In this final issue of Tax News for 2006, we consider in detail the main taxation amendments contained in the Revenue Laws Amendment Act, 2006, and the Revenue Laws Second Amendment Act, 2006, which were promulgated on
7 February 2007.
There have been various changes introduced across the spectrum of tax provisions, including income tax, capital gains tax (CGT) and value-added tax (VAT). Special tax measures have been introduced relating to the 2010 FIFA World Cup South Africa. Specific rules have also been introduced in relation to the taxation of oil and gas activities. The super-incentives relating to research and development expenditure are operative with effect from 2 November 2006. Provisions have also been introduced which subject recreational clubs to a partial system of taxation, along similar lines to public benefit organisations. There have also been amendments effected to the Customs and Excise legislation which are aimed at ensuring the faster movement of goods to facilitate international trade.
Unless otherwise noted in the text below, the income tax amendments are effective from the commencement of years of assessment ending on or after 1 January 2007.
Any reference to “the Act”, unless the context indicates otherwise, is a reference to the Income Tax Act, no. 58 of 1962. Any reference to “the amending Act” is a reference to the Revenue Laws Amendment Act, 2006, or the Revenue Laws Second Amendment Act, 2006, as the case may be. A reference to “SARS” is to the South African Revenue Service.