner
or any officer contemplated in subsection (1), shall not
enter any dwelling-house or domestic premises (except any
part thereof as may be occupied or used for the purposes
of
trade) without the consent of the occupant.
(4) Any officer exercising any power under this section,
shall on demand produce the authorisation letter issued to
him.
Inquiry
11D. (1) The Commissioner or an officer contemplated in
section 11 A(4) may authorise any person to conduct an
inquiry for the purposes of the administration of this Act.
(2) Where the Commissioner, or any officer contemplated
in section 11A(4), authorises a person to conduct an
inquiry,
the Commissioner or such officer shall apply to a
judge for an order designating a presiding officer before
whom
the inquiry is to be held.
(3) A judge may, on ex parte application by the
Commissioner or any officer contemplated in section 11A(4),
grant
an order in terms of which a person contemplated in
subsection (7) is designated to act as presiding officer at
the inquiry contemplated in this section.
(4) An application under subsection (2) shall be
supported by information supplied under oath or solemn
declaration,
establishing the facts on which the
application is based.
(5) A judge may grant the order referred to in
subsection (3) if he is satisfied that there are reasonable
grounds
to believe that-
(a) (i) there has been non-compliance by any person with
his obligations in terms of this Act; or
(ii) an offence in terms of this Act has been committed
by any person;
(b) information, documents or things are likely to be
revealed which may afford proof of-
(i) such non-compliance; or
(ii) the committing of such offence; and
(c) the inquiry referred to in the application is likely
to reveal such information, documents or things.
(6) An order under subsection (3) shall, inter alia-
(a) name the presiding officer;
(b) refer to the alleged non-compliance or offence to be
inquired into;
(c) identify the person alleged to have failed to comply
with the provisions of the Act or to have committed the
offence; and
(d) be reasonably specific as to the ambit of the
inquiry.
(7) Any presiding officer shall be a person appointed by
the Minister of Finance in terms of section 83A(4) of the
Income Tax Act, 1962 (Act No. 58 of 1962).
(8) For the purposes of an inquiry contemplated in this
section, a presiding officer designated under subsection
(3) shall-
(a) determine the proceedings as he may think fit;
(b) have the same powers to enforce the attendance of
witnesses and to compel them to give evidence or to produce
evidential material as are vested in a President of the
Special Court contemplated in section 83 of the Income Tax
Act, 1962; and
(c) record the proceedings and evidence at an inquiry in
such manner as he may think fit.
(9) Any person may, by written notice issued by the
presiding officer, be required to appear before him in
order
to be questioned under oath or solemn declaration for
the purposes of an inquiry contemplated in this section.
(10) The notice contemplated in subsection (9) shall
specify the-
(a) place where such inquiry will be conducted;
(b) date and time of such inquiry; and
(c) reasons for such inquiry.
(11) Any person whose affairs are investigated in the
course of an inquiry contemplated in this section, shall be
entitled to be present throughout the inquiry, unless on
application by the person contemplated in subsection (1),
the presiding officer directs otherwise on the ground that
the presence of the person and his representative,
or
either of them, would be prejudicial to the effective
conduct of the inquiry.
(12) Any person contemplated in subsection (9) has the
right to a representative of his choice.
(13) An inquiry contemplated in this section shall not
be public and the presiding officer shall at any time on
application of the person whose affairs are investigated or
any other person giving evidence, exclude from such inquiry
or require to withdraw therefrom, all or any persons whose
attendance is not necessary for the inquiry.
(14) Any person may, at the discretion of the presiding
officer, be compensated for his reasonable expenditure
related to the attendance of an inquiry, by way of witness
fees in accordance with the tariffs prescribed in terms of
section 5 1bis of the Magistrates' Courts Act, 1944 (Act
No. 32 of 1944).
Search and seizure
11E. (1) For the purposes of the administration of this
Act, a judge may, on ex parte application by the
Commissioner
or any officer contemplated in section 11A(4),
issue a warrant, authorising the officer named therein to,
without
prior notice and at any time-
(a) (i) enter and search any premises; and
(ii) search any person present on the premises, provided
that such search is conducted by an officer of the same
gender as the person being searched, for any information,
documents or things, that may afford evidence as to the
non-compliance by any person with his obligations in terms
of this Act;
(b) seize any such information, documents or things; and
(c) in carrying out any such search, open or cause to be
opened or removed and opened, anything in which such
officer suspects any information, documents or things to be
contained.
(2) An application under subsection (1) shall be
supported by information supplied under oath or solemn
declaration,
establishing the facts on which the
application is based.
(3) A judge may issue the warrant referred to in
subsection (1) if he is satisfied that there are reasonable
grounds
to believe that-
(a) (i) there has been non-compliance by any person with
his obligations in terms of this Act; or
(ii) an offence in terms of this Act has been committed
by any person;
(b) information, documents or things are likely to be
found which may afford evidence of-
(i) such non-compliance; or
(ii) the committing of such offence; and
(c) the premises specified in the application are likely
to contain such information, documents or things.
(4) A warrant issued under subsection (1) shall-
(a) refer to the alleged non-compliance or offence in
relation to which it is issued;
(b) identify the premises to be searched;
(c) identify the person alleged to have failed to comply
with the provisions of the Act or to have committed the
offence; and
(d) be reasonably specific as to any information,
documents or things to be searched for and seized.
(5) Where the officer named in the warrant has
reasonable grounds to believe that-
(a) such information, documents or things are-
(i) at any premises not identified in such warrant; and
(ii) about to be removed or destroyed; and
(b) a warrant cannot be obtained timeously to prevent
such removal or destruction, such officer may search such
premises and further exercise all the powers granted by
this section, as if such premises had been identified in a
warrant.
(6) Any officer who executes a warrant may seize, in
addition to the information, documents or things referred
to in the warrant, any other information, documents or
things that such officer believes on reasonable grounds
afford evidence of the non-compliance with the relevant
obligations or the committing of an offence in terms of
this Act.
(7) The officer exercising any power under this section
shall on demand produce the relevant warrant (if any).
(8) The Commissioner, who shall take reasonable care to
ensure that the information, documents or things are
preserved,
may retain them until the conclusion of any
investigation into the non-compliance or offence in
relation to which
the information, documents or things were
seized or until they are required to be used for the
purposes of any
legal proceedings under this Act, whichever
event occurs last.
(9)(a) Any person may apply to the relevant division of
the Supreme Court for the return of any information,
documents
or things seized under this section.
(b) The court hearing such application may, on good
cause shown, make such order as it deems fit.
(10) The person to whose affairs any information,
documents or things seized under this section relate, may
examine
and make extracts therefrom and obtain one copy
thereof at the expense of the State during normal business
hours
under such supervision as the Commissioner may
determine.".
Amendment of section 17 of Act 40 of 1949, as amended by
section 5 of Act 77 of 1964
6. Section 17 of the Transfer Duty Act, 1949, is hereby
amended by the substitution for subsection (1) of the
following subsection:
"(1) Any person who-
(a) fails to comply with any requirement or demand by
the Commissioner under this Act; or
(b) who knowingly submits or causes to be submitted to
the Commissioner a declaration referred to in section 14
which fails to disclose any material fact relevant to the
nature of the transaction by which property has been
acquired or to the consideration payable in respect of any
property or to the value on which duty is payable;
(c) without good cause, fails to-
(i) comply with any requirement; or
(ii) reply to or answer truly and fully any questions
put to him, by any person acting under section 11C, 11D or
11E; or
(d) obstructs or hinders any officer in the carrying out
of his duties, shall be guilty of an offence and liable on
conviction to a fine not exceeding R200 or to imprisonment
for a period not exceeding one year.".
Substitution of section 8 bis of Act 45 of 1955, as
inserted by section 13 of Act 77 of 1962 and amended by
section
5 of Act 81 of 1965
7. The following sections are hereby substituted for
section 8bis of the Estate Duty Act, 1955:
General provisions with regard to information, documents
or things
8A. (1) For the purposes of this section and sections
8B, 8C, 8D, SE and 28-
'administration of this Act' means the-
(a) obtaining of full information in relation to all
property of the estate of any deceased person as at the
date
of his death or property which is deemed to be
property of that person;
(b) ascertaining of the correctness of any return,
financial statement, document, declaration of facts or
valuation;
(c) determination of the liability of any person for any
duty and any penalty or interest in relation thereto
leviable under this Act;
(d) collecting of any such liability;
(e) ascertaining whether an offence in terms of this Act
has been committed;
(f) ascertaining whether a person has, other than in
relation to a matter contemplated in paragraphs (a), (b),
(c), (d) and (e) of this definition, complied with the
provisions of this Act;
(g) enforcement of any of the Commissioner's remedies
under this Act to ensure that any obligation imposed upon
any person by or under this Act, is complied with; and
(h) performance of any other administrative function
which is necessary for the carrying out of the provisions
of this Act;
'authorisation letter' means a written authorisation
granted by the Commissioner, any chief director or chief
revenue inspector under the control, direction or
supervision of the Commissioner, to an officer to inspect,
audit, examine or obtain, as contemplated in section 8C,
any information, documents or things;
'documents' include any document, book, record, account,
deed, plan, instrument, trade list, stock list, affidavit,
certificate, photograph, map, drawing and any 'computer
print-out' as defined in section 1 of the Computer Evidence
Act, 1983 (Act No. 57 of 1983);
'information' includes any data stored by means of a
'computer' as defined in section 1 of the Computer Evidence
Act, 1983; judge' means a judge of the Supreme Court and
includes a judge in chambers;
'officer' means an officer contemplated in section 6(2);
'premises' Include any building, premises, aircraft,
vehicle, vessel or place;
'things' include any corporeal or incorporeal thing and
any document relating thereto-,
'warrant' means a written authorisation issued by a
judge to search for and seize any information, documents or
things in terms of section 8E.
(2) For the purposes of sections 8B, 8C, 8D and 8E,
where any information, documents or things are not in one
of the official languages, the Commissioner or any officer
may by notice in writing require the executor of the estate
or, on such executor's default, any other person, to
produce, within a reasonable period, a translation thereof
in one of the official languages determined by the
Commissioner or such officer.
(3) Any translation referred to in subsection (2) shall
be-
(a) produced at such time and premises as may be
specified by the Commissioner or any officer; and
(b) prepared and certified by a sworn translator or
another person approved by the Commissioner or such
officer.
(4) For the purposes of sections 8D and 8E, the
Commissioner may delegate the powers vested in him by those
sections,
to any other officer.
Furnishing of information, documents or things by any
person
8B. The Commissioner or any officer may, for the
purposes of the administration of this Act in relation to
the
estate of any deceased person, require the executor of
such estate or any other person to furnish such information
(whether orally or in writing) documents or things as the
Commissioner or such officer may require.
Obtaining of information, documents or things at certain
premises
8C. (1) The Commissioner, or an officer named in an
authorisation letter, may, for the purposes of the
administration
of this Act in relation to the estate of a
deceased person, require the executor of such estate or any
other
person, with reasonable prior notice, to furnish,
produce or make available any such information, documents
or
things as the Commissioner or such officer may require
to inspect, audit, examine or obtain.
(2) For the purposes of the inspection, audit,
examination or obtaining of any such information, documents
or
things, the Commissioner or an officer contemplated in
subsection (1), may call on any person-
(a) at any premises; and
(b) at any time during such person's normal business
hours.
(3) For the purposes of subsection (2), the Commissioner
or any officer contemplated in subsection (1), shall not
enter any dwelling-house or domestic premises (except any
part thereof as may be occupied or used for the purposes
of
trade) without the consent of the occupant.
(4) Any officer exercising any power under this section,
shall on demand produce the authorisation letter issued to
him.
Inquiry
8D. (1) The Commissioner or an officer contemplated in
section 8A(4) may authorise any person to conduct an
inquiry
for the purposes of the administration of this Act.
(2) Where the Commissioner, or any officer contemplated
in section 8A(4), authorises a person to conduct an
inquiry,
the Commissioner or such officer shall apply to a
judge for an order designating a presiding officer before
whom
the inquiry is to be held.
(3) A judge may, on ex parte application by the
Commissioner or any officer contemplated in section 8A(4),
-rant
an order in terms of which a person contemplated in
subsection (7) is designated to act as presiding officer at
the inquiry contemplated in this section.
(4) An application under subsection (2) shall be
supported by information supplied under oath or solemn
declaration,
establishing the facts on which the
application is based.
(5) A judge may -rant the order referred to in
subsection (3) if he is satisfied that there are reasonable
grounds
to believe that-
(a) (i) there has been non-compliance by any person with
his obligations in terms of this Act; or
(ii) an offence in terms of this Act has been committed
by any person;
(b) information, documents or things are likely to be
revealed which may afford proof of-
(i) such non-compliance; or
(ii) the committing of such offence; and
(c) the inquiry referred to in the application is likely
to reveal such information, documents or things.
(6) An order under subsection (3) shall, inter alia-
(a) name the presiding officer;
(b) refer to the alleged non-compliance or offence to be
inquired into;
(c) identify the person alleged to have failed to comply
with the provisions of the Act or to have committed the
offence; and
(d) be reasonably specific as to the ambit of the
inquiry.
(7) Any presiding officer shall be a person appointed by
the Minister of Finance in terms of section 83A(4) of the
Income Tax Act, 1962 (Act No. 58 of 1962).
(8) For the purposes of an inquiry contemplated in this
section, a presiding officer designated under subsection
(3) shall-
(a) determine the proceedings as he may think fit;
(b) have the same powers to enforce the attendance of
witnesses and to compel them to give evidence or to produce
evidential material as are vested in a President of the
Special Court contemplated in section 83 of the Income Tax
Act, 1962; and
(c) record the proceedings and evidence at an inquiry in
such manner as he may think fit.
(9) Any person may, by written notice issued by the
presiding officer, be required to appear before him in
order
to be questioned under oath or solemn declaration for
the purposes of an inquiry contemplated in this section.
(10) The notice contemplated in subsection (9) shall
specify the-
(a) place where such inquiry will be conducted;
(b) date and time of such inquiry; and
(c) reasons for such inquiry.
(11) The executor of the estate of the deceased person
whose affairs are investigated in the course of an inquiry
contemplated in this section, shall be entitled to be
present throughout the inquiry, unless on application by
the person contemplated in subsection (1), the presiding
officer directs otherwise on the ground that the presence
of the executor and his representative, or either of them,
would be prejudicial to the effective conduct of the
inquiry.
(12) Any person contemplated in subsection (9) has the
right to a representative of his choice.
(13) An inquiry contemplated in this section shall not
be public and the presiding officer shall at any time on
application of the executor or any other person giving
evidence, exclude from such inquiry or require to withdraw
therefrom, all or any persons whose attendance is not
necessary for the inquiry.
(14) Any person may, at the discretion of the presiding
officer, be compensated for his reasonable expenditure
related to the attendance of an inquiry, by way of witness
fees in accordance with the tariffs prescribed in terms of
section 5 1bis of the Magistrates' Courts Act, 1944 (Act
No. 32 of 1944).
Search and seizure
8E. (1) For the purposes of the administration of this
Act, a judge may, on ex parte application by the
Commissioner
or any officer contemplated in section 8A(4),
issue a warrant, authorising the officer named therein to,
without
prior notice and at any time-
(a) (i) enter and search any premises; and
(ii) search any person present on the premises, provided
that such search is conducted by an officer of the same
gender as the person being searched, for any information,
documents or things, that may afford evidence as to the
non-compliance by any person with his obligations in terms
of this Act;
(b) seize any such information, documents or things; and
(c) in carrying out any such search, open or cause to be
opened or removed and opened, anything in which such
officer suspects any information, documents or things to be
contained.
(2) An application under subsection (1) shall be
supported by information supplied under oath or solemn
declaration,
establishing the facts on which the
application is based.
(3) A judge may issue the warrant referred to in
subsection (1) if he is satisfied that there are reasonable
grounds
to believe that-
(a) (i) there has been non-compliance by any person with
his obligations in terms of this Act; or
(ii) an offence in terms of this Act has been committed
by any person;
(b) information, documents or things are likely to be
found which may afford evidence of-
(i) such non-compliance; or
(ii) the committing of such offence; and
(c) the premises specified in the application are likely
to contain such information, documents or things.
(4) A warrant issued under subsection (1) shall-
(a) refer to the alleged non-compliance or offence in
relation to which it is issued;
(b) identify the premises to be searched;
(c) identify the person alleged to have failed to comply
with the provisions of the Act or to have committed the
offence; and
(d) be reasonably specific as to any information,
documents or things to be searched for and seized.
(5) Where the officer named in the warrant has
reasonable -rounds to believe that-
(a) such information, documents or things are-
(i) at any premises not identified in such warrant; and
(ii) about to be removed or destroyed; and
(b) a warrant cannot be obtained timeously to prevent
such removal or destruction, such officer may search such
premises and further exercise all the powers granted by
this section, as if such premises had been identified in a
warrant.
(6) Any officer who executes a warrant may seize, in
addition to the
information, documents or things referred to in the
warrant, any other information, documents or things that
such
officer believes on reasonable grounds afford evidence
of the non-compliance with the relevant obligations or the
committing of an offence in terms of this Act.
(7) The officer exercising any power under this section
shall on demand produce the relevant warrant (if any).
(8) The Commissioner, who shall take reasonable care to
ensure that the information, documents or things are
preserved,
may retain them until the conclusion of any
investigation into the non-compliance or offence in
relation to which
the information, documents or things were
seized or until they are required to be used for the
purposes of any
legal proceedings under this Act, whichever
event occurs last.
(9)(a) Any person may apply to the relevant division of
the Supreme Court for the return of any information,
documents
or things seized under this section.
(b) The court hearing such application may, on good
cause shown, make such order as it deems fit.
(10) The executor of the estate to which the
information, documents or things seized under this section
relate,
may examine and make extracts therefrom and obtain
one copy thereof at the expense of the State during normal
business hours under such supervision as the Commissioner
may determine.".
Amendment of section 28 of Act 45 of 1955, as amended by
section 17 of Act 77 of 1962, section 7 of Act 81 of 1965,
section 9 of Act 81 of 1985 and section 12 of Act 97 of
1993
8. Section 28 of the Estate Duty Act, 1955, is hereby
amended by the substitution for paragraph (b)bis of
subsection
(2) of the following paragraph:
"(b) bis without just cause shown by him, fails to
comply with any requirement of the Commissioner made under
sub-section (1) or (2) of section eight bis refuses or
neglects to-
(i) furnish, produce or make available any information,
documents or things;
(ii) reply to or answer truly and fully, any questions
put to him; or
(iii) attend and give evidence, as and when required in
terms of this Act; or".
Amendment of section 10 of Act 58 of 1962, as amended by
section 8 of Act 90 of 1962, section 7 of Act 72 of 1963,
section 8 of Act 90 of 1964, section 10 of Act 88 of 1965,
section 11 of Act 55 of 1966, section 10 of Act 95 of 1967,
section 8 of Act 76 of 1968, section 13 of Act 89 of 1969,
section 9 of Act 52 of 1970, section 9 of Act 88 of
1971,
section 7 of Act 90 of 1972, section 7 of Act 65 of 1973,
section 10 of Act 85 of 1974, section 8 of Act
69 of 1975,
section 9 of Act 103 of 1976, section 8 of Act 113 of 1977,
section 4 of Act 101 of 1978, section
7 of Act 104 of 1979,
section 7 of Act 104 of 1980, section 8 of Act 96 of 1981,
section 6 of Act 91 of 1982,
section 9 of Act 94 of 1983,
section 10 of Act 121 of 1984, section 6 of Act 96 of 1985,
section 7 of Act 65
of 1986, section 3 of Act 108 of 1986,
section 9 of Act 85 of 1987, section 7 of Act 90 of 1988,
section 36 of
Act 9 of 1989, section 7 of Act 70 of 1989,
section 10 of Act 101 of 1990, section 12 of Act 129 of
1991, section
10 of Act 141 of 1992, section 7 of Act 113
of 1993, section 4 of Act 140 of 1993, section 9 of Act 21
of 1994,
section 10 of Act 21 of 1995 and section 8 of Act
36 of 1996
9. (1) Section 10 of the Income Tax Act, 1962, is hereby
amended-
(a) by the deletion of subparagraph (viii) of paragraph
(t) of subsection (1); and
(b) by the deletion of subparagraph (ix) of paragraph
(t) of subsection (1).
(2)(a) Subsection (1)(a) shall be deemed to have come
into operation as from the commencement of years of
assessment
commencing on or after 1 July 1996.
(b) Subsection (1)(b) shall come into operation as from
the commencement of years of assessment commencing on or
after 1 January 1997.
Amendment of section 12C of Act 58 of 1962, as inserted
by section 14 of Act 101 of 1990 and amended by section 11
of Act 113 of 1993, section 7 of Act 140 of 1993, section
11 of Act 21 of 1994 and section 13 of Act 21 of 1995
10. (1) Section 12C of the Income Tax Act, 1962, is
hereby amended by the substitution in subsection (1) for
the
proviso of the following proviso:
"Provided that where-
(a) such asset is a ship or aircraft, the deduction
shall be calculated on the adjustable cost as determined in
terms of section 14 or 14bis, as the case may be; and
(b) any new or unused machinery or plant referred to in
paragraph (a) or (b), as the case may be, of this
subsection
was or is-
(i) (aa) acquired by the taxpayer under an agreement
(whether conditional or not) concluded during the period
commencing on 1 July 1996 and ending on 30 September 1999;
and
(bb) brought into use by the taxpayer or the lessee, as
the case may be, during such period; or
(ii) (aa) acquired by the taxpayer under an agreement
formally and finally signed by every party to the agreement
during the period commencing on 1 July 1996 and ending on
30 September 1999; and
(bb) brought into use by the taxpayer or the lessee, as
the case may be, during the period commencing on 1 October
1999 and ending on 31 March 2000, the deduction under this
subsection shall be increased to 33 1/3 per cent of the
cost of such machinery or plant in respect of the year of
assessment during which the plant or machinery was
or is so
brought into use and in each of the two immediately
succeeding years of assessment.".
(2) Subsection (1) shall be deemed to have come into
operation on 1 July 1996.
Amendment of section 13 of Act 58 of 1962, as amended by
section 12 of Act 90 of 1962, section 5 of Act 6 of 1963,
section 11 of Act 72 of 1963, section 12 of Act 90 of 1964,
section 14 of Act 88 of 1965, section 17 of Act 55 of
1966,
section 13 of Act 52 of 1970, section 13 of Act 88 of 1971,
section 12 of Act 90 of 1972, section 13 of
Act 65 of 1973,
section 16 of Act 85 of 1974, section 13 of Act 69 of 1975,
section 7 of Act 101 of 1978, section
10 of Act 104 of
1980, section 14 of Act 96 of 1981, section 10 of Act 96 of
1985, section 12 of Act 85 of 1987,
section 12 of Act 90 of
1988 and section 12 of Act 113 of 1993
11. (1) Section 13 of the Income Tax Act, 1962, is
hereby amended by the substitution in subsection (1) for
the
first and second provisos of the following proviso:
"Provided that-
(a) no allowance shall be made under this subsection in
respect of such portion of the cost of any building the
erection of which was commenced on or after 1 July 1961, or
any improvements effected thereto as has been taken into
account in the calculation of any allowance to the taxpayer
under section 11(g) whether in the current or any
previous
year of assessment;
(b) Provided further that in the case of any such
building the erection of which has or is commenced on or
after
1 January 1989 and any such improvements which have
or are commenced on or after that date, other than any
building
or improvements contemplated in paragraph (c) of
this proviso, the allowance under this subsection shall be
increased
to 5 per cent of the cost (after the deduction of
any amount as provided in subsection (3)) to the taxpayer
of
such building or improvements; and
(c) in the case of any such-
(i) building the erection of which has or is commenced
during the period commencing on 1 July 1996 and ending on
30 September 1999; or
(ii) improvements which have or are commenced during
such period and, where such building has or is or such
improvements
have been or are brought into use on or before
31 March 2000, the allowance under this subsection shall be
increased
to 1 0 per cent of the cost (after the deduction
of any amount as provided for in subsection (3)) to the
taxpayer
of such building or improvements.".
(2) Subsection (1) shall be deemed to have come into
operation on 1 July 1996.
Insertion of section 37H in Act 58 of 1962
12. (1) The following section is hereby inserted in the
Income Tax Act, 1962, after section 37G:
"Tax holiday scheme for certain companies
37H. (1) For the purposes of this section-
'board' means the board established by section 2 of the
Regional Industrial Development Act, 1993 (Act No. 187 of
1993);
'commencement date' means 1 October 1996;
'goods' means goods as defined in section 31(1);
'project' means a project which in the opinion of the
board-
(a) represents the manufacturing of any products, goods,
articles or any other things as classified in 'Major
Division 3: Manufacturing' of the Standard Industrial
Classification of all Economic Activities (Fifth Edition)
issued by the Central Statistical Services in January 1993;
and
(b) meets the investment requirements prescribed by the
regulations under subsection (14)(a);
'qualifying company' means any company which-
(a) is incorporated on or after the commencement date;
(b) commences the carrying on of one qualifying project
for the first time on or after the commencement date; and
(c) has the sole object of carrying on one qualifying
project as from the date of such incorporation and which
does not carry on any trade other than such qualifying
project;
'qualifying project' means a project which has been
approved by the board in terms of subsection (2)(a);
'services' means services as defined in section 31 (1);
'State' means the Departments and Administrations as
listed in Column 1 of Schedule 1 to the Public Service Act,
1994 (Proclamation No. 103 of 1994);
'tax holiday scheme' means a scheme in terms of which
qualifying companies enjoy tax holiday status;
'tax holiday status' means the status whereby in respect
of a year of assessment ending-
(a) during the period of six months ending 31 March
1997, the income of a qualifying company is reduced in
accordance
with subsection (12); or
(b) after 31 March 1997, the rate of normal tax on each
rand of the taxable income received by or accrued to or in
favour of a qualifying company is fixed at a rate of zero
per cent in terms of section 5.
(2) The board may-
(a) evaluate and approve any project, to be carried on
by a company, as a qualifying project;
(b) investigate or cause to be investigated any project
for the purposes of this section;
(c) monitor the tax holiday scheme to-
(i) determine whether the objectives of that scheme are
being achieved; and
(ii) advise the Minister of Finance and the Minister of
Trade and Industry on any future proposed amendment or
adjustment thereof;
(d) direct that where this section is applicable to any
company, the company shall be excluded from any such
further
assistance from the State as the board may
determine;
(e) require any company contemplated in subsection (4)
to furnish the board with any such information or documents
as are necessary for the board to perform its functions in
terms of this section; and
(f) perform such other functions as are assigned to it
under this section.
(3) The board shall not approve any project as a
qualifying project-
(a) if it is of the opinion that the project to be
carried on by any company is substantially the same
manufacturing
concern as was or is carried on by any other
person within the Republic on or before the submission of
the application
for approval of the project in terms of
subsection (4); or
(b) after the commencement of the carrying on of such
project by any company.
(4) Any application by a company for the approval by the
board of any project to be carried on by such company as a
qualifying project, shall be made directly to the board in
such form as the board may prescribe.
(5) This section shall apply to any project which has
been approved by the board as a qualifying project in
respect
of any application received by the board from the
relevant company on or before 30 September 1999.
(6) An application contemplated in subsection (4) shall
be in respect of a project which shall consist of one or
more of the following components-
(a) a spatial component as contemplated in subsection
(14)(b);
(b) an industry component as contemplated in subsection
(14)(c); and
(c) a human resource component as contemplated in
subsection (14)(d).
(7) In determining whether a project is a qualifying
project, the board shall-
(a) have regard to the-
(i) financial viability of the project;
(ii) effect on national competitiveness;
(iii) utilisation of resources;
(iv) utilisation of competitive technology; and
(v) commitment to the upgrading and training of local
skills; and
(b) subject to subsection (8)-
(i) analyse each component of the project; and
(ii) where it is satisfied that such component is a
component as contemplated in subsection (14)(b), (c) or
(d),
as the case may be, certify such component
accordingly.
(8) Where the project consists solely of a human
resource component or where one of the components of a
project
consists of a human resource component, the board
shall-
(a) subject to paragraph (b), carry out an initial
analysis and certification of such human resource component
on application for approval of the project; and
(b) review such initial analysis and certification-
(i) where the project consists solely of a human
resource component, within six months after the end of the
first
year of assessment during which the qualifying
company commences its tax holiday status; and
(ii) where the project consists of more than one
component, one of which is a human resource component,
before
the expiration of the tax holiday status of the
qualifying company attributable to the certification by the
board
of all other components of such project.
(9) Where the board has approved a project to be carried
on by a company as a qualifying project, the tax holiday
status of such company shall, subject to subsections (10)
and (15), be a period of-
(a) two consecutive years of assessment where the board
has certified one component of the project;
(b) four consecutive years of assessment where the board
has certified two components of the project; or
(c) six consecutive years of assessment where the board
has certified three components of the project.
(10) Where a project consists of more than one
component, one of which is a human resource component, the
period
of the tax holiday status in respect of such human
resource component shall, for the purposes of this section,
be deemed to commence as from the commencement of the year
of assessment immediately subsequent to the expiration of
the period of the tax holiday status in respect of every
other component.
(11) The tax holiday status of a qualifying company
shall commence as from the commencement of the first year
of assessment during which such qualifying company derives
a taxable income.
(12) Where a qualifying company has a year of assessment
ending during the period of six months ending 31 March
1997, there shall be allowed to be deducted from the income
of such company in respect of such year of assessment, an
amount equal to the taxable income in respect of such year
of assessment of such company as determined before
granting
a deduction under this subsection.
(13) Notwithstanding the provisions of this section, a
qualifying company shall no longer enjoy tax holiday status
after the expiry of 10 years as from the commencement of
the year of assessment during which the project which is
the board.
(14) The Minister of Trade and Industry may in
consultation with the Minister of Finance make regulations
to-
(a) prescribe the investment requirements for any
project having regard to the amount of capital invested in-
(i) land whereon and buildings wherein the process of
manufacture is to be carried on; and
(ii) machinery and plant to be used directly in the
process of manufacture;
(b) provide for the demarcation of a location with an
existing specialisation and advantage in manufacturing
within
which a project is to be carried on (in this section
referred to as the spatial component), having regard to
the-
(i) reinforcement of secondary cities;
(ii) reinforcement of key urban nodes along any
development corridor which qualifies as a spatial
development
initiative;
(iii) consolidation of emerging agglomeration areas
where a sufficient supply of appropriate infrastructure is
available; and
(iv) supporting of the diversification of local
economies where a sufficient supply of appropriate
infrastructure
is available as a result of the
restructuring of existing manufacturing activities;
(c) identify any manufacturing group (as contemplated in
the Standard Industrial Classification of all Economic
Activities (Fifth Edition) issued by the Central
Statistical Services in January 1993) that, on an average
basis, is likely to contribute most significantly to the
achievement of sustainable economic growth and employment
creation in the medium to longer term through enhanced
international competitiveness, as a qualifying industry (in
this section referred to as the industry component), having
regard to the-
(i) employment and output linkages throughout the
economy;
(ii) capital to human resource ratio;
(iii) generation of increased output; and
(iv) potential to experience an increase in
international demand for such group's products, goods,
articles or
any other things over the short to medium term;
(d) prescribe a ratio in respect of human resource
remuneration to value added (in this section referred to as
the human resource component);
(e) prescribe criteria in order to determine for the
purposes of-
(i) subsection (3)(a), whether the project to be carried
on by the company is substantially the same manufacturing
concern as is or was carried on by any other person within
the Republic. having regard to the-
(aa) scale and scope of the project;
(bb) extent of the utilisation of-
(A) machinery and plant; or
(B) human resources;
(cc) influence thereof on the national normal tax base
in existence on the date on which the application for
approval
is considered by the board; and
(dd) relationship between such company or its
shareholders and any previous owner of such manufacturing
concern;
and
(ii) subsection (3)(b), when the carrying on of a
project commences; define any expression referred to in
this
subsection, if necessary;
(g) further describe and define the issues as
contemplated in subsection (7)(a) to which the board shall
have
regard; and
(h) prescribe and define any condition as he may deem
necessary for the evaluation, approval or monitoring of a
project or the monitoring of the tax holiday scheme.
(15) Where the-
(a) board is satisfied that the approval of the project
was obtained by fraud or as a result of any
misrepresentation
or failure to disclose any material fact
by the company, the board shall, unless it otherwise
directs, withdraw
such approval if it is satisfied that in
the light of the full facts such approval should not have
been granted
and, in such a case, such approval shall be
deemed to have been withdrawn as from the date on which
such project
was approved as a qualifying project;
(b) board, in reviewing its initial analysis and
certification of the human resource component as
contemplated
in subsection (8)(b), is satisfied that such
human resource component is not a human resource component
as contemplated
in subsection (14)(d), the board shall,
unless it otherwise directs, withdraw the certification of
such human
resource component and such certification shall,
where it was reviewed in terms of-
(i) subsection (8)(b)(i), be deemed to have been
withdrawn as from the commencement of the year of
assessment
wherein such review takes place; and
(ii) subsection (8)(b)(ii), be deemed to be withdrawn as
from the date of the board's initial certification of such
human resource component;
(c) board is satisfied that a spatial component or an
industry component no longer constitutes a spatial
component
or an industry component, as the case may be, as
contemplated in subsection (14)(b) or (c), as the case may
be,
as a result of any reason other than a reason
contemplated in paragraph (a), the board shall, unless it
otherwise
directs, withdraw the certification of such
spatial component or industry component, as the case may
be, and
such certification shall be deemed to have been
withdrawn from the commencement of the year of assessment
during
which such spatial component or industry component,
as the case may be, no longer constitutes such a spatial
component or such an industry component, as the case may
be, as originally certified by the board; or
(d) Commissioner is satisfied that a qualifying company
has entered into or carried out any transaction, operation
or scheme whereby any goods or services are, directly or
indirectly-
(i) supplied to a connected person in relation to the
qualifying company; or
(ii) acquired from a connected person in relation to the
qualifying company, and the goods or services are supplied
or acquired, as the case may be, at a price which is
either-
(aa) less than the price which such goods or services
might have been expected to fetch if the parties to the
transaction had been independent persons dealing at arm's
length (such price being the arm's length price); or
(bb) greater than the arm's length price, the tax
holiday status of such qualifying company shall, unless the
Commissioner otherwise directs, lapse from the commencement
of the year of assessment during which such qualifying
company entered into or carried out such transaction,
operation or scheme.
(16) Where subsection (15)(a) has been applied, the
company shall pay, in addition to the tax chargeable in
respect
of its taxable income for each of the years of
assessment during which the tax holiday status was
previously
granted, an amount equal to twice the tax
chargeable in respect of its taxable income for each of
such years
of assessment.
(17)(a) The Commissioner may in his discretion remit the
additional charge imposed by subsection (16) or any part
thereof.
(b) Notwithstanding the provisions of this subsection,
the Commissioner may either before or after an assessment
is issued agree with the company on the amount of the
additional charge to be paid, and the amount so a-reed upon
shall not be subject to any objection and appeal.
(18)(a) The board shall notify the company and the
Commissioner of any decision taken in accordance with
subsection
(2), (3), (7) or (15)(a), (b) or (c) within a
period of 30 days after the approval of the minutes of the
meeting
whereat such decision was taken.
(b) The board shall furnish the company with reasons for
any decision contemplated in paragraph (a) simultaneously
with the notification of such decision.
(19)(a) Notwithstanding the provisions of section 4, the
Commissioner may disclose to the board such information
relating to the company's affairs as is necessary to enable
the board to perform its functions in terms of this
section.
(b) Before disclosing such information the Commissioner
shall deliver or send to the company a written notification
of his intended action setting forth particulars of the
said information.
(c) The company may within 30 days after the date of
such written notification or such further period as the
Commissioner
may approve, lodge in writing with the
Commissioner any objection it may have to the disclosure of
the information.
(d) If, on the expiry of the said period of 30 days or
the said further period, no objection has been lodged as
contemplated in paragraph (c) or, if an objection has been
lodged and the Commissioner is not satisfied that the
objection should be sustained, the Commissioner may
thereupon disclose such information as contemplated in
paragraph (a).
(20)(a) The members and employees of the board shall
preserve and aid in preserving secrecy with regard to all
matters that may come to their knowledge in the performance
of their functions in terms of this section, and shall not
communicate any such matter to any person whatsoever other
than the company concerned or its legal representative
nor
suffer or permit any such person to have access to any
records in the possession or custody of the Commissioner,
except in the performance of their functions as members and
employees of the board or by order of a competent
court.
(b) Every member and employee of the board shall take
and subscribe before a magistrate or justice of the peace
or an officer of the South African Revenue Service who is a
commissioner of oaths, such oath or solemn declaration, as
the case may be, of fidelity or secrecy as may be
prescribed.
(c) Any member or employee of the board who contravenes
a provision of paragraph (a), shall be guilty of an offence
and liable on conviction to a fine or to imprisonment for a
period not exceeding two years.
(21) Where-
(a) the certification of a component in respect of a
qualifying company has been withdrawn in terms of
subsection
(15)(b) or (c); or
(b) the tax holiday status of a qualifying company has
lapsed in terms of subsection (15)(d), the Commissioner
may, notwithstanding the provisions of section 79, raise
assessments in respect of the company as if such company
were not a qualifying company.
(22) Any decision of the Commissioner under this section
shall be subject to objection and appeal.
(23) The relevant division of the Supreme Court may, on
the application of a company which has made any application
in terms of this section and which feels aggrieved by a
decision made by the board in connection with that
application, review the decision on the following grounds-
(a) interest in the application, bias, malice or
corruption on the part of any member of the board;
(b) gross irregularity in the proceedings; and
(c) exercise of a power in an arbitrary, mala fide or
unreasonable manner.
(24) The court in reviewing a decision of the board in
terms of subsection
(23) may, if the court is satisfied that-
(a) any of the grounds for review referred to in the
said subsection has been proved; and
(b) the applicant has been substantially prejudiced by
the decision, set aside the decision, and shall, in setting
aside the decision, unless in its opinion exceptional
circumstances warrant another order, issue an order that
the board consider afresh the matter in respect of which
the decision was made.
(25)(a) A company which has made any application in
terms of this section and which feels aggrieved by a
decision
on a question of law made by the board in
connection with the application, may appeal to the relevant
division
of the Supreme Court against the decision.
(b) Such an appeal shall be noted and prosecuted as if
it were an appeal against a judgment in a magistrate's
court in civil proceedings.
(c) If the court, after considering the appeal, is
satisfied that the board has misdirected itself in the
making
of the decision concerned, the court may set aside
that decision, and shall, in setting aside the decision,
unless
in its opinion exceptional circumstances warrant
another order, issue an order that the board consider
afresh
the matter in respect of which the decision was
made.".
(2) Subsection (1) shall come into operation on 1
October 1996.
Amendment of section 64B of Act 58 of 1962, as inserted
by section 34 of Act 113 of 1993 and amended by section 12
of Act 140 of 1993, section 24 of Act 21 of 1994, section
29 of Act 21 of 1995 and section 21 of Act 36 of 1996
13. (1) Section 64B of the Income Tax Act, 1962, is
hereby amended-
(a) by the deletion of the word "and" at the
end of paragraph (g) of subsection (5); and
(b) by the addition to subsection (5) of the following
paragraphs:
"(i) in the case of any company which is a
'qualifying company' as defined in section 37H, any
dividend declared
by such company during the period ending
six months after the end of the last year of assessment
during which
such company qualifies for the tax holiday
status referred to in that section out of profits derived
during the
period during which such company qualifies for
such tax holiday status; and
(j) any dividend declared by a company contemplated in
paragraph (e) of the definition of 'company' in section
1.".
(2) Subsection (1)(b) shall, in so far as it adds
paragraph (j) to section 64B(5) of the Income Tax Act,
1962,
be deemed to have come into operation on 17 March
1993.
Substitution of section 74 of Act 58 of 1962, as amended
by section 24 of Act 88 of 1965
14. The following sections are hereby substituted for
section 74 of the Income Tax Act, 1962:
"General provisions with regard to information,
documents or things
74. (1) For the purposes of this section and sections
74A, 74B, 74C, 74D and 75-
'administration of this Act' means the-
(a) obtaining of full information in relation to any-
(i) amount received by or accrued to any person;
(ii) property disposed of under a donation by any
person; and
(iii) dividend declared by any company;
(b) ascertaining of the correctness of any return,
financial statement, document, declaration of facts or
valuation;
(c) determination of the liability of any person for any
tax, duty or levy and any interest or penalty in relation
thereto leviable under this Act;
(d) collecting of any such liability;
(e) ascertaining whether an offence in terms of this Act
has been committed;
(f) ascertaining whether a person has, other than in
relation to a matter contemplated in paragraphs (a), (b),
(c), (d) and (e) of this definition, complied with the
provisions of this Act;
(g) enforcement of any of the Commissioner's remedies
under this Act to ensure that any obligation imposed upon
any person by or under this Act, is complied with; and
(h) performance of any other administrative function
which is necessary for the carrying out of the provisions
of this Act;
'authorisation letter' means a written authorisation
granted by the Commissioner, or any chief director,
receiver
of revenue or chief revenue inspector under the
control, direction or supervision of the Commissioner, to
an
officer to inspect, audit, examine or obtain, as
contemplated in section 7413, any information, documents or
things;
'documents' include any document, book, record, account,
deed, plan, instrument, trade list, stock list, affidavit,
certificate, photograph, map, drawing and any 'computer
print-out' as defined in section 1 of the Computer Evidence
Act, 1983 (Act No. 57 of 1983);
'information' includes any data stored by means of a
'computer' as defined in section 1 of the Computer Evidence
Act, 1983;
'Judge' means a judge of the Supreme Court and includes
a judge in chambers;
'officer' means an officer contemplated in section 3(1);
'premises' include any building, premises, aircraft,
vehicle, vessel or place;
'things' include any corporeal or incorporeal thing and
any document relating thereto;
'warrant' means a written authorisation issued by a
judge to search for and seize any information, documents or
things under section 74D.
(2) For the purposes of sections 74A, 7413, 74C and 74D,
where any information, documents or things are not in one
of the official languages, the Commissioner or any officer
may by notice in writing require the taxpayer or, on the
taxpayer's default, any other person, to produce, within a
reasonable period, a translation thereof in one of
the
official languages determined by the Commissioner or such
officer.
(3) Any translation referred to in subsection (2) shall
be-
(a) produced at such time and premises as may be
specified by the Commissioner or any officer; and
(b) prepared and certified by a sworn translator or
another person approved by the Commissioner or such
officer.
(4) For the purposes of sections 74C and 74D, the
Commissioner may delegate the powers vested in him by those
sections, to any other officer.
Furnishing of information, documents or things by any
person
74A. The Commissioner or any officer may, for the
purposes of the administration of this Act in relation to
any
taxpayer, require such taxpayer or any other person to
furnish such information (whether orally or in writing)
documents or things as the Commissioner or such officer may
require.
Obtaining of information, documents or things at certain
premises
74B. (1) The Commissioner, or an officer named in an
authorisation letter, may, for the purposes of the
administration
of this Act in relation to any taxpayer,
require such taxpayer or any other person, with reasonable
prior notice,
to furnish, produce or make available any
such information, documents or things as the Commissioner
or such officer
may require to inspect, audit, examine or
obtain.
(2) For the purposes of the inspection, audit,
examination or obtaining of any such information, documents
or
things, the Commissioner or an officer contemplated in
subsection (1), may call on any person-
(a) at any premises; and
(b) at any time during such person's normal business
hours.
(3) For the purposes of subsection (2), the Commissioner
or any officer contemplated in subsection (1), shall not
enter any dwelling-house or domestic premises (except any
part thereof as may be occupied or used for the purposes
of
trade) without the consent of the occupant.
(4) Any officer exercising any power under this section,
shall on demand produce the authorisation letter issued to
him.
Inquiry
74C. (1) The Commissioner or an officer contemplated in
section 74(4) may authorise any person to conduct an
inquiry
for the purposes of the administration of this Act.
(2) Where the Commissioner, or any officer contemplated
in section 74(4), authorises a person to conduct an
inquiry,
the Commissioner or such officer shall apply to a
judge for an order designating a presiding officer before
whom
the inquiry is to be held.
(3) A judge may, on ex parte application by the
Commissioner or any officer contemplated in section 74(4),
grant
an order in terms of which a person contemplated in
subsection (7) is designated to act as presiding officer at
the inquiry contemplated in this section.
(4) An application under subsection (2) shall be
supported by information supplied under oath or solemn
declaration,
establishing the facts on which the
application is based.
(5) A judge may grant the order referred to in
subsection (3) if he is satisfied that there are reasonable
grounds
to believe that-
(a) (i) there has been non-compliance by any person with
his obligations in terms of this Act; or
(ii) an offence in terms of this Act has been committed
by any person;
(b) information, documents or things are likely to be
revealed which may afford proof of-
(i) such non-compliance; or
(ii) the committing of such offence; and
(c) the inquiry referred to in the application is likely
to reveal such information, documents or things.
(6) An order under subsection (3) shall, inter alia-
(a) name the presiding officer;
(b) refer to the alleged non-compliance or offence to be
inquired into;
(c) identify the person alleged to have failed to comply
with the provisions of the Act or to have committed the
offence; and
(d) be reasonably specific as to the ambit of the
inquiry.
(7) Any presiding officer shall be a person appointed by
the Minister of Finance in terms of section 83A(4).
(8) For the purposes of an inquiry contemplated in this
section, a presiding officer designated under subsection
(3) shall-
(a) determine the proceedings as he may think fit;
(b) have the same powers to enforce the attendance of
witnesses and to compel them to give evidence or to produce
evidential material as are vested in a President of the
Special Court contemplated in section 83; and
(c) record the proceedings and evidence at an inquiry in
such manner as he may think fit.
(9) Any person may, by written notice issued by the
presiding officer, be required to appear before him in
order
to be questioned under oath or solemn declaration for
the purposes of an inquiry contemplated in this section.
(10) The notice contemplated in subsection (9) shall
specify the-
(a) place where such inquiry will be conducted;
(b) date and time of such inquiry; and
(c) reasons for such inquiry.
(11) Any person whose affairs are investigated in the
course of an inquiry contemplated in this section, shall be
entitled to be present throughout the inquiry, unless on
application by the person contemplated in subsection (1),
the presiding officer directs otherwise on the ground that
the presence of the person and his representative,
or
either of them, would be prejudicial to the effective
conduct of the inquiry.
(12) Any person contemplated in subsection (9) has the
right to a representative of his choice.
(13) An inquiry contemplated in this section shall not
be public and the presiding officer shall at any time on
application of the person whose affairs are investigated or
any other person giving evidence, exclude from such inquiry
or require to withdraw therefrom, all or any persons whose
attendance is not necessary for the inquiry.
(14) Any person may, at the discretion of the presiding
officer, be compensated for his reasonable expenditure
related to the attendance of an inquiry, by way of witness
fees in accordance with the tariffs prescribed in terms of
section 5 1bis of the Magistrates' Courts Act, 1944 (Act
No. 32 of 1944).
(15) Where the person referred to in subsection (1) is a
person other than an officer contemplated in section 3(1),
the provisions of section 4 shall mutatis mutandis apply to
such person with regard to the preservation of secrecy.
Search and seizure
74D. (1) For the purposes of the administration of this
Act, a judge may, on ex parte application by the
Commissioner
or any officer contemplated in section 74(4),
issue a warrant, authorising the officer named therein to,
without
prior notice and at any time-
(a) (i) enter and search any premises; and
(ii) search any person present on the premises, provided
that such search is conducted by an officer of the same
gender as the person being searched, for any information,
documents or things, that may afford evidence as to the
non-compliance by any taxpayer with his obligations in
terms of this Act;
(b) seize any such information, documents or things; and
(c) in carrying out any such search, open or cause to be
opened or removed and opened, anything in which such
officer suspects any information, documents or things to be
contained.
(2) An application under subsection (1) shall be
supported by information supplied under oath or solemn
declaration,
establishing the facts on which the
application is based.
(3) A judge may issue the warrant referred to in
subsection (1) if he is satisfied that there are reasonable
grounds
to believe that-
(a) (i) there has been non-compliance by any person with
his obligations in terms of this Act; or
(ii) an offence in terms of this Act has been committed
by any person;
(b) information, documents or things are likely to be
found which may afford evidence of-
(i) such non-compliance; or
(ii) the committing of such offence; and
(c) the premises specified in the application are likely
to contain such information, documents or things.
(4) A warrant issued under subsection (1) shall-
(a) refer to the alleged non-compliance or offence in
relation to which it is issued;
(b) identify the premises to be searched;
(c) identify the person alleged to have failed to comply
with the provisions of the Act or to have committed the
offence; and
(d) be reasonably specific as to any information,
documents or things to be searched for and seized.
(5) Where the officer named in the warrant has
reasonable grounds to believe that-
(a) such information, documents or things are-
(i) at any premises not identified in such warrant; and
(ii) about to be removed or destroyed; and
(b) a warrant cannot be obtained timeously to prevent
such removal or destruction, such officer may search such
premises and further exercise all the powers granted by
this section, as if such premises had been identified in a
warrant.
(6) Any officer who executes a warrant may seize, in
addition to the information, documents or things referred
to in the warrant, any other information, documents or
things that such officer believes on reasonable grounds
afford evidence of the non-compliance with the relevant
obligations or the committing of an offence in terms of
this Act.
(7) The officer exercising any power under this section
shall on demand produce the relevant warrant (if any).
(8) The Commissioner, who shall take reasonable care to
ensure that the information, documents or things are
preserved,
may retain them until the conclusion of any
investigation into the non-compliance or offence in
relation to which
the information, documents or things were
seized or until they are required to be used for the
purposes of any
legal proceedings under this Act, whichever
event occurs last.
(9)(a) Any person may apply to the relevant division of
the Supreme Court for the return of any information,
documents
or things seized under this section.
(b) The court hearing such application may, on good
cause shown, make such order as it deems fit.
(10) he person to whose affairs any information,
documents or things seized under this section relate, may
examine
and make extracts therefrom and obtain one copy
thereof at the expense of the State during normal business
hours
under such supervision as the Commissioner may
determine.".
Amendment of section 75 of Act 58 of 1962, as amended by
section 40 of Act 101 of 1990, section 34 of Act 129 of
1991, section 30 of Act 141 of 1992, section 35 of Act 113
of 1993 and section 27 of Act 21 of 1994
15. Section 75 of the Income Tax Act, 1962, is hereby
amended by the substitution for paragraph (b) of subsection
(1) of the following paragraph:
"(b) without just cause shown by him, refuses or
neglects to-
(i) furnish, produce or make available any information,
documents or things; or
(ii) reply to or answer truly and fully, any questions
put to him; or
(iii) to attend and give evidence, as and when required
by the Commissioner or any officer duly authorised by him
or to answer truly and fully any questions put to him or to
produce any books or papers required of him by the
Commissioner or any such officer in terms of this Act; or".
Insertion of section 28B in Act 77 of 1968
16. The following section is hereby inserted in the
Stamp Duties Act, 1968, after section 28A:
" Offences in respect of furnishing, producing and
making available information, documents or things, as well
as inquiries and searches and seizures
28B. Any person who-
(a) without just cause shown by him, refuses or neglects
to-
(i) furnish, produce or make available any information,
documents or things;
(ii) reply to or answer truly and fully, any questions
put to him; or
(iii) attend and give evidence, as and when required in
terms of this Act; or
(b) obstructs or hinders any officer in the carrying out
of his duties, shall be guilty of an offence and liable on
conviction to a fine or to imprisonment for a period not
exceeding one year.".
Repeal of section 29 of Act 77 of 1968
17. Section 29 of the Stamp Duties Act, 1968, is hereby
repealed.
Substitution of section 31 of Act 77 of 1968, as amended
by section 7 of Act 72 of 1970
18. The following sections are hereby substituted for
section 31 of the Stamp Duties Act, 1968:
General provisions with regard to information, documents
or things
31. (1) For the purposes of this section and sections
31A, 31B, 31C, 31D and 28B-
'administration of this Act' means the-
(a) obtaining of full information in relation to any
instrument that is subject to stamp duty in terms of this
Act;
(b) ascertaining of the correctness of any statement,
financial statement, document, declaration of facts or
valuation;
(c) determination of the liability of any person for any
duty or any penalty in relation thereto leviable under this
Act;
(d) collecting of any such liability;
(e) ascertaining whether an offence in terms of this Act
has been committed;
(f) ascertaining whether a person has, other than in
relation to a matter contemplated in paragraphs (a), (b),
(c), (d) and (e) of this definition, complied with the
provisions of this Act;
(g) enforcement of any of the Commissioner's remedies
under this Act to ensure that any obligation imposed upon
any person by or under this Act, is complied with; and
(h) performance of any other administrative function
which is necessary for the carrying out of the provisions
of this Act;
'authorisation letter' means a written authorisation
granted by the Commissioner, or any chief director,
receiver
of revenue or chief revenue inspector under the
control, direction or supervision of the Commissioner, to
an
officer to inspect, audit, examine or obtain, as
contemplated in section 31B, any information, documents or
things;
'documents' include any document, book, record, account,
deed, plan, instrument, trade list, stock list, affidavit,
certificate, photograph, map, drawing, any 'computer
print-out' as defined in section 1 of the Computer Evidence
Act, 1983 (Act No. 57 of 1983), stamp and instrument
contemplated in Schedule 1;
'information' includes any data stored by means of a
'computer' as defined in section 1 of the Computer Evidence
Act, 1983; Judge' means a judge of the Supreme Court and
includes a judge in chambers;
'officer' means an officer contemplated in section 2(1);
'premises' include any building, premises, aircraft,
vehicle, vessel or place;
'things' include any corporeal or incorporeal thing and
any document relating thereto;
'warrant' means a written authorisation issued by a
judge to search for and seize any information, documents or
things under section 3 1D.
(2) For the purposes of sections 31A, 31B, 31 C and 31D,
where any information, documents or things are not in one
of the official languages, the Commissioner or any officer
may by notice in writing require the person liable for
the
duty or, on such person's default, any other person, to
produce, within a reasonable period, a translation
thereof
in one of the official languages determined by the
Commissioner or such officer.
(3) Any translation referred to in subsection (2) shall
be-
(a) produced at such time and premises as may be
specified by the Commissioner or any officer; and
(b) prepared and certified by a sworn translator or
another person approved by the Commissioner or such
officer.
(4) For the purposes of sections 31C and 31D, the
Commissioner may delegate the powers vested in him by those
sections, to any other officer.
Furnishing of information, documents or things by any
person
31A. The Commissioner or any officer may, for the
purposes of the administration of this Act in relation to
any
person liable for the duty, require such person or any
other person to furnish such information (whether orally or
in writing), documents or things as the Commissioner or
such officer may require.
Obtaining of information, documents or things at certain
premises
31B. (1) The Commissioner, or an officer named in an
authorisation letter, may, for the purposes of the
administration
of this Act in relation to the person liable
for the duty, require such person or any other person, with
reasonable
prior notice, to furnish, produce or make
available any such information, documents or things as the
Commissioner
or such officer may require to inspect, audit,
examine or obtain.
(2) For the purposes of the inspection, audit,
examination or obtaining of any such information, documents
or
things, the Commissioner or an officer contemplated in
subsection (1), may call on any person-
(a) at any premises; and
(b) at any time during such person's normal business
hours.
(3) For the purposes of subsection (2), the Commissioner
or any officer contemplated in subsection (1), shall not
enter any dwelling-house or domestic premises (except any
part thereof as may be occupied or used for the purposes
of
trade) without the consent of the occupant.
(4) Any officer exercising any power under this section,
shall on demand produce the authorisation letter issued to
him.
Inquiry
31C. (1) The Commissioner or an officer contemplated in
section 31(4) may authorise any person to conduct an
inquiry
for the purposes of the administration of this Act.
(2) Where the Commissioner, or any officer contemplated
in section 31(4), authorises a person to conduct an
inquiry,
the Commissioner or such officer shall apply to a
judge for an order designating a presiding officer before
whom
the inquiry is to be held.
(3) A judge may, on ex parte application by the
Commissioner or any officer contemplated in section 31(4),
grant
an order in terms of which a person contemplated in
subsection (7) is designated to act as presiding officer at
the inquiry contemplated in this section.
(4) An application under subsection (2) shall be
supported by information supplied under oath or solemn
declaration,
establishing the facts on which the
application is based.
(5) A judge may grant the order referred to in
subsection (3) if he is satisfied that there are reasonable
grounds
to believe that-
(a) (i) there has been non-compliance by any person with
his obligations in terms of this Act; or
(ii) an offence in terms of this Act has been committed
by any person;
(b) information, documents or things are likely to be
revealed which may afford proof of-
(i) such non-compliance; or
(ii) the committing of such offence; and
(c) the inquiry referred to in the application is likely
to reveal such information, documents or things.
(6) An order under subsection (3) shall, inter alia-
(a) name the presiding officer;
(b) refer to the alleged non-compliance or offence to be
inquired into;
(c) identify the person alleged to have failed to comply
with the provisions of the Act or to have committed the
offence; and
(d) be reasonably specific as to the ambit of the
inquiry.
(7) Any presiding officer shall be a person appointed by
the Minister in terms of section 83A(4) of the Income Tax
Act, 1962 (Act No. 58 of 1962).
(8) For the purposes of an inquiry contemplated in this
section, a presiding officer designated under subsection
(3) shall-
(a) determine the proceedings as he may think fit;
(b) have the same powers to enforce the attendance of
witnesses and to compel them to give evidence or to produce
evidential material as are vested in a President of the
Special Court contemplated in section 83 of the Income Tax
Act, 1962; and
(c) record the proceedings and evidence at an inquiry in
such manner as he may think fit.
(9) Any person may, by written notice issued by the
presiding officer, be required to appear before him in
order
to be questioned under oath or solemn declaration for
the purposes of an inquiry contemplated in this section.
(10) The notice contemplated in subsection (9) shall
specify the-
(a) place where such inquiry will be conducted;
(b) date and time of such inquiry; and
(c) reasons for such inquiry.
(11) Any person whose affairs are investigated in the
course of an inquiry contemplated in this section, shall be
entitled to be present throughout the inquiry, unless on
application by the person contemplated in subsection (1),
the presiding officer directs otherwise on the ground that
the presence of the person and his representative,
or
either of them, would be prejudicial to the effective
conduct of the inquiry.
(12) Any person contemplated in subsection (9) has the
right to a representative of his choice.
(13) An inquiry contemplated in this section shall not
be public and the presiding officer shall at any time on
application of the person whose affairs are investigated or
any other person giving evidence, exclude from such inquiry
or require to withdraw therefrom, all or any persons whose
attendance is not necessary for the inquiry.
(14) Any person may, at the discretion of the presiding
officer, be compensated for his reasonable expenditure
related to the attendance of an inquiry, by way of witness
fees in accordance with the tariffs prescribed in terms of
section 5 1bis of the Magistrates' Courts Act, 1944 (Act
No. 32 of 1944).
Search and seizure
31D. (1) For the purposes of the administration of this
Act, a judge may, on ex parte application by the
Commissioner
or any officer contemplated in section 31(4),
issue a warrant, authorising the officer named therein to,
without
prior notice and at any time-
(a) (i) enter and search any premises; and
(ii) search any person present on the premises, provided
that such search is conducted by an officer of the same
gender as the person being searched, for any information,
documents or things, that may afford evidence as to the
non-compliance by any person with his obligations in terms
of this Act;
(b) seize any such information, documents or things; and
(c) in carrying out any such search, open or cause to be
opened or removed and opened, anything in which such
officer suspects any information, documents or things to be
contained.
(2) An application under subsection (1) shall be
supported by information supplied under oath or solemn
declaration,
establishing the facts on which the
application is based.
(3) A judge may issue the warrant referred to in
subsection (1) if he is satisfied that there are reasonable
grounds
to believe that-
(a) (i) there has been non-compliance by any person with
his obligations in terms of this Act; or
(ii) an offence in terms of this Act has been committed
by any person;
(b) information, documents or things are likely to be
found which may afford evidence of-
(i) such non-compliance; or
(ii) the committing of such offence; and
(c) the premises specified in the application are likely
to contain such information, documents or things.
(4) A warrant issued under subsection (1) shall-
(a) refer to the alleged non-compliance or offence in
relation to which it is issued;
(b) identify the premises to be searched;
(c) identify the person alleged to have failed to comply
with the provisions of the Act or to have committed the
offence; and
(d) be reasonably specific as to any information,
documents or things to be searched for and seized.
(5) Where the officer named in the warrant has
reasonable -rounds to believe that-
(a) such information, documents or things are-
(i) at any premises not identified in such warrant; and
(ii) about to be removed or destroyed; and
(b) a warrant cannot be obtained timeously to prevent
such removal or destruction, such officer may search such
premises and further exercise all the powers granted by
this section, as if such premises had been identified in a
warrant.
(6) Any officer who executes a warrant may seize, in
addition to the information, documents or things referred
to in the warrant, any other information, documents or
things that such officer believes on reasonable grounds
afford evidence of the non-compliance with the relevant
obligations or the committing of an offence in terms of
this Act.
(7) The officer exercising any power under this section
shall on demand produce the relevant warrant (if any).
(8) The Commissioner, who shall take reasonable care to
ensure that the information, documents or things are
preserved,
may retain them until the conclusion of any
investigation into the non-compliance or offence in
relation to which
the information, documents or things were
seized or until they are required to be used for the
purposes of any
legal proceedings under this Act, whichever
event occurs last.
(9)(a) Subject to subsection (10), any person may apply
to the relevant division of the Supreme Court for the
return of any information, documents or things seized under
this section.
(b) The court hearing such application may, subject to
subsection (10), on good cause shown, make such order as it
deems fit.
(10) Where there is good reason to suspect that any
person is guilty of an offence, the information, documents
or things so seized, may be placed in safe custody and be
adjudged to be forfeited to the State by the court having
jurisdiction as to the offence and thereafter shall be
dealt with as the Commissioner may direct: Provided that
nothing contained in this subsection shall affect the
rights of any person who is otherwise entitled by law to
the possession or custody of any such information,
documents or things stolen or improperly obtained.
(11) The person to whose affairs any information,
documents or things seized under this section relate, may
examine
and make extracts therefrom and obtain one copy
thereof at the expense of the State during normal business
hours
under such supervision as the Commissioner may
determine.
(12) Where any stamps are seized under a warrant, the
person authorised by the warrant shall, if required, give
to the person in whose custody or possession the stamps are
found, an acknowledgment of the number, particulars and
amount of the stamps and permit the stamps to be marked on
the back thereof before the removal thereof.".
Amendment of Item 15 of Schedule 1 to Act 77 of 1968, as
substituted by section 13 of Act 89 of 1972 and amended by
section 16 of Act 66 van 1973, section 21 of Act 88 of
1974, section 3 of Act 104 of 1976, section 20 of Act 114
of 1977, section 8 of Act 95 of 1978, section 8 of Act 102
of 1979, section 21 of Act 106 of 1980, section 9
of Act 99
of 1981, section 7 of Act 87 of 1982, section 14 of Act 92
of 1983, section 11 of Act 118 of 1984,
section 11 of Act
81 of 1985, section 5 of Act 71 of 1986, section 13 of Act
108 of 1986, section 11 of Act 86
of 1987, section 33 of
Act 87 of 1988, section 14 of Act 69 of 1989, section 83 of
Act 89 of 1991, section 9
of Act 136 of 1991, section 8 of
Act 136 of 1992, section 17 of Act 97 of 1993, section 17
of Act 140 of 1993,
section 8 of Act 20 of 1994 and section
17 of Act 37 of 1996
19. (1) Item 15 of Schedule 1 to the Stamp Duties Act,
1968, is hereby amended by the insertion after paragraph
(h) of "Exemptions from the duty under paragraph (3)"
of the following paragraph:
"(hA) Any registration of transfer of any
marketable security registered in the name of-
(i) any pension fund established by law to any other
pension fund which is registered under the Pension Funds
Act, 1956; or
(ii) any previous fund as contemplated in section 14(5)
of the Government Employees Pension Fund Law, 1996
(Proclamation No. 21 of 1996), to the Government Employees
Pension Fund as contemplated in section 2 of that Law.".
(2) Subsection (1) shall, in so far as it relates to any
registration of transfer of marketable securities to-
(a) any pension fund which is registered in terms of the
Pension Funds Act, 1956, be deemed to have come into
operation on 1 July 1995; and the Government Employees
Pension Fund, be deemed to
have come into operation on 1
May 1996.
Amendment of section 8 of Act 89 of 1991, as amended by
section 24 of Act 136 of 1991, section 4 of Government
Notice 2695 of 8 November
1991, section 15 of Act 136 of
1992, section 24 of Act 97 of 1993 and section 11 of Act 20
of 1994
20. Section 8 of the Value-Added Tax Act, 1991, is
hereby amended by the insertion after subsection (13) of
the
following subsection:
"(13A) For the purposes of this Act, except section
16(3), where any vendor who makes taxable supplies of
services contemplated in subsection (1 3) of this section,
receives any amount paid by any other vendor as a prize or
winnings in consequence of a supply of such services made
by the last-mentioned vendor to the first-mentioned
vendor,
the first-mentioned vendor shall be deemed to supply a
service to the last-mentioned vendor.".
Amendment of section 9 of Act 89 of 1991, as amended by
section 25 of Act 136 of 1991 and section 25 of Act 97 of
1993
21. Section 9 of the Value-Added Tax Act, 1991, is
hereby amended by the addition to subsection (3) of the
following
paragraph:
"(f) where any supply of a service is deemed to be
made as contemplated in section 8(13A), the supply shall be
deemed to take place whenever any amount is paid out as a
prize or winnings by the supplier of the services
contemplated in section 8(13).".
Amendment of section 10 of Act 89 of 1991, as amended by
section 26 of Act 136 of 1991, section 5 of Government
Notice 2695 of 8 November 1991, section 16 of Act 136 of
1992, section 26 of Act 97 of 1993, section 12 of Act 20 of
1994 and section 21 of Act 37 of 1996
22. Section 10 of the Value-Added Tax Act, 1991, is
hereby amended by the insertion after subsection (17) of
the
following subsection:
"(17A) Where a service is deemed by section 8(13A)
to be supplied to any vendor, the consideration in money
for such supply shall be deemed to be the amount that is
received as a prize or winnings.".
Repeal of section 56 of Act 89 of 1991
23. Section 56 of the Value-Added Tax Act, 1991, is
hereby repealed.
Substitution of section 57 of Act 89 of 1991
24. The following sections are hereby substituted for
section 57 of the Value-Added Tax Act, 1991:
"General provisions with regard to information,
documents or things
57. (1) For the purposes of this section and sections
57A, 57B, 57C, 57D and 58-
'administration of this Act' means the-
(a) obtaining of full information in relation to
the-
(i) supply by any vendor of goods and services supplied
by him in the course or furtherance of any enterprise
carried on by him;
(ii) importation of any goods into the Republic by any
person; and
(iii) supply of any imported services by any person;
(b) ascertaining of the correctness of any return,
financial statement, document, declaration of facts or
valuation;
(c) determination of the liability of any person for any
tax and any interest or penalty in relation thereto
leviable
under this Act;
(d) collecting of any such liability;
(e) ascertaining whether an offence in terms of this Act
has been committed;
(f) ascertaining whether a person has, other than in
relation to a matter contemplated in paragraphs (a), (b),
(c), (d) and (e) of this definition, complied with the
provisions of this Act;
(g) enforcement of any of the Commissioner's remedies
under this Act to ensure that any obligation imposed upon
any person by or under this Act, is complied with; and
(h) performance of any other administrative function
which is necessary for the carrying out of the provisions
of this Act;
'authorisation letter' means a written authorisation
granted by the Commissioner, or any chief director,
receiver
of revenue or chief revenue inspector under the
control, direction or supervision of the Commissioner, to
an
officer to inspect, audit, examine or obtain, as
contemplated in section 57B, any information, documents or
things;
'documents' include any document, book, record, account,
deed, plan, instrument, trade list, stock list, affidavit,
certificate, photograph, map, drawing and any 'computer
print-out' as defined in section 1 of the Computer Evidence
Act, 1983 (Act No. 57 of 1983);
'information' includes any data stored by means of a
'computer' as defined in section 1 of the Computer Evidence
Act, 1983;
'judge' means a judge of the Supreme Court and includes
a judge in chambers;
'officer' means an officer contemplated in section 5(1);
'premises' include any building, premises, aircraft,
vehicle, vessel or place;
'things' include any corporeal or incorporeal thing and
any document relating thereto;
'warrant' means a written authorisation issued by a
judge to search for and seize any information, documents or
things under section 57D.
(2) For the purposes of sections 57A, 57B, 57C and 57D,
where any information, documents or things are not in one
of the official languages, the Commissioner or any officer
may by notice in writing require the vendor or, on the
vendor's default, any other person, to produce, within a
reasonable period, a translation thereof in one of the
official languages determined by the Commissioner or such
officer.
(3) Any translation referred to in subsection (2) shall
be-
(a) produced at such time and premises as may be
specified by the Commissioner or any officer; and
(b) prepared and certified by a sworn translator or
another person approved by the Commissioner or such
officer.
(4) For the purposes of sections 57C and 57D, the
Commissioner may delegate the powers vested in him by those
sections, to any other officer.
Furnishing of information, documents or things by any
person
57A. The Commissioner or any officer may, for the
purposes of the administration of this Act in relation to
any
vendor, require such vendor or any other person to
furnish such information (whether orally or in writing),
documents
or things as the Commissioner or such officer may
require.
Obtaining of information, documents or things at certain
premises
57B. (1) The Commissioner, or an officer named in an
authorisation letter, may, for the purposes of the
administration
of this Act in relation to any vendor,
require such vendor or any other person, with reasonable
prior notice,
to furnish, produce or make available any
such information, documents or things as the Commissioner
or such officer
may require to inspect, audit, examine or
obtain.
(2) For the purposes of the inspection, audit,
examination or obtaining of any such information, documents
or
things, the Commissioner or an officer contemplated in
subsection (1), may call on any person-
(a) at any premises; and
(b) at any time during such person's normal business
hours.
(3) For the purposes of subsection (2), the Commissioner
or any officer contemplated in subsection (1), shall not
enter any dwelling-house or domestic premises (except any
part thereof as may be occupied or used for the purposes
of
trade) without the consent of the occupant.
(4) Any officer exercising any power under this section,
shall on demand produce the authorisation letter issued to
him.
Inquiry
57C. (1) The Commissioner or an officer contemplated in
section 57(4) may authorise any person to conduct an
inquiry
for the purposes of the administration of this Act.
(2) Where the Commissioner, or any officer contemplated
in section 57(4), authorises a person to conduct an
inquiry,
the Commissioner or such officer shall apply to a
judge for an order designating a presiding officer before
whom
the inquiry is to be held.
(3) A judge may, on ex parte application by the
Commissioner or any officer contemplated in section 57(4),
grant
an order in terms of which a person contemplated in
subsection (7) is designated to act as presiding officer at
the inquiry contemplated in this section.
(4) An application under subsection (2) shall be
supported by information supplied under oath or solemn
declaration,
establishing the facts on which the
application is based.
(5) A judge may grant the order referred to in
subsection (3) if he is satisfied that there are reasonable
grounds
to believe that-
(a) (i) there has been non-compliance by any person with
his obligations in terms of this Act; or
(ii) an offence in terms of this Act has been committed
by any person;
(b) information, documents or things are likely to be
revealed which may afford proof of-
(i) such non-compliance; or
(ii) the committing of such offence; and
(c) the inquiry referred to in the application is likely
to reveal such information, documents or things.
(6) An order under subsection (3) shall, inter alia-
(a) name the presiding officer;
(b) refer to the alleged non-compliance or offence to be
inquired into;
(c) identify the person alleged to have failed to comply
with the provisions of the Act or to have committed the
offence; and
(d) be reasonably specific as to the ambit of the
inquiry.
(7) Any presiding officer shall be a person appointed by
the Minister in terms of section 83A(4) of the Income Tax
Act, 1962 (Act No. 58 of 1962).
(8) For the purposes of an inquiry contemplated in this
section, a presiding officer designated under subsection
(3) shall-
(a) determine the proceedings as he may think fit;
(b) have the same powers to enforce the attendance of
witnesses and to compel them to give evidence or to produce
evidential material as are vested in a President of the
Special Court contemplated in section 83 of the Income Tax
Act; and
(c) record the proceedings and evidence at an inquiry in
such manner as he may think fit.
(9) Any person may, by written notice issued by the
presiding officer, be required to appear before him in
order
to be questioned under oath or solemn declaration for
the purposes of an inquiry contemplated in this section.
(10) The notice contemplated in subsection (9) shall
specify the-
(a) place where such inquiry will be conducted;
(b) date and time of such inquiry; and
(c) reasons for such inquiry.
(11) Any person whose affairs are investigated in the
course of an inquiry contemplated in this section, shall be
entitled to be present throughout the inquiry, unless on
application by the person contemplated in subsection (1),
the presiding officer directs otherwise on the ground that
the presence of the person and his representative,
or
either of them, would be prejudicial to the effective
conduct of the inquiry.
(12) Any person contemplated in subsection (9) has the
right to a representative of his choice.
(13) An inquiry contemplated in this section shall not
be public and the presiding officer shall at any time on
application of the person whose affairs are investigated or
any other person giving evidence, exclude from such inquiry
or require to withdraw therefrom, all or any persons whose
attendance is not necessary for the inquiry.
(14) Any person may, at the discretion of the presiding
officer, be compensated for his reasonable expenditure
related to the attendance of an inquiry, by way of witness
fees in accordance with the tariffs prescribed in terms of
section 5 1bis of the Magistrates' Courts Act, 1944 (Act
No. 32 of 1944).
(15) Where the person referred to in subsection (1) is a
person other than an officer contemplated in section 5(1),
the provisions of section 6 shall mutatis mutandis apply to
such person with regard to the preservation of secrecy.
Search and seizure
57D. (1) For the purposes of the administration of this
Act, a judge may, on ex parte application by the
Commissioner
or any officer contemplated in section 57(4),
issue a warrant, authorising the officer named therein to,
without
prior notice and at any time-
(a) (i) enter and search any premises; and
(ii) search any person present on the premises, provided
that such search is conducted by an officer of the same
gender as the person being searched, for any information,
documents or things, that may afford evidence as to the
non-compliance by any person with his obligations in terms
of this Act;
(b) seize any such information, documents or things; and
(c) in carrying out any such search, open or cause to be
opened or removed and opened, anything in which such
officer suspects any information, documents or things to be
contained.
(2) An application under subsection (1) shall be
supported by information supplied under oath or solemn
declaration,
establishing the facts on which the
application is based.
(3) A judge may issue the warrant referred to in
subsection (1) if he is satisfied that there are reasonable
grounds
to believe that-
(a) (i) there has been non-compliance by any person with
his obligations in terms of this Act; or
(ii) an offence in terms of this Act has been committed
by any person;
(b) information, documents or things are likely to be
found which may afford evidence of-
(i) such non-compliance; or
(ii) the committing of such offence; and
(c) the premises specified in the application are likely
to contain such information, documents or things.
(4) A warrant issued under subsection (1) shall-
(a) refer to the alleged non-compliance or offence in
relation to which it is issued;
(b) identify the premises to be searched;
(c) identify the person alleged to have failed to comply
with the provisions of the Act or to have committed the
offence; and
(d) be reasonably specific as to any information,
documents or things to be searched for and seized.
(5) Where the officer named in the warrant has
reasonable grounds to believe that-
(a) such information, documents or things are-
(i) at any premises not identified in such warrant; and
(ii) about to be removed or destroyed; and
(b) a warrant cannot be obtained timeously to prevent
such removal or destruction, such officer may search such
premises and further exercise all the powers granted by
this section, as if such premises had been identified in a
warrant.
(6) Any officer who executes a warrant may seize, in
addition to the information, documents or things referred
to in the warrant, any other information, documents or
things that such officer believes on reasonable grounds
afford evidence of the non-compliance with the relevant
obligations or the committing of an offence in terms of
this Act.
(7) The officer exercising any power under this section
shall on demand produce the relevant warrant (if any).
(8) The Commissioner, who shall take reasonable care to
ensure that the information, documents or things are
preserved,
may retain them until the conclusion of any
investigation into the non-compliance or offence in
relation to which
the information, documents or things were
seized or until they are required to be used for the
purposes of any
legal proceedings under this Act, whichever
event occurs last.
(9)(a) Any person may apply to the relevant division of
the Supreme Court for the return of any information,
documents
or things seized under this section.
(b) The court hearing such application may, on good
cause shown, make such order as it deems fit.
(10) The person to whose affairs any information,
documents or things seized under this section relate, may
examine
and make extracts therefrom and obtain one copy
thereof at the expense of the State during normal business
hours
under such supervision as the Commissioner may
determine.".
Amendment of section 58 of Act 89 of 1991, as amended by
section 41 of Act 136 of 1991 and section 39 of Act 97 of
1993
25. Section 58 of the Value-Added Tax Act, 1991, is
hereby amended-
(a) by the substitution for paragraph (b) of the
following paragraph:
"(b) holds himself out as an officer authorised by
the Commissioner or a judge for the purposes of the
obtaining
of information, documents or things, an inquiry
or entry and search as contemplated in section 57(1) 57B,
57C
or 57D, as the case may be; or";
(b) by the substitution for paragraphs (g) and (h) of
the following paragraphs, respectively:
"(g) fails to comply with any requirement of
section 56 without just cause shown by him, refuses or
neglects
to-
(i) furnish, produce or make available any information,
documents or things;
(ii) reply to or answer truly and fully, any questions
put to him; or
(iii) attend and give evidence, as and when required in
terms of this Act; or
(h) hinders or obstructs or assaults any officer engaged
in carrying out his duties under section 57(1) 57B or 57D
or wilfully fails to comply with any lawful demand made by
such officer in the performance of his duties or the
exercise of his powers; or".
Amendment of section 2 of Act 187 of 1993, as amended by
section 24 of Act 11 of 1995
26. (1) Section 2 of the Regional Industrial Development
Act, 1993, is hereby amended by the insertion after
subparagraph (i) of paragraph (b) of subsection (2) of the
following
subparagraph:
"(ii) the South African Revenue Service designated
by the Director-General: South African Revenue Service;".
(2) Subsection (1) shall come into operation on 1
October 1996.
Amendment of section 5 of Act 187 of 1993
27. (1) Section 5 of the Regional Industrial Development
Act, 1993, is hereby amended-
(a) by the addition to subsection (2) of the following
paragraph:
"(i) exercise the powers conferred on it by section
37H of the Income Tax Act, 1962 (Act No. 58 of 1962).";
and
(b) by the insertion after paragraph (c) of subsection
(3) of the following paragraph:
"(cA) perform the functions assigned to it by
section 37H of the Income Tax Act, 1962;".
(2) Subsection (1) shall come into operation on 1
October 1996.
Amendment of section 39 of Act 20 of 1994, as amended by
section 7 of Act 37 of 1995 and section 35 of Act. 37 of
1996
28. (1) Section 39 of the Taxation Laws Amendment Act,
1994, is hereby amended-
(a) by the substitution in subsection (1) for the words
preceding paragraph (a) of the definition of "controlling
company" of the following words:
'controlling company', in relation to any other company,
means a listed or holding company which-',
(b) by the substitution in subsection (1) for the
proviso to the definition of "controlling company"
of the following proviso:
"Provided that for the purposes of a scheme
contemplated in paragraph (a)(iii) of the definition of
'rationalisation
scheme' in this subsection, the company
may also be a company other than a listed or holding
company;";
and
(c) by the insertion in subsection (1) after the
definition of "group of companies" of the
following
definition:
" 'holding company' means a company the fixed
capital (being share capital, share premium, accumulated
profits,
whether of a capital nature or not, or any other
permanent owners' capital) of which amounted to more than
R250
million at the end of the year of assessment
immediately preceding the year of assessment during which
the agreement
referred to in the definition of
'rationalisation scheme' has been concluded;".
(2) Subsection (1) shall come into operation on the date
of promulgation of this Act.
Amendment of section 24 of Act 36 of 1996
29. (1) Section 24 of the Income Tax Act, 1996, is
hereby amended by the substitution for subsection (2) of
the following subsection:
"(2) Subsection (1) shall come into operation on
the date of promulgation of this Act 3 July 1996 and shall
apply to any interest attributable to any tax arising from
the application of the provisions of section 103(1) 103 of
the principal Act to any transaction, operation or scheme
entered into or carried out, or any agreement entered
into
or effected on or after that date.".
(2) Subsection (1) shall be deemed to have come into
operation on 3 July 1996.
Amendment of section 29 of Act 36 of 1996
30. (1) Section 29 of the Income Tax Act, 1996, is
hereby amended by the substitution for subsection (2) of
the following subsection:
"(2) Subsection (1) shall come into operation on
the date of promulgation of this Act 3 July 1996 and shall
apply to any transaction, operation or scheme entered into
or carried out, or any agreement entered into or effected
on or after that date: Provided that the provisions of
section 103 of the principal Act shall, in relation to
any
transaction, operation or scheme entered into or carried
out, or any agreement entered into or effected before
that
date, continue to apply as if subsection (1) had not been
enacted.".
(2) Subsection (1) shall be deemed to have come into
operation on 3 July 1996.
Amendment of section 1 of Act 38 of 1996
31. (1) Section 1 of the Tax on Retirement Funds Act,
1996, is hereby amended by the deletion of paragraph (b) of
the definition of "retirement fund".
(2) Subsection (1) shall be deemed to have come into
operation on 1 March 1996.
Amendment of section 4 of Act 38 of 1996
32. Section 4 of the Tax on Retirement Funds Act, 1996,
is hereby amended-
(a) by the substitution for subparagraph (ii) of
paragraph (d) of the following subparagraph:
"(ii) equal to the statutory actuarial value of
liabilities under guaranteed annuities; and"; and
(b) by the substitution for paragraph (f) of the
following paragraph:
"(f) 'F' represents the value represented by symbol
'D' less the sum of the actuarial value of the liabilities
relating to the assets contemplated in-
(i) section 29(4)(a)(ii) and (iii) of the Income Tax Act
(excluding assets in respect of amounts allocated to
retirement funds contemplated in paragraph (c) and assets
representing
guaranteed annuities contemplated in paragraph
(d)); and
(ii) section 29(4)(a)(iii) of the Income Tax Act
(excluding assets-
(aa) in respect of amounts allocated to retirement funds
contem- plated in paragraph (c);
(bb) representing guaranteed annuities contemplated in
paragraph (d); and
(cc) contemplated in subparagraph (i)).".
(2) Subsection (1) shall be deemed to have come into
operation on 1 March 1996.$
Short title
33. This Act shall be called the Revenue Laws
Amendment Act, 1996. |
