Government is set to backtrack on certain clauses of the new Tax Amendment Act to appease Cosatu, the City Press reported.<\/p>\n
Minister in the Presidency eff Radebe confirmed to the paper that government would in all likelihood move to postpone some of the law’s disputed points.<\/p>\n
The law’s passed by Zuma at the start of the year\u00a0updated\u00a0laws\u00a0passed in 2013 (in the 2013 Taxation Laws Amendment Act) that harmonised the tax treatment of contributions to retirement funds.<\/p>\n
The 2013 law harmonises the remuneration base for tax purposes for all retirement funds, and consolidates both employer and employee contributions to reduce the scope for tax structuring.<\/p>\n
This law should have been implemented on 1 March 2015, but was delayed by one year to take account of concerns raised by some stakeholders, including Cosatu.<\/p>\n
The new law would enforce the annuitisation of two-thirds of provident fund savings from retirement. Currently, provident fund members are able to cash in their accumulated savings as a lump sum when they retire or resign.<\/p>\n
Read:\u00a010 things you should know about new tax laws in South Africa<\/a><\/strong><\/p>\n Cosatu was not happy with the changes, particularly around pension reform, social security and what it said were a lack of consultations with Nedlac, and subsequently threatened to withdraw support for Zuma in the coming municipal elections if changes were not made.<\/p>\n Radebe said that the new laws would not be repealed, but certain aspects would be changed or could be removed.<\/p>\n SA taxpayers must pay for Nkandla: ANC supporters<\/a><\/strong><\/p>\nMore on tax<\/h3>\n