Hon Deputy Speaker, Deputy President and hon members, we are here to discuss your favourite topic: tax. The 2008 financial crisis and the current economic stresses in Europe, in particular, once again underline the crucial importance of sound tax policy, an effective tax administration and a deeply entrenched compliance culture in society. We are privileged to have all three in South Africa. This Bill reflects our constant endeavour to simplify law, reduce red tape and streamline administration to provide a better service to taxpayers, whilst strengthening enforcement and compliance.
Our tax administration law is currently duplicated in several different tax Acts, for example the Income Tax Act, the Value-Added Tax Act, the Customs and Excise Act, ranging in age - that is, the legislation - from three to 62 years old. The time has come to streamline and bring the law up to date. The Tax Administration Bill creates a single, modern framework for the common administration of the provisions of the tax Acts. The consultation process on this Bill extended for over a two-and-a-half-year period.
The key features of the Bill that I am going to summarise very quickly are the following: a phased move to a single registration process and number across taxes to reduce red tape and streamline the system - currently, you have to register for PAYE, VAT and income tax separately; a single account for taxes and simplified allocation rules for the same reason, and self- assessment of taxes so that taxpayers do not have to wait for a Sars assessment. Of course, this depends upon the honesty of taxpayers.
Other key features of the Bill include: greater access to third-party data to underpin Sars' initiatives, such as the prepopulation of individual tax returns; clearer rules on Sars' access to information so that tax liabilities can be determined more quickly and more accurately; the ability to search business premises without a warrant in narrow cases, or a few cases, and issue so-called jeopardy assessments so that Sars can act when tax is at risk and time is of the essence. There are many people in South Africa and elsewhere in the world who won't hesitate to sell their assets, for example, if they know that Sars is on the way. So, we need to do things fairly quickly to stop those sorts of escape mechanisms.
Other features of the Bill include: clear requirements and timelines for the issuance of tax clearance certificates to provide greater certainty; feedback on audit progress and findings to engage more fully with taxpayers, and what this means is that sometimes complex audits take a long time and Sars now has the obligation to keep the taxpayer informed about progress in respect of the audit; specific timeframes for decisions of the Tax Board, which is the equivalent of a Small Claims Court, in respect of tax, and wider reporting of Tax Court decisions to improve access to justice. Tax Courts are very different from ordinary courts. Matters heard in a Tax Court are heard "in secret", if you like, and they are not reported unless the judge decides so. What this does is give anonymity to the taxpayer, but allows the case to be reported so that more role-players can understand what happened in the Tax Court. Lastly, the introduction of a Tax Ombud, informed by international experience, will provide taxpayers with a low-cost mechanism to address administrative issues.
In conclusion, one thing that the Bill before us does not address is the transformation of the adviser community. The aggressive undermining of the fiscus that some pursue, obviously at the receipt of a fee even at a time of extreme fiscal stress, is extremely dangerous, as we can see in Greece and Italy and other countries. They and their clients must pause for reflection, as we must also, on the damage they can do to the tax system and South Africa, more broadly, as a result of their practices.
I would like to thank the broad range of stakeholders who have been involved in the development of the Bill over the last two and a half years. More specifically, I would like to thank the Standing Committee on Finance and chairperson Mufamadi and his team for their invaluable contribution. This has included feedback during the briefing process, a productive public hearing process and the comprehensive set of clarifications, corrections and enhancements that have been set out in the Bill. Thank you. [Applause.]
Chair, Deputy President, hon Ministers and Deputy Ministers, hon members and comrades, the political necessity for any state to advance its programmes and ensure the relevancy of these programmes to its political future depends in the main on an established and well- functioning taxation system that directs both tax liability provisions and the tax administration provisions.
The economic base of the state is not just about an ideological discussion of what the macroeconomic fiscal and monetary policy principle should be. It is true that it is necessary to have ideological clarity on macroeconomic principles, but the task of driving the state is dependent on a taxation regime that will realise those ideological convictions.
If the state does not address this, it follows all the dangers of becoming detached from its base: its human resources, the people unable to financially address their demands and unable to put into practice policy decisions that would result, as in the case of the ANC, in a better quality of life.
A tax regime is led, firstly, by a clear policy. In our country the ANC and its government have been able to put together a combination of taxation policies which reflect the ethos of the organisation and its policy directives. The ANC taxation policy speaks to the progressive nature of the South African taxation regime in which the poor are shielded whilst the wealthy contribute accordingly. Secondly, the ANC taxation policy speaks to the redistributive nature of the South African taxation system - something which this House has witnessed during many budget speeches of the Minister of Finance, which has assisted, in the main, the poor and those in low-income categories.
Thirdly, the ANC tax policy speaks to an effective administrative tax system that adds value to the fiscus and the economy, through its provisions assisting in the building of the domestic economy and the national output.
Fourthly, the ANC tax policy speaks to the ongoing need for tax reform as part of the overall transformation of tax legislation and the financial sector.
These four pillars are the driving force behind any legislative change to a taxation regime. Today we deal specifically with deepening taxation reform in our country that is necessary so as to ensure that we have a fiscus that can assist in bringing into reality our vision of a national democratic society characterised by a thriving and integrated economy with the ability to create employment opportunities and an economy in which increasing social equality and economic growth form a virtuous cycle of development, which, progressively, is intended to improve the quality of life of all citizens; an economy that deals decisively with poverty and frees the potential of each and every individual. The Tax Administration Bill incorporates into one piece of legislation generic administrative provisions which are currently duplicated in different tax Acts. It seeks to achieve a balance between powers and duties of tax collection and the rights and obligations of taxpayers. It is a preliminary step in the rewriting of the Income Tax Act and assists by dividing the work into more manageable parts.
The principles that we have adopted in approaching the draft, as is the case in a range of ANC financial policies, are drawn from international best practices. Here the principles of equity and fairness; certainty and simplicity; and efficiency and effectiveness apply.
What the ANC intends the Tax Administration Bill to achieve is a simplified and harmonised piece of legislation in that taxpayers will only have one tax administration Act to deal with, in which all the duties and rights with regard to tax law are set out in a simplified format. In addressing the administrative burden on tax collection, the Bill reduces the unnecessary and duplicated provisions, and inefficiency and ineffective provisions are also removed, as stated by the Minister.
What the ANC is doing with this Bill is to ensure a more modern, responsive revenue administration which will provide a better service to those who are tax compliant, as a system that can reward and serve them better; while at the same time we are bringing in stricter enforcement, assessment and collection powers to deal with increasingly sophisticated tax evaders.
In line with the Constitution, rights of taxpayers and obligations of tax collection are balanced. Greater equity and fairness are also introduced through this Bill, which again is a constitutional obligation.
We held comprehensive public hearings on the Bill in Parliament, as alluded to by the Minister. The following issues were raised, inter alia, by some at these hearings: the introduction of a Tax Ombud as a mechanism to address service failures and failures in respect of taxpayers' rights. This will provide an effective recourse for taxpayers to balance powers and rights. The Tax Ombud has been introduced to deal with two kinds of disputes that arise: disputes in the interpretation of law, and disputes in the administration of law. The powers of the Tax Ombud are powers of review and powers to mediate. It reports directly to the Minister of Finance.
It is our conclusion as the ANC that this Bill will ensure a broadening of the tax base in support of inclusive growth, raise revenue to finance government programmes and projects, provide tax relief for deserving individuals of course, and provide tax breaks to support employment creation and skills development, which we dearly need to enhance infrastructure investment. This Bill will also assist in providing for changes in personal income tax brackets and rebates and changes in certain monetary thresholds. It is our take as the ANC that this particular change will definitely clear and boost our intention for lower-income groups to have more disposable income at their disposal.
This Bill will assist to support inclusive growth in the following fashion: it will provide further personal income tax relief; the Bill will introduce a third rebate for aged individuals 75 years and over; it will give clarity on transfer duty relief; the Bill will obviously deal with various monetary threshold adjustments, including increases in the capital gains exclusion amounts; it will also provide for measures to enhance the learnership and industrial policy incentive programmes; this Bill will further provide for an increase in the turnover tax exemption threshold for micro businesses; and new antiavoidance measures will also be taken care of in this Bill.
In conclusion, the Bill seeks to considerably streamline and enhance tax administration. It will create greater certainty in tax administration and reduce the number of disputes, we believe, between Sars and the taxpayer. It certainly enhances the rights of taxpayers while, at the same time, enhancing tax morality, which is crucial for the credibility of our tax system. With those few words, I stand here to confirm that as the ANC, we support the Tax Administration Bill. Thank you. [Applause.]
Chairperson, the SA Revenue Service performs a vital role in our economy. If Sars doesn't collect the revenue that it should, we will never be able to redress the distortions from our troubled past, and the most vulnerable members of our society will feel the consequences.
The Daily Telegraph reported that in the modest city of Larissa in Greece, there are more Porsche luxury motor vehicles per head of the population than in New York and London. Simply put: tax evasion in Greece is rife, and now it cannot pay its debts. In South Africa, there are apparently individuals who own aeroplanes, yet declare modest incomes and pay a minimal amount of tax. This isn't right. It is Sars' job to make sure that this problem is fixed, and it is our job to make sure that they have the tools to fix it.
The Tax Administration Bill aims to do this. The Bill forms part of a process of simplifying the taxation laws over time, and the DA welcomes this initiative. The Bill consolidates various provisions regarding the administration of taxation currently spread across various parts of the existing taxation laws. And the Bill makes various amendments to provide for the effective and efficient collection of tax.
To ensure that Sars is able to bring tax evaders into the revenue net, the tax collection process must give Sars sufficiently sharp teeth, yet also provide adequate protection to the law-abiding taxpayers from any possible overzealous tax-collection efforts.
Voorsitter, in enige land waar klein sakeondernemings van kardinale belang is om ekonomiese groei en werkskepping te fasiliteer, is dit belangrik dat belastingwetgewing nie 'n belemmering moet wees in die proses nie, maar dat dit juis moet bydra om dit makliker en goedkoper te maak om ondernemings te vestig en te administreer. Die wetgewing moet van so 'n aard wees dat alle bydraers moet ervaar dat dit ook in hulle belang is om daaraan te voldoen en dat hulle nie onnodig belas of selfs geteister of getreiter moet word daarmee nie.
In hierdie verband is ons almal bewus van die enorme vertragings wat ervaar is met die terugbetaling van BTW en brandstofheffings vroer hierdie jaar en die enorme negatiewe impak daarvan op die ekonomiese aktiwiteite en ook die negatiewe sentimente teenoor SAID. Die Minister is ook bekend met my sentiment oor die saak betreffende persone met gestremdhede en dat hulle nie terugwerkend belas moet word nie. (Translation of Afrikaans paragraphs follows.)
[Chairperson, in any country in which small businesses are crucial in order to facilitate growth and job creation, it is important that tax legislation should not be a hindrance in the process but that it should contribute precisely to make it easier and cheaper to establish and administrate businesses. Legislation should be of such a nature that all contributors should experience that it is also in their interest to comply with it and that they should not be taxed or even harassed or exasperated by it unnecessarily.
In this regard all of us are aware of the enormous delays experienced with the paying back of VAT and fuel levies earlier on in the year and its enormous negative impact on the economic activities as well as the negative sentiments towards Sars. The Minister is also familiar with my sentiment on the issue concerning persons with disabilities and that they should not be taxed retrospectively.]
To ensure this balance, the Office of the Ombud is introduced to review and address any complaints by taxpayers regarding a service matter, a procedural matter, or an administrative matter arising from the application of the Income Tax Act, Act No 58 of 1962, by Sars. The DA has expressed its concern over the independence of the Ombud's office, given that it is financed through the Sars budget and that its staff is drawn from within Sars.
We are, however, satisfied that we will be able to monitor the performance of the Tax Ombud through the annual report to Parliament by the Minister of Finance.
Voorsitter, volgens die "Paying Taxes 2012"-verslag wat die Wreldbank, die Internasionale Monetre Fonds, en PricewaterhouseCoopers bekend gemaak het, het Suid-Afrika van die 24ste tot die 36ste plek op die ranglys teruggesak. Die meting het ten doel om die doeltreffendheid van die lande se belastingstelsels en die voldoeningslas vir maatskappye te meet. Dit is nie goeie nuus nie, en hopelik sal hierdie wetgewing ook bydra om hierdie posisie te verbeter.
Die regering van die Wes-Kaap het 'n benadering "From Red Tape to Red Carpet" van stapel gestuur wat daarop gemik is juis om dit makliker en goedkoper te maak vir die besigheidsektor om sakeondernemings te begin, dit winsgewend te bedryf en om volhoubare werkgeleenthede daarmee te skep. Dit is 'n benadering wat die regering ook moet volg in elke provinsie, want die Wes-Kaapprovinsie moenie 'n eiland van voortreflikheid in ons ekonomie wees nie. [Tussenwerpsels.] Ons het hierdie benadering oor die hele Suid-Afrika nodig en daarom hoop ek dat hierdie wetgewing ook sal help om by te dra om juis dit te vermag. (Translation of Afrikaans paragraphs follows.)
[Chairperson, according to the report "Paying Taxes 2012" made public by the World Bank, the International Monetary Fund, and PricewaterhouseCoopers, South Africa slipped from the 24th to the 36th position in the rankings. This rating has as its objective the measurement of the efficiency of the tax systems of countries and the liability of compliance of companies in such countries. This is not good news, and hopefully this legislation will also assist to improve this situation. The government of the Western Cape launched an approach "From Red Tape to Red Carpet" which aims to make it easier and cheaper for the business sector to start businesses, to manage them in a profitable manner and to create sustainable jobs through them. It is an approach which the government should follow in each province, because the province of the Western Cape should not be an island of excellence in our economy. [Interjections.] We need this approach throughout South Africa and I therefore hope that this legislation may also help to achieve exactly this.]
Over 400 amendments were made to the Bill after its First Reading during its progress through the Standing Committee on Finance, and stakeholders are broadly satisfied with its contents. The DA will support the Bill and will closely monitor its application in the field. I thank you. [Applause.]
Chairperson, my information is that the Bill is being debated against the announcement that Sars has been honoured as one of the world's best services by a World Bank panel. If that is the case: congratulations.
Oliver Holmes once said, "I like to pay taxes. With them, I buy civilisation"; let me add: only when money is spent wisely and correctly. In this Bill, Treasury has strived to follow international best practice. We are breaking with Commonwealth tradition to have different tax laws and are, at least, starting to adopt the better approach of a single law that provides the administrative and procedural rules that are common to all taxes.
In this Bill, there is an attempt to use a more plain language drafting style in an effort to make the law more understandable. We welcome the introduction of the Tax Ombud. We are now joining a select number of countries where this has been introduced. The independence of the Tax Ombud will be judged by the taxpaying fraternity, but it is an effective tool to assist tax administration.
South Africa's debt will be over R1 trillion next year, and our revenue- taking around R800 billion, so we shall need every cent of taxes. Ronald Reagan said: "We don't have a $1 trillion debt because we have not taxed enough. We have a $1 trillion debt because we spend too much." This Tax Administration Bill strengthens Sars' powers to collect tax overall and will become an important tool to make Sars even more effective. We shall support the Bill. [Applause.]
Mr Chairman, the IFP supports this Bill. What is in the Bill is commendable and adequate, with the exception, perhaps, of the guarantees for the independence of the ombudsman. We would have liked to have seen a greater connection between the ombudsman and civil society, rather than an immediate appointment from the Minister and a functional relationship with his department. However, Minister, our concern is not about what is in the Bill. It is about what is not in the Bill. The Bill addresses only one aspect of the fundamental debate on this matter. It addresses the aspect of efficiency and fairness in the application of the tax law. Very good. It does not address perhaps the most fundamental aspect of the fairness of the tax system. This is an aspect which needs to be addressed by our echoing requests for a citizens' committee to be provided for by statute to negotiate and re-examine the entire tax system; and for the establishment of a budget office in Parliament, which would enable members of this Parliament, especially the Finance committee, to interact with such a structure.
We have calculated that we pay - and the only thing we have in common in this House, for sure, is that we all pay taxes - about 60% of our income in taxes, compounding direct and indirect taxes. This means that we work for the government for seven months a year, and for the rest of time, we work for ourselves. The fairness of the taxation system, the elements of regressivity in the taxation system, and the balance between direct taxation and indirect taxation are things which need to be re-examined.
So, the function of the ombudsman, very well entrenched here in respect of the correct application of this Act, needs to be extended in a new organ of state with the power of assessing the overall fairness of the tax system. Besides that, we support the Bill, and we thank the Minister for his expedited finalisation. Thank you.
Voorsitter, hierdie Wetsontwerp stel vordering daar om prosesse rondom belasting meer te vereenvoudig. Hiervoor verdien die Minister 'n pluimpie. Dit is veral die daarstelling van die belastingombud wat geloof moet word.
Dit is egter jammer dat die ombud net oor prosedurele aangeleenthede jurisdiksie het. Die feit dat die SA Inkomstebelastingdiens self kan besluit of hulle interpretasie van die verskeie belastingwette korrek is, skree teen hemele. Tog sal die ombud van groot hulp wees want ons party word oorval deur klagtes van swak dienslewering deur die SA Inkomstebelastingdiens. (Translation of Afrikaans paragraphs follows.)
[Adv A D ALBERTS: Chairperson, this Bill simplifies processes regarding taxation. For this the Minister has to be complimented. It is especially the introduction of a tax ombudsman that has to be praised.
It is, however, a pity that the ombudsman only has jurisdiction over procedural affairs. The fact that the SA Revenue Service on its own can determine whether its interpretation of the various revenue laws is correct or not, cries to high heaven. Despite this the ombudsman will be of great assistance because our party is overwhelmed by complaints of bad service delivery by the SA Revenue Service.]
We must also judge this Bill within its larger context of tax collection. According to the economist Mike Schssler, only 4% of South Africans earn more than R13 000 per month. This is indicative of the small tax base in our country, and it presents a disconcerting picture if not dealt with on an urgent basis. We do not have much to distribute and the tax base must grow by increasing the middle class. This means that we will have to create an environment in which entrepreneurs flourish. The Treasury's part in this should be to create tax incentives for the entrepreneur to take the risk to plough his or her energy and money into a business venture.
Daarom, terwyl die regering wette skep om belasting makliker in te vorder, moet die Minister nog beter stelsels skep wat entrepreneurs in ons land sal laat blom. Dankie. [Therefore, while the government is creating laws to make tax collection easier, the Minister needs to create even better systems that will allow entrepreneurs in our country to flourish. Thank you.]
Sihlalo ohloniphekileyo, ndivumele ndikhahlele amaLungu eNdlu yoWiso-mthetho nazo zonke izinxiba-mxhaka ezilapha kunye noMphathiswa ojongene nengxowa yelizwe loMzantsi Afrika ngokuthunywa ngulo mbutho wesizwe ogxalaba libanzi lokuthwala abantu neengxaki zaseMzantsi Afrika. Ndiza kuthetha isiXhosa ke, Mphathiswa, kuza kufuneka ufake ezi zinto ziza kukuxelela ukuba ndithini xa ndithetha ngawe. Irhafu ibalulekile kuqoqosho lweli lizwe nenkqubo-sikhokelo yezezimali kuba ngenxa yayo urhulumente okhokelwa ngumbutho wesizwe, i-ANC, uyakwazi ukuphumeza eminye yemigaqo-nkqubo engundoqo. Kumqulu wayo wezithembiso, i- manifesto, wonyaka wama-2009, umbutho wesizwe ucacise ngokupheleleyo ukuba phakathi kweendlela oza kusebenzisa ngazo amagunya wawo uza kuquka nokusebenzisa irhafu ukuphumeza iinjongo zokudalwa kwamathuba emisebenzi endilisekileyo nempilo yezentlalontle ezinzileyo kunye nokuqinisekisa ngomgaqo-nkqubo wokuhluma kwezoqoqosho ojolise ekudalweni kwamathuba amaninzi emisebenzi.
Ngokuphandle, urhulumente uxhomekeke kwirhafu ukuze akwazi ukunikezela ngeenkonzo ezingundoqo nokuqiniseka ngentlalontle egqibeleleyo kuluntu lweli lizwe. Imali yerhafu ixhasa imisebenzi karhulumente engundoqo kwaye ibonelela ngamandla ukuhluma kwezoqoqosho. Ukongeza apho, ikwadlala indima ebalulekileyo ekuboneleleni ngemithombo yokwandisa amandla ombuso.
Uhlengahlengiso oluninzi lwerhafu lugxile ngokumandla ekwandeni kwemali yoluntu lweli lizwe ngendlela yokukhula koqoqosho olusebenza ngendlela eyiyo. Indlela ekufanele kuqhutywe ngayo kulo mthetho-sihlomelo wolawulo lwezerhafu - i-Taxation Amendment Bill kukukhungelanisa irhafu neenjongo zemisebenzi karhulumente ngokubanzi.
Isindululo sesibonelelo ngezezimali ukukhawulelana nophuhliso sibizwa ngokuthi luhlaziyo lwerhafu oluza kwenza ukuba iinkqubo zerhafu zisebenzisane ngakumbi nabahluphekileyo. Ngeli xesha, oku bekujoliswe ngokukodwa ekuvuselelweni kwamaziko erhafu ngokutsha, ikwayindlela yokuvuma ukuba kukho imfuno emandla egxile kuthungelelwaniso lovuselelo olwandileyo lwemali yoluntu lwelizwe ukuphucula inkcitho karhulumente kwiinkqubo zokulwa indlala.
Ukwanda kokuveliswa kwemali yangaphakathi elizweni kukhokelela kwiziphumo zophuhliso ezintle xa kujongwe kwinkcitho karhulumente. Uhlaziyo lwerhafu luthatyathwa njengendlela ekhuthaza ukuhlangabezana nokuphendula ndawonye nokuphucula amandla ombuso ngendlela ebanzi yokuphucula ukusebenza kukarhulumente. (Translation of isiXhosa paragraphs follows.)
[Dr Z LUYENGE: Hon Chairperson, allow me to greet the hon members of the National Assembly and all dignitaries present, as well as the hon Minister of Finance, who has been delegated by the people's party which shoulders all the responsibility of the South African citizens. Hon Minister, I will speak isiXhosa, and that means you have to use the devices that will interpret what I am saying about you.
Taxation is an important element of the economy and the country's fiscal framework, because through taxes the ANC-led government is able to execute some of its core policies. In its 2009 election manifesto, the ANC indicated that it would use its leverage through, inter alia, taxation to achieve the objectives of creating decent work and sustainable livelihoods and to ensure a labour-intensive growth path which focuses on job creation.
Obviously, the government relies on taxation in order to deliver essential services and to ensure the maximum welfare of the citizens of the country. Tax revenue supports the basic functions of the government and also provides for economic growth. In addition to that, it also plays an important role in providing the resources which increase the power of the state.
The overwhelming focus on most of the tax reform is on increasing public revenue in an economically efficient manner. Linking revenue explicitly to broader governance objectives is the direction in which the debate on the Taxation Administration Bill should be driven.
The declaration with regard to fiscal development is known as tax review which will lead to taxation programmes that focus especially on the poor. At this moment, this is specifically aimed at reviving tax structures, whilst it is also an acknowledgement that there is a great need to focus on reviving fiscal exchange among citizens to improve government expenditure in its poverty alleviation programmes.
Increased domestic revenue generation leads to improved development outcomes when it is viewed in terms of productive public expenditure. Tax reform undertaken in a way that promotes greater accountability together with improvements in state capacity, becomes a catalyst for broader improvements in government performance.]
While the tax reform agenda has traditionally focused on maximising revenue, economic efficiency and compliance, recent research has focused on the role of taxation as a central strategy for nation-building. Research on taxation and development has found that the need to raise taxation can strengthen state-society relationships with positive consequences for state capacity and the extent to which a government is responsive and accountable to its citizens.
Raising sufficient revenue to support projected expenditure on government's economic and social priorities requires adjustments to the tax and expenditure framework over the medium to long term. This framework should contribute towards sustainable economic growth and job creation, while addressing the significant disparities in South African society. Lower debt- service costs create more space to sustainably fund investment in economic infrastructure, which creates jobs and increased spending on social priorities such as education and health.
The importance of a focused and well-capacitated revenue administration is a prerequisite for poverty eradication, tackling education backlogs and the provision of acceptable social and health services. It is an important enabler of development, creating the fiscal space to pursue the national development agenda, thereby both stabilising sovereignty as well as serving the needs of the people.
Reform of tax administration is at the core of ensuring social advances. Reforming tax administration was one set of policy choices that was needed in order to attain fiscal independence and to lay a foundation for meeting the needs of the nation.
Ukukhuthazwa kwemigaqo ekumgangatho ophezulu yokuthobela ukuhlawulwa kwerhafu kubalulekile ukuqinisekisa ulawulo lwerhafu olusebenza ngendlela eyiyo. Lo gama ukunciphisa ukuphetshwa kokuhlawulwa kwerhafu kuphucula ingeniso, kusekwabonakalisa ukuba isizwe siyaziqonda ezentlalo noqoqosho kunye noxanduva lwaso lokuxhasa iinzame zikarhulumente zokwakha uluntu olungcono nokuyila imigaqo-nkqubo esebenza kakuhle. Ukunciphisa ukuphetshwa kokuhlawulwa kwerhafu kufuna ukuba kuqondwe ngendlela yokuziphatha kwesizwe esithobela imithetho yokuhlawula.
UMthetho oYilwayo wolawulo lwerhafu ufuna ukuququzelela ukuthotyelwa kwemithetho yerhafu nokubalula ngokungaguqukiyo ukusetyenziswa komthetho werhafu, kwaye uyilelwe ukuphucula umgangatho wokuthotyelwa kwemithetho yerhafu eMzantsi Afrika.
Ifuthe ekujoliswe kulo ngalo Mthetho oYilwayo kukunciphisa umthwalo wokuthobela umthetho kubarhafi kunye nalowo wolawulo kwi-Sars. Iinjongo kukomeleza igunya lokuthotyelwa komthetho ngabo baphepha ukurhafa, kunye nokuphucula umgangatho wokunikezelwa kweenkonzo kwabo bathobela umthetho ngokuhlawula irhafu.
Ukuthobela umthetho werhafu kuyanda xa isizwe sibona ukuba ukuhlawula irhafu kunefuthe kwiinkonzo esibonelelwa ngazo kwaye nezigqibo zokumisela iinkonzo zezibonelelo ziselubala kwaye azinamkhethe. Amava amazwe ngamazwe abonisa ukuba xa abarhafi beyifumanisa ingenamkhethe kwaye ilingana inkqubo yerhafu baye bawuthobele ngokuzithandela umthetho werhafu.
UMthetho oYilwayo ke ngoku ufuna ukuqalisa ukhuseleko lwamalungelo olawulo olungenamkhethe ngokuthi unike abarhafi ngokubanzi iingcebiso ezisebenza kakuhle. Oku kuboniswa ngokusekwa kwee-ofisi zerhafu kwiindawo ngeendawo kunye namalungelo athile ngokuphathelele kwiinkqubo nakumasolotya athile omthetho abhekisele kumagunya e-Sars. Oku kuquka ilungelo lokufumana ingxelo yeziphumo zophicotho-zincwadi emva kokuba lugqityiwe kunye nokunikwa izizathu zokuhlolwa kwerhafu.
Ukuphepha ukuhlawula irhafu kuyathintelwa nakumazwe ngamazwe. Ngomhla we-3 kweyeNkanga kowama-2011, uMzantsi Afrika uzimanye namazwe ali-12 ukutyikitya i-Convention on Mutual Administrative Assistance in Tax Matters. Oku ke kwenzeke kwindibano yamazwe e-G20 e-Cannes phaya e-France. Le ngqungquthela ifuna ukuxhasa intsebenziswano phakathi koorhulumente ngolawulo lwengeniso, ukuhlolwa kunye nokuqokelelwa kwerhafu. Iya kuthi ikhuthaze intsebenziswano kulawulo lokulwa ukuphetshwa kokuhlawulwa kwerhafu.
Kwimeko egqubayo yoqoqosho lwehlabathi, amazwe e-G20 agxininise ngokukhethekileyo kukubaluleka kwentsebenziswano engcono yamazwe ngamazwe phakathi kwamagunya-bantu engeniso kuba ukuphetshwa kokuhlawulwa kwerhafu kulula ngokubangelwa yinkululeko yeemarike zezimali. Abarhafi abaninzi bayawuthobela umthetho werhafu kwaye lo Mthetho oYilwayo kufuneka uqinisekise inkonzo engcono kunye neendleko zothobelo ezisezantsi.
Ngumsebenzi we-Sars ukusukela abo baphepha ukuhlawula irhafu nekufuneka bejongene nokohlwaywa, ukuhlolwa kunye negunya lokuqokelela eliqatha. Injongo ebalulekileyo yoMthetho oYilwayo ijolise ekuqokelelweni kwerhafu kakuhle nangokufanelekileyo kunye nokulungelelaniswa kolawulo ngokubonelelwa yimithetho yerhafu.
Amagunya okuqokelela iinkcukacha andisiwe ngulo Mthetho oYilwayo. UMthetho oYilwayo uqulethe imithetho jikelele yokuhlola, yokuqinisekisa, yophicotho- zincwadi kunye nophando ngolwaphulo-mthetho kwaye usebenza ngokuhlola izicelo zezinto ezifanelekileyo. Oku kuhlolwa kuya kusetyenziswa ngeenjongo zokuqinisekisa umthetho, ukuqiniseka ngobukho beshishini ngeenjongo zokubhalisa i-value added tax. UMthetho oYilwayo usekwadala, phakathi kwezinye, inkqubo-sikhokelo yokuxhasa ukwenziwa kwenkqubo yokugcinwa kweencwadi ze-Sars - nto ke leyo iyinto entsha ngokuphathelele kwinzala - apho kuya kulungelelaniswa iirhafu zonke, inzala ekufuneka ihlawulwe kubarhafi okanye ekufuneka abarhafi bayihlawule kwintsalela yetyala abanalo nephindaphindwa ngenyanga.
Amatyala jikelele abandakanyiwe nawo kulo Mthetho oYilwayo. Lo Mthetho oYilwayo uxhobisa ngamanyathelo ekufuneka ethatyathiwe xa kukho ityala lokungahlawulwa kwerhafu, ukuchaswa kunye nobumfihlo. Isohlwayo ... (Translation of isiXhosa paragraphs follows.)
[Encouraging high levels of tax compliance is necessary to ensure an efficient tax regime. While reducing tax evasion improves the government's revenue, it is also a reflection of the nation's social and economic consciousness and its responsibility to support government's efforts to build a better society and design effective policies. To reduce tax evasion requires understanding the various behavioural aspects of a tax-complianct nation.
The Tax Administration Bill seeks to facilitate tax compliance and highlight consistency in the application of tax law and is further designed to improve the levels of tax compliance in South Africa.
The intended impact of the Bill is the reduction of the compliance burden on taxpayers and the administrative burden on SARS. The aim is to strengthen and authorise tax compliance by those who evade taxation and to improve service delivery to those who comply with taxation laws.
Tax compliance is enhanced when the nation realises that paying taxes has a direct impact on service delivery and the decisions determining service delivery are transparent and fair. International experience has demonstrated that if taxpayers perceive and experience the tax system as fair and equitable, they will be more inclined to fully and voluntarily comply with it.
The Bill therefore seeks to effect the protection of administrative fairness rights through affording taxpayers more effective and overarching remedies. This is reflected in the creation of revenue offices in various places and specific procedural rights in certain clauses of the law pertaining to the powers vested in Sars. These include the right to access an audit findings report after finalisation of an audit and providing reasons for assessments.
Tax evasion is discouraged internationally. On 3 November 2011 South Africa joined 12 other countries in signing the Convention on Mutual Administrative Assistance in Tax Matters at the G20 Summit in Cannes, France. The Convention seeks to promote international co-operation in revenue administration, tax assessments and collection of taxes. It will also encourage administrative co-operation in combating tax evasion. In the current global economic context, the G20 has placed specific emphasis on the importance of improved international co-operation amongst revenue authorities as cross border tax evasion has become easier because financial markets are liberal. Most taxpayers comply with tax laws and this Bill must ensure a better service and affordable and lower compliance costs. Sars is duty bound to actively pursue tax evaders who will have to face penalties, assessment and stricter revenue collection powers. The purpose of the Bill is essentially to provide for the effective and efficient collection of taxes and the alignment of the administration provisions of tax laws.
Information gathering powers have been substantially supplemented or extended by this Bill. The Bill comprises the general rules for assessment, verification, audit and criminal investigation and it also caters for handling requests for relevant material and audits. These assessments will typically be used for the purposes of ensuring obedience to the laws, and in relation to the existence of a business entity with the aim of VAT registration.
The Bill also creates, amongst others, a framework to support the creation of accounting programmes - a brand new concept with regard to interest, within which all taxation, interest earned by taxpayers or which is payable by taxpayers will be calculated on the daily balance owing and compounded monthly.
General statutory offences have also been included in the Bill. The Bill also provides for non-compliance offences, tax evasion and contravention of the secrecy provisions. The penalty ...]
Hon member, your time has expired.
Le nto ke yokubalekwa kokurhafa yenziwa ngabantu esele benezinto. Iimpula zikalujaca phaya emakhaya ... [Tax evasion is an offence committed by those who have already accumulated wealth. The poorest of the poor back at home ...]
Hon member, your time has expired.
[Dr Z LUYENGE: Bendisazama ukuqhawulisa le ndawo. [I was just trying to relay this message.] [Applause.]
Hon Chairperson, let me thank all of the participants for their support for the Tax Administration Bill. The hon Van Rooyen is absolutely right that tax and the ability of government to contribute to employment creation is a very important link, particularly in the world that we live in today. Tax, hon members, is a key element in one's fiscal sovereignty: our ability to be independent, our ability not to be dictated to by anyone, and therefore all of us need to be united in making sure that tax evaders are brought to book and that everyone pays their fair share of tax.
The hon Marais made reference to Porsches and Greece. I am sure we've got islands of Greece in South Africa as well. He is absolutely right that people who are earning big incomes must pay their fair share, and the tax planners and these individuals are doing themselves and this country a huge injustice if they don't do so.
The hon Koornhof is also right that we need every cent of tax, but his reference to Reagan might be a bit misplaced, so he might have to find a better reference than Ronald Reagan.
Hon Ambrosini, as usual we have said that we have philosophical differences. Ours certainly isn't a regressive tax system; it is a progressive one. VAT is the regressive tax, and we have it at a modest level. And we are not the United States that requires any citizens' committee. We have other ways of resolving our own difficulties.
The hon Alberts is absolutely right that we need to grow our tax base and grow the economy. And the hon Luyenge is absolutely right that the convention on tax transparency is a very important international convention and the world needs to do much more to bring tax havens to book so that the rich and the superrich and the powerful corporates don't get better opportunities to evade tax.
I wish all of you the best over the festive season. May you rest with your families, and support our legislation next year. Thank you. [Applause.]
Debate concluded.
Bill read a second time.