Johan van der Walt, Director, Tax, Cliffe Dekker Hofmeyr Understatement penalty explained. The Tax Administration Act, No 28 of 2011 (TAA) introduces the ‘understatement penalty’ in Chapter 16. Section 223 contains an ‘understatement penalty percentage table’. According to the Sars Short Guide on the TAA (Guide) the penalty will be determined by locating each case within the table that assigns a percentage to objective criteria. Sars carries the onus of proving that the grounds exist for imposing the understatement penalty.
Author: Nyasha Musviba
The potential implications if a taxpayer is seen to have dissipated its assets
By Lavina Daya (Edward Nathan Sonnenbergs) The Tax Administration Act No. 28 of 2011 (“Tax Administration Act”) deals with tax administration only and serves as a consolidated piece of legislation comprising of administrative provisions that are, as far as possible, common to all tax Acts.
Income tax notice raises new administrative risk for non-resident companies
Section 66 of the Income Tax Act No. 58 of 1962 (“the Act”) requires the Commissioner to give public notice annually of the prescribed time period within which persons who are liable to taxation under the Act must furnish their tax returns.
Introduction of the new dynamic income tax return for companies (ITR14)
An enhanced Income Tax Return for Companies (ITR14) will be introduced by SARS. The customised return will become effective on 4 May 2013 as part of the modernisation of Corporate Income Tax (CIT) aimed at improving efficiency and compliance.
Capital gains tax and the primary residence exemption
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 exempt from capital gains tax. Based on the Income Tax Act, No 58 of 1962, 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 exemption.
Rationalisation of Withholding Taxes on Payments Made to Foreign Persons
Posted by: Chris Basson There has been a lot of uncertainty among foreign investors as well as South African persons with regard to withholding taxes. These taxes are usually withheld and paid over to SARS when foreign persons receive investment proceeds from South Africa. The Explanatory Memorandum on the Taxation Laws Amendment Bill 2012 proposes some changes which might be of benefit to the uncertain souls among us.
Double taxation a headache for SA corporates
By Ingé Lamprecht African countries are turning to tax collection. JOHANNESBURG – After a number of years where some African countries have generally focused on attracting investment, developing infrastructure and creating jobs, a number of countries are now turning their attention to tax collection in an effort to supplement their state coffers.
Western Cape SARS Stakeholder Meeting: Minutes
On Wednesday the 20th of March, SAICA and SAIT had a meeting with the SARS to discuss operational issues raised by our Western Cape members. The meeting was very interactive and valuable insights were obtained from both the bodies and SARS.
SARS – Small business amnesty letters
SARS is in the process of issuing letters to taxpayers whose applications for Small business amnesty has been denied.
VAT TREATMENT OF DEMONSTRATION MOTOR VEHICLES
When a car dealership acquires a motor vehicle purely for the purposes of demonstration use, the question that arises is whether it constitutes a taxable supply for purposes of Value-Added Tax (VAT).