Author: Robert Gad and Jadyne Devnarain (ENSAfrica) In terms of the current Tax Court rules published under the Income Tax Act No. 58 of 1962, where the Commissioner for the South African Revenue Service (“SARS”) did not comply with the prescribed time frames in respect of dispute resolution, practically, there was little that a taxpayer could do. This could change in terms of the proposed new Tax Court rules expected to come into force later this year.
Author: Nyasha Musviba
Single registration: will it reorganise the disorganised?
Author: Beric Croome and Nada Kakaza (ENSAfrica) The South African Revenue Service (“SARS”) introduced a new streamlined process primarily geared towards the single registration of a taxpayer across applicable tax types. This system was implemented on 12 May 2014.
The political correctness of tax myths
Is South Africa being fairly compared? JOHANNESBURG – There is a perception that South Africa has a low tax to gross domestic product (GDP) ratio. A recent article stated that South Africa has an average tax rate of 25%, which ranks us at number 130 in the world.
The next step in carbon taxes: Carbon Offset paper
n May 2013 the Department of Treasury published a Carbon Tax Policy Paper for public comment. A revised version of the document was due to be published in July 2013, however, following public objection and comment this document was not forthcoming. In February 2014 the Minister of Finance confirmed in the Budget Speech that carbon taxes would be delayed until 2016 as “a package of measures is needed to address climate change and reduce emissions”. These measures include the development of a Carbon Offset in terms of which companies can reduce their tax liabilities.
SA Reserve Bank amends exchange control rules
South Africa’s exchange control rules require that a South African resident wishing to assign intellectual property to a foreign entity must obtain prior approval from the South African Reserve Bank. The Reserve Bank’s Financial Surveillance Department has recently issued a circular amending the exchange control rules. The amendment relaxes the exchange control rules, to a limited extent, to allow unlisted South African companies to list on stock exchanges located offshore and raise foreign loans and capital more easily.
Supreme Court of Appeal addresses administrative fairness in raising assessments and disputes before the Tax Court
An interesting judgment was handed down in the Supreme Court of Appeal (SCA) on 12 June 2014 in the matter of Commissioner for the South African Revenue Service v Pretoria East Motors (Pty) Ltd (291/12) [2014] ZASCA 91. The taxpayer operated a car dealership in Pretoria. The South African Revenue Service (SARS) conducted an audit on the taxpayer in respect of its 2000 to 2004 years of assessments, and as a result raised various additional assessments in respect of, inter alia, income and value-added tax (VAT).
Tax exemption on foreign employment income
In terms of current practice, remuneration derived from services rendered outside of South Africa is, subject to certain requirements, exempt from normal tax in South Africa in terms of s10(1)(o)(ii) of the Income Tax Act, No 58 of 1962 (Act).
Tax fraudsters sentenced
The scheme was discovered after seven years when Sars became suspicious because so many taxpayers used the same addresses. One of the most complex tax fraud trials the SA Revenue Service (Sars) ever had to deal was concluded on Monday, when the leaders of a crime syndicate were sentenced to between 20 and 15 years’ imprisonment.
The fine line between a restricted and unrestricted equity instrument
The complex tax legislation applicable to share incentive schemes has resulted in a number of taxpayers requesting advance tax rulings from the South African Revenue Service (SARS). On 30 May 2014, Binding Private Ruling No. 170 (Ruling) was released by SARS, which dealt with the question of
National Treasury Released Draft Bills for Public Comment
National Treasury published the 2014 Rates and Monetary Amounts and Amendment of Revenue Laws Bill (‘Rates Bill’), the First Batch of the 2014 draft Taxation Laws Amendment Bill and Regulations (‘TLAB’) for public comment. This was announced via a media statement from National Treasury on 10 June 2014.