Davis Tax Committee Releases Six Reports

National Treasury

Six final reports drawn up by the Davis Tax Committee (DTC) have been released.

In a statement, the DTC confirmed that it is close to completing its work.

The final six reports are:

•    Funding of tertiary education in South Africa;
•    Financing a National Health Insurance (NHI) for South Africa;
•    Second and final report on base erosion and profit shifting (BEPS) (replaces first report);
•    Second and final report on hard-rock mining (replaces first report);
•    Oil and gas report coupled with an IMF report on the same topic for the DTC;
•    Tax Administration.

The reports have been submitted to the finance minister.

Any announcements flowing from the recommendations will be made as part of the usual budget and legislative process.

The reports are available at www.taxcom.org.za.

Meanwhile, the Financial Services Board has released the Draft Determination on “Equivalence of Reward” for comment.

Published in Government Gazette 41237, the draft determination was drawn up in terms of the Long-Term Insurance Act.

The determination sets out the forms of remuneration or consideration paid by long-term insurers to their representatives that do not comply with the principle of “equivalence of reward”.

Included is credit on terms that are more favourable than those available on an arms’ length basis and situations where an insurer buys the representative’s book of business upon cessation of the intermediary agreement.

Comment is invited until 11 December 2017.

Sabinet Cape Town Office