Authors: Beric Croome & Jerome Brink (ENS) The Tax Administration Act, Act 28 of 2011 (‘the TAA’) came into effect on 1 October 2012. Its promulgation brought with it many changes to not only taxpayers’ rights and obligations but the reciprocal rights and obligations on the part of the South African Revenue Service (‘SARS’) in its continuous busines
Author: Nyasha Musviba
Anomalies in new REIT regime could result in unforeseen tax implications
Property companies urged to get familiar with legislation before making the move to list. The Real Estate Investment Trust (REIT) regime is set to usher in a new era for the listed property sector by affording certain tax advantages to qualifying entities and providing certainty in respect of the
Krok heir faces R228m tax bill
Pretoria – Mark Krok, billionaire heir to an apartheid-era skin-lightening company, will be about R228m poorer if the SA Revenue Service (Sars) and the Australian Tax Office (ATO) have their way. The Sunday Times reported that Sars, on behalf of the ATO, is seeking an order to ring-fence Krok’s local assets – including a R37.5m mansion in Clifton, Cape Town, as well as vast chunks of pharmaceutical company Aspen and casino company Tsogo Sun. In 2006, Australia kicked off Operation Wickenby, targeting high-profile tax evaders – and their lawyers and accountants – who have set up shell companies and trusts in tax havens to evade the Australian tax office. Maxim Krok, Mark’s estranged half-brother, has also come under the spotlight. In 2010, the ATO unleashed investigators to scrutinise his tax records.
Commissioner’s discretion to levy or remit penalties
The Tax Administration Act No. 28 of 2011 (the TAA) which came into effect on 1 October 2012 (bar a few specific sections) introduced two types of penalties, namely administrative non-compliance penalties and understatement penalties.
Can SARS customs enter premises without a warrant?
The Customs and Excise Act No. 91 of 1964 (the Act) requires registration and licencing of persons and/or premises for conducting certain activities in terms the Act.
Piercing the corporate veil
The recognition of a company as a separate juristic person, liable for its own tax (or other) debts, is an important principle relied on by taxpayers when implementing various transactions.
Primary Residence Exclusion
Is it true that globally mobile employees can sell their homes and not pay capital gains tax even if they rented it out for a number of years? It is true in most cases. The general rule is that when you sell your home, the capital gain realised on the sale is excluded from capital gains tax up to a limit. Based on the Income Tax Act No. 58 of 1962 (the Act), you will pay no capital gains tax on the first R2,000,000 you make when you sell your home. There are, however, some restrictions on this exclusion.
A Business Rescue – Successful Except on the Tax Front
The business rescue provisions of the new Companies Act 71 of 2008 have generated much discussion in commercial and legal circles. However, the fiscal aspects of a business rescue plan have seldom been debated.
High Court Rejects Challenge of Exchange Control Ruling
Billionaire entrepreneur Mark Shuttleworth emigrated from the Republic in February 2001. Following his emigration, he made applications to transfer portions of his blocked funds from the Republic. In the second of these (in 2008) he was permitted to remit funds subject to a levy equal 10% of the amount remitted.
Tax Flash – July
The most significant tax event during the month of July was the publication of the 2013 taxation bills, the Draft Taxation Laws Amendment Bill (‘TLAB’) and the Draft Tax Administration Laws Amendment Bill (‘TALAB’).