The question often arises as to when employees should retire and when employers can compel such employees to retire. There is no statutory retirement age applicable to all employees. The retirement age should be agreed between the parties. Where there is no agreed retirement age, an employer may retire an employee who has reached the retirement age that is the norm. Parties normally agree in the employment contract on a retirement ages or often agree that the retirement age will be as per a company policy or the rules or a retirement fund.
Tax News
Sars accuses Malema of lying, hits him with R14m bill – report
Pretoria – The SA Revenue Service (Sars) has accused Economic Freedom Fighters leader Julius Malema of lying about his source of income and hit him with an additional R14m tax bill, the Sunday Times reported. This was according to court papers filed in the North Gauteng High Court by Sars which has launched an application for Malema’s final sequestration. According to the report, Sars, in the court papers explaining why it had dumped its deal with Malema, said he had lied about the source of the funds used to settle part of his tax bill.
Seize opportunity to improve mining tax, pleads KPMG’s Saloojee
South Africa should seize the current timely opportunity to amend its mining taxation in a manner that encourages foreign investment, stimulates prospecting, gets mining companies to start dealing with marginal mines and gives enough back to the fiscus for the benefit of this country’s people, KPMG corporate tax head Muhammad Saloojee pleaded on Tuesday. “That’s the model we’ve got to start working on, bringing all those factors into account,” said Saloojee, who spoke to Creamer Media’s Mining Weekly Online on the sidelines of the 2015 Breakfast Conversation, which was staged as a prelude to the upcoming Junior Indaba, in Johannesburg, on June 3 and 4.
The obligation to pay severance pay to fixed-term employees
The amendments to the Labour Relations Act, No 66 of 1995 (LRA), ushered in an era of greater protection for employees on fixed-term contracts where the employees earn below the earnings threshold (currently R205,433.30) published annually in terms of the Basic Conditions of Employment Act, No 75 of 1997 (BCEA). Amongst the advantages offered to fixed-term contract workers receiving a salary of less than R205,433.30 per year is the fact that, under some circumstances, they may now also lay claim to a new statutory payment at the conclusion of a fixed-term contract.
What’s good for the goose…
In the recent judgement by a full bench of the Western Cape High Court, in the matter of ABC (Pty) Ltd v the Commissioner for the South African Revenue Service (6 February 2015), the South African Revenue Service (SARS) was reminded that, what’s good for the goose, is good for the gander. The taxpayer, being a vendor for purposes of value-added tax (VAT), staged annual international jazz festivals in Cape Town. In the course of that enterprise it concluded sponsorship agreements with South African Airways, the City of Cape Town, the SABC and Telkom (Sponsors).
UIF relief for taxpayers
On 25 February 2015, the Minister of Finance, Nhlanhla Nene, delivered the 2015 Budget Speech (Budget Speech) which contained a number of tax proposals. One such proposal relates to the temporary reduction in contributions to the Unemployment Insurance Fund (UIF) for the 2015/16 financial year. By way of background, the UIF gives short-term relief to workers when they become unemployed or are unable to work due to maternity, adoption leave or illness. The unemployment insurance
Withholding Tax on Interest
SARS recently issued a summary of the Withholding Tax on Interest (WTI) which mainly addresses practical issues relating to WTI. The WTI came into effect on 1 March 2015 (in respect of interest that is paid or that becomes due and payable from that date). We summarise the most salient points further on in this article. The summary is not intended to be comprehensive and does not deal with some of the complex technical issues contained in the WTI provisions.
Binding Private Ruling on a Notional Funding Arrangement: the Issue and Repurchase of Ordinary Shares
SARS issued the Binding Private Ruling 190 on 5 March 2015, which deals with the issue and repurchase of ordinary shares. The ruling deals with a proposed arrangement and the contractual rights and restrictions established separately from any class provisions applicable to those shares in terms of the Applicant Company’s memorandum of incorporation. The parties to the ruling include the Applicant, which is a company incorporated in and a resident of South Africa; and the Co-Applicant which is a company incorporated in and a resident of South Africa.
SARS' new list of ‘Reportable Arrangements'
SARS’ list of reportable arrangements, as envisaged by section 35 of the Tax Administration Act, 2011 (TAA), has been widened extensively. The arrangements, deemed reportable, were published on 16 March 2015 in a public notice (‘the Notice’) in the Government Gazette. Reportable arrangements must be reported to SARS within 45 business days after becoming a participant in a reportable arrangement or 45 business days after the date on which an arrangement qualifies as a reportable arrangement. Every participant has the duty to disclose the prescribed information regarding the arrangement to SARS unless the participant obtains a written statement from another participant that the other participant has disclosed the arrangement.
SARS’ new list of ‘Reportable Arrangements’
SARS’ list of reportable arrangements, as envisaged by section 35 of the Tax Administration Act, 2011 (TAA), has been widened extensively. The arrangements, deemed reportable, were published on 16 March 2015 in a public notice (‘the Notice’) in the Government Gazette. Reportable arrangements must be reported to SARS within 45 business days after becoming a participant in a reportable arrangement or 45 business days after the date on which an arrangement qualifies as a reportable arrangement. Every participant has the duty to disclose the prescribed information regarding the arrangement to SARS unless the participant obtains a written statement from another participant that the other participant has disclosed the arrangement.