By BHEKI MBANJWA Durban – South Africa has 2 300 super-rich individuals, and many are under the taxman’s spotlight for dodging taxes. In the past 12 months, 280 High Net-Worth Individuals (HNWIs) underwent tax compliance reviews and analysis and 109 of them were identified as high risk, and earmarked for a full audit, the SA Revenue Service (Sars) has revealed. The agency said it had concluded 62 full audits of these multi-millionaires, yielding R184 million – with 14 of them viewed as potential serious offenders because of their large, outstanding returns.
Category: Income Tax
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.
Commissioner's discretion to levy or remit penalties under the Tax Administration Act
The Tax Administration Act 28 of 2011 (“TAA”) which came into effect on 1 October 2012 (bar a few specific sections) introduced two types of penalties, namely administrative non-compliance penalties and understatement penalties.
Sars eyes global companies' tax structures
The South African Revenue Service (Sars) said this week that it plans to increase its scrutiny of multinationals when it comes to tax compliance, particularly with regard to transfer pricing and double taxation, which it has identified as a problem.
Can interest really be claimed on share acquisitions?
It has become well known through case law and practice that interest on loans used to acquire shares may not be deducted by the taxpayer. This is because taxpayers earn exempt dividend income and it is impossible to show that the interest deduction is directly connected with the production of taxable income.
SARS Consults On Thin Capitalization Rules
The South African Revenue Service (SARS) is consulting on a draft interpretation note to provide taxpayers with guidance on the application of the arm’s length basis in the context of determining whether a taxpayer is thinly capitalized and, if so, calculating taxable income without claiming a deduction for the expenditure incurred on the excessive portion of finance.