The South African National Treasury has published proposals for a carbon offset scheme. The scheme aims to increase investments in projects that will reduce GHG emissions. It will also enable businesses to reduce their liability to carbon tax, which is due to be introduced in 2016.
Author: Nyasha Musviba
Deductibility of audit fees
On 7th March 2014 the Supreme Court of Appeal delivered judgment in the as yet unreported case of Commissioner for the South African Revenue Service v Mobile Telephone Networks Holdings (Pty) Ltd, (966/2012) [2014] ZASCA 4 (7 March 2014) which dealt with the deductibility of audit fees incurred for a dual or mixed purpose and the apportionment thereof for tax purposes in the light of section 11(a) of the Income Tax Act 58 of 1962, as amended (‘the Act’) read with sections 23(f) and 23(g) of the Act.
Base erosion and profit shifting (“BEPS”) – do you know what is coming?
As a result of the global financial crisis, the necessity for growth has become paramount and fiscal consolidation non-negotiable. Private sector growth is fundamental for economic recovery and to reduce deficits. There is a general belief, even in developing countries, that governments are losing substantial tax revenues as a result of aggressive tax schemes which result in the eroding of the tax base or the shifting of profits into more favourable tax jurisdictions.
SARS’ powers to apply to court to declare a director delinquent in terms of the Companies Act
Section 162 of the Companies Act, Act 71 of 2008 (“the Companies Act”) introduced a new mechanism which allows a broad range of interested and related persons, including qualifying organs of state, the opportunity to apply to court for an order declaring a director of a company delinquent or placing him under an order of probation. Notwithstanding the negative social ramifications such an order has, there are also severe adverse consequences to a director’s
A taxpayer is entitled to object to an assessment on the grounds that the information given in his return was incorrect
One of the issues in GB Mining v Commissioner: SARS [2014] ZASCA 29 was the deductibility or otherwise of expenditure that had been outlaid by the taxpayer, GB Mining and Exploration (SA) (Pty) Ltd, in an attempted rescue of a company listed on the Johannesburg Stock Exchange, OTR Mining Ltd, with the intent that GB Mining would transfer its business to OTR and become its principal shareholder, thereby securing access to the JSE.
Sars to focus on certain areas this tax season
The South African Revenue Service (Sars) will pay particular attention this season on medical aid claims, retirement fund contributions, income protection policy contributions and taxpayers who submit revised returns for previous years. This is according to acting Sars commissioner Ivan Pillay. “We are doing this deliberately. We are telling you up front. We don’t want to catch you out. We’re saying don’t go there,” he said.
Noose tightens on tax dodgers
Author: Philani Nombembe (Times Live) Dodgy tax consultants are hitting the SA Revenue Service hard with more than R80-million in fraudulent claims filed during the past financial year. This week the Cape Town Regional Court sentenced tax practitioner Zaida Johaar to four years in prison for income tax fraud. The hefty sentence, despite Johaar being a first offender, underlines the new severity with which tax fraud is regarded.
How to calculate your medical tax credit
Author: Ingé Lamprecht New system less beneficial to higher income earners. JOHANNESBURG – In an effort to improve the fairness and equity of the tax system, tax deductions for medical aid contributions and expenses have gradually been replaced with a tax credit system over the last few years.
Reportable arrangements and retrospectivity
Author: Carmen Moss-Holdstock of DLA Cliffe Dekker Hofmeyr The South African Revenue Service (SARS) recently issued an updated Draft Notice listing transactions that constitute reportable arrangements for purposes of s35(2) of the Tax administration Act No 28 of 2011 (TAA). The Draft Notice, once finalised, is intended to replace any previous notices issued in respect of reportable arrangements under s80M(2)(c) and s80N(4) of the Income Tax Act No 58 of 1962 (ITA).
Donations made between spouses
Sections 54 to 64 of the Income Tax Act, No 58 of 1962 (Act) provide for the imposition of donations tax on the value of any property disposed of by way of a donation. Donations tax is levied at a rate of 20% of the value of the asset or the amount of money donated, and the donor is generally liable for payment.