SARS: THE 2015 Employer Annual Reconciliation

1 April is the start of the 2015 Employer Annual Reconciliation for the period 1 March 2014 to 28 February 2015. Don’t forget the following important details: Top Tip: Submission may only be sent from 1 April 2015 for the 201502 period. 1. The Employer Annual Reconciliation period is from 1 April – 29 May 2015. Get ahead and submit your reconciliation sooner, rather than later. This will give you time to resolve any discrepancies before the deadline.

SARS Preliminary Outcomes of Revenue Collection for the 2014-2015 Fiscal Year

We are today releasing SARS’ preliminary revenue collection outcome, twelve hours after the close of the 2014/15 fiscal year. Despite challenging economic conditions, SARS collected R986.4 billion which is a 9.6 % growth in total revenue from 2013/14. This is R7.4 billion above the revised estimate announced in the February 2015 Budget. This revenue performance was made possible by an extraordinary drive by SARS on compliance improvement, which in aggregate, added about R22bn. This closing of the compliance gap compensated for revenue collection shortfall caused by a slowing economy.

MEDIA STATEMENT – Revised Draft Taxation Laws Amendment Bill, 2014, Revised Draft Tax Administration Laws Amendment Bill, 2014, and Response Document

The National Treasury today publishes the revised draft Taxation Laws Amendment Bill, 2014, (TLAB) revised draft Tax Administration Laws Amendment Bill 2014, (TALAB) and the draft Response Document that was presented to the Standing Committee on Finance (SCOF) in Parliament yesterday (15 October 2014).

Accommodation provided to employees

By David Honeyball, Tax Partner Grant Thornton Cape Some employers provide residential accommodation for their employees, especially when the employees work far from their homes. While this provides some practical benefit to the employees who save money and time by not commuting between home and work, they should be taxed on the value of the accommodation, whether it is furnished, unfurnished, supplied with or without meals, power, water or other utilities.

Electronic communication with SARS

The South African Revenue Service (SARS) recently released the new rules for dispute resolution prescribed under section 103 of the Tax Administration Act No 28 of 2011 (TAA). Among the many new features, it is interesting to note the provisions relating to the delivery of documents by a taxpayer to SARS, and specifically with reference to the delivery of documents by electronic means.

Refundable compliance rebate – revision of small business corporation tax relief

One of the important proposals relates to the revision of the Small Business Corporation (SBC) tax regime. An SBC is defined in s12E(4)(a) of the Income Tax Act, No 58 of 1962 as any close corporation or cooperative or any private company as defined in the Companies Act, No 71 of 2008 (thus excluding trusts, sole proprietors and partnerships), all shareholders of which are at all times during the year of assessment natural persons, where the gross income for the year of assessment does not exceed R20 million per annum. A number of other limitations with regard to shareholding and professional service businesses are included in the definition.

Allowances in respect of public private partnerships

Authors: Nicole Paulsen and Gigi Nyanin of DLA Cliffe Dekker Hofmeyr On 17 July 2014, the National Treasury released the draft Taxation Laws Amendment Bill (TLAB) which aims to give effect to the various tax proposals announced in the 2014 Budget.

Proposal to amend Section 23N to better reflect market norms

By Webber Wentzel – South Africa Section 23N, which replaced section 23K with effect from 1 April 2014, prescribes rules to cap the deduction of interest incurred in respect of debt incurred by the acquirer of a business pursuant to a section 45 intra-group transfer, a section 47 liquidation distribution or a section 24O acquisition of shares. Section 23N applies to the refinancing of debt that was subject to section 23K and/or section 23N.

Single registration – Changes to tax & customs registration

What is Single Registration? The way you register for tax & customs and update your existing details has changed from 12 May 2014. SARS will now have a ‘Single Registration’ of a taxpayer across all taxes they pay and legal entities they’re associated with. From a taxpayer’s view, you will only have to register once as a new taxpayer and there-after add only the relevant details when you start paying e.g. VAT. It will also now be easier to update your existing details.