The Tax Administration Act 28 of 2011 (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.
Author: Nyasha Musviba
Sars eyes global companies' tax structures
The South African Revenue Service (Sars) said this week that it plans to increase its scrutiny of multinationals when it comes to tax compliance, particularly with regard to transfer pricing and double taxation, which it has identified as a problem.
2013 SARS Employer Filing season is now open
SARS has announced the annual PAYE reconciliation submission season for the period 01 April 31 May 2013.
Is your tax practitioner registered?
JOHANNESBURG The regulation of tax practitioners, due to start on July 1 this year, could see thousands of practitioners leave the system. This follows prolonged efforts to clean up an industry where every Tom, Dick and Harry could previously file returns and offer tax advice.
Can interest really be claimed on share acquisitions?
It has become well known through case law and practice that interest on loans used to acquire shares may not be deducted by the taxpayer. This is because taxpayers earn exempt dividend income and it is impossible to show that the interest deduction is directly connected with the production of taxable income.
Taxation of government grants
Generally, government grants or subsidies under incentive programmes have always been exempt from income tax in the hands of the recipient. However, some subsidies or grants were indeed taxable and the tax legislation lacked overall policy direction. This often led to confusion about the nature of the receipt.
SARS eyes global companies' tax structures
Multinationals based in SA – particularly in the mining, automotive, pharmaceutical and finance sectors – will need to pay special attention to taxes. The South African Revenue Service (Sars) said this week that it plans to increase its scrutiny of multinationals when it comes to tax compliance, particularly with regard to transfer pricing and double taxation, which it has identified as a problem.
SARS Consults On Thin Capitalization Rules
The South African Revenue Service (SARS) is consulting on a draft interpretation note to provide taxpayers with guidance on the application of the arm’s length basis in the context of determining whether a taxpayer is thinly capitalized and, if so, calculating taxable income without claiming a deduction for the expenditure incurred on the excessive portion of finance.
IFRS on shares to be incorpotated into income tax
The introduction of International Financial Reporting Standards into the Income Tax Act is setting a dangerous precedent, according to tax and legal experts. The changes will bring about a fundamental change in the way South Africans will be taxed in future, and will certainly not simplify tax matters.
Most of your tax money well-spent Gordhan
PRETORIA – Minister of Finance Pravin Gordhan attempted to reassure South Africans that most of the money collected through taxes is being used for the correct purposes. At a media briefing on Tuesday, held to share the preliminary outcome of revenue collection for the 2012-13 financial year, Gordhan said that South Africans are asking that their money be well-spent and rightly so.