THE BANKING COUNCIL SOUTH AFRICA

PORTFOLIO COMMITTEE ON FINANCE
DRAFT REVENUE LAWS BILL 2004

PARLIAMENT

19 October 2004

COMMENT ON PROPOSED AMENDMENTS TO THE INCOME TAX ACT

The Banking Council South Africa expresses its appreciation for the opportunity to present its views on the Proposed Amendments to the Income Tax Act.

There is general support for the objectives as set out in the explanatory memoranda. Equitable tax treatment of taxpayers and transactions and clarification of areas subject to different interpretations are necessary.

  1. Annexure 1: Broad-Based Employee Share Initiative.

  1. Annexure 2: Full Taxation of Executive Equity Schemes.

  1. Annexure 3: Hybrid Financial Instruments.

  1. Annexure 4: Deferred Instalment Sales.

  1. Annexure 5: Relief for Interest Bearing Investments for Residents of CMA.

  1. Annexure 11: Tax Administration.

  1. Annexure 12: Share for Property Transfers.

  1. Annexure 16: Withholding tax Non-Resident Sellers

  1. Other matter omission: Reportable Arrangements Section 76A

The Banking Council South Africa appreciates the opportunity to make these points and trusts that they will contribute to a more effective taxation system.