Author: Amanda Visser (BDlive) Businessman and philanthropist Mark Shuttleworth appears intent on continuing his battle over the constitutionality of some of SA’s exchange control regulations. The cryptic response by the Reserve Bank after this week’s decision by the Supreme Court of Appeal (SCA) in favour of Mr Shuttleworth indicates it and the Treasury may also be heading for the Constitutional Court.
Category: Tax Administration
Sars takes aim at 'reluctant taxpayers'
Author: Ingé Lamprecht (Moneyweb) Wants wider information gathering powers. JOHANNESBURG – Proposed statutory amendments to widen the information gathering powers of the South African Revenue Service (Sars) could have significant time and cost implications for taxpayers. There are also concerns that it may infringe on taxpayers’ rights in specific cases. The Tax Administration Act (TAA) that was introduced on October 1 2012 allows Sars to require a taxpayer or third party (for example a bank, medical aid or pension fund) to submit “relevant material” for administration purposes within a reasonable period.
Do you have tax skeletons in your closet?
Author: Erich Bell (SAIT Technical) For most tax professionals, standing at a braai and explaining what one’s profession entails may be an uncomfortable experience, especially if one’s guests do not have an accounting or law background. Some of the questions that would normally arise include, ‘oh, so you work for SARS?’ or ‘that’s nice, I’m, however, not keen on talking about my financial affairs’. A couple of moments later, that awkward silence starts to set in. With this example, I’m almost certain that SARS officials receive an even warmer welcome among their fellow guests.
Proposed amendments to the Tax Administration Act
Author: Toinette Beckert – Tax Associate at ENSafrica The draft Tax Administration Laws Amendment Bill 2014 (“DTLAB 2014”) was published for public comment by National Treasury on 17 July 2014 and proposes a number of amendments to the Tax Administration Act No. 28 of 2011 (“the TAA”). In this article, we deal with some of the most pertinent proposals set out in the DTLAB 2014.
President Zuma announces appointment of new SARS Commissioner
The President of the Republic of South Africa, Mr Jacob Zuma, has in terms of section 6 of the South African Revenue Services Act, 1997, appointed Mr Thomas (Tom) Swabihi Moyane as a Commissioner of the South African Revenue Services. Mr Moyane’s appointment is with effect from 27 September 2014.
New tax dispute resolutions promulgated
The new rules governing objections and appeals were promulgated under section 103 of the Tax Administration Act No. 28 of 2011 (‘TAA’) in Government Gazette 37819 on 11 July 2014. These rules replace the rules which were promulgated under section 107A of the Income Tax Act and for all practical purposes the new rules took effect on 11 July 2014 and will therefore regulate the resolution of tax disputes going forward.
Complaints procedure for the Office of the Tax Ombud
The Minister of Finance, Pravin Gordhan, officially launched the Office of the Tax Ombud (‘OTO’) on 7 April 2014. Judge Bernard Ngoepe was announced as the Tax Ombud in October 2013. The OTO has recently released an informal guide in print form, which summarises the complaints procedure to be followed by taxpayers. The guide can be obtained from their offices and other government offices.
Sars wins war on tax dodgers
Author: Babington Maravanyika (IOL) Johannesburg - More than 260 cases of tax evasion were successfully prosecuted by the National Prosecuting Authority during the last financial year. Sars spokeswoman Marika Muller said about 330 tax-related criminal cases were finalised during the 2013/14 financial year, of which 267 were successfully prosecuted.
Qualifying for turnover tax or not
A Fin24 user is not sure when a business must register for turnover tax, since the term “service provider” is very wide. He writes: I need some clarification on which industries and types of businesses may register for turnover tax. It states that “it is not available to labour brokers, personal service providers or persons that render professional services”. “Public benefit organisations and recreational clubs also do not qualify, since they already enjoy specific concessions.” On the surface it seems like a lot of businesses would not qualify as most small business setups are providing a service of some sort, whether its a jeweler, musician or garden service.
Search and seizure: the extent of SARS's powers
In order to give effect to the information gathering powers of the South African Revenue Service (SARS), SARS may apply to a magistrate or a judge to issue a search and seizure warrant so as to, unannounced, enter premises where relevant material is being kept, conduct a search of a person’s premises and seize relevant material. Section 59 of the Tax Administration Act, No 28 of 2011 (TAA) provides that in obtaining the search and seizure warrant, SARS must make an ex parte application to a judge, which application must be supported by information supplied under oath or solemn declaration, establishing the facts upon which the application is based.