Mr Speaker, Cope welcomes the start of this process as the first step to rewriting the Income Tax Act. In the memorandum to the Bill, it is stated that international experience has demonstrated that if taxpayers perceive and experience the tax system as fair and equitable, they will be more inclined to fully and voluntarily comply with it. Add to that that they trust government to spend it wisely and you have a happy taxpaying family, if something like that is possible.
In 1776, Adam Smith said that one of the fundamental principles of taxation was certainty, meaning that the amount of tax which each individual is bound to pay must be certain, and not arbitrary. We, as the Finance Committee, had a nasty experience with the recently tabled Taxation Laws Amendment Bill, when the National Treasury and Sars clearly overreacted in the way they have suspended section 45 of the Act without notice, leaving a scar and a slight mistrust among committee members. So, be warned, we shall closely watch the contents of this new Bill. Although the memorandum to the Bill puts a high value on equity and fairness, certainty and simplicity, time will tell whether this Bill ultimately achieves this.
We welcome the introduction of the Office of the Tax Ombud and we further welcome the extended powers to deal more effectively with tax invaders who demonstrate certain behaviour. We look forward to a more efficient tax-law era in South Africa and shall play our part to achieve it. I thank you.