Key changes to the Tax Procedures Act, 2015 as proposed by the Tax Amendment Bill, 2024
On August 20, 2024, the Cabinet Secretary for the National Treasury and Economic Planning submitted the Tax Amendment Bill, 2024, to Parliament, proposing some key changes to the Tax Procedures Act, 2015. We have discussed below the proposed amendments.
Extension of the Tax Amnesty Programme Deadline
The Bill seeks to amend section 37E (subsection 3 and 4) to extend the deadline of the Tax Amnesty Programme initially introduced by the Finance Act 2023 from 30 June 2024 to 30 June 2025. This is a welcome move as businesses who were earlier locked out of this programme can take advantage of this by paying the principal amounts of outstanding taxes for the periods up to 31 December 2022 and enjoy a waiver of the penalty and interest thereon. This will help in cushioning taxpayers from cash flow issues experienced by many businesses due to the harsh economic conditions.
Relief because of difficulty in recovery of tax
The bill seeks to introduce Section 37F to give the Commissioner powers to refer cases to the Cabinet Secretary for relief of part or whole of the tax due in instances where the Commissioner determines that:
- It is impossible to collect such taxes
- There is undue difficulty or expense in collection,
- There is hardship or inequality in recovery of an unpaid tax; and
- Any other reason occasioning inability to recover the unpaid tax.
Once referred, the relief can only be granted upon approval by the National Assembly. This provision is intended to offer a lifeline to businesses struggling to pay outstanding taxes due to economic challenges.
Exclusion of Saturdays, Sundays and Public holiday when counting days for lodging an appeal
The bill seeks to amend section 77 by introducing subsection 2 which provides for the exclusion of Saturdays, Sundays or public holidays when calculating the period for lodging a tax appeal at the tax appeals tribunal, the High Court and the Court of appeal.
Conclusion
The above amendments will go a long way in ensuring a fairer and equitable tax administration, ease taxpayer burden and provide sufficient timelines for taxpayers to lodge tax objections. We will continue to monitor the progress of this bill and advise you of the effective date should it be approved by parliament. Taxpayers are further encouraged to submit their proposals during the public participation stage.