EFF TO INTRODUCE ANTI-AVOIDANCE OF TAX, INSOURCING AND BAN ON ALCOHOL ADVERTISEMENT AND PRIVATE MEMBER BILLS

Friday, 5 October, 2018

The EFF has officially notified the Speaker of the National Assembly that it intends to introduce Anti-Avoidance of Tax, Ban on Alcohol Advertisement and Insourcing Private Member Bills. All the notices were gazetted on the 4th of October, Gazette No: 41597 and outlines what these private member bills intend to achieve: a). Anti-Avoidance of Tax Private Member Bill

The EFF, since its formation, has raised the issue of illicit financial flows, base erosion and profit shifting and we have made submissions in almost every avenue thinking it will bring necessary changes. We made a submission to Parliament, Davis Tax Committee and met with SARS and the Financial Intelligence Centre.

However, we have come to a realization that the ANC lacks either competence or political will to bring about the necessary changes because most of them are beneficiaries of deals from companies involved in illicit financial flows, base erosion and profit shifting. We have now decided to take it upon ourselves to bring laws which will begin to change the status quo.

The bill seeks to provide concrete legislation to deal with illicit financial flows, base erosion and profit shifting by multinational and local companies in almost all sectors of the economy. The bill will see changes to tax legislation which will criminalize all forms of tax crimes that have for far too long robbed our country of much needed revenue to build roads, schools, clinics, hospitals, houses and create sustainable jobs for our youth. The bill also seeks to introduce a strong penalties regime for companies that are involved in illicit financial flows, base erosion and profit shifting, including jail sentences and expropriation of their companies without compensation if they are found involved in such crimes.

b). Insourcing Private Member Bill

The EFF has been burdened with complaints from exploited workers in all sectors mainly security guards, cleaners, drivers, gardeners employed through labour brokers to provide services for all spheres of government including state-owned entities.

These workers do not get medical aid, pension fund benefits and most of them are stuck in insecure short-term contracts that are renewed monthly. They cannot commit to long-term arrangements to improve their lives because of these exploitative practices. Also, with procurement reform in government since the mid

90s, we have seen a complete collapse and hallowing of skills and services in the public sector for politicians and public servants to exploit, abuse and loot state resources. Majority of tender prices are inflated, costing the state billions and making it more and more expensive to deliver basics services.

The bill seeks to introduce a comprehensive legislation mechanism which will bring to an end outsourcing of all recurring services in the state and prohibit anyone to work for government appointed through a third party. All government departments in national and provincial government, municipalities and state-owned companies will have to employ all the outsourced workers, pay them fair wage, medical aid and contribute to their pension fund.

c). Ban on alcohol advertisement

Many people and their families in South Africa are suffering because of alcohol abuse. Young people are being socialized into acceptance of alcohol as part of their lives. The normalization of alcohol and no effort to address the scourge of alcohol abuse in our country continue to have devastating effects, destroying many families and killing a lot of young people. The scourge of alcohol abuse is also a burden to the state fiscus and the EFF has long called for measures to deal with the problem.

Liquor Amendment Private Member Bill as proposed by the EF, intends to ban alcohol and liquor advertisements in our radios, TVs, newspapers and other forms of advertising. The bill will also compel alcohol manufacturers to put a warning sign in their products about the dangers of alcohol.

The EFF calls on all members of society to make submissions to enrich the process and ensure that we find sustainable and concrete solutions to problems that have for far too long prevented progress and development in the lives of our people. We call on all trade unions i.e. SAFTU, COSATU, NUMSA, AMCU and others to take this opportunity, in the interest of workers' wages and living conditions, to make their submissions. All civil societies and experts in the industry are also encouraged to make their submissions.

All submissions can be sent to the Speaker of the National Assembly at [email protected] and EFF Parliament Caucus at [email protected]

Statement issued by the EFF, 5 October 2018