New Chief Director of Tax Policy at the Ministry of Finance.

Ms Yanga Mputa has been appointed as the new Chief Director of Tax Policy at the Ministry of Finance. Ms Mputa has a wealth of experience in tax administration and policy, having served as a senior manager at the South African Revenue Service (SARS) and as a tax consultant at PwC. She holds a Master of Commerce degree in Taxation from the University of Cape Town and a Bachelor of Accounting Science degree from the University of South Africa.
Cecil Kilpin | CA(SA) - Accounting, Auditing & Tax Specialist/ Professional >> New Chief Director of Tax Policy at the Ministry of Finance.

Ms Mputa will be responsible for overseeing the development and implementation of tax policy reforms, as well as engaging with various stakeholders, including the National Treasury, Parliament, civil society and the private sector. She will also lead the ministry’s efforts to enhance tax compliance and revenue collection, in line with the government’s fiscal objectives.

The Minister of Finance, Mr Enoch Godongwana, congratulated Ms Mputa on her appointment and expressed his confidence in her abilities. “Ms Mputa is a highly qualified and experienced tax professional who will bring valuable insights and expertise to the ministry. I look forward to working with her to advance our tax policy agenda and to ensure that our tax system is fair, efficient and supportive of economic growth and social development,” he said.

Ms Mputa will assume her duties on 1 August 2023. She succeeds Mr Ismail Momoniat, who retired after 25 years of service at the ministry.

New Rules for Resolving Tax Disputes with SARS.

Taxpayers who have a dispute with the South African Revenue Service (SARS) can now benefit from new rules that aim to simplify and expedite the resolution process. The new rules, which came into effect on 1 July 2023, replace the previous dispute resolution rules that were in place since 2003.
Cecil Kilpin | CA(SA) - Accounting & Auditing Specialists >> September 2021 Newsletter

The main features of the new rules are:

  • A pre-dispute resolution mechanism that allows taxpayers to engage with SARS before lodging an objection or appeal, and to request reasons for an assessment or decision if they are not clear or adequate.
  • A revised objection and appeal process that reduces the timeframes for both parties to submit documents and evidence, and introduces penalties for non-compliance with the rules.
  • A streamlined alternative dispute resolution (ADR) process that encourages the use of mediation, conciliation or facilitation to resolve disputes without going to court.
  • A simplified tax court procedure that allows for the appointment of a single judge, the use of
    electronic communication and filing, and the possibility of awarding costs against the unsuccessful party

The new rules are expected to improve the efficiency and fairness of the tax dispute resolution system, and to reduce the backlog of cases that have been pending for years. They also align with international best practices and standards, such as the OECD’s Model Tax Convention and the UN’s Practical Manual on Transfer Pricing.

Taxpayers who have a dispute with SARS should familiarise themselves with the new rules and seek professional advice if necessary. Please do not hesitate to contact our offices in this regard.

Duties of Trustees – Beneficial Ownership.

One of the duties of trustees is to maintain accurate and up-to-date records of the beneficial owners of the trusts they administer. Beneficial owners are those who have a direct or indirect interest in the trust property or who exercise control over the trust.
Cecil Kilpin | CA(SA) - Accounting, Auditing & Tax Specialist/ Professional >> Duties of Trustees – Beneficial Ownership
The information that must be kept by trustees in relation to beneficial owners includes:
  • The name, date of birth, nationality and address of each beneficial owner
  • The nature and extent of each beneficial owner’s interest or control over the trust
  • The date on which each beneficial owner acquired or ceased to have an interest or control over the trust
  • Any other information that may be required by law or regulation

The trustees must keep this information for as long as they are trustees of the trust and for at least five years after they cease to be trustees. The trustees must also provide this information to the relevant authorities upon request or when they are obliged to do so by law or regulation.

Should you require professional advice in this regard do not hesitate to contact our offices.

Two Pot Retirement System.

The Ministry of Finance has published the draft legislation for the “two pot” retirement system for comment. The draft legislation aims to implement the reform of the pension system that was agreed upon by the government and social partners in 2020. The “two pot” system consists of a mandatory basic pension that covers the minimum subsistence level, and a voluntary supplementary pension that allows individuals to save more for their retirement.
Cecil Kilpin | CA(SA) - Accounting, Auditing & Tax Specialist/ Professional >> Two Pot Retirement System

The draft legislation also introduces incentives for longer working lives, such as a gradual increase in the retirement age and a bonus for working beyond the statutory retirement age. The Ministry of Finance invites all interested parties to submit their comments and suggestions on the draft legislation by August 31, 2023.

The comments will be taken into account in the preparation of the final legislation, which is expected to be submitted to the parliament by the end of 2023. Should you require professional advice in this regard do not hesitate to contact our offices.

Sincerely,

Cecil Kilpin | CA(SA) - Accounting & Auditing Specialists >>Newsletter Greeting