1. PUBLIC HEARINGS BY THE STANDING COMMITTEE ON FINANCE
DRAFT TAX BILLS 2015
SAICA REPRESENTED BY:
Prof Osman Mollagee & Mr Pieter Faber

2. MATTERS FOR DISCUSSION
Scope of public hearings
Effect of SARS information requests on the auditing profession
Worsening the imbalance – annual encroachment on taxpayer rights
Repeal of section 6quin
Sundry matters from DTLAB15 & DTALAB15

3. A. Scope of Public Hearings
Annexure C and other submissions
National Treasury & SARS
Issues disregarded
Issues accepted
Budget Speech / Amendment Bills
Public Hearings
National Treasury & SARS
Public hearings should not be limited to matters in Amendment Bills

4. B. Effect of information requests on the auditing profession
AUDITING PROFESSION CHALLENGES
Expectation gap
High risk
Increased regulation
FACTS:
- DECREASING PIPELINE
- REGISTERED AUDITORS +/ SINCE 2006
- CA(SA) DOUBLED IN SAME PERIOD
PROFESSION IN DECLINE

5. B. Effect of information requests on the auditing profession
What about legal privilege?
SARS
Information X
Can compel
Information
Statutory function
Information X
Auditing profession
Taxpayers
TRUST
Statutory function

6. C. Worsening the imbalance of taxpayers rights
Migration to self-assessment
Removing certainty through diluted prescription
Dilution of rights to have errors corrected

7. C. Worsening the imbalance of taxpayers rights
Migration to self-assessment
Law: Administrative assessment
Practice: Self-assessment VS
Adjustments for self-assessments
Certainty
Binding SARS advice
Penalties & interest
Effect on SARS Staff?

8. C. Worsening the imbalance of taxpayers rights
Removing certainty through diluted prescription X
CERTAINTY
Proposals:
“Appropriate period”
Maximum periods should apply
Interruption alternative?
No reasons
Compelled reasons
Any official
ONLY senior SARS official

9. C. Worsening the imbalance of taxpayers rights
Dilution of rights to have errors corrected X
Fairness
Proposal: s93 Reduced
No rationale
Limit to 6 months
RETAIN 3 years
Proposal: s98 Withdrawal
Exclude undisputed errors
RETAIN undisputed error

10. D. Credit for foreign tax on service fees (s6quin)
If foreign countries impose withholding taxes on fees,
should SA grant credit?
No tax credit … Services become uneconomic
Foreign clients
Fees
Service-provider (South Africa)
Services
Employees

11. D. Credit for foreign tax on service fees (s6quin)
ALTERNATIVE: Render services from elsewhere?
Service-provider
(???)
Employees
Services
Fees
Foreign clients
Service-provider (South Africa) X
Employees

12. E. SUNDRY MATTERS Administrative matters
Tax Bill oversight by Tax Ombud
Judicial oversight - Preservation orders, agency appointments and default judgements
VAT matters
National housing scheme
Payments basis exception
Income tax matters
Sole proprietor retirement savings
Medical tax credit rollover

13. THANK YOU