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Cape Town - The tax administration bill should help businesses by improving consistency in administration of tax laws and cutting down on red tape, Finance Minister Pravin Gordhan said on Thursday.
"Equally, it should protect the fiscus and compliant taxpayers from the corrosive effects of non-compliance," he said, introducing the bill in the National Assembly.
The bill took the generic administrative aspects of several different tax acts administered by the SA Revenue Service (Sars), brought them together, and rationalised and updated them, he said.
The aim of the bill was to promote certainty, simplicity and coherence in the tax system, to the benefit of both taxpayers and Sars.
"This aim is reflected in the bill's very structure. It follows the life cycle of a taxpayer starting with registration and running through to the supply of returns and other information, assessment of tax, resolution of disputes that may arise and the collection or refund of amounts due.
"Taxpayers will welcome a broad range of measures... to simplify their interactions with Sars," Gordhan said.
The basis for a phased move to a single registration number across tax types had been put in place, as had the basis for modernising and transforming Sars' accounting systems. The bill sought to strike a balance between Sars' powers and duties, and taxpayers' rights and obligations.
Taxpayers who were the subject of an audit would be entitled to regular reports on its progress and the findings. Those who discovered they were non-compliant would be able to make use of a permanent voluntary disclosure programme.
They would find their understatement penalties reduced substantially and Sars would not pursue criminal prosecution.
"I should note that this programme is not as generous as the existing voluntary disclosure programme that is scheduled to close on October 31 2011."
This allows for the complete waiver of understatement penalties and of interest due on late payment.
"Equally, it should protect the fiscus and compliant taxpayers from the corrosive effects of non-compliance," he said, introducing the bill in the National Assembly.
The bill took the generic administrative aspects of several different tax acts administered by the SA Revenue Service (Sars), brought them together, and rationalised and updated them, he said.
The aim of the bill was to promote certainty, simplicity and coherence in the tax system, to the benefit of both taxpayers and Sars.
"This aim is reflected in the bill's very structure. It follows the life cycle of a taxpayer starting with registration and running through to the supply of returns and other information, assessment of tax, resolution of disputes that may arise and the collection or refund of amounts due.
"Taxpayers will welcome a broad range of measures... to simplify their interactions with Sars," Gordhan said.
The basis for a phased move to a single registration number across tax types had been put in place, as had the basis for modernising and transforming Sars' accounting systems. The bill sought to strike a balance between Sars' powers and duties, and taxpayers' rights and obligations.
Taxpayers who were the subject of an audit would be entitled to regular reports on its progress and the findings. Those who discovered they were non-compliant would be able to make use of a permanent voluntary disclosure programme.
They would find their understatement penalties reduced substantially and Sars would not pursue criminal prosecution.
"I should note that this programme is not as generous as the existing voluntary disclosure programme that is scheduled to close on October 31 2011."
This allows for the complete waiver of understatement penalties and of interest due on late payment.
