ITC 1828 70 SATC 91 is not a new tax case. However, it is an interesting case, which highlights some of the potential tax implications that may be triggered upon the appointment of new beneficiaries to a trust, particularly, a discretionary trust. In ITC 1828 70 SATC 91 a discretionary trust (trust) had been established with the object of benefiting the founder, the founder’s wife and the children, being the discretionary income and capital beneficiaries. The trust had acquired certa
Author: Nyasha Musviba
The business end of saving energy
Like the rest of the world, South Africa relies on fossil fuels for energy production. These fossil fuels release carbon dioxide into the atmosphere contributing to global warming and climate change. Growth in carbon dioxide and other greenhouse gas emissions tends to be linked to economic growth. The current debate has raised the question whether it is possible to delink emissions growth from economic growth. An area that has been receiving much attention lately has been the introduction of incentives to encourage South African companies to become more energy efficient in the hope that energy efficiency will contribute to decoupling energy use from economic growth.
Managing carbon pass through: 10 tips to prepare for South Africa's carbon tax
South Africa’s National Treasury released its Carbon Tax Policy Paper in May 2013. Submissions on the Paper closed in August 2013 and the South African Government is expected to now draft legislation to implement the Carbon Tax from 1 January 2015.
Personal tax consequences for South African executives on foreign boards – the Netherlands as an example
Introduction South African companies are increasingly looking to global expansion to build their capabilities and expand their operations into foreign jurisdictions. Where South Africans serve on the boards of foreign companies and render services to foreign entities, they typically do so in terms of split employment contracts in respect of their services rendered within and outside of South Africa. In addition to the remuneration, they may also receive directors’ fees for services rendered to the boards. Their employment contracts with the foreign company and the requirement that such services must be rendered outside of South Africa, are essential to ensure that these foreign entities are effectively managed in the countries where they are registered, and not in South Africa.
Claiming VAT inputs
Commissioner for the South African Revenue Service v De Beers Consolidated Mines Limited 74 SATC 330, the current policy of the South African Revenue Service (SARS) is for a vendor to claim an input tax credit in respect of any Value-added Tax (VAT) paid on an expense, a direct or immediate link must exist between that expense and a taxable supply made by that vendor. The ultimate purpose for incurring the expense is ignored.
Limiting Interest Deductions
In the 2013 Budget Speech, the Minister of Finance announced that restricting the deduction of excessive interest expenditure claimed by taxpayers in debt financing schemes has been on the tax policy agenda for a number of years and accordingly, legislative steps are now being taken to limit the interest deductions claimed by taxpayers in such schemes.
VAT Registration of Foreign Business
Author: Carmen Moss Holdstock (Cliffe Dekker Hofmeyr) The draft Taxation Laws Amendment Bill 2013 (TLAB) was released for public comment on 5 July 2013. Among other things, the TLAB proposes that, in order to curtail foreign businesses that supply goods and services in ‘cyber space’ from escaping the VAT net, all foreign businesses supplying digital goods and services will be required to register as VAT vendors in South Africa.
Tax Strategy Needs to be Linked to Corporate Reputation
Author: Paul de Chalain (PwC) Hardly a day has gone by in the last 3 months that we have not seen comment in the marketplace on taxation. Politicians, tax administrations, NGO’s and supra-national organisations like the EU, G-8, G-20 or OECD have committed themselves to fighting tax evasion and tax fraud. It is noteworthy that in some initiatives perfectly legal and acceptable structures are placed on a par with fraud.
A Departure From ‘Adequate Reasons’ and Common Sense
Author: Daniel Areias & Johan Kotze (Bowman Gilfillan) All taxation , in one way or another, may impact upon fundamental human rights. However, to ensure that the imposition is not absolute, section 5 of the Promotion of Administrative Justice Act provides that every person, whose rights may have been materially and adversely affected by administrative action, may request written reasons for that action from the administrator responsible.
Beware: Tax scammers out phishing
Author: Fin24 The new tax season has opened and fraudsters are having a ball, conjuring up emails which look very professional and could fool many taxpayers. In their emails to unsuspecting taxpayers the “Sars scammers” are starting to mention refund amounts that make sense to the individuals they target.