Author: Bruce Russell (Grant Thornton Cape) South African resident taxpayers performing advisory or other technical services within South Africa to clients abroad, may be subject to foreign withholding taxes. To reduce the risk of this income being subjected to double taxation, it is necessary to consider the source of this income. The source of services income South African courts have interpreted the concept of source in applying the Income Tax Act.
Author: Nyasha Musviba
Overhaul VAT laws for digital economy, says PwC
Author: Thabiso Mochiko (BDlive) Governments need to upgrade value added tax (VAT) laws to keep up with the digital economy, according to consulting firm PwC. SA’s existing tax law on digital related services, amended last year, imposes VAT on electronic services such as educational materials, games, e-books, audio visual content, and music. But local and global authorities are looking at expanding the scope to include services such as software applications and online advertising.
No tax on SA’s flying doctor – court
Author: Ilse de Lange (The Citizen) The SA Red Cross Air Mercy Service Trust was a welfare organisation and did not have to pay VAT on its services, the North Gauteng High Court in Pretoria has ruled. The trust approached the court for relief after the SA Revenue Service (Sars) ruled two years ago it had to pay 14% VAT on the fixed monthly fee and hourly rates for each flight they received from provincial government.
Narrowing deficit eases need to borrow
Authors: Ntsakisi Maswanganyi and Linda Ensor (BDlive) Higher than expected tax revenues and lower government spending has helped narrow the budget deficit and will bring down borrowing by the government. The main budget deficit — which covers all three spheres of government — is now estimated at 4.3% of gross domestic product (GDP) from 4.7%, the Treasury said on Thursday. This reduces the amount the government needs to borrow to finance its spending while satisfying ratings agencies that it was on track to bring down its large deficits. However, questions remain on how sustainable the narrowing was.
An Overview of South Africa's Withholding Tax Regime
Author: Mansoor Parker (ENSafrica) Venture capital companies are a tax-favoured investment vehicle. The venture capital company (“VCC”) scheme, introduced in 2009, is a tax-based scheme designed to encourage individual and corporate investors to invest in a range of smaller, higher-risk trading companies by investing through the VCCs. Background Although South Africa has a well-developed private equity industry, its appetite for start-up, early stage and seed capital type transactions is low. To meet the challenge of access to venture capital for small and medium-sized enterprises, government introduced a tax incentive for individual investors, corporate investors and venture capital funds in qualifying small enterprises and start-ups. The tax incentive took effect from 1 July 2009.
An Overview of South Africa’s Withholding Tax Regime
Author: Mansoor Parker (ENSafrica) Venture capital companies are a tax-favoured investment vehicle. The venture capital company (“VCC”) scheme, introduced in 2009, is a tax-based scheme designed to encourage individual and corporate investors to invest in a range of smaller, higher-risk trading companies by investing through the VCCs. Background Although South Africa has a well-developed private equity industry, its appetite for start-up, early stage and seed capital type transactions is low. To meet the challenge of access to venture capital for small and medium-sized enterprises, government introduced a tax incentive for individual investors, corporate investors and venture capital funds in qualifying small enterprises and start-ups. The tax incentive took effect from 1 July 2009.
‘Rogue’ Sars unit spied for Zuma
Author: Sam Sole (Mail & Guardian) A new twist in the ongoing saga of spy vs spy in the South African Revenue Service can now be revealed. The controversial South African Revenue Services (Sars) intelligence unit, which was recently disbanded following headlines that “Sars bugged Zuma”, in fact spied for Zuma. The unit was shut down by new Sars commissioner Tom Moyane in December last year after the report of the Sikhakhane panel of inquiry, which accused the alleged “rogue” unit of illegal intelligence gathering.
'Rogue' Sars unit spied for Zuma
Author: Sam Sole (Mail & Guardian) A new twist in the ongoing saga of spy vs spy in the South African Revenue Service can now be revealed. The controversial South African Revenue Services (Sars) intelligence unit, which was recently disbanded following headlines that “Sars bugged Zuma”, in fact spied for Zuma. The unit was shut down by new Sars commissioner Tom Moyane in December last year after the report of the Sikhakhane panel of inquiry, which accused the alleged “rogue” unit of illegal intelligence gathering.
Who is obliged to report a reportable arrangement?
The list of reportable arrangements was extended by the South African Revenue Service in a notice (SARS Notice) published on 16 March 2015 in terms of s35(2) and s36(4) of the Tax Administration Act, No 28 of 2011 (TAA). The SARS Notice has caused some consternation. However, if one considers the obligation to notify SARS of reportable arrangements, the effect of the SARS Notice is perhaps not as far-reaching as first appears.
Amending a statement of grounds of assessment
Judgment was delivered by the Tax Court in the matter between ABC (Pty) Ltd v Commissioner for SARS (case number 13238/2008, as yet unreported) on 8 December 2014. The matter concerned, among other things, an application by the South African Revenue Service (SARS) to amend its statement of grounds of assessment. Rule 13 of the previous rules of the Tax Court and rule 35 of the new rules allow parties to amend their pleadings on application. The question is, however, to what extent the court will allow for such amendments.