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

Regulations

OECD Crypto-Asset Reporting Framework International Standard for the Exchange of tax-related Information between Countries

Section V : Effective Implementation
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A. In addition to the provisions of the Tax Administration Act the following rules and administrative procedures apply to ensure effective implementation of, and compliance with, the reporting and due diligence procedures set out above.

 

(1)Anti-avoidance
(a)If a person enters into any arrangement or structure with the main purpose, or one of the main purposes, to avoid any obligation under the CARF Standard, these Regulations are to have effect as if the arrangement or structure had not been entered into.
(b)If a Crypto-Asset User that is a Reportable Person is no longer an Excluded Person as it no longer complies with the requirements for an Excluded Person under paragraph E of Section IV, it becomes a Reportable Person from the moment that it no longer complies with such requirements.
(c)If an Entity Crypto-Asset User is no longer an Active Entity as it no longer complies with the requirements for an Active Entity under subparagraph D(11) of Section IV, it becomes an Entity Crypto-Asset User from the moment that it no longer complies with such requirements.

 

(2)Sanctions for non-compliance in providing information to a Crypto- Asset Service Provider

 

Non-compliance with any obligation under these Regulations includes non-compliance as referred to in section 26(4) of the Tax Administration  Act by:

 

(a) a Crypto-Asset User,
(b)if the Crypto-Asset User is an Entity, any Controlling Person(s) of that entity; or
(c) any other person;

from whom a Crypto-Asset Service Provider requires information, a document or thing in order to obtain and report the information required under Section I and to comply with any other requirement of these Regulations.

 

B. Suspension or termination of a customer relationship or effectuating a Relevant Transaction for failure to provide a self-certification

 

If a self-certification that is to be obtained or is otherwise required under any provision of these rules is not provided by a Crypto-Asset User or Controlling Person of an Entity Crypto-Asset User or if the self-certification provided does not meet any requirement under these rules, a Reporting Crypto-Asset Service Provider—

 

(1) must suspend effectuating a Relevant Transaction until receipt of the self-certification that meets the requirements of these rules; or

 

(2) may terminate a customer relationship with the Crypto-Asset User or decline to effectuate a Relevant Transaction if, despite all reasonable efforts by the Reporting Crypto-Asset Service Provider, no self-certification is received that meets the requirements of these rules and the customer or transaction presents a risk of tax evasion, avoiding reporting of the transaction in accordance with the CARF or otherwise frustrating the purposes of the CARF.