2014 draft Taxation Laws Amendment Bill

By Webber Wentzel No surprises in the “first batch” 2014 draft Taxation Laws Amendment Bill What National Treasury have dubbed the “first batch” of the draft Taxation Laws Amendment Bill (TLAB) proposes two main sets of amendments, namely changes to the tax treatment of the risk businesses of long-term insurers, and clarification of the fringe benefit valuation rules with regards to defined benefit funds in terms of the suite of reforms to retirement savings coming into effect on 1 March 2015.

Confusion over pension fund contributions

Author: Evan Pinkworth (BDLive) Most companies are in the dark on how to amend payrolls to accommodate the retirement fund and tax reforms coming in March next year, according to experts at a “Do or Die” pensions conference on Friday. The risk is that the new system may reduce take-home pay, and add fuel to existing threats from unions to go on strike over proposed pension changes.From March 1 next year, employer contributions to retirement funds will be included in employees’ salary packages and taxed as a fringe benefit.

VAT Treatment of loyalty programmes

By Carin Grobbelaar and Janine Swanepoel, Grant Thornton Cape Loyalty programmes are gaining more popularity as companies aim to make their products and services more attractive than their competitors’ offers. These programmes are widely used as incentive schemes to encourage spending and build loyalty by rewarding customers with discounts, vouchers and other benefits.

Will SARS’ Interpretation Note No. 77 reduce the compliance burden for employer-provided telecommunication equipment and services?

By Bruce Russell, Tax Consultant, Grant Thornton Cape Employers provide their employees with telecommunication devices and services to enable them to work more efficiently. While the intention may be that these will be used solely for business purposes, there is often an element of private use of the devices, airtime and data.

Employees’ tax – travel allowances and reimbursements

Author: Hanneke Farrand and Jenny Klein Author page » Most employers are aware that a travel allowance may be granted to an employee where it is anticipated that the employee will be required to undertake business travel by virtue of the duties of his/her employment and that a travel allowance should not be merely used as a mechanism to reduce an employee’s employees’ tax (“PAYE”) liability.

Employees' Tax – Fringe Benefits on employer provided low cost housing

Introduction As part of Government’s anti-poverty objectives, Government is seeking to provide low-income South Africans with low cost housing and more specifically, ownership of residential property. In this regard, Government appears to be supportive of employers who provide low cost housing to low-income employees with the aim of enabling these employees with the opportunity to acquire ownership of the housing. This is specifically the case in industries where companies operate in remote areas and/or require employees to live away from their ordinary place of residence, like the mining industry.

The taxation of employer-provided low cost housing: A step in the right direction, but not yet a leap for mankind…

Introduction As part of Government’s anti-poverty objectives, Government is seeking to provide low-income South African’s with low cost housing and more specifically, ownership of residential property. In this regard, Government appears to be supportive of employers who provide low cost housing to low-income employees with the aim of enabling these employees with the opportunity to acquire ownership of the housing.