Workshop on Tax, Rates & Revenue Bills

2024 draft Global Minimum Tax Bill. 2024 draft Revenue Laws Amendment Bill (2024 draft RLAB) 2024 draft Rates and Monetary Amounts and Amendment of Revenue Laws Bill (2024 draft Rates Bill). 2024 Draft Taxation Laws Amendment Bill (2024 draft TLAB) 2024 draft Tax Administration Laws Amendment Bill (2024 draft TALAB) 2024 draft Global Minimum Tax Administration Bill. The Select Committee on Finance held an induction workshop where the South African Revenue Service (SARS) and National Treasury presented key aspects of South Africa’s tax legislation and compliance challenges. SARS provided an overview of the organisation’s performance trends, including notable revenue collection achievements and innovative compliance initiatives, alongside challenges in maintaining capacity to meet its operational goals. It highlighted its efforts to combat complex tax evasion and ensure accountability among both local and multinational corporations. National Treasury discussed its legislative responsibilities, emphasising policy objectives that aimed to align with international trends while ensuring sufficient revenue generation and reducing administrative burdens on taxpayers. Committee Members raised questions addressing systemic tax compliance issues and expressed particular concern over large corporations that, despite having funds, delayed tax payments by engaging in legal disputes. They also flagged the issue of municipalities and corporations failing to pay worker contributions to retirement funds, placing their employees' financial security at risk. Discussions around taxation frameworks for international and local companies generated significant interest. SARS and Treasury clarified controlled foreign company rules and cross-border tax obligations, highlighting regulatory mechanisms aimed at minimising tax evasion. A Member referred to the growing concern over budget shortfalls, despite increases in tax revenue, questioning the impact of non-compliance among large corporations on SARS’s financial position. Other Members raised concerns about public understanding of new tax policies and potential outreach to rural areas. SARS acknowledged the challenges of addressing informal sector taxation, and outlined efforts to increase outreach through mobile tax units, particularly in underserved regions. The Committee expressed appreciation for the thorough insights provided by SARS and National Treasury, and there was consensus on the need for further engagement sessions to deepen the Committee’s understanding of complex tax issues and upcoming bills. The meeting adjourned with the Chairperson committing to following up on the budget-related concerns raised during the discussion.