Regulatory update: Davies Tax Committee provides more questions than answers

The recommendations made in the final Davies Tax Committee Reports have clarified some question relating to the general policy direction most likely to be followed by Treasury, but until these recommendations become law, they create more questions than answers and introduced unneeded uncertainty into the financial regulatory space.
 
Davies Tax Committee Releases Final Reports
 
On 12 April the Davies Tax Committee finally released its final four reports on:
  • Value-Added Tax,
  • Corporate Income Tax (and territorial taxation),
  • Wealth Tax, and
  • Public Benefit Organisations,
as well as a closing report on the conclusion of its work. The closing report highlighted that the committee’s purpose was advisory in nature, and that it will only make recommendations to the Minister of Finance. At this point it is unclear whether recommendations such as the introduction of an annual net wealth tax will be adopted.
 
In other regulatory news:
 
NOCLAR declaration overdue
 
All professional accountants who have not yet completed their Non-Compliance with Laws and Regulations (NOCLAR) Declaration are reminded that the deadine was 15 February 2018.
 
A template of the NOCLAR declaration can be found on the SAICA website.

Increase in estate duty
 
As announced in the 2018 Budget Review, an increase in estate duty from 20% to 25% on estates with a value exceeding R30 million came into effect on 1 March. This amendment is still to be passed by Parliament.