Author: Nyasha Musviba

Global Tax Information Exchange a Step Closer

Nyasha Musviba

Author: Beric Croome (ENS) During the course of September, 2013, the leaders of the G20 nations met in St Petersburg to deal with a number of matters.  Pursuant to that meeting, a tax annex to the St Petersburg G20 Leaders’ Declaration was released. At the outset, it is appropriate to point out that the members of the G20 comprise the European Union together with the following 19 countries:  Argentina, Australia, Brazil, Canada, China, France, Germany, Italy, India, Indonesia, Japan, Mexico, the Republic of Korea, Russia, Saudi Arabia, South Africa, Turkey, the United Kingdom and the United States.

A New Capital Revenue Tax Decision

Nyasha Musviba

Author Peter Surtees (Norton Rose) On 13 June 2013 the Cape tax court delivered judgment on a capital/revenue case, which resulted in a partial victory for both sides. The taxpayer was a company whose sole purpose was to hold a parcel of shares. The question in issue was whether, when the company sold the parcel, the gain was capital or revenue in nature. As was to be expected, in arriving at its decision the court had to determine the intention of the company in holding and then disposing of the shares, and to do this it had to establish the intentions of

Another section 103 Defeat for SARS in the Cape Tax Court

Nyasha Musviba

Author: Frank Mosupa (PwC)  The judgment of the Western Cape Tax Court in ITC 1862 (2013) 75 SATC 34 concerns the general anti-avoidance provision contained in the now-repealed section 103 of the Income Tax Act 58 of 1962 (the “Income Tax Act”) as applied to the implementation of a particular employee share incentive scheme. The case concerned transactions entered into prior to the coming into force of the new general anti-avoidance rule on 2 November 2006 and now contained in Part IIA of the Income Tax Act.

Shares Issued in BBBEE Arrangements Are these Transactions Tax Free?

Nyasha Musviba

Author: Pieter van der Zwan (The University of North-West Many South African companies are involved in transactions in which previously disadvantaged persons acquire ownership interests in such companies for purposes of complying with broad-based black economic empowerment (BBBEE) requirements applicable in the particular industries in which the entity operates or to enhance the BBBEE status of the entity in order to facilitate further growth.

Carbon tax: Be proactive

Nyasha Musviba

      What businesses should consider.   JOHANNESBURG – Although there is still a lot of uncertainty surrounding the introduction of a local carbon tax, businesses already have to take steps to try and mitigate its impact. According to a second policy paper published earlier this year, National Treasury is proposing that a carbon tax be levied on emissions from January 1, 2015 onwards.

Reform R&D Tax Systems To Boost Innovation And Help Young Firms, Says OECD

Nyasha Musviba

Author: OECD Most OECD governments use tax incentives to encourage businesses to invest in research and development (R&D) to boost innovation and drive economic growth. Others, like China, India and South Africa, are doing the same. But reforming these incentives would give countries a better return on their investment and support young innovative firms that play a crucial role in job creation, according to a new OECD report.

5 Top Tips to Understanding the Work of the Tax Ombud

Nyasha Musviba

Judge Bernard Ngoepe inaugurated as South Africa’s first Tax Ombudsman. Stiaan Klue, Chief Executive of the SA Institute of Tax Practitioners (SAIT), takes a closer look at this vital position and explains how the Ombud’s office can assist the general tax payer in resolving their disputes with Sars. Why a Tax Ombud? The Tax Ombud serves to protect tax payer’s rights and operates as a counter balance to the far reaching powers which the 2012 Tax Administration Act entrusted to Sars.