SAA informed the Treasury that the board approved the execution of the transaction as directed and a process is underway to conclude it within the next few days, Treasury said in a statement late on Monday. South African Airways (SAA) chairperson Dudu Myeni has officially lost her battle to reconfigure the airline’s Airbus swap deal, which could have threatened the financial stability of SAA.
Author: Nyasha Musviba
Treasury forges ahead with retirement reform – Tax harmonisation of retirement funds to be implemented March 1, 2016
Author: Ingé Lamprecht (Moneyweb). Tax harmonisation of retirement funds to be implemented March 1, 2016. JOHANNESBURG – National Treasury has confirmed that regulations to harmonise the taxation of contributions to pension funds, retirement annuities and provident funds will take effect on March 1 next year. This means that provident fund members will only be able to take one third of their pension benefit as a cash lump sum at retirement and that the remaining two thirds will have to be annuitised. However, this will only apply to contributions made after March 1, 2016 and for those below 55 years of age. Moreover, members will only be required to annuitise once their retirement savings exceed an increased amount of R247 500. The previously proposed threshold was R150 000.
Tax changes for retirement funds to be implemented from 2016
The tax harmonisation reforms for retirement funds will be implemented from 1 March 2016‚ the Treasury says. “This is in terms of the current law legislated in 2013‚ and amended in 2014 by shifting the effective date to 1 March 2016 (ie the Taxation Laws Amendment Act‚ No 39 of 2013‚ as amended by Act No 43 of 2014). The 2015 Taxation Laws Amendment Bill did not amend the scheduled implementation date‚ “but only amends the R150‚000 de minimis threshold to R247‚500; closes certain coverage gaps; and requires a review of the legislation after two years from the effective date‚ and to report this review to Parliament”‚ the Treasury said.
Proposed extension of existing prescription periods (section 99 of the Tax Administration Act)
Author: Mareli Treurnicht (Cliffe Dekker Hofmeyr). Section 99 of the Tax Administration Act, No 28 of 2011 (TAA) prescribes the period of limitations (ie prescription) for the issuance of assessments. Section 99 currently states that the South African Revenue Service (SARS) may not make an assessment in terms of Chapter 8 of the TAA, inter alia: three years after the date of assessment of an original assessment by SARS; (in the case of self-assessment for which a return is required) five years after the date of assessment of an original assessment by way of self-assessment by the taxpayer or, if no return is received, by SARS; or (in the case of a self-assessment for which no return is required) after the expiration of five years from either the date of the last payment of the tax for the tax period or the effective date, if no payment was made in respect Read More …
VAT falling on small business
Author: Keith Engel (Moneyweb). Government needs to understand importance of not disrupting cash-flow. The South African government has consistently expressed its support for small business. This support includes tax incentives. However, the point consistently missed is the critical need for the government not to disrupt cash-flow, which is far more important than any of the so-called tax incentives to date.
Three things you should know about retirement reform
Author: Ingé Lamprecht (Moneyweb). Unpacking annuitisation, the increased deduction and the implications for high net worth individuals. Regulations to harmonise the tax treatment of retirement fund contributions are set to be introduced from March 1 next year, but questions remain about whether the reforms will really encourage household savings and improve the plight of vulnerable individuals. This article looks at three of the changes and their broader ramifications.
Room for improvement in SA Carbon Tax Bill, says Centre for Environmental Rights
Author: Chantelle Kotze (Mining Review). At the start of December, the Centre for Environmental Rights (CER) submitted comments on the Carbon Tax Bill, 2015, which was published for public comment on 2 November by National Treasury. The Bill, which is intended to take effect in January 2017, aims to put a price on carbon by levying a tax of R120 per each ton of carbon dioxide equivalent (CO2e) emitted.
Delayed VAT refunds ‘causing cash flow woes for small business’
Author: Amanda Visser (BDlive). Delayed refunds on Value-Added Tax (VAT) have increased significantly, causing cash flow problems for especially small and medium-sized enterprises. This is according to tax practitioners interviewed this week, who said it was also increasing the cost of doing business as businesses need to pay professionals to get back what had been rightfully theirs in the first place. Victor Terblanche, chairman of the South African Institute of Tax Professionals’ (SAIT’s) VAT committee, said the VAT Act did not provide for a timeframe for the payment of VAT refunds, or a timeframe for the finalisation of audits.
Higher price on carbon needed to effectively tackle climate change
OECD urges efforts to better price carbon as new analysis finds that 90% of CO2-emissions are priced below EUR 30 per tonne, a low-end estimate of climate damage, and 60% are not priced at all. Effective Carbon Rates in the OECD and Selected Partner Economies calculates effective carbon rates (ECR) on CO2-emissions from energy use for 41 countries which together use 80% of global emissions. CO2-emissions from energy use are a primary contributor to climate change. Putting a price on carbon, through taxes or through emissions trading systems, is one of the most effective tools for reducing the CO2-emissions from energy use. Prices can reduce energy use, improve energy efficiency, and drive a shift towars less harmful forms of energy.
SARS introduces electronic ‘suspension of payment’ applications
Taxpayers lodging a dispute with SARS can now electronically request that SARS suspend the payment of tax. However, please be aware that the suspension of payment should be requested at a branch if it is accompanying an objection or appeal. It must not be done via eFiling as eFiling only supports “suspension of payments” that do not accompany an objection or appeal. What if I don’t agree? What’s New? From 4 December 2015 for Income Tax, taxpayers will be able to electronically at a SARS branch and via eFiling: