Durban businesswoman was punished for making a voluntary disclosure to the SA Revenue Service.
Category: Corporate Tax
When can Sars allege 'intentional tax evasion?
Johan van der Walt, Director, Tax, Cliffe Dekker Hofmeyr Understatement penalty explained. The Tax Administration Act, No 28 of 2011 (TAA) introduces the ‘understatement penalty’ in Chapter 16. Section 223 contains an ‘understatement penalty percentage table’. According to the Sars Short Guide on the TAA (Guide) the penalty will be determined by locating each case within the table that assigns a percentage to objective criteria. Sars carries the onus of proving that the grounds exist for imposing the understatement penalty.
Income tax notice raises new administrative risk for non-resident companies
Section 66 of the Income Tax Act No. 58 of 1962 (“the Act”) requires the Commissioner to give public notice annually of the prescribed time period within which persons who are liable to taxation under the Act must furnish their tax returns.
Introduction of the new dynamic income tax return for companies (ITR14)
An enhanced Income Tax Return for Companies (ITR14) will be introduced by SARS. The customised return will become effective on 4 May 2013 as part of the modernisation of Corporate Income Tax (CIT) aimed at improving efficiency and compliance.
Rationalisation of Withholding Taxes on Payments Made to Foreign Persons
Posted by: Chris Basson There has been a lot of uncertainty among foreign investors as well as South African persons with regard to withholding taxes. These taxes are usually withheld and paid over to SARS when foreign persons receive investment proceeds from South Africa. The Explanatory Memorandum on the Taxation Laws Amendment Bill 2012 proposes some changes which might be of benefit to the uncertain souls among us.
Double taxation a headache for SA corporates
By Ingé Lamprecht African countries are turning to tax collection. JOHANNESBURG – After a number of years where some African countries have generally focused on attracting investment, developing infrastructure and creating jobs, a number of countries are now turning their attention to tax collection in an effort to supplement their state coffers.
Western Cape SARS Stakeholder Meeting: Minutes
On Wednesday the 20th of March, SAICA and SAIT had a meeting with the SARS to discuss operational issues raised by our Western Cape members. The meeting was very interactive and valuable insights were obtained from both the bodies and SARS.
PwC 2013 Tax Budget Comments
PwC 2013 Tax Budget Comments Personal Income Tax Higher income tax earners will have R231,25 less income tax to pay per month, assuming they have a basic annual taxable income of R700,000. Lower income tax earners will pay R86 less income tax annually, assuming they have an annual basic taxable income of R165, 600.The individual threshold for submitting a tax return was raised from R120,000 to R250,000 per year. This means that taxpayers that have taxable income of less than R250,000 annually will not be required to submit tax returns.
MTN International (Mauritius) v CSARS – HC23203/11
JUDICIAL REVIEW AND RAISING ASSESSMENTS By Heinrich Louw, Cliffe Dikker Hofmeyr On 31 January 2013, judgment was handed down in the North Gauteng High Court in the case of MTN International (Mauritius) Limited v Commissioner for the South African Revenue Service (as yet unreported, case no 23203/11). The facts were briefly as follows. The taxpayer was a Mauritian company, registered as a taxpayer with the South African Revenue Service (SARS), and a subsidiary of a South African holding company. The taxpayer acquired various interests, notably in Nigeria and the Middle East, through loans obtained from its South African holding company.
UK Court decision on corporate tax residency
Written by: Justin Liebenberg, Director Cliffe Dekker Hofmeyr Tax A company incorporated outside South Africa can be tax resident here if its place of effective management (POEM) is located in South Africa. POEM is also often used as the tie-breaker to finally determine corporate tax residency under double tax agreements. A recent court decision in the UK sheds further light on POEM especially in the context of a double tax agreement.