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Legislation News Update - August/September 2007

VISIT The DTI B-BBEE Website :  http://196.31.61.237/01.htm

UNEMPLOYMENT INSURANCE ACT, 2001

Increase of the maximum income threshold of the Unemployment Insurance Fund. Under Section 12(3)(a) of the Unemployment Insurance Act No 63 of 2001) the Minister of Labour has amended the rate of earnings referred to in Government Notice No. 28909 of 2 June 2006, from one hundred and thirty nine thousand nine hundred and forty four rand per annum (R139 944) to one hundred and forty nine thousand seven hundred and thirty six rand per annum (R149 736) with effect from I October 2007.

TAXATION LAWS SECOND AMENDMENT ACTS - NO. 8 AND NO 9 OF 2007:

The amendment Acts make a number of changes to the Estate Duty Act 1955, the Income Tax Act 1962, the Customs and Excise Act 1964, the Stamp Duties Act 1968, the Value-Added Tax Act 1991, the Tax on Retirement Funds Act 1996, the Small Business Tax Amnesty and Amendment of Taxation Laws Act 2006 and the Revenue Laws Amendment Act 2006.

GAMBLING AMENDMENT BILL

Final amendments, as a result of recent public comments on the Gambling Amendment Bill, have been submitted to the trade and industry portfolio committee and debated in detail. Six pages of amendments were proposed, resulting in complete re-description of the bill. Casino Association representatives appear relatively relaxed with the new bill, saying that conditions that had applied to land gambling seem to have been applied in general to internet gambling.

FOREIGN LAND OWNERSHIP

A panel of experts appointed to investigate the effects and extent of foreign land ownership in South Africa, have amongst others, recommended all potential property buyers disclose race, gender and nationality. The recommendations advise that all property owners – not only foreigners – be subject to Compulsory Disclosure Requirements. The report has been published in the Government Gazette. The general public can provide the Panel with comments and feedback.

HEALTH PUBLISH ALCOHOL WARNING REGULATIONS

The health department has published regulations requiring container labels for alcoholic beverages to carry messages highlighting the negative effects of alcohol consumption. The regulations, published under the Foodstuffs, Cosmetics and Disinfectant Act, are the outcome of lengthy consultations with stakeholders. The regulations will come into effect within the next 18 months.

TOURISTS WILL NEED TO REGISTER CELLPHONES

Legislation intended to help fight organised crime and the use of cell phones to commit crimes has been approved in the National Assembly. The Regulation of Interception of Communications and Provision of Communication-related Information Amendment Bill provides mainly for the registration and verification of certain particulars of cell phones and SIM card owners, such as addresses and identity. Visitors to South Africa will have to register with a local service provider before enjoying international roaming on their cell phones.

COMPANIES BILL

Finalisation of the latest and last draft is expected to follow the current period of public comment which ended on the 31 August. Submission to the State Law Advisor for certification will follow by mid-September and submission to cabinet may take place in October. This will probably mean tabling in Parliament early in the first session of 2008 and a new Companies Act in operation by 1 January 2010. DTI has proposed that a review of the Close Corporations Act should take place following the implementation of the new Companies Act, but this will be some years in the future.

SECONDARY TAX ON COMPANIES TO GO

The expected change from secondary tax on companies (STC) to a final withholding tax has created some speculation including when the change will be implemented, what the transition provisions will be, if any, and how financing structures will be affected, say tax analysts. The phasing out of the tax is intended to take place in two stages. Firstly, the rate of the tax will be reduced from 12,5% to 10% from October 1 this year, together with a broadening of the STC base. Secondly, STC will be replaced with a withholding tax on dividends at shareholder level at the end of next year, depending on the renegotiation of certain double tax treaties that SA has in place with other jurisdictions.

BASIC CONDITIONS OF EMPLOYMENT ACT - EARNINGS THRESHOLD

The Employment Conditions Commission is set to review the earnings threshold in terms of the Basic Conditions of Employment Act and they invite written representations from members of the public. Interested parties should forward submissions to the Executive Manager, Employment Standards, Department of Labour, Private Bag X117, Pretoria, 0001 before the end of September 2007.

EMPLOYMENT EQUITY REPORTS

No change from last month. The Department of Labour has urged business to submit their employment equity reports online ahead of the October 1 deadline. Employment equity manager, Lucia Rayner said that reporting at the eleventh hour often doesn't allow enough time to correct whatever mistakes had been made. She said it was in a company's interest to submit its employment equity report if they tender for government contract and want to mention the fact that their name has been included in the public register.

2010 TRADEMARK LIST

The department of trade and industry called for public comments around the far-reaching list of names associated with the 2010 soccer World Cup trademark. The list of proposed trademarks names includes words and phrases like 2010, Fifa, World Cup, South African, South Africa 2010, twenty ten, and drawings of the Fifa World Cup. Fifa’s move has been described as potentially drastic. Other words on the proposed trademark list are: all names of the venue cities with the figure 2010, World Cup 2010, RSA 2010, Football World Cup, Fifa World Cup, South Africa 2010, SA 2010, 2010 Fifa World Cup, Africa 2010, Soccer World Cup, World Cup, South Africa World Cup, Win in Africa and Football for a Better World. The closing date for the submission of public opinion has been extended to the 2nd October 2007.

DRAFT SCHOOL CALENDAR FOR 2010

The department of Education has published a draft school calendar for 2010.
Free State - Gauteng - Limpopo - Mpumalanga - North West. Eastern Cape - Kwazulu-Natal - Northern Cape - Western Cape.

Term Duration Weeks Days P/Holidays
1 13 January to 26 March 12 58 2
2 12 April to 09 June 09 43 2+1
3 13 July to 01 October 13 59 2
4 11 October to 08 December 09 43 0

2010 World Cup 11 June to 11 July

JOHANNESBURG DRAFT RATES POLICY

No change from last month. The introduction of the Municipal Property Rates Act will result in a new rating system for Johannesburg City properties from July 2008. The public participation process, to run until October, will result in the final determination of what every property owner in the city will pay for their assessed rates from July 2008. Copies of the draft rates policy are available from all the city's main customer service centres and www.joburg.org.za

KZN GAMING BILL 2007

No change from last month. The Bill, which was tabled by the premier's office in Pietermaritzburg recently is aimed at bringing gambling in casinos and betting from horseracing under one roof. Clause 141 of the bill proposes that casinos be allowed to extend credit to people to enable them to gamble in the casino. Linked to this is clause 143 which makes gambling debts legally enforceable. The bill, expected to be passed late 2007, is set for discussion by political parties before public hearings will be held in Durban, Pietermaritzburg, Richards Bay, Newcastle and Port Shepstone.

WESTERN CAPE LIQUOR BILL

No change from last month. Premier Ebrahim Rasool is expected to sign the Western Cape Liquor Bill into law shortly. The Bill provides for the licencing of retail on and off consumption liquor outlets including shebeens and includes tight restrictions on the quantity of alcohol provided to these informal liquor outlets. Amongst others, the Bill will ensure that no retail outlet may sell liquor over a certain quantity without that outlet being provided with proof that the purchaser is a legally registered entity.

TOBACCO AMENDMENT BILL

The Select Committee on Social Services (National Council of Provinces) has held public hearings on the Tobacco Products Control Amendment Bill. The Bill seeks to increase the penalties for those found guilty of contravening anti-smoking laws and amends the definition of a “public place”. It will also provide for no smoking within a prescribed distance from all doors and windows and children under the age of 18 will no longer be permitted to enter designated smoking areas. The committee is now expected to make further recommendations to the Department of Health.

CONSUMER PROTECTION BILL

No change from last month. The bill is intended to protect the public from bad business practices such as negative marketing, involuntary release of personal information and fraudulent competitions. The bill, which was released last year, aims to provide protection for consumers and replaces several pieces of legislation. It is currently in its second draft.

LIQUOR BILL - NORTHERN CAPE

No change from last month. The Draft Liquor Bill has been approved by the Provincial Legislature. Public hearings have been planned for late August or early September. Members should keep an eye on local newspapers for the notification.

TOURISM BEE CHARTER & SCORECARD

No change from last month. The Tourism BEE Charter Council has not as yet completed the alignment of the Tourism Charter and Scorecard to the Broad Based Black Economic Codes of Good Practice. Although the decision is imminent, it had not been finalised at the time of this report. Key aspects that require attention are the definitions of an Exempt Micro Enterprise and that of a Qualifying Small Business. The Codes of Good Practice exempt businesses with an annual turnover of less than R5 million from complying with any of the seven elements of BEE and businesses with a turnover of between R5m and 35m only being required to implement four of the seven elements.

NEWS ARTICLES
AUGUST / SEPTEMBER 2007

Examples of tourism news articles published in August and early September 2007. All of the articles and more, can be found on the FEDHASA home page news service at www.fedhasa.co.za - click on “archives” at the bottom of the Fedhasa Home Page.

2010 ORGANISERS HUNT FOR ACCOMMODATION
BANKS SIGN CREDIT INDEMNITY DEAL FOR SMMES
CAPE TOWN NUMBER ONE CITY IN AFRICA
CAPE WORKSHOP TO ADDRESS TOURISM NEEDS
CITY LODGE REPORTS 82% OCCUPANCY
COMMENT ON 2010 SCHOOL CALENDAR
COMPANIES BILL ON TRACK FOR 2008
DRAFT CONSUMER PROTECTION BILL PUBLISHED
DURBAN ICC LOSES OUT TO CAPE TOWN
FAST FOOD FIRMS PREPARE TO INVADE SOWETO
FEDHASA INLAND APPOINTS EXECUTIVE OFFICER
FOOD FRANCHISES DOING WELL IN TOWNSHIPS
FOREIGN LAND OWNERSHIP REPORT RELEASED
GAMBLING BILL APPROVED WITH AMENDMENTS
HEALTH PUBLISH ALCOHOL WARNING REGULATIONS
HOTEL BOOM SPURS GROWTH AT HOSPITALITY
IFA SA TO BUY INTO LIMPOPO VENTURE
IMVELO ENTRY DEADLINE 31 AUGUST
KZN TO FAST-TRACK EIA’S AND REZONING
MOST OF KZN HOSPITALITY COMPLIANT SAYS LABOUR
NEW BUSINESS TOOLKIT FOR SME’S
NEW COMPANIES ACT WONT SCARE DIRECTORS
SECONDARY TAX ON COMPANIES TO GO
SETAS HAVE FAILED SAY ANC
SHO’T LEFT IS ON THE ROAD AGAIN
STATSSA TOURIST ACCOMMODATION JUNE
STRONG REVENUE GROWTH FOR HOTELS
TOURISM CONTRIBUTE 12% TO GDP BY 2010
TOURISTS UP 10% SAYS MINISTER
TOURISTS WILL NEED TO REGISTER CELLPHONES