Introduction This case considers an application made by the second applicant (Kestrel Network Solutions (Pty) Ltd) to the North Gauteng High Court which arises from business rescue proceedings in respect of the second applicant and to which the first applicant (Grant Chittenden N.O) was appointed as business rescue practitioner on 30 May 2013. The Commissioner of the South African Revenue Services (CSARS), in his capacity as first respondent, opposed the business rescue
Author: Nyasha Musviba
Multitude of taxes makes Africa expensive
Author: Amanda Visser (BDlive) Withholding taxes are giving rise to a vicious circle in Africa. As governments introduce higher and more withholding taxes on an ever-increasing range of services in an effort to protect their tax base, companies are developing complex structures to try to lower their tax liabilities. Ultimately the result is that doing business in Africa is becoming more expensive. Governments require local businesses that pay foreign multinational companies for interest, dividends, royalties, service fees and even the sale of real estate, to withhold a certain percentage of the payments and transfer that amount to the fiscus. The withholding taxes differ from country to country, and the rates fluctuate from 5% to 30%.
A Company & Two Others v Commissioner for SARS – 17 March 2014
Introduction This case considers an application made by three applicants to the Western Cape High Court for a declaratory order that certain content contained in the invoices between the first applicant and its attorneys is subject to legal advice privilege. This was asserted as the basis for the applicants’ refusal to disclose portions of the invoices (alternatively referred to as ‘fee notes’), when complying with a request by the Commissioner of the South African Revenue Service (SARS) in terms of section 46 of the Tax Administration Act No. 28 of 2011 (hereafter the “TA Act”).
ABC (Pty) Ltd v Commissioner for SARS ITC12466 – 12 March 2014
Introduction This case (ABC (Pty) Ltd v Commissioner for SARS ITC12466) considers the reasonability of the valuation method utilised by the appellant, ABC (Pty) Ltd, in valuing its shares in D entity which were sold during the 2002 and 2003 years of assessments. The value of those shares impacted their base cost for Capital Gains Tax (CGT) purposes and resulted in a capital loss of approximately R8 million for ABC.
The deductibility of audit fees – Commissioner for the South African Revenue Service v Mobile Telephone Networks Holdings (Pty) Ltd, (966/2012) [2014] ZASCA 4 (7 March 2014)
Author: Beric Croome 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 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.
Medox Limited v CSARS HC 12795/14 NG – 18 Feb 2014
Introduction In this case the applicant applied to the North Gauteng High Court for an order declaring all income tax assessments that were issued in respect of years of assessment following its 1997 year of assessment null and void. Facts The applicant, trading as Drake Personnel carried on a trade in South Africa from 1976 until 1995 after which it
SA asked to abandon carbon tax plan
Author: Mark Allix (BDlive) The Steel and Engineering Industries Federation of Southern Africa (Seifsa) has called on the South African government to follow Australia’s example by abandoning the proposed introduction of carbon taxes. It said this was “in the interest of our ailing economy”. “The South African economy has been under siege in recent years, with fairly negligible growth at a time when higher levels of growth are needed in order to create much-needed jobs,” Seifsa CEO Kaizer Nyatsumba said on Thursday.
Tax collection remains buoyant
Finance Minister Pravin Gordhan says tax revenue remains “buoyant” despite a global economic turmoil that has tested South Africa’s finances. Announcing the preliminary outcomes of revenue collection for the 2013/14 fiscal year, Gordhan said the overall revenue collected by SA Revenue Service as of midnight on Monday March 31, was R899.7bn. This is R0.7bn more than the revised estimate in the 2014 Budget.
Executives see tax system encouraging compliance
Almost 80% of South African business leaders who participated in the latest International Business Report survey conducted by Grant Thornton saw South Africa’s tax system as one that encourages tax compliance. The same survey showed that 64% of the participants would welcome more global co-operation and guidance from tax authorities on what was acceptable and unacceptable tax planning‚ even if this provided less opportunity to reduce tax liabilities across borders. The survey was conducted between November and December last year‚ and 3‚500 chief executives, managing directors and chairmen were interviewed globally.
Tax tips: how property can save you money
That time of the year again – 28 February was the closing of the annual tax season for the period 1 March 2013 to 28 February 2014. Once your IRP5 has been submitted you anxiously await the decision made by SARS as to whether you need to pay in, or hopefully, that you receive a refund directly into your bank account. Either way, it is time to reflect on the coming financial year-end 28 February 2015, and to start planning on how best to focus on your financial growth. By having your income submitted to SARS you could generate a positive cash flow. For you to benefit from tax deductions, the ideal investment would be in property. It is known that to have a successful property portfolio to increase your net worth is possibly the best investment you could consider.