SAICA REPRESENTED BY Prof Osman Mollagee amp Mr Pieter Faber DRAFT TAX BILLS 2015 MATTERS FOR DISCUSSION Scope of public hearings Effect of SARS information requests on the auditing profession ID: 622719
Download Presentation The PPT/PDF document "PUBLIC HEARINGS BY THE STANDING COMMITTE..." is the property of its rightful owner. Permission is granted to download and print the materials on this web site for personal, non-commercial use only, and to display it on your personal computer provided you do not modify the materials and that you retain all copyright notices contained in the materials. By downloading content from our website, you accept the terms of this agreement.
Slide1
PUBLIC HEARINGS BY THE STANDING COMMITTEE ON FINANCE
SAICA REPRESENTED BY:
Prof Osman Mollagee & Mr Pieter Faber
DRAFT TAX BILLS 2015Slide2
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 6
quin
Sundry
matters from
DTLAB15
&
DTALAB15Slide3
Budget Speech / Amendment Bills
A. Scope of Public Hearings
National Treasury & SARS
Annexure C and other submissions
Issues disregarded
Issues accepted
National Treasury & SARS
Public Hearings
Public Hearings?
Public hearings should
not
be limited to matters in Amendment BillsSlide4
B. Effect of information requests on the auditing profession
AUDITING PROFESSION CHALLENGES
Expectation gap
High risk
Increased regulation
PROFESSION IN DECLINE
FACTS:
- DECREASING PIPELINE
- REGISTERED AUDITORS +/- 4000 SINCE 2006
- CA(SA) DOUBLED IN SAME PERIODSlide5
B. Effect of information requests on the auditing profession
SARS
TaxpayersAuditing profession
TRUST
X
Statutory function
Statutory function
Information
Information
What about legal privilege?
X
Information
Can compelSlide6
C. Worsening the imbalance of taxpayers rights
Migration to self-assessment
Removing certainty through diluted prescription
Dilution of rights to have errors correctedSlide7
C. Worsening the imbalance of taxpayers rights
Migration to self-assessment
Law: Administrative assessment
Practice: Self-assessment
VS
Adjustments for self-assessments
Penalties & interest
Binding SARS advice
Certainty
Effect on SARS Staff?Slide8
C. Worsening the imbalance of taxpayers rights
Removing certainty through diluted prescription
Proposals:
Any official
No reasons
“Appropriate period”
CERTAINTY
Maximum periods should apply
Compelled reasons
Interruption alternative?
ONLY senior SARS official
XSlide9
C. Worsening the imbalance of taxpayers rights
Proposal: s93 Reduced
Exclude undisputed errors
Limit to 6 months
Fairness
RETAIN 3 years
RETAIN undisputed error
X
Dilution of rights to have errors corrected
Proposal: s98 Withdrawal
No rationaleSlide10
Employees
D. Credit for foreign tax on service fees (s6quin)
Service-provider(South Africa)
Services
Foreign clients
Fees
If foreign countries impose withholding taxes on fees,
s
hould SA grant credit?
No tax credit … Services become uneconomicSlide11
Employees
Employees
D. Credit for foreign tax on service fees (s6quin)Service-provider
(South Africa)
Services
Foreign clients
Fees
ALTERNATIVE: Render services from elsewhere?
Service-provider
(???)
XSlide12
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
E. SUNDRY MATTERSSlide13
THANK YOU