The newly released draft Taxation Laws Amendment Bill holds some nasty surprises, with the end not yet in sight.
The proposals aim, amongst others to close lucrative loopholes with the avoidance of income tax and capital gains tax and to prevent the double non-taxation of South Africans working abroad.
The bill introduces tax proposals in relation to issues raised during the February Budget. It gives flesh to the bones of what was announced in the budget.
However, Patricia Williams, member of the South African Institute of Tax Professionals (SAIT), says these proposals stretch beyond issues identified in the budget. Some of them may come as a shock to “unsuspecting taxpayers”.
She refers to the repealing of the tax exemption on foreign income enjoyed by South Africans working abroad. National Treasury said in the budget the exemption was “excessively generous” since the person might also be exempt from tax in the foreign company.
For more on this, get a copy of Business Report on Monday, July 24.