Author: Fabio Miceli (NortonRoseFulbright) If recent events between the European Union and the airlines of China, the USA and Russia are any guide, South Africa would do well to consider very carefully the impact of the carbon tax on the airline industry. The updated carbon tax policy paper, published in March 2013, is informed by the following framework: a rate of R120 per ton of CO2 equivalent, increasing at 10% per year for the first five years. The objective is that a portion of the revenues generated through the carbon tax will be directed towards funding the energy efficiency savings incentive.
Category: Carbon Tax
South African government considers carbon offset scheme as part of carbon tax
The South African National Treasury has published proposals for a carbon offset scheme. The scheme aims to increase investments in projects that will reduce GHG emissions. It will also enable businesses to reduce their liability to carbon tax, which is due to be introduced in 2016.
The next step in carbon taxes: Carbon Offset paper
n May 2013 the Department of Treasury published a Carbon Tax Policy Paper for public comment. A revised version of the document was due to be published in July 2013, however, following public objection and comment this document was not forthcoming. In February 2014 the Minister of Finance confirmed in the Budget Speech that carbon taxes would be delayed until 2016 as “a package of measures is needed to address climate change and reduce emissions”. These measures include the development of a Carbon Offset in terms of which companies can reduce their tax liabilities.
Policy proposing carbon offset scheme published
PRETORIA: The National Treasury has published a paper for public comment outlining proposals for a carbon offset scheme that will enable businesses to lower their carbon tax liability and make investments that will reduce greenhouse gas (GHG) emissions. The Carbon Offsets Paper, which was published on Tuesday, 29 April, is part of a set of measures to address climate change. South Africa has committed to reduce greenhouse gas emissions by 34 percent in 2020 and 42 percent in 2025.
Capital gains tax – method of valuation on the disposal of shares
Authors: Gigi Nyanin and Nicole Paulsen (DLA Cliffe Dekker Hofmeyr) Capital Gains Tax (CGT) is payable on the disposal of capital assets which were in the seller’s possession on, or were acquired after 1 October 2001 (valuation date). A capital gain or loss is determined by calculating the difference between the proceeds and the base cost of the disposed asset.
SA asked to abandon carbon tax plan
Author: Mark Allix (BDlive) The Steel and Engineering Industries Federation of Southern Africa (Seifsa) has called on the South African government to follow Australia’s example by abandoning the proposed introduction of carbon taxes. It said this was “in the interest of our ailing economy”. “The South African economy has been under siege in recent years, with fairly negligible growth at a time when higher levels of growth are needed in order to create much-needed jobs,” Seifsa CEO Kaizer Nyatsumba said on Thursday.
2014/15 Budget could provide clarity on carbon tax – Deloitte
Author: Leandi Kolver Clarity on the design of South Africa’s carbon tax policy could be a feature of the 2014/15 National Budget to be presented by Finance Minister Pravin Gordhan in February, professional services firm Deloitte said at its pre-Budget event on Wednesday. “If announced, the new look carbon tax policy will probably present improved linkage between the proposed carbon tax pricing mechanism and the desired emission reduction outcomes (DEROs) proposed in the National Climate Change Response Policy,” Deloitte director Izak Swart said. Deloitte manager Barry Drotsche explained that the DEROs, as mentioned in the National Climate Change Response Policy, considered sectors that played a vital role in the
Taxpayer's rights on SARS audits
The Tax Administration Act, Act 28 of 2011 (the TAA) came into effect on 1 October 2012. Its promulgation brought with it many changes to not only taxpayers’ rights and obligations but the reciprocal rights and obligations on the part of the South African Revenue Service (SARS) in its continuous business of revenue collection. Some of the amendments and repeals of sections previously contained in the Income Tax Act No. 58 of 1962 (the Act) have seen a welcome improvement in taxpayers’ rights. One of these improvements is contained in section 42 of the TAA.
Render unto Caesar – Harsh Tax Penalties Reviewed
JOHANNESBURG – Taxpayers who accidentally reduce their tax liability due to a reasonable mistake without any intent to defraud the Taxman, won’t be subjected to harsh understatement penalties in future. The Tax Administration Laws Amendment Bill was introduced in the National Assembly last week and revises regulations to such an extent that the South African Revenue Service (Sars) won’t impose penalties in cases where the understatement by the taxpayer “results from a bona fide inadvertent error”. This follows criticism from tax practitioners and taxpayers on the harsh penalties previously imposed even where taxpayers had no intention of deceiving Sars.
Carbon Tax – Preparing for the tax
The carbon tax to be introduced on 1 January 2015 is the biggest change to the South African tax landscape since the introduction of capital gains tax in 2001. Households and businesses will all be affected to some extent. The time from now until January 2015 is when businesses have to come to terms with, and devise a strategy for, the impact that a carbon tax may have on their operations.