Page 1157 - SAIT Compendium 2016 Volume2

EXPLANATORY MEMORANDUM ON THE TAXATION LAWS AMENDMENT BILL, 2015
CLAUSE 132
Value Added Tax: Amendment to Section 11
Sub-clause (a): Amendment to subsection (1)(a)(ii) - Amendment removes the reference to ‘part 2 of an export
incentive scheme’ and updating the reference with the words ‘the regulation’ in order to re ect the correct reference as in paragraph (d) of the de nition of ‘exported’ in Section 1 of the VAT Act.
Sub-clause (b): Amendment to subsection (1)(a)(ii)(bb) - Amendment removes the reference to ‘an export incentive scheme’ and updating the reference with the words ‘the regulation’ in order to re ect the correct reference as in paragraph (d) of the de nition of ‘exported’ in Section 1 of the VAT Act.
Sub-clause (c): Amendment to subsection (1)(m)(ii) - See notes on ZERO-RATING: GOODS DELIVERED BY A CARTAGE CONTRACTOR
Sub-clause (d): Amendment to subsection (2)(r) - See notes on ZERO-RATING OF SERVICES: VOCATIONAL TRAINING
Sub-clause (e): Deletion of subsection (2)(s) - See notes on REPEALING THE ZERO RATING FOR THE NATIONAL HOUSING PROGRAMME
CLAUSE 133
Value Added Tax: Amendment to Section 12
The current exempt provisions in Section 12(h)(ii) do not apply to a school, university, college or technikon if the
institution only supplies lodging, as opposed to board and lodging. The proposed amendment seeks to change the term ‘boarding and lodging’ to ‘lodging or board and lodging’, so that the exemption can apply if either boarding or lodging is supplied by the institution.
CLAUSE 134
Value Added Tax: Amendment to Section 15
Sub-clause (a): Deletion in subsection 2(a) of subparagraph (iii) of the provision relating to ‘Regional Electricity
Distributor’. The system of ‘Regional Electricity Distributor’ has not been implemented and it elapsed on 1 January 2014.
Sub-clauses (b) & (c): Addition to subsection (2)(a) of subparagraph (viii). See notes on SABC VAT ACCOUNTING METHOD
CLAUSE 135
Value Added Tax: Amendment to Section 18
Amendments in subsection (6) insert inverted commas to clearly identify the de nition being referred to regarding the
year of assessment in the Income Tax Act.
CLAUSE 136
Value Added Tax: Amendment to Section 21
Amendments to subsection (6) include paragraph (e) to align subsection (6) with the changes made in 2013 to
subsection (1).
CLAUSE 137
SECURITIES TRANSFER TAX
Securities Transfer Tax: Amendment to section 1
Sub-clause (a): Insertion of the new de nition of ‘collateral arrangement’ - See notes on SECURITIES TRANSFER
TAX AND CAPITAL GAINS TAX IMPLICATIONS ON COLLATERAL ARRANGEMENTS
Sub-clause (b): Amendments to paragraphs (b), (c) and (d) of the de nition of ‘lending arrangement’ - See notes on REFINEMENTS TO SECURITY LENDING ARRANGEMENTS
Sub-clause (c): Amendment to paragraph (ii) of the de nition of ‘lending arrangement’ – See notes on REFINEMENTS TO SECURITY LENDING ARRANGEMENTS
Sub-clause (d): Insertion of the new de nition of ‘collateral arrangement’ – See notes on SECURITIES TRANSFER TAX AND CAPITAL GAINS TAX IMPLICATIONS ON COLLATERAL ARRANGEMENTS
CLAUSE 138
Securities Transfer Tax: Amendment to section 8
See notes on SECURITIES TRANSFER TAX AND CAPITAL GAINS TAX IMPLICATIONS ON
COLLATERAL ARRANGEMENTS
CLAUSE 139
OTHER
Rates and Monetary Amounts and Amendments of Revenue Laws Act 23 of 2013: Amendment to section 3 Amendment is deemed to have come into operation on 1 April 2013 and provides for the fact that low-cost residential units in sections 13quat and 13sex are not necessarily disposed of and that the effective date must be tied to different
events in these cases.
SAIT CompendIum oF TAx LegISLATIon VoLume 2 1149