Page 542 - SAIT Compendium 2016 Volume1

s 73 VALUE-ADDED TAX ACT 89 OF 1991
s 75
for bona de business purposes, other than the
obtaining of a tax bene t; or
(ii) has created rights or obligations which would
not normally be created between persons dealing
at arm’s length; and
(c) was entered into or carried out solely or mainly for
the purpose of obtaining a tax bene t,
the Commissioner shall determine the liability for any tax imposed by this Act, and the amount thereof, as if the scheme had not been entered into or carried out, or in such manner as in the circumstances of the case he deems appropriate for the prevention or diminution of such tax bene t.
(2) For the purposes of this section—
‘scheme’ includes any transaction, operation, scheme or understanding (whether enforceable or not), including all steps and transactions by which it is carried into effect;
‘tax bene t’ includes—
(a) any reduction in the liability of any person to pay tax;
or
(b) any increase in the entitlement of any vendor to a
refund of tax; or
(c) any reduction in the consideration payable by any
person in respect of any supply of goods or services;
or
(d) any other avoidance or postponement of liability
for the payment of any tax, duty or levy imposed by this Act or by any other law administered by the Commissioner.
(3) Any decision of the Commissioner under this section shall be subject to objection and appeal, and whenever in proceedings relating thereto it is proved that the scheme concerned does or would result in a tax bene t, it shall be presumed, until the contrary is proved that such scheme was entered into or carried out solely or mainly for the purpose of obtaining a tax bene t.
74 Schedules and regulations
(1) The Minister may make regulations in regard to any matter which is permitted or required by this Act and generally for the better carrying out of the objects and purposes of this Act.
(2) Notwithstanding anything to the contrary in this Act, where the Minister is satis ed that in consequence of the manner in which any business, trade or occupation is carried on malpractices or dif culties have arisen or may arise in regard to the collection of tax levied under this Act, the Minister may, in order to counter such malpractices or to overcome such dif culties, make regulations in regard to the application of any rate of zero per cent or any exemption or to the payment or collection of any tax in a manner other than that provided in this Act.
(3) (a) Whenever the Minister amends any Schedule under any provision of the Customs and Excise Act, 1964 (Act 91 of 1964), by notice in the Gazette and it is necessary to amend in consequence thereof Schedule 1 of this Act, the Minister may by like notice amend the said Schedule 1.
(b) The provisions of section 48 (6) of the Customs and Excise Act, 1964, shall apply mutatis mutandis in respect of any amendment by the Minister under this subsection.
[Sub-s. (3) added by s. 188 (b) of Act 45 of 2003.]
[NB: Sub-s. (3) has been substituted by s. 105 (1) of Act 43 of 2014, a provision that will come into operation on the date on which the Customs Control Act 31 of 2014 takes effect. See Pendlex below.]
[S. 74 amended by s. 188 (a) of Act 45 of 2003.]
75 Tax agreements
(1) The National Executive may enter into an agreement with the government of any other country whereby arrangements are made with that government with a view to—
(a) the prevention, mitigation or discontinuance of the levying, under the laws of the Republic and such other country, of value-added tax or any similar tax where the supply of goods or services is subject to such tax in either the Republic or such other country and such supply or the importation of such goods or services is also subject to such tax in the other country which is a party to the agreement;
(b) the refunding of value-added tax or any similar tax, or any portion of such value-added tax or similar tax, levied under the laws of the Republic and such other country in respect of the supply of goods or services in the Republic or such other country, as the case may be, where such goods or services are imported into such other country or the Republic, as the case may be;
(c) regulating or co-ordinating any matter with regard to the levying and collection, under the laws of the Republic and such other country, of value-added tax or any similar tax; or
(d) the rendering of reciprocal assistance in the administration of and the collection of value-added tax or any similar tax under the laws of the Republic and such other country, or in respect of the execution of the arrangements provided for in any agreement entered into in terms of this section.
[Sub-s. (1) substituted by s. 52 (a) of Act 27 of 1997.] (2) As soon as may be possible after the approval by Parliament of any such agreement, as contemplated in section 231 of the Constitution, the arrangements thereby made shall be noti ed by publication in the Gazette and thereupon the arrangements so noti ed shall have effect as
if enacted by this Act.
[Sub-s. (2) substituted by s. 52 (a) of Act 27 of 1997.]
(3) and (4) . . .
[Sub-ss. (3) and (4) deleted by s. 52 (b) and (c) of Act 27 of 1997.]
(5) The duty imposed by this Act to preserve secrecy with regard to such tax shall not prevent the disclosure to any authorized of cer of the country contemplated in subsection (1) of any information necessary for the proper execution of the agreement noti ed in terms of subsection (2).
[Sub-s. (5) substituted by s. 52 (d) of Act 27 of 1997.]
[S. 75 amended by s. 45 of Act 136 of 1991, by GN 2695 of 8 November 1991 and by s. 41 of Act 136 of 1992 and substituted by s. 29 of Act 20 of 1994.]
Pendlex (to come into operation on the date on which the Customs Control Act 31 of 2014 takes effect)
(3) (a) Whenever the Minister amends any Customs Tariff or Excise Tariff under any provision of the Customs Duty Act or the Excise Duty Act by notice in the Gazette and it is necessary to amend in consequence thereof Schedule 1 of this Act, the Minister, may by like notice amend the said Schedule 1.
(b) The provisions of section 14 of the Customs Duty Act or section 48 (6) of the Excise Duty Act, shall apply mutatis mutandis in respect of any amendment by the Minister under this subsection.
534 SAIT CompendIum oF TAx LegISLATIon VoLume 1