On 24 October 2018, South Africa's Minister of Finance introduced the Taxation Laws Amendment Bill¹ (TLAB) and the Tax Administration Laws Amendment Bill² (TALAB) into Parliament.

The TLAB and the TALAB follow the draft TLAB and the draft TALAB which were initially published on 16 July 2018 for public comment.

The amendments initially proposed in the draft TLAB and the draft TALAB have remained relatively unchanged.

Amendments contained in the TLAB and TALAB include, inter alia:

• Addressing anomalies in respect of medical tax credits
• Amendments to the debt restructure rules
• Amendments to the dividend stripping anti-avoidance rules
• Amendments to the interaction between the dividend stripping anti-avoidance rules and the corporate reorganization rules
• Amendments to the rules for debt-financed acquisitions of a controlling interest in an operating company
• Amendments to the doubtful debt allowance
• Introduction of new rules to address the use of foreign trusts to avoid tax in respect of controlled foreign companies
• Extension of the Employment Tax Incentive
• Removal of the requirement to submit returns in respect of dividends that are exempt or partially exempt
• Inclusion of specific provisions relating to the process of correcting material errors on a tax invoice for Value Added Tax purposes.

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ENDNOTES

¹ B38 -2018.

² B39 -2018.

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CONTACTS

For additional information with respect to this Alert, please contact the following:

Ernst & Young Advisory Services (Pty) Limited, Johannesburg

• Brigitte Keirby-Smith
  brigitte.keirbysmith@za.ey.com

Ernst & Young Advisory Services (Pty) Limited, Durban

• Candice Van Den Berg
  candice.vandenberg@za.ey.com

Ernst & Young LLP (United Kingdom), Pan African Tax Desk, London

• Rendani Neluvhalani
  rendani.mabel.neluvhalani@uk.ey.com
• Byron Thomas
  bthomas4@uk.ey.com

Ernst & Young LLP, Pan African Tax Desk, New York

• Dele A. Olaogun
  dele.olaogun@ey.com

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ATTACHMENT

PDF version of Tax Alert 2018-2150