The Davis Tax Committee (DTC), chaired by Judge Dennis Davis, was requested by the Minister of Finance to enquire into the progressivity of the tax system and the role and continued relevance of estate duty in South Africa, with a view to supporting a more equitable and progressive tax system.
The DTC submitted its first interim report to the Minister in January 2015 and the report was subsequently approved to be released to the public for comment on 13 July 2015.
Some of the recommendations may come as a surprise to many taxpayers, but the majority of these recommendations have been expected in the tax industry, as the Minister has hinted at them in previous budget speeches. The intensive focus on trusts by the South African Revenue Service (SARS) has also reinforced our opinion that Government intends to increase its tax collections from estates and trusts to assist in reducing not only the budget deficit, but also the disparity between rich and poor in South Africa.
The following are some of the key recommendations made by the DTC in its report:
For the full interim report, as published on the website of the Davis Tax Committee, please click here.
The report is open for public comment until 30 September 2015. We will keep you abreast of any further developments as and when they become available, so keep an eye on our Newsletter in the following months.
Should you have any questions with regard to the contents of this article, you are welcome to contact Jaco van Straaten
at email@example.com or 021 840 1600.