Author: Mareli Treurnicht (Cliffe Dekker Hofmeyr). Section 99 of the Tax Administration Act, No 28 of 2011 (TAA) prescribes the period of limitations (ie prescription) for the issuance of assessments. Section 99 currently states that the South African Revenue Service (SARS) may not make an assessment in terms of Chapter 8 of the TAA, inter alia: three years after the date of assessment of an original assessment by SARS; (in the case of self-assessment for which a return is required) five years after the date of assessment of an original assessment by way of self-assessment by the taxpayer or, if no return is received, by SARS; or (in the case of a self-assessment for which no return is required) after the expiration of five years from either the date of the last payment of the tax for the tax period or the effective date, if no payment was made in respect Read More …
Tax News
VAT falling on small business
Author: Keith Engel (Moneyweb). Government needs to understand importance of not disrupting cash-flow. The South African government has consistently expressed its support for small business. This support includes tax incentives. However, the point consistently missed is the critical need for the government not to disrupt cash-flow, which is far more important than any of the so-called tax incentives to date.
Three things you should know about retirement reform
Author: Ingé Lamprecht (Moneyweb). Unpacking annuitisation, the increased deduction and the implications for high net worth individuals. Regulations to harmonise the tax treatment of retirement fund contributions are set to be introduced from March 1 next year, but questions remain about whether the reforms will really encourage household savings and improve the plight of vulnerable individuals. This article looks at three of the changes and their broader ramifications.
Room for improvement in SA Carbon Tax Bill, says Centre for Environmental Rights
Author: Chantelle Kotze (Mining Review). At the start of December, the Centre for Environmental Rights (CER) submitted comments on the Carbon Tax Bill, 2015, which was published for public comment on 2 November by National Treasury. The Bill, which is intended to take effect in January 2017, aims to put a price on carbon by levying a tax of R120 per each ton of carbon dioxide equivalent (CO2e) emitted.
Delayed VAT refunds ‘causing cash flow woes for small business’
Author: Amanda Visser (BDlive). Delayed refunds on Value-Added Tax (VAT) have increased significantly, causing cash flow problems for especially small and medium-sized enterprises. This is according to tax practitioners interviewed this week, who said it was also increasing the cost of doing business as businesses need to pay professionals to get back what had been rightfully theirs in the first place. Victor Terblanche, chairman of the South African Institute of Tax Professionals’ (SAIT’s) VAT committee, said the VAT Act did not provide for a timeframe for the payment of VAT refunds, or a timeframe for the finalisation of audits.
Higher price on carbon needed to effectively tackle climate change
OECD urges efforts to better price carbon as new analysis finds that 90% of CO2-emissions are priced below EUR 30 per tonne, a low-end estimate of climate damage, and 60% are not priced at all. Effective Carbon Rates in the OECD and Selected Partner Economies calculates effective carbon rates (ECR) on CO2-emissions from energy use for 41 countries which together use 80% of global emissions. CO2-emissions from energy use are a primary contributor to climate change. Putting a price on carbon, through taxes or through emissions trading systems, is one of the most effective tools for reducing the CO2-emissions from energy use. Prices can reduce energy use, improve energy efficiency, and drive a shift towars less harmful forms of energy.
SARS introduces electronic ‘suspension of payment’ applications
Taxpayers lodging a dispute with SARS can now electronically request that SARS suspend the payment of tax. However, please be aware that the suspension of payment should be requested at a branch if it is accompanying an objection or appeal. It must not be done via eFiling as eFiling only supports “suspension of payments” that do not accompany an objection or appeal. What if I don’t agree? What’s New? From 4 December 2015 for Income Tax, taxpayers will be able to electronically at a SARS branch and via eFiling:
David who? SA has new finance minister
Author: Mike Cohen and Rene Vollgraaff. Cape Town – If the appointment of South Africa’s new finance minister has alarmed investors, it may be because they’ve never heard of him. The rand plunged late on Wednesday after President Jacob Zuma announced that ruling party lawmaker David van Rooyen will replace Nhlanhla Nene, who held the post for less than two years. The currency fell as much as 5.4 percent against the dollar, hitting a record low of 15.3857. “I know nothing about the new man,” George Herman, head of South African investments at Cape Town-based Citadel Investment Services, said by phone. “I’ve never heard of him or dealt with him before. The markets are not going to like this.”
Meet David van Rooyen: The man who must fill Nene’s shoes
Cape Town – David Douglas Des van Rooyen, the man President Jacob Zuma named as Finance Minister Nhlanhla Nene’s successor in a shock announcement on Wednesday, has been described by economists as largely unknown, with little policy experience. But according to the ANC Van Rooyen holds a string of qualifications and has held a number of leadership positions in the ANC from 1994 to 2007. Prior to this he was an MK operative and soldier, and held various leadership positions in Cosas and Khutsong Student Congress. He was also a UDF representative and NUM member.
David van Rooyen the new finance minister
Johannesburg – President Jacob Zuma replaced Finance Minister Nhlanhla Nene with ANC MP David van Rooyen on Wednesday night. Van Rooyen is the whip of the standing committee on finance and whip of the economic transformation cluster. He was a former Umkhonto we Sizwe operative in the 1980s and has held a number of leadership positions in the ANC from 1994 to 2007. Van Rooyen is a former executive mayor of Merafong Municipality and a former North West provincial chairperson of the South African Local Government Association. He has an advance Business Management Diploma, a Diploma in Municipal Governance, a certificate in Municipal Governance, a certificate in Councillor Development, a certificate in Municipal Finance, a certificate in Economic and Public Finance and a Masters Degree in Public Development and Management.