Revenue Laws Amendment Act (No. 32 of 2004)

1st January 2004

To amend the Transfer Duty Act, 1949, so as to regulate the interest and penalty on late payment of duty; to limit the exemption from duty where property is used by a public benefit organisation otherwise than wholly for public benefit activities; to provide for certain consequential and textual amendments; to amend the Income Tax Act, 1962, so as to amend certain definitions and insert a new definition; to further regulate the provisions relating to deductions of interest and withholding tax on foreign dividends; to further regulate the provisions in terms of which residents are taxed on amounts received by foreigners as a result of any donation by that resident; to further regulate the taxation of executive share incentive schemes; to regulate the taxation of broad-based employee equity share plans for purposes of determining the tax liability of the employee and the deduction for the employer; to further regulate the taxation of instruments which are convertible between debt and equity; to effect certain consequential amendments as a result of the introduction of the Mineral and Petroleum Resources Development Act, 2002, and the Securities Services Act, 2004; to further regulate the exemptions from tax; to further regulate the provisions relating to purchased annuities to make provision for an average exchange rate where consideration given by the purchaser thereof is denominated in a foreign currency; to further regulate the deduction of the cost of improvements effected in terms of a Public Private Partnership; to further regulate the deduction of research and development expenditure; to further regulate the provisions relating to urban development zones; to make provision for the limitation of losses from the disposal of certain assets; to further regulate the provisions relating to the acquisition or disposal of trading stock; to regulate the taxation of transactions where assets are acquired in exchange for the issue of shares; to further regulate the taxation of gains or losses on foreign exchange transactions to exclude non-residents; to further regulate the provisions relating to the incurral and accrual of interest; to regulate the taxation of assets acquired or disposed of for unquantified amounts; to regulate the taxation of the disposal and acquisition of equity shares; to further regulate the provisions relating to the taxation of trusts; to repeal the provisions which regulate the disposal of assets by non-residents; to make provision for a withholding tax in the case where, a non-resident disposes of any immovable property in the Republic; to further, regulate the provisions relating to the taxation of intra-group transactions; to further regulate the provisions relating to the taxation of unbundling transactions; to further regulate the provisions relating to liquidation distributions; to further regulate the provisions relating to donations tax; to further regulate the provisions relating to secondary tax on companies; to further regulate the provisions which deem certain amounts to be dividends for purposes of secondary tax on companies; to further regulate the provisions relating to transactions, operations or schemes  for purposes of avoiding or postponing liability for or reducing amounts of taxes on income; to further regulate the provisions relating to the taxation of lump sum benefits; to further regulate the employees’ tax provisions to include qualifying equity shares granted in terms of a broad-based employee equity share plan and equity instruments in terms of executive equity schemes; to further regulate the provisions relating to provisional tax; to further regulate the provisions relating to fringe benefits to take into account qualifying equity shares granted in terms of a broad-based employee equity share plan and equity instruments in terms of executive equity schemes; to further regulate the capital gains tax provisions to provide for the disposal and acquisition of assets for unquantified amounts; to regulate the capital gains tax implications for qualifying equity shares granted in terms of a broad-based employee equity share plan and equity instruments in terms of executive equity schemes; to further regulate the provisions relating to part disposal of assets; to regulate the capital gains tax implications in respect of the disposal of certain debt claims; to further regulate the provisions relating to disposal of assets for no consideration or consideration not measurable in money; to effect certain textual and consequential amendments and to delete certain obsolete provisions; to amend the Customs and Excise Act, 1964, so as to insert and amend certain definitions; to further regulate the liability for duty where underpayments are the result of fraud, misrepresentation, non-disclosure of material facts or false declarations for the purposes of the Act; to amend the long title to include environmental levy; to amend the provisions relating to customs controlled areas within Industrial Development Zones; to amend provisions relating to biofuel; to effect certain consequential amendments; to amend the Stamp Duty Act, 1968, so as to amend and insert certain definitions; to introduce interest and penalty provisions for failure or late payment of duty; to further provide for additional duty in case of evasion; to introduce provisions relating to e-stamping and electronic payments; to regulate the time in which an instrument must be stamped; to provide for regulations in respect of duty on other consideration; to further delete administrative penalties; to regulate the rate and exemption of duty; to provide for certain consequential and textual amendments; to amend the Value-Added Tax Act, 1991, so as to amend and insert certain definitions; to provide for the imposition of levies introduced in the Customs and Excise Act, 1964 ; to introduce certain deeming provisions; to provide for certain zero-rating and exemptions; to provide for the provisions relating to Industrial Development Zones; to further regulate the circumstances where an input tax may be claimed; to prescribe further requirements for tax invoices; to provide for certain textual amendments; to effect certain consequential amendments and to delete obsolete references to Acts that have been repealed; to clarify certain provisions; to amend the Uncertificated Securities Tax Act, 1998, so as to amend and insert certain definitions; to provide for the value on which duty will be payable on securities; to further regulate the exemptions from duty; to effect certain textual amendments; to amend the Second Revenue Laws Amendment Act, 2001, and the Revenue Laws Amendment Act, 2002, so as to further regulate the provisions relating to industrial development zones inserted in the Customs and Excise Act, 1964; to delete certain provisions which have not come into operation yet; to amend the Revenue Laws Amendment Act, 2003, so as to delete certain provisions which have not come into operation yet and to further regulate certain commencement dates; to amend the Taxation Laws Amendment Act, 2004, so as to delete a provision which has not come into operation yet; and to provide for a short title and commencement date; and to provide for matters relating thereto.