Taxpayers earning less than R250 000 a year may not have to submit a tax return this year 1 July marks the beginning of Tax Season. As from this date taxpayers can submit their Income Tax Return (ITR12) to the South African Revenue Service (SARS). The good news this Tax Season is that the annual income threshold for submitting a tax return has been raised from R120 000 to R250 000.
Category: Tax Administration
Patricia De Lille conned by tax fraud
THE tax practitioner who defrauded Cape Town mayor Patricia de Lille of R80 000 has been found guilty on a multitude of charges including fraud and theft in the Wynberg Regional Court. Linda Addison-Adams, 54, used various methods to con clients until one of her victims laid bare her suspicious conduct to the South African Revenue Service (SARS).
Shareholders can be hit with tax bill
Author: Amanda Visser (Businessday, bdlive.co.za) Shareholders will in certain circumstances be held responsible for the tax debt of a company when there is a voluntary winding up, even if they are not involved in the day-to-day management of the company. Some tax experts have argued the provision in the Tax Administration Act (TAA) that allows the South African Revenue Service (SARS) to hold shareholders liable for the tax debt of a company is inequitable.
Tax Ombud: Lots of bark, but will it bite?
How the office could affect taxpayers. The recently promulgated Tax Administration Act, No. 2011 (TAA), introduces the Office of the Tax Ombud (the Tax Ombud). According to section 14 read with section 259 of the TAA, the Minister of Finance must appoint a person as Tax Ombud within one year after the commencement date of the TAA, which was on 1 October 2012. The Minister further announced in his 2012 Budget Speech on 22 February 2012 that the Tax Ombud will be appointed during the course of this year.
STC credits: Planning required to ensure it does not go to waste
When dividends tax was introduced with effect from 1 April 2012 many companies still possessed STC credits. These STC credits arose from the fact that more dividends were received by or accrued to the company in the last dividend cycle than dividends declared during such a dividend cycle. The balance of STC credits as at 31 March 2012 are carried forward into the dividends tax system in terms of section 64J of the Income Tax Act (hereafter the Act).
Receiver Throws Information Net Wider
On 5th April 2013, the Commissioner: South African Revenue Service issued Government Notice number 260, which appeared in Government Gazette number 36346 on 5th April 2013, setting out returns of information which must be submitted by third parties in terms of section 26 of the Tax Administration Act, No 28 of 2011.
South Africa’s tax treaty with the DRC provides a new avenue for international investment
The tax treaty entered into between the Democratic Republic of Congo (DRC) and South Africa provides opportunity to promote South Africa as a hub for inward investment into the DRC. The tax treaty provides multinational companies with alternative investment opportunities in the DRC.
Shareholders liable for tax debts of companies on winding up
By Ben Strauss, Director, Tax, Cliffe Dekker Hofmeyr Be aware of potential liabilities. The Tax Administration Act, No 28 of 2011 (TAA) took effect on 1 October 2012. Among other things, the TAA makes third parties liable for the tax debts of taxpayers, under certain circumstances. In terms of s181 of the TAA, shareholders of a company can be liable for the tax debts of a company on winding up.
Sars has increased powers under the Tax Administration Act
An overview The recently promulgated Tax Administration Act, No. 28 of 2011 (TAA) contains provisions that grant some dramatically increased powers to the South African Revenue Service (Sars). Tax recovery on behalf of foreign governments Section 185 of the TAA contains the measures available to Sars to recover tax on behalf of foreign governments. Broadly defined, the provisions of section 185 provide that revenue authorities of a foreign country (with which South Africa has a tax treaty) can request Sars to assist in the collection of foreign taxes due by a person to that country.
Shuttleworth takes Reserve Bank to court
Pretoria – Billionaire IT entrepreneur and the first South African in space, Mark Shuttleworth, has turned to the Pretoria High Court in a bid to recover the 10 percent exit levy (more than R250 million) imposed on him by the South African Reserve Bank when he transferred more than R2 billion out of the country. His legal team, headed by Gilbert Marcus SC, on Monday asked Judge Francis Legodi to set aside the decision by the Reserve Bank that he had to pay this amount – and he wants to be refunded.