By Webber Wentzel Who bore the full cost of the fuel? Generally speaking, where a person uses his or her private vehicle to conduct business and receives an allowance or grant in respect of such usage, a deduction against the allowance may be made on assessment for normal tax.
Category: SARS Binding Rulings
New binding private ruling on plant used in the production of renewable energy
SARS released BPR 172 on 25 June 2014. The ruling deals with the question of whether various items used in the production of solar energy qualify for the section 12B allowance. By way of background, section 12B(1)(h) read with section 12B(2) of the Income Tax Act allows a deduction on a 50:30:20 basis over three years of any ‘machinery, plant, implement, utensil or article owned by the taxpayer … and which was or is brought into use for the first time by that taxpayer for the purpose of his or her trade to be used by that taxpayer in the generation of electricity from:
SARS issues new binding private relating to debt SARS issued Binding Private Ruling 173 on 2 July
SARS issued Binding Private Ruling BPR 173 on 2 July. The ruling purports to deal with a thorny issue which has been the cause of uncertainty but unfortunately raises more questions than answers. The issue is whether the debt reduction provisions of the Income Tax Act, namely section 19 or paragraph 12A of the Eighth Schedule, would be invoked where a company issues shares and utilises the proceeds from the share issue to repay debt.
Value-Added Tax and the disposal of a partnership interest to the remaining partner
Author: Andrew Lewis (DLA Cliffe Dekker Hofmeyr) It appears that there is often uncertainty whether the transfer of an interest in a partnership from one partner to another (ie either a new or existing partner) should be subject to value-added tax (VAT).
New binding private ruling on plant used in the production of renewable energy
SARS released BPR 172 on 25 June 2014. The ruling deals with the question of whether various items used in the production of solar energy qualify for the section 12B allowance. By way of background, section 12B(1)(h) read with section 12B(2) of the Income Tax Act allows a deduction on a 50:30:20 basis over three years of any ‘machinery, plant, implement, utensil or article owned by the taxpayer … and which was or is brought into use for the first time by that taxpayer for the purpose of his or her trade to be used by that taxpayer in the generation of electricity from:
SARS issues new binding private relating to debt SARS issued Binding Private Ruling 173 on 2 July
SARS issued Binding Private Ruling BPR 173 on 2 July. The ruling purports to deal with a thorny issue which has been the cause of uncertainty but unfortunately raises more questions than answers. The issue is whether the debt reduction provisions of the Income Tax Act, namely section 19 or paragraph 12A of the Eighth Schedule, would be invoked where a company issues shares and utilises the proceeds from the share issue to repay debt.
Deductibility of costs in respect of plant used in the production of Renewable energy
Author: Nicole Paulsen In our Tax Alert of 7 March 2014, we discussed how the energy landscape has developed over the last few years with the introduction of a number of private and public sector funded renewable energy projects, aimed at reducing the energy footprint of corporate taxpayers.
The fine line between a restricted and unrestricted equity instrument
The complex tax legislation applicable to share incentive schemes has resulted in a number of taxpayers requesting advance tax rulings from the South African Revenue Service (SARS). On 30 May 2014, Binding Private Ruling No. 170 (Ruling) was released by SARS, which dealt with the question of
The fine line between a restricted and unrestricted equity instrument
The complex tax legislation applicable to share incentive schemes has resulted in a number of taxpayers requesting advance tax rulings from the South African Revenue Service (SARS). On 30 May 2014, Binding Private Ruling No. 170 (Ruling) was released by SARS, which dealt with the question of whether the conditions imposed on an employee in respect of an employee share scheme would result in the shares constituting ‘restricted equity instruments’ for purposes of s8C of the Income Tax Act, No. 58 of 1962 (Act). It is clear from the Ruling that there is often a fine line between whether or not one is dealing with a ‘restricted equity instrument’.
BINDING PRIVATE RULING – DEFINITION OF UNRESTRICTED EQUITY INSTRUMENT
BINDING PRIVATE RULING: BPR 170 DATE: 30 May 2014 ACT : INCOME TAX ACT NO. 58 OF 1962 (the Act) SECTION : SECTION 8C(7) SUBJECT : DEFINITION OF UNRESTRICTED EQUITY INSTRUMENT