The recently announced amnesty for small business to regularise its tax affairs does not open the door to those who have profited from criminal activities, Minister of Finance Trevor Manuel told MPs on Tuesday.
Speaking in a debate in the National Assembly on legislation to provide for the tax amnesty — announced last week — Manuel said it “does not render the evil gains of criminals lawful. If people have acquitted wealth by means foul … they can’t have amnesty now … and allow them to regularise their affairs”.
They will remain “outside” the system. Those who have broken the law — such as those who sell evil substances that infect the minds of township youths — should feel the full weight of law enforcement, Manuel said.
The minister announced that the tax amnesty for small business to draw them into the tax system will apply to businesses with a turnover of up to R10-million, while a graduated levy will apply of between 2% and 5% of taxable income.
The levy will be calculated on the taxable income of new applicants for the 2005/06 tax year.
The announcement of the amnesty was originally made in the February Budget, but Manuel last week said after consultation with business around the country that the turnover threshold was raised from R5-million to R10-million to include more businesses in the tax net.
The original levy proposed was 10%. The cut-off date for applications for amnesty will be May 31 2007. — I-Net Bridge