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Tax Administration Act, 2011 (Act No. 28 of 2011)

Regulations

Regulations for purposes of paragraph (a) of the Definition of "International Tax Standard)" in Section (1) of the Tax Administration Act, 2011 (Act No. 28 of 2011), promulgated under section 257 of the Act, Specifying the Changes to the OECD Standard for Automatic Exchange of Financial Account Information in Tax Matters

Preamble

 

A. These Regulations have effect for and in connection with the implementation of obligations which may arise or arise under—
(1) the following agreements or arrangements, in respect of which these Regulations apply separately except where the context otherwise requires:
(a) the Multilateral Competent Authority Agreement signed by the Competent Authority of South Africa on the 23rd of October 2014, with the Participating Jurisdictions as updated and published by the OECD from time to time; and
(b) any other multilateral or bilateral agreement or arrangement between South Africa and another jurisdiction, as updated and published by SARS from time to time, which provides for the implementation of the Standard, or
(2) these regulations in respect of or in connection with obtaining, maintaining and provision to SARS of information regarding a Reportable Jurisdiction Person in any jurisdiction not included under subparagraph A(1) for domestic purposes or subsequent exchange of information when such jurisdiction becomes a jurisdiction included under subparagraph A(1).

 

B. The OECD developed the Standard to improve international tax compliance. The Standard encompasses the CRS for automatic exchange of information under an agreement or arrangement referred to in paragraph A.

 

C. These Regulations reflect the changes to the CRS required to enable South Africa to comply with its obligations under an agreement or arrangement referred to in paragraph A in terms of the Standard.

 

D. South Africa’s selection of jurisdictional choices permitted under the CRS and the Commentaries to the CRS does not detract from the fact that these Regulations must be interpreted in accordance with the Commentaries.

 

E.
(1) The term “Commentaries on the CRS” means the Commentaries on the Standard for the Automatic Exchange of Financial Account Information in Tax Matters, OECD, Paris, as supplemented by—
(a) the Implementation Handbook for the Standard for the Automatic Exchange of Financial Account Information in Tax Matters, OECD, Paris;
(b) the CRS-Related Frequently Asked Questions, OECD, Paris; and
(c) the Model Mandatory Disclosure Rules for CRS Avoidance Arrangements and Opaque Offshore Structures, OECD, Paris, as updated from time to time.

 

(2) In the event of any conflict between the Commentaries on the Standard for the Automatic Exchange of Financial Account Information in Tax Matters and the supplementary material in subparagraph A(1)(a), (b) or (c), the former shall prevail.