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This presentation covers changes in VAT, capital gains tax, payroll tax, investment options, dividends tax, and tax compliance. Recommendations include adjustments in thresholds, rates, and clearance systems. Proposed reforms aim to enhance tax efficiency and compliance.
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PRESENTATION TO THE SCoF Muneer Hassan: Project Director Tax Piet Nel: Project Director Tax Presenters: 2012 02 28 Presentation Footer
Opening remarks We thank you for the opportunity to submit written and make oral presentations National treasury process of calling for Annexure C and technical corrections Written submissions Workshops
Direct submission proposal by SAICA welcomed Pages 1 and 2 of submission Small business corporations R14 million threshold Clarification of the date of liability for VAT registration Value-added tax: Learnership allowances Substitutions Registration of contract Contingent liabilities - sale of business Provisions / warranties
Capital gains Page 2 of submission Increase in effective capital gains tax rates Effective date – 1 March 2012 Two inclusion rates in one financial year Provisional taxpayers underpaying Administration of changes
National health insurance (NHI) and medical tax credits Page 3 of submission Funding payroll tax, an increase in VAT rate and a surcharge on individual’s taxable income Consider alternative funding A Public Private Partnership is also considered Strict controls over expenditure Medical aid schemes should consider revising contribution models
Encouraging household savings Page 3 of submission New investment vehicles R500 000 limit Who will create these new or special investment products? Impact of proposal on current investment No inflation adjustment for annual interest exemption Retirement reforms Provident fund not restricted to one-third draw down.
Dividends tax Page 4 of submission Increase in dividend withholding tax rate Short notice Transitional credits – period reduced to three years. Again the short notice.
Tax practitioners Page 6 of submission Budget speech comment Tax compliance remark Chartered accountants have been tainted Rigorous training qualification – 5 to 7 years Post admission – CPD Code of conduct Disciplinary rules SARS not using 105A (Reporting of unprofessional conduct)
Tax clearance system Page 6 of submission Budget speech comment Tax clearance system to be strengthened Old outstanding returns Five year document retention period Old outstanding amounts Prescription (presently 30, but the TAB brings down 15 years, but document retention period 5 years)
