Amendment of section 75 of Act 58 of 1962

44. Section 75 of the Income Tax Act, 1962, is hereby amended by the substitution for the words following paragraph (g) of subsection (1) of the following words:

"shall be guilty of an offence and liable on conviction to a fine [not exceeding R2000] or to imprisonment for a period not exceeding 12 months or to both such fine and such imprisonment.".

Amendment of section 83 of Act 58 of 1962

45. Section 83 of the Income Tax Act, 1962, is hereby amended -

1. by the substitution for subsection (19) of the following subsection:

"(19)[(a)] The President of the court may indicate which judgments or decisions of the court he considers ought to be published for general information, in such form as does not reveal the identity of the appellant."; and

2. by the deletion of paragraphs (b) and (c).

Amendment of section 84 of Act 58 of 1962

46. Section 84 of the Income Tax Act, 1962, is hereby amended by the substitution for subsection (2) of the following subsection:

"(2) If any person who has been duly subpoenaed to give evidence at the hearing of an appeal or to produce any book, record, document or thing in his possession or under his control, fails without reasonable cause to attend or to give evidence or to produce that book, record, document or thing according to the subpoena or, unless excused by the President of the court, to remain in attendance throughout the proceedings, the President of the court may, upon being satisfied upon oath or by the return of the person by whom the subpoena was served, that such person has been duly subpoenaed and that his reasonable expenses have been paid or offered to him, impose upon the said person a fine [not exceeding fifty rand] or in default of payment imprisonment for a period not exceeding three months.".

Amendment of section 85 of Act 58 of 1962

47. Section 85 of the Income Tax Act, 1962, is hereby amended by the substitution for subsection (1) of the following subjection:

"(1) If during the sitting of a special court, any person wilfully insults a member of the court or any officer of the court attending at the sitting, or wilfully interrupts the proceedings of the court or otherwise misbehaves himself in the place where the court is held, the President of the court may make an order committing that person to imprisonment for any period not exceeding three months or order that person to pay a fine [not exceeding one hundred rand] or in default of payment thereof to be imprisoned for such a period.".

Substitution of section 99 of Act 58 of 1962

48. Section 99 of the Income Tax Act, 1962, is hereby substituted by the following section:

"The Commissioner may, if he thinks necessary, declare any person to be the agent of any other person, and the person so declared an agent shall be the agent for the purposes of this Act and may be required to make payment of any tax, interest or penalty due from any moneys, including pensions, salary, wages or any other remuneration, which maybe held by him or due by him to the person whose agent he has been declared to be.".

Amendment of section 101 of Act 58 of 1962

49. (1) Section 101 of the Income Tax Act, 1962, is hereby amended by the substitution for subsection (1) of the following subsection:

"(1) Every company carrying on business or having an office in the Republic and every unit portfolio constituting a company in terms of paragraph (e)(i) of the definition of 'company' in section one, shall at all times be represented by an individual residing therein.".

(2) Subsection (1) shall be deemed to have come into operation on 23 February 2000.

Amendment of section 104 of Act 68 of 1962

50. Section 104 of the Income Tax Act, 1962, is hereby amended by the substitution for the words following paragraph (d) of subsection (1) of the following words:

"shall be guilty of an offence and liable on conviction to a fine [not exceeding one thousand rand] or to imprisonment for a period not exceeding two years or to both such fine and such imprisonment.".

Amendment of section 106 of Act 58 of 1962

51. (1) Section 106 of the Income Tax Act, 1962, is hereby amended by the substitution for subparagraph (i) of paragraph (d) of subsection (2) of the following subparagraph:

"(i) if left with some adult person apparently residing at or occupying or employed at the place appointed by the company under subsection (5) of section 101 or, in the case of any unit portfolio referred to in paragraph (e)(i) of the definition of 'company' in section 1, the public officer of which is the trustee referred to in the said subsection (5), by such trustee, or where no such place has been appointed by the company or trustee, as the case may be, if left with some adult person apparently residing at or occupying or employed at the last known office or place of business of the company or trustee, as the case may be, in the Republic; or".

(2) Subsection (1) shall be deemed to have come into operation on 23 February 2000.

Amendment to paragraph 1 of Fourth Schedule to Act 58 of 1962

52. (1) Paragraph 1 of the Fourth Schedule to the Income Tax Act, 1962, is hereby amended -

1. by the addition to the definition of "employee" of the following paragraphs:

"(e) any personal service company; and
(f) any personal service trust;";

2. by the substitution for the definition of "labour broker" of the following definition:

"’labour broker’ means any person who conducts or carries on any business whereby such person for reward provides a client of such business with other persons [(other than any person who qualifies as a labour broker under this definition)] to render a service or perform work for such client, or procures such other persons for the client, for which services or work such other persons are remunerated by such person;";

3. by the insertion after the definition of "labour broker" of the following definitions:

"personal service company" means any company (other than a company which is a labour broker), where any service rendered on behalf of such company to a client of such company is rendered personally by any person who is a connected person in relation to such company, and -

1. such person would be regarded as an employee of such client if such service was rendered by such person directly to such client other than on behalf of such company; or

2. such person is subject to the control or supervision of such client as to the manner in which, or hours during which, the duties are performed or are to be performed in rendering such service; or

3. the amounts paid or payable in respect of such service consist of, or include, earnings of any description which are payable at regular daily, weekly, monthly or other intervals; or

4. where more than 80 per cent of the income of such company during the year of assessment, from services rendered, consists of or is likely to consist of amounts received directly or indirectly from any one client of such company, or associated institution as defined in the Seventh Schedule to the Act, in relation to such client,

except where such company throughout the year of assessment, employs more than three full-time employees who are on a full-time basis engaged in the business of such company of rendering any such service, other than any employee who is a shareholder or member of the company or is a connected person in relation to such person.

"personal service trust" means any trust where any service rendered on behalf of such trust to a client of such trust is rendered personally by any person who is a connected person in relation to such trust, and -

1. such person would be regarded as an employee of such client if such service was rendered by such person directly to such client other than on behalf of such trust; or

2. such person is subject to the control or supervision of such client as to the manner in which, or hours during which, the duties are performed or are to be performed in rendering such service; or

3. the amounts paid or payable in respect of such service consist of, or include, earnings of any description which are payable at regular daily, weekly, monthly or other intervals; or

4. where more than 80 per cent of the income of such trust during the year of assessment, from services rendered, consists of or is likely to consist of amounts received directly or indirectly from any one client of such trust, or associated institution as defined in the Seventh Schedule to the Act, in relation to such client,

except where such trust throughout the year of assessment, employs more than three full-time employees who are on a full-time basis engaged in the business of such trust of rendering any such service, other than any employee who is a connected person relation to such person or such trust.".

(2)(a) Subsection (1)(a) shall come into operation on 1 August 2000.

2. Subsection (1)(b) shall come into operation on 1 July 2000
3. Subsections (1)(c) and (d) shall be deemed to have come into operation on 1 April 2000, and shall apply in respect of any year of assessment commencing on or after that date.

Amendment of paragraph 2 of Fourth Schedule to Act 58 of 1962

53. (1) Paragraph 2 of the Fourth Schedule to the Income Tax Act, 1962, is hereby amended by the addition to item (a) of subparagraph (5) of the following proviso:

"Provided that the Commissioner shall not issue such certificate if -

27. more than 80 per cent of the gross income of such person during the year of assessment consists of, or is likely to consist of, an amount or amounts received from any one client of such person, or any associated institution in relation to such client;

54. such labour broker provides to any of its clients the services of any other labour broker; or

81. such labour broker and any client of such labour broker has agreed that a specified employee of such labour broker will render any service to such client.".

(2) Subsection (1) shall come into operation on the date of promulgation and shall apply in respect of any certificate issued on or after that date.

Amendment of paragraph 1 of Seventh Schedule to Act 58 of 1962

54. Paragraph 1 of the Seventh Schedule to the Income Tax Act, 1962, is hereby amended by the substitution for the definition of "official rate of interest" of the following definition:

"’official rate of interest’ means a rate of interest [of 16 per cent per annum] as the Minister of Finance may from time to time fix by notice in the Gazette.;".

Amendment of paragraph 9 of Seventh Schedule to Act 58 of 1962

55. Paragraph 9 of the Seventh Schedule to the Income Tax Act, 1962, is hereby amended by the substitution for item (b) of subparagraph (4) of the following item:

"(b) in any other case, an amount calculated [at the rate of R100 per person per day for each day during which the accommodation was so occupied or] at the prevailing rate per day at which such accommodation [would] could normally be let to any person who is not an employee of the employer or of any associated institution in relation to the employer, [whichever rate is lower].".

Amendment of paragraph 19 of Seventh Schedule to Act 58 of 1962

56. Paragraph 19 of the Seventh Schedule to the Income Tax Act, 1962, is hereby substituted by the following paragraph:

"Any person who makes or issues or causes to be made or issued or knowingly possesses or uses or causes to be used any certificate referred to in paragraph 17(1) which is false, shall be guilty of an offence and liable on conviction to a fine [not exceeding R400] or to imprisonment for a period not exceeding six months or to both such fine and such imprisonment.".

Amendment of paragraph 20 of Seventh Schedule to Act 58 of 1962

57. Paragraph 20 of the Seventh Schedule to the Income Tax Act, 1962, is hereby amended -

1. by the deletion of item (a) of subparagraph (1) thereof;
2. by the substitution for item (e) of subparagraph (1) of the following item:

"(e) the provisions of paragraph 9(3)[(b)](a) so as to vary the amount and quantities specified therein;";

3. by the deletion of item (f) and (g) of subparagraph (1); and
4. by the substitution for item (i) of subparagraph (1) of the following item:

"(i) the provisions of paragraph 10(2)[(d)] so as to vary the amount specified therein;".

Insertion of section 47B in Act 91 of 1964

58. . (1) The following section is hereby inserted after section 47A of the Customs and Excise Act, 1964:

"Air passenger tax. -

47B. (1)(a) For the purposes of this section, unless the context otherwise indicates -

"accounting period" means any period prescribed for purposes of subsection (7);

"airport" means a customs and excise airport prescribed in item 200.04 of the Schedule to the rules;

"carriage" means carriage by air;

"document" includes information recorded in any form;

"agent" means an agent contemplated in subsection (5);

"chargeable aircraft" means an aircraft designed or adapted to carry any person in addition to the flight crew;

"chargeable passenger" means subject to the definition of "passenger" and subsection (3) every passenger on an aircraft departing from an airport in the Republic to a destination outside the Republic;

"flight" in relation to any person means the carriage of any person from any airport in the Republic on an aircraft to any destination outside the Republic and begins when the person first boards an aircraft on that journey and ends when the person disembarks from the aircraft at such destination whether or not the journey includes a domestic flight connection with another flight which carries the person to such destination;

"operator" in relation to any aircraft means the person having the management of the aircraft for the time being and includes any airline charterer or natural person who owns such aircraft or in whose name the aircraft is registered in terms of the regulations made under the Aviation Act, No. 74 of 1962 or hired;

"passenger" in relation to any aircraft means -

1. Where the operator is an air transport undertaking, any person carried on the aircraft other than -

1. a member of the flight crew;

2. a cabin attendant; or

3. a person not carried for reward who is an employee of the aircraft operator and who satisfies such other requirements as may be prescribed by rule;

2. In any other case, any person carried for reward;

"reward" in relation to the carriage of any person includes any form of consideration received or to be received;

"tax" means air passenger tax;

(2)(a) An air passenger tax shall be charged in accordance with this section on the carriage on a chargeable aircraft of any chargeable passenger.

2. Air passenger tax shall be charged at the rate of R100,00 on the carriage of each chargeable passenger departing on a flight from an airport in the Republic and shall be paid for the benefit of the National Revenue Fund at the time prescribed by rule as contemplated in subsection (7).

3. Subject to the provisions of this section and the rules, the tax -

1. becomes due when the aircraft first takes off on the passenger’s flight;

2. shall be paid by the operator of the aircraft or the agent contemplated in subsection (7).

4. Subject to the provisions of this section and except for the purposes of any customs union agreement concluded under section 51, such tax shall be deemed to be a duty leviable under this Act.

(3)(a) A child who -

1. has not attained the age of two years; and

2. is not allocated a separate seat before boarding the aircraft, is not a chargeable passenger.

2. A passenger is not a chargeable passenger if carried -

1. not for reward -

(aa) in pursuance of any requirement imposed under any law; or
(bb) for the purposes only of inspecting matters relating to the aircraft or the flight crew;

2. whether or not for reward, in pursuance of any international agreement, convention or obligation, subject to the approval of the Commissioner and such conditions he may impose in each case;

3. Any passenger, who is in transit through the Republic and departs from the transit area of the airport on a flight without entering the Republic by passing through immigration is not a chargeable passenger.

(4)(a) The Commissioner shall keep a register of aircraft operators.

2. (i) The operator of a chargeable aircraft used for the carriage of any chargeable passenger shall be liable to be registered under this section.

(ii) Application for such registration shall be in such form and manner and contain such information as may be prescribed by rule.

3. Any person liable to be registered under this section ceases to be so liable if the Commissioner is, on good cause shown, satisfied -

1. that such person no longer operates any chargeable aircraft; or

2. that no chargeable aircraft operated by such person will be used for the carriage of chargeable passengers.

4. Any person not registered and who has not applied for registration and not given notice under the subsection shall, if he becomes liable to be registered at any time, give notice of that fact to the Commissioner and apply for registration in writing within 7 days of the time of becoming so liable.

5. Every pilot of a chargeable aircraft shall produce for the purposes of section 7(6)(a) together with the report outwards, proof of such registration or a certificate from the Commissioner that the aircraft operator is not liable to register and a passenger manifest in such form and containing such particulars as may be prescribed by rule.

(5)(a) An aircraft operator who -

1. is, or is liable to be registered; and

2. does not meet the requirements of paragraph (b),

is required to appoint an agent whose place of business is in the Republic as the South African representative of such operator.

2. A person meets the requirements of this subsection if such person -

1. has any business establishment or other fixed establishment in the Republic; or

2. is an individual and is usually resident in the Republic.

3. The Commissioner may register any person appointed under this subsection by any aircraft operator to be the agent of such principal and if so registered such agent shall be entitled to act on behalf of the principal for the purposes of this Act.

4. The Commissioner may by rule prescribe -

1. the persons who may be appointed as agent;

2. the manner in which a person and the conditions on which a person is to be appointed as agent for an aircraft operator;

3. the conditions on which such agents are to be registered by the Commissioner;

5. The provisions of sections 98 and 99(1) shall apply mutatis mutandis, respectively, to such aircraft operator and agent.

(6)(a) No -

1. operator of an aircraft who is liable to be registered; or
2. agent appointed by any aircraft operator,

shall conduct any business under this section unless such person has furnished such security as the Commissioner may require.

2. The Commissioner may at any time require that the form, nature or amount of such security be altered in such a manner as he may determined.

(7)(a) Aircraft operators who are registered or liable to be registered under this section shall -

1. keep accounts in such form and manner as may be prescribed by rule; and

2. shall render tax accounts at such time and in such manner and for such periods as may be prescribed by rule.

2. (i) Any aircraft operator or agent of such operator shall pay any tax due at such time and in such manner and at such place as may be prescribed by rule.

(ii) (aa) Any tax due and not accounted for and paid in accordance with the provisions of this subsection shall be paid, upon demand by the Commissioner.

(bb) If such tax is not paid within fourteen days after the demand for payment was made it shall be recoverable in terms of the provisions of this Act as if it were a duty payable under this Act.

(iii) Interest on any outstanding tax shall be payable as provided in section 105.

(iv) Any amounts of tax overpaid shall be refundable in the circumstances and on compliance with such conditions as may be prescribed by rule.

(9)(a) Any person who -

1. is knowingly a party to the fraudulent evasion of tax or attempts to or assists any other person in taking steps with a view to such fraudulent evasion; and

2. any person who in connection with tax makes a statement he knows to be false or recklessly makes a statement that is false, or, with intent to deceive produces or makes use of a book or account return or other document that is false,

shall be guilty of an offence and liable on conviction to a fine not exceeding R40 000 or three times the value of the tax to which the offence relates, whichever is the greater or to imprisonment for a period not exceeding ten years or to both such fine and imprisonment and the aircraft in respect of which such fraudulent evasion took place or false statements were made shall be liable to forfeiture.".

(2) Subsection (1) shall come into operation on 1 November 2000, and shall apply to any carriage of a passenger on an aircraft, which begins on or after that date.

Amendment of section 49 of Act 91 of 1964

59. Section 49 of the Customs and Excise Act, 1964 is hereby amended by the insertion after subsection 5A of the following subsection:

"(5B) Notwithstanding the provisions of subsection (5), the Minister may include in any notice published under that subsection, the full text of any such agreement or protocol except any protocol or other part thereof, as the case may be, published under subsection 48(1A), and if so included, the whole agreement or protocol as the case may be, shall be enacted into law as part of this Act as contemplated in subsection (1)(a).".

(2) Subsection (1) shall be deemed to have come into operation on 24 November 1999.

Amendment of section 75 of Act 91 of 1964

60. (1) Section 75 of the Customs and Excise Act, 1964, is hereby amended by the substitution for paragraph (b) of subsection (1) of the following paragraph:

"(b) Any imported goods described in Schedule No. 4 shall be admitted under rebate of any customs duty or fuel levy applicable in respect of such goods at the time of entry for home consumption thereof, to the extent stated in, and subject to compliance with the provisions of, the item of Schedule No. 4 in which such goods are specified.".

(2) Subsection (1) shall be deemed to have come into operation on…

Amendment of section 76 of Act 91 of 1964

61. Section 76 of Customs and Excise Act, 1964 is hereby amended -

1. by the deletion of the word "or" at the end of paragraph (f);
2. by the addition of the word "or" at the end of paragraph (g); and
3. by the insertion in subsection (2) of the following paragraph after paragraph (g):

"(h) notwithstanding the provisions of section 49(9), duty having been paid on any goods at the general rate of duty specified in respect of any heading or subheading in Part 1 of Schedule No. 1 and proof is produced that the goods concerned qualify for a preferential rate of duty specified for such heading or subheading in the said Part 1 of the said Schedule No. 1.".

(2) Subsection (1) shall be deemed to have come into operation on 1 January 2000.

Amendment of section 105 of Act 91 of 1964

62. Section 105 of the Customs and Excise Act, 1964, is hereby amended by the substitution for paragraph (b) of the following paragraph:

"(b) the interest so payable shall be paid at [the rate of 19 per cent per annum, or such other] a rate which the Minister of Finance may from time to time fix by notice in the Gazette;".

Amendment of Schedule No. 1 of Act 91 of 1964

63. (1) Schedule No. 1 to the Customs and Excise Act, 1964, is hereby amended as set out in Schedule 2 to this Act.

(2) Subject to the provisions of section 58(1) of the Customs and Excise Act, 1964, this section shall be deemed to have come into operation on 23 February 2000.

Continuation of certain amendments of Schedules Nos. 1 to 6 of Act 91 of 1964

64. (1) Every amendment or withdrawal of or insertion in Schedules Nos. 1 to 6, inclusive, to the Customs and Excise Act, 1964, made under section 48, 56 or 75(15) of that Act during the calendar year ending on 31 December 1999 shall not lapse by virtue of the provisions of section 48(6), 56(3) or 75(16) of that Act.

(2) The amendments of Part 5 of Schedule No. 1 to the customs and Excise Act, 1964, made under section 48 of that Act by Government Notice No. R.321 of 3 April 2000, shall not lapse by virtue of the provisions of section 48(6) of that Act.

Amendment of section 4 of Act 77 of 1968

65. (1) Section 4 of the Stamp Duties Act, 1968, is hereby amended -

1. by the deletion of subparagraph (iv) of paragraph (b) of subsection (1);
2. by the substitution for subparagraph (i) of paragraph (f) of subsection (1) of the following subparagraph:

"(i) a [religious, charitable or educational institution of a public character] public benefit organisation which is exempt from tax in terms of section 10(1)[(f)](cN) of the Income Tax Act, 1962 (Act 58 of 1962), and any fund which is exempt from tax in terms of section 10(1)(fA) of the said Act which provides funds solely to such a public benefit organisation; or";

3. by the deletion of subparagraphs (ii) and (iii) of paragraph (f) of subsection (1); and
4. by the substitution of the words following subparagraph (iii) of paragraph (f) of subsection (1) of the following words:

"if the duty thereon would be legally payable and borne by such [institution, fund, company, society, trust or other association] public benefit organisation or fund, as the case may be;";

5. by the addition to subsection (1) of the following paragraph:

"(h) any instrument transferred by -

9. any public benefit organisation which is exempt from tax in terms of the provisions of section 10(1)(cN) of the Income Tax Act, 1962, to any other entity in order to comply with the provisions of the proviso to subsection (2) of section 30 of that Act; or

2. any fund contemplated in section 10(1)(fA) of the Income Tax Act, 1962, to any other entity in order to comply with the provisions of paragraph (b) of the first proviso to section 10(1)(fA) of that Act.".

(2)(a) Subsection (1)(a) shall come into operation on 1 January 2000.

2. Subsection (1)(b), (c), (d) and (e) shall come into operation a date to be determined by the President by way of proclamation in the Gazette.

Amendment of section 5 of Act 77 of 1968

66. Section 5 of the Stamp Duties Act, 1968, is hereby amended -

1. by the substitution for the words preceding the proviso to subsection (1) of the following words:

"The payment of any duty or of any penalty incurred under section 9 shall, save as is otherwise specially provided in this Act, be denoted by means of adhesive revenue stamps for the amount of such duty or adhesive penalty stamps for the amount of such penalty [where the amount of such duty or penalty does not exceed an amount of R400], and such stamps shall be affixed to the instrument chargeable with the duty or penalty and be defaced as prescribed by this Act:"; and

2. by the deletion of subsection (1A).

67. Section 27 of the Stamp Duties Act, 1968, is hereby amended -

1. by the substitution for the words following paragraph (k) of subsection (1) of the following words:

"or who causes or procures any of the acts mentioned in any of paragraphs (a) to (k), inclusive, to be done or knowingly aids, abets or assists any person in doing any such act, shall be guilty of an offence and liable on conviction to a fine [not exceeding R10 000] or to imprisonment for a period not exceeding two years or to both such fine and such imprisonment."; and

2. by the substitution for the words following paragraph (b) of subsection (2) of the following words:

"shall be guilty of an offence and liable on conviction to a fine [not exceeding R4 000] or to imprisonment for a period not exceeding six months or to both such fine and such imprisonment.".

68. Section 28A of the Stamp Duties Act, 1968, is hereby amended by the substitution for the words following paragraph (c) of subsection (1) of the following words:

"shall be guilty of an offence and on conviction liable to a fine [not exceeding R4 000] or to imprisonment for a period not exceeding six months or to both such fine and such imprisonment.".

Amendment of section 31C of Act 77 of 1968

69. Section 31C of the Stamp Duties Act, 1968, is hereby amended -

1. by the substitution for paragraph (b) of subsection (8) of the following paragraph:

"(b) have the same powers -

9. to enforce the attendance of witnesses and to compel them to give evidence or to produce evidential material; and

2. relating to contempt,

as are vested in a President of the Special Court contemplated in section 83 of the Income Tax Act, 1962; and";

2. by the substitution for subsections (11), (12) and (13) of the following subsections:

"(11) Any person whose affairs are investigated in the course of an inquiry contemplated in this section, shall be entitled to be present [throughout] at the inquiry during such time as his affairs are investigated, 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] have a legal representative present during the time that he appears before the presiding officer.

(13) An inquiry contemplated in this section shall [not be public] be private and confidential and the presiding officer shall at any time on application [of] by the person whose affairs are investigated or any other person giving evidence or the person contemplated in subsection (1), exclude from such inquiry or require to withdraw therefrom, all or any persons whose attendance is not necessary for the inquiry.";

3. by the addition after subsection (14) of the following subsections:

"(15) Any person who has been required to appear before the presiding officer at the inquiry and who—

1. at his or her appearance before the inquiry—

1. fails to produce a book, document or other object in his or her possession or under his or her control which he or she has been summoned to produce; or

2. refuses to be sworn or to make an affirmation after he or she has been asked by the presiding officer to do so; or

2. having been sworn or having made an affirmation—

1. fails to answer fully and to the best of his or her ability any question lawfully put to him or her; or

2. gives false evidence knowing that evidence to be false or not knowing or not believing it to be true, shall be guilty of an offence.

(16) The evidence given under oath or solemn declaration at an inquiry may be used by the Commissioner in any subsequent proceedings to which the person whose affairs are investigated is a party or to which a person who had dealings with such person is a party.

(17)(a) No person may refuse to answer any question on the grounds that it may incriminate him or her.

2. No such incriminating evidence shall be admissible in any criminal proceedings against the person giving such evidence, other than in proceedings where that person stands trial on a charge relating to the administering or the giving of false evidence or the making of a false statement in connection with such questions and answers, or a failure to answer lawful questions fully and satisfactorily, or a charge in connection with a breach of the provisions of subsection (15).

(18) An inquiry in terms of this section shall proceed notwithstanding the fact that any civil or criminal proceedings are pending or contemplated against or involving any person identified in subsection (6)(c) or any witness or potential witness or any person whose affairs may be investigated in the course of that inquiry.".

70. Item 15 of Schedule 1 to the Stamp Duties Act, 1968, is hereby amended -

1. by the deletion of paragraph (d) under the Exemptions from (1) and (2); and
2. by the deletion of paragraph (u) under the Exemptions from (3).

Amendment of Item 18 of Schedule 1 to Act 77 of 1968

71. Item 18 of Schedule 1 of the Stamp Duties Act, 1968, is hereby amended -

1. by the substitution of the words preceding subitem (1) of the following words:

"Policy of insurance, including any other instrument which constitutes a long-term policy [of insurance under the Insurance Act, 1943 (Act 27 of 1943)] as defined in the Long-term Insurance Act, 1998 (Act No. 52 of 1998):";

2. by the substitution for subitem (2A) of the following subitem:

3. by the deletion of subitem (6)(a).

Amendment of Item 20 of Schedule 1 to Act 77 of 1968

72. Item 20 of Schedule 1 to the Stamp Duties Act, 1968, is hereby amended by the substitution for paragraph (b) of the Exemptions of the following paragraph:

"(b) Where such document of security or pledge or such act of suretyship, indemnity or guarantee constitutes a long-term policy [of insurance] under the Long-term Insurance Act, [1943 (Act 27 of 1943)] 1998 (Act No. 52 of 1998).".

Insertion of section 24 in Act 40 of 1987

73. (1) The following section is hereby inserted in the Eskom Act, 1987, after section 23:

"24. Taxation of receipts and accruals of Eskom and subsidiaries -

(1) The provisions of sections 10(1)(cA) of the Income Tax Act, 1962, (Act No. 58 of 1962), shall not apply in respect of the receipts and accruals of -

1. Eskom; and
2. any South African company all the shares of which are held by Eskom, if the operations of such company are ancillary or complementary to the objects of Eskom as contemplated in section 3.

(2) The Minister of Finance, after consultation with the Minister and the Minister of Minerals and Energy, shall determine the tax values of the capital assets owned on 1 January 2000 by Eskom and any company contemplated in subsection (1)(b) for the purpose of calculating any wear and tear or depreciation allowances as contemplated in the Income Tax Act, 1962.

(3) For the purposes of the application of the provisions of the Income Tax Act, 1962, Eskom, Eskom Holdings Ltd and Eskom Enterprises (Pty)Ltd shall, subject to such adjustments as may be necessary, be deemed to be one and the same entity, in respect of any assets, liabilities, rights, obligations or business of Eskom that have been transferred to such companies.

(4) No taxes, duties or levies shall be payable in respect of the transfer of any asset from Eskom to -

1. Eskom Holdings Ltd as a result of the incorporation of such company as contemplated in section 2A; or
2. Eskom Enterprises (Pty)Ltd of which Eskom owns all its issued share capital, provided such transfer is effected prior to the incorporation of Eskom as contemplated in section 2A of this Act.".

(2) Subsection shall be deemed to have come into operation on 1 January 2000.

Amendment of section 1 of the Act 89 of 1991, as amended by section 21 of Act 136 of 1991, paragraph 1 of Government Notice 2695 of 8 November 1991, section 12 of Act 136 of 1992, section 22 of Act 97 of 1993, section 9 of Act 20 of 1994, section 18 of Act 37 of 1996, section 23 of Act 27 of 1997 and section 81 of Act 53 of 1999

74. Section 1 of the Value-Added Tax Act, 1991 is hereby amended by the substitution in the definition of "motor car" for the words preceding paragraph (a) of the following words:

"’motor car’ includes a double cab light delivery vehicle and any motor vehicle of a kind normally used on public roads, which has three or more wheels and is constructed or adapted wholly or mainly for the carriage of passengers, but does not include –".

Amendment of section 11 of Act 89 of 1991, as amended by section 27 of Act 136 of 1991, paragraph 6 of Government Notice 2695 of 8 November 1991, section 17 of Act 136 of 1992, section 27 of Act 97 of 1993, section 13 of Act 20 of 1994, section 28 of Act 27 of 1997, section 89 of Act 30 of 1998 and section 85 of Act 53 of 1999

75. Section 11 of the Value-Added Tax Act, 1991, is hereby amended -

1. by the addition in subsection (2) of the word "or" at the end of paragraph (q); and
2. by the insertion after paragraph (q) in subsection (2) of the following paragraph:

"(r) the services comprise of the vocational training of employees (other than educational services contemplated in section 12(h)) for an employer who is not a resident of the Republic and who is not a vendor.".

Amendment of section 27 of Act 89 of 1991, as amended by section 34 of Act 136 of 1991, Government Notice 2695 of 8 November 1991 and section 28 of Act 136 of 1992

76. Section 27 of the Value-Added Tax Act, 1991, is hereby amended -

1. by the insertion at the end of subsection (1) of the following paragraph:

"’Category E’ means the category of vendors whose tax periods are periods of twelve months ending on the last day of their ‘year of assessment’ as defined in section 1 of the Income Tax Act or where any vendor falling within this category makes written application therefor, on the last day of such other month as the Commissioner may approve"

2. by the substitution for paragraph (a) of subsection (2) of the following paragraph:

"(a) Every vendor, not being a vendor who falls within Category C, [or] D or E as contemplated in subsection (3), [or] (4) or 4A, shall fall within Category A or Category B."

3. by the substitution for the proviso to subsection (3) of the following proviso:

"Provided that a vendor falling within Category C shall cease to fall within that Category with effect from the commencement of a future period notified by the Commissioner, if the vendor has applied in writing to be placed within Category A, B, [or] D or E and the Commissioner is satisfied that by reason of a change in the vendor’s circumstances he satisfies the requirements of this section for placing within Category A, B, [or] D or E."

4. by the substitution for the proviso to subsection (4) of the following proviso:

"Provided that a vendor falling within Category D shall cease to fall within that Category with effect from the commencement of a future period notified by the Commissioner, if written application is made by the person who made the application referred to in paragraph (e) for the vendor to be placed within Category A, B, [or] C or E or the Commissioner is satisfied that by reason of a change in circumstances that vendor should be placed within Category A, B, [or] C or E."

5. by the insertion after subsection (4) of the following subsection:

"(4A) A vendor shall fall within Category E if -

1. the vendor is a company or a trust fund;
2. the vendor’s enterprise consists solely of one or more of the activities of -

9. letting of fixed property or the renting of movable goods to, or

2. the administration or management of companies which are connected persons in relation to the vendor;

3. the recipients of these supplies are all registered vendors and are entitled to deductions of the full amount of tax in respect of these supplies;
4. tax invoices are issued and payments of consideration for these supplies, by agreement between the parties, only become due once a year at the end of the year of assessment as defined in section 1 of the Income Tax Act of the vendor making the supplies; and
5. the vendor has made written application to the Commissioner in such form as the Commissioner may prescribe, to be placed in Category E and the Commissioner has directed that, with effect from a date which he considers appropriate, the vendor shall fall within Category E: Provided that a vendor falling within Category E shall cease to fall within that Category with effect from a date notified by the Commissioner if -

1. written application is made by the person who made the application referred to in paragraph (e) for the vendor to be placed in a different Category; or

2. the Commissioner is satisfied that by reason of a change in circumstances, that vendor should be placed in Category A, B, C or D; or

3. the vendor’s placing in Category E results in any financial loss (including any loss of interest) to the State.";

6. by the substitution for paragraph (ii) of the proviso to subsection (6) of the following paragraph:

"(ii) any tax period ending on the last day of a month, as applicable in respect of the relevant Category, may instead of ending on such last day, end on a fixed day approved by the Commissioner, which day shall fall within 10 days before or after such last day;".

Amendment of section 28 of Act 89 of 1991, as amended by section 29 of Act 136 of 1992

77. Section 28 of the Value-Added Tax Act, 1991, is hereby amended by the substitution for the proviso to subsection (1) of the following proviso:

"Provided that -

1. where such twenty-fifth day falls on a Saturday, Sunday or public holiday, it shall be deemed to fall on the last business day before such Saturday, Sunday or public holiday;

2. where payment of the full amount of the tax is effected by means of an electronic transfer and the requirements for the transfer of the tax have been met by the vendor, such electronic transfer shall not be effected prior to the last business day of the month during which the said twenty-fifth day falls on the period within which the tax is required to be paid shall be deemed to end on the last business day of such month.".

Amendment of section 31 of Act 89 of 1991

78. Section 31 of the Value-Added Tax Act, 1991, is hereby amended by the insertion after subsection (5) of the following subsection:

"(5A) If it appears to the Commissioner that any person is for any reason unable to furnish an accurate return as contemplated in section 28, 29 or 30, the Commissioner may agree in writing with such person as to the amount upon which tax shall be payable and to the extent that an assessment is issued upon an amount so agreed to, such assessment shall not be subject to objection.".

Insertion of section 39A in Act 89 of 1991

79. The following section is hereby inserted in the Value-Added Tax Act, 1991, after section 39:

"Penalty for failure to furnish a return within the prescribed period -

39A. (1) If any person who is liable to furnish a return in the manner prescribed in section 28(1) fails to furnish such return within the prescribed period he shall be liable to a penalty: Provided that if a penalty is levied in terms of section 39 in respect of the failure to pay tax relating to the tax period for which the person failed to furnish a return within the prescribed period, no penalty shall be payable in terms of this section.

(2) The penalty payable in terms of subsection (1) shall be R100 in respect of the first return not furnished within the prescribed period and in respect of every subsequent return not furnished within the prescribed period the penalty shall be an amount equal to the immediately preceding penalty levied under this section, increased by an amount of R100, but not exceeding R1 000 per return furnished late.

(3) To the extent that the Commissioner is satisfied that the failure to furnish a return within the prescribed period was not due to negligence or an intent to postpone the furnishing of a return, he may remit any penalty payable in terms of this section.".

Amendment of section 43 of Act 89 of 1991, as amended by section 99 of Act 30 of 1998 and section 97 of Act 53 of 1999

80. Section 43 of the Value-Added Tax Act, 1991, is hereby amended by the substitution for paragraph (a) of subsection 1 of the following paragraph:

"(a) who has been convicted of any offence under this Act or any other Act administered by the Commissioner, or who has repeatedly failed to pay amounts of tax due by him or to carry out other obligations imposed upon him by this Act or any other Act administered by the Commissioner; or";

Amendment of section 57C of Act 89 of 1991, as amended by section 48 of Act 27 of 1997

81. Section 57C of the Value-Added Tax Act, 1991, is hereby amended -

1. by the substitution for paragraph (b) of subsection (8) of the following paragraph:

"(b) have the same powers -

1. to enforce the attendance of witnesses and to compel them to give evidence or to produce evidential material; and

2. relating to contempt,

as are vested in a President of the Special Court contemplated in section 83; and".

2. by the substitution for subsections (11), (12) and (13) of the following subsections:

"(11) Any person whose affairs are investigated in the course of an inquiry contemplated in this section, shall be entitled to be present [throughout] at the inquiry during such time as his affairs are investigated, 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] have a legal representative present during the time that he appears before the presiding officer.

(13) An inquiry contemplated in this section shall [not be public] be private and confidential and the presiding officer shall at any time on application [of] by the person whose affairs are investigated or any other person giving evidence or the person contemplated in subsection (1), exclude from such inquiry or require to withdraw therefrom, all or any persons whose attendance is not necessary for the inquiry.";

3. by the substitution for subsection(15) of the following subsection:

"(15) The provisions with regard to the preservation of secrecy contained in section 6 shall mutatis mutandis apply to any person present at the questioning of any person contemplated in subsection (9), including the person being questioned.";

4. by the addition after subsection (15) of the following subsections:

"(16) Any person who fails to comply with the provisions of subsection (15) shall be guilty of an offence and on conviction shall be liable to a fine or to imprisonment for a period not exceeding two years or to both such fine and imprisonment.

(17) Any person who has been required to appear before the presiding officer at the enquiry and who—

1. at his or her appearance before the enquiry—

1. fails to produce a book, document or other object in his or her possession or under his or her control which he or she has been summoned to produce; or
2. refuses to be sworn or to make an affirmation after he or she has been asked by the presiding officer to do so; or

2. having been sworn or having made an affirmation—

1. fails to answer fully and to the best of his or her ability any question lawfully put to him or her; or

2. gives false evidence knowing that evidence to be false or not knowing or not believing it to be true, shall be guilty of an offence.

(18) The evidence given under oath or solemn declaration at an inquiry may be used by the Commissioner in any subsequent proceedings to which the person whose affairs are investigated is a party or to which a person who had dealings with such person is a party.

(19)(a) No person may refuse to answer any question on the grounds that it may incriminate him or her.

2. No such incriminating evidence shall be admissible in any criminal proceedings against the person giving such evidence, other than in proceedings where that person stands trial on a charge relating to the administering or the giving of false evidence or the making of a false statement in connection with such questions and answers, or a failure to answer lawful questions fully and satisfactorily, or a charge in connection with a breach of the provisions of subsection (15).

(20) An inquiry in terms of this section shall proceed notwithstanding the fact that any civil or criminal proceedings are pending or contemplated against or involving any person identified in subsection (6)(c) or any witness or potential witness or any person whose affairs may be investigated in the course of that inquiry.".

Special exemption in respect of goods or services supplied by the International Telecommunication Union

82. The supply of any goods or services by the International Telecommunication Union in connection with "Africa Telecom 2001" shall be exempt from value-added tax imposed in terms of section 7(1)(a) of the Value-Added Tax Act, 1991 (Act No. 89 of 1991).

Amendment of section 60 of Act 113 of 1993

83. Section 60 of the Income Tax Act, 1993, is hereby amend by the substitution for subparagraph (i) of paragraph (a) of subsection (5) of the following subparagraph:

"(i) not be a dividend for the purposes of parts III and VII of Chapter II of that Act; and".

Amendment of section 1 of Act 38 of 1996

84. (1) Section 1 of the Tax on Retirement Funds Act, 1996, is hereby amended -

1. by the substitution for paragraph (b) of the definition of "actuarial value" of the following paragraph:

"(b) in the case of an untaxed policyholder fund, by the insurer's [valuator] actuary appointed in terms of section 20 of the Long-term Insurance Act, [1943 (Act 27 of 1943)] 1998 (Act No. 52 of 1998), in terms of the latest valuation on the basis as required [in terms of the last-mentioned Act] for purposes of the definition of "value of liabilities" in section 29A with a valuation date before the commencement of the relevant tax period [and particulars of which shall be lodged with the Financial Services Board before the end of the relevant tax period and found acceptable by such Board];";

2. by the substitution for the definition of "insurer" of the following definition:

"'insurer' means any [company registered to carry on long-term insurance business as defined in section 1 of the Insurance Act, 1943 (Act 27 of 1943)] long-term insurer as defined in section 1 of the Long-term Insurance Act, 1998 (Act No. 52 of 1998).

(2)(a) Subsection (1) shall come into operation on 1 March 2000 and shall apply in respect of any tax period commencing on or after that date.

Amendment of section 3 of Act 38 of 1996

85. Section 3 of the Tax on Retirement Funds Act, 1996, is hereby amended -

1. by the substitution for the formula of the following formula:

A = I + (R – E) + D

2. by the addition of the following paragraph:

"(e) "D" represents the amount of any foreign dividends received by or accrued to such fund during such tax period as determined in accordance with the provisions of section 9E of the Income Tax Act, 1962 (Act No. 58 of 1962).

Amendment of section 7 of Act 34 of 1997

86. Section 7 of the South African Revenue Service Act, 1997, is hereby amended by the substitution of subsection (1) of the following subsection:

"(1) When the Commissioner is absent or otherwise unable to perform the functions of office, or during a vacancy in the office of Commissioner, the Minister may designate another SARS employee to act as Commissioner: Provided that where the Commissioner envisages that he or she will be temporarily absent and unable to perform the functions of office, he or she may so designate another SARS employee to act as Commissioner for a period not exceeding 30 days.".

Amendment of section 19 of Act 34 of 1997

87. Section 19 of the South African Revenue Service Act, 1997, is hereby amended by the substitution for paragraph (b) of subsection (1) of the following paragraph:

"(a) becomes a member of the Government Employees' Pension Fund mentioned in section 2 of the Government Employees' Pension Law, 1996 (Proclamation 21 of 1996), subject to the rules of such Fund; and".

Amendment of section 6 of Act 31 of 1998

88. Section 6 of the Uncertificated Securities Tax Act, 1998, is hereby amended -

1. by the deletion of subparagraph (ii) of paragraph (a) of subsection (1);
2. by the deletion of subparagraph (vii) of paragraph (b) of subsection (1).

Amendment of section 16 of Act 31 of 1998

89. Section 16 of the Uncertificated Securities Tax Act, 1998, is hereby amended -

1. by the substitution for paragraph (b) of subsection (8) of the following paragraph:

"(b) have the same powers -

9. to enforce the attendance of witnesses and to compel them to give evidence or to produce evidential material; and

2. relating to contempt,

as are vested in a President of the Special Court contemplated in section 83 of the Income Tax Act, 1962; and";

2. by the substitution for subsections (11), (12) and (13) of the following subsections:

"(11) Any person whose affairs are investigated in the course of an inquiry contemplated in this section, shall be entitled to be present [throughout] at the inquiry during such time as his affairs are investigated, 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] have a legal representative present during the time that he appears before the presiding officer.

(13) An inquiry contemplated in this section shall [not be public] be private and confidential and the presiding officer shall at any time on application [of] by the person whose affairs are investigated or any other person giving evidence or the person contemplated in subsection (1), exclude from such inquiry or require to withdraw therefrom, all or any persons whose attendance is not necessary for the inquiry.";

3. by the addition after subsection (14) of the following subsections:

"(15) Any person who has been required to appear before the presiding officer at the inquiry and who—

1. at his or her appearance before the inquiry—

1. fails to produce a book, document or other object in his or her possession or under his or her control which he or she has been summoned to produce; or
2. refuses to be sworn or to make an affirmation after he or she has been asked by the presiding officer to do so; or

2. having been sworn or having made an affirmation—

1. fails to answer fully and to the best of his or her ability any question lawfully put to him or her; or

2. gives false evidence knowing that evidence to be false or not knowing or not believing it to be true, shall be guilty of an offence.

(16) The evidence given under oath or solemn declaration at an inquiry may be used by the Commissioner in any subsequent proceedings to which the person whose affairs are investigated is a party or to which a person who had dealings with such person is a party.

(17)(a) No person may refuse to answer any question on the grounds that it may incriminate him or her.

(b) No such incriminating evidence shall be admissible in any criminal proceedings against the person giving such evidence, other than in proceedings where that person stands trial on a charge relating to the administering or the giving of false evidence or the making of a false statement in connection with such questions and answers, or a failure to answer lawful questions fully and satisfactorily, or a charge in connection with a breach of the provisions of subsection (15).

(18) An inquiry in terms of this section shall proceed notwithstanding the fact that any civil or criminal proceedings are pending or contemplated against or involving any person identified in subsection (6)(c) or any witness or potential witness or any person whose affairs may be investigated in the course of that inquiry.".

Insertion of section 13A in Act 50 of 1998

90. The following section is hereby inserted after section 13 of the Demutualisation Levy Act, 1998:

"Exemption from income tax -

13A. There shall be exempt from income tax the receipts and accruals of the Umsobomvu Fund.".

Amendment of section 3 of Act 126 of 1998

91. (1) Section 3 of the Eskom Amendment Act, 1998, is hereby amended -

1. by the substitution for subsection (1) of the following subsection:

"(1) [Subject to subsections (2) and (3)] Section 24 of the principal Act is hereby repealed."; and

2. by the deletion of subsections (2) and (3).

(2) Subsection (1) shall be deemed to have come into operation on 18 December 1998.

Amendment of section 4 of Act 9 of 1999

92. Section 4 of the Skills Development Levies Act, 1999, is hereby amended by the substitution for paragraph (c) of the following paragraph:

"(c) any [religious or charitable institution] public benefit organisation contemplated in section 10(1)[(f)](cN) of the Income Tax Act, which solely carries on any religious or charitable public benefit activity or any fund contemplated in section 10(1)(fA) of the Income Tax Act, established solely to provide funds to any such [institution] public benefit organisation contemplated in this paragraph; or".

Amendment of section 5 of Act 9 of 1999

93. Section 5 of the Skills Development Levies Act, 1999, is hereby amended by the substitution for subsection (6) of the following subsection:

"(6) Any employer that is exempt from the payment of the levy as contemplated in section 4(a), (c), [and] (d) and (e), must register in terms of subsection (1).".

Amendment of section 13 of Act 9 of 1999

94. (1) Section 13 of the Skills Development Levies Act, 1999, is hereby amended by the substitution for paragraph (g) of the following paragraph:

"(g) representative taxpayers [as contained in the Fourth Schedule to the Income Tax Act];".

(2) Subsection (1) shall be deemed to have come into operation on 1 September 1999.

Short title and commencement

95. (1) This Act shall be called the Taxation Laws Amendment Act, 2000.

(2) Save in so far as is otherwise provided in this Act or the context otherwise indicates, the amendments effected to the Income Tax Act, 1962, by this Act shall for purposes of assessments in respect of normal tax under the Income Tax Act, 1962, be deemed to have come into operation as from the commencement of years of assessment ending on or after 1 January 2001.

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