Bulletin 6 of 2013 Bulletin 44 of 2017 Period: 20 October 2017 – 27

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Bulletin 6 of 2013 Bulletin 44 of 2017 Period: 20 October 2017 – 27 BulletinB ulle 6 tinof 201344 of 2017 Period: Period: 20 October 1 February 2017 2013 – 27 to October8 February 2017 2013 IMPORTANT NEWS CABINET APPROVES MINIMUM WAGE AT R20 AN HOUR The Cabinet has approved the implementation of the national minimum wage and wants it to take effect in May 2018 at R3 200 a month, notes a TimesLIVE report. This is according to Minister of Communications Mamoloko Kubayi- Ngubane‚ who said the issue was discussed at the Cabinet meeting. Cabinet's approval of the national minimum wage followed consultations and agreements with business‚ labour and community formations at the National Economic Development and Labour Council. A statement issued by Labour Minister Mildred Oliphant’s office indicated that some low-income earners such as farm workers and domestic workers would be exempted from the national minimum wage. According to the statement‚ farm workers would get R18 an hour‚ domestic workers R15 an hour and those employed with government's expanded public works programme R11 an hour. ‘The Nedlac social partners have agreed that the farm‚ forestry and domestic sectors will be brought up to 100% of the minimum within two years pending research by the National Minimum Wage Commission‚’ said Oliphant's spokesperson Sithembele Tshwete. Source: Legalbrief, 23 October 2017 MINIMUM WAGES IN TAXI SECTOR ADJUSTED The minimum wages for drivers is now set at R3 413 26 per month, R787 73 per week and R16 41 daily. Rank marshals will now get R2 728 45 per month, R629 68 per week and R13 11 daily. A new boarding allowance of R372 08 is also set down. The adjusted minimum wages kicked in on 1 October 2017. Source: http://www.sabinetlaw.co.za/labour/articles/minimum-wages-taxi-sector-adjusted RAF ADJUSTS STATUTORY LIMIT FOR CLAIMS The Road Accident Fund has announced a consumer price index (CPI)-related adjustment to the statutory limit in respect of claims for loss of income and support as a result of a motor vehicle accident. The amount referred to under section 17(4)(c) of the Road Accident Fund Act 56 of 1996 has been adjusted to R263 900 with effect from 31 October 2017. No claim for loss of income and support can exceed the latest limit. Source: http://www.sabinetlaw.co.za/transport/articles/raf-adjusts-statutory-limit-claims-0 RETIREMENT FUND CONSUMER PROTECTION REGULATIONS MOOTED Four draft notices affecting retirement fund internal complaints management were released for comment. Their purpose is to ensure that the ‘treating customers fairly’ consumer protection framework applicable to all regulated financial institutions is being implemented and delivering on its prescribed outcomes. Once in force, the proposed new regulations will have implications for retirement fund boards and benefits administrators. Source: Legalbrief, 02 November 2017 NEW LAW TO FORCE OFF-GRID ENERGY USERS TO PAY The Department of Energy is preparing legislation to force residents who live off the grid and generate electricity for their own use – or have a standby generator for blackouts – to register with the National Energy Regulator of SA (Nersa). The Citizen reports the draft Licensing Exemption and Registration Notice proposed in terms of the Electricity Regulation Act also requires owners of electricity-generating devices to pay a fee to register. Households generating electricity by any means – including solar panels – that allows them to go off the grid, would also be required to pay a standby fee, according to the Act. Outa’s Ted Blom commented: ‘The standby fee is understandable for those who use renewable energy because when the weather plays up, for instance if there is no wind or cloud cover, they would require standby 2 power from time to time unless they had batteries.’ But he considered the requirement that a member of the public, who is connected to the grid, to register a standby generator used during outages to be a weakness in the proposed legislation. Source: Legalbrief, 23 October 2017 2017 TAXATION LAWS AMENDMENT BILL TABLED The Taxation Laws Amendment Bill (TLAB) and the Tax Administration Laws Amendment Bill (TALAB) have been tabled in parliament. The main tax proposals contained in the TLAB are: A levy on bargaining councils to address non-compliance; A higher fringe benefit exemption for bursaries to learners with disabilities; Removing the foreign employment income tax exemption in respect of South African residents; Addressing the circumvention of anti-avoidance rules dealing with share buy backs, dividend stripping and contributed tax capital; Strengthening anti-avoidance rules relating to mining environmental rehabilitation funds; Extending the application of controlled foreign company rules to interposed foreign trusts and foreign foundations; Changes in the tax treatment of banks due to IFRS9; and Tax amendments due to the SAM framework for long term insurers. The main tax administration proposals outlined in the TALAB include: Assisting micro businesses transitioning into the small business corporation system; Employees’ tax and reimbursement of travel expenses; Application of the cap on deductible retirement fund contributions; Taxation of interest payable in respect of normal tax by SARS; Phased implementation of Tax Administration Act, 2011, interest rules by tax type; and Transitional arrangements regarding processes before commencement of the new Customs Acts. The Rates and Monetary Amounts and Amendment of Revenue Laws Bill was also tabled. The Bill aims to: Fix the rates of normal tax; Amend the Transfer Duty Act of 1949; so as to amend transfer duty monetary thresholds; Amend the Income Tax Act of 1962, so as to amend rates of tax and monetary amounts; Amend the Customs and Excise Act, 1964, so as to amend rates of duty in Schedule 1 to that Act; Insert a new part; Insert a new section; Insert new tariff items; Amend the Taxation Laws Amendment Act, 2016 so as to change an effective date; Amend the Rates and Monetary Amounts and Amendment of Revenue Laws Act, 2016 so as to make corrections; Amend the Value-Added Tax Act, 1991, so as to amend a provision; and Provide for matters connected therewith. The Bills will be processed by the standing committee on finance. Source: http://www.sabinetlaw.co.za/finances/articles/2017-taxation-laws-amendment-bill-tabled NA PASSES INTERNATIONAL ARBITRATION BILL The National Assembly has passed the International Arbitration Bill and sent it to the National Council of Provinces for concurrence. 3 The Bill was tabled in parliament in April 2017. The proposed legislation seeks to: provide for the incorporation of the Model Law on International Commercial Arbitration, as adopted by the United Nations Commission on International Trade Law, into South African law; provide for the recognition and enforcement of foreign arbitral awards; repeal the Recognition and Enforcement of Foreign Arbitral Awards Act, 1977; amend the Protection of Businesses Act, 1978, so as to delete an expression; and provide for matters connected there with. During its deliberations, the Portfolio Committee on Justice and Correctional Services extended the scope of clause 9 to not only apply to the employees of the arbitrator but also persons appointed by the arbitral tribunal. The Select Committee on Security and Justice will now process the bill. Source: http://www.sabinetlaw.co.za/justice-and-constitution/articles/na-passes-international-arbitration-bill MOST TRUSTS NOT B-BBEE COMPLIANT – MINISTER An early analysis and assessment has shown that more than 50% of trusts registered are not compliant with Broad- Based BEE (B-BBEE) requirements, notes a Business Day report. Trade and Industry Minister Rob Davies claims most of the trusts do not satisfy requirements of the ownership scorecard, because they are dedicated to skills development and community projects but not ownership, which means black participants are treated as beneficiaries and not shareholders. Davies said that in June, he gazetted the threshold for major B-BBEE transactions that must be submitted to the commission in terms of the B-BBEE Act, as well as section 18 of the B-BBEE regulations for all transactions with a value that equalled or exceeded R25m, and further provided for the voluntary registration of transactions concluded before 24 October 2014. To date, 210 such deals have been submitted for registration, 70 of which are related to trusts. ‘Based on the analysis and assessment conducted thus far, over 50% of the trusts registered are not compliant with B- BBEE. This figure will be confirmed once final findings are approved for publication in this quarter,’ said Davies. Where black shareholding was held through a trust, the codes required trusts to define participants and the portion of their entitlement to receive distribution of the economic interest, he said. In most instances, the trusts did not provide guidance on how they would record information relating to the identity of each black participant. Source: Legalbrief, 27 October 2017 ESTATE AGENTS BOARD WARNS ABOUT FAKE AGENTS The Estate Agency Affairs Board says an estimated 50 000 estate agents could be operating illegally in SA, adding that clients should insist on seeing a fidelity fund certificate before engaging or paying for the service of an estate agent. BusinessLIVE reports that the regulatory board has introduced a mandatory electronic certificate as a counter-fraud measure for all registered estate agents to distinguish them from the fake operators. Agents without the certificate, which was constantly upgraded, were not entitled to rumeneration for their services, said board spokesperson, Margie Campbell. She said 80 000 estate agents were registered 10 years ago and that figure has now dropped to 30 000, leaving 50 000 potential unregistered agents operating illegally. The anti-fraud certificate is the brain-child of attorney Stephen Logan. who said in the event of a dispute customers had greater protection if they worked with registered agents. Source: Legalbrief, 3 November 2017 FIRST CASE OF DELINQUENT DIRECTOR CONFIRMED The Commission for Intellectual Property and Companies (CIPC) says the first case in which a director was declared delinquent in terms of the 2008 Companies Act has been finalised.
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