The Tax Administration Act, No. 28 of 2011 (TAA) took effect on 1 October 2012. In light of SARS’s strong emphasis on compliance, this article considers the procedures SARS should follow where it believes that a serious tax offence might have been committed. A ‘serious tax offence’ is defined as “a tax offence for which a person may be liable on conviction to imprisonment for a period exceeding two years without the option of a fine or to a fine exceeding the equivalent amount of a fine under the Adjustment of Fines Act, 1991 (Act no. 101 of 1991).”
Month: November 2013
IN 75 – Exclusion of Certain Companies and Shares From "group of companies"
This Note provides guidance on the application of the proviso to the definition in section 41(1). Under certain circumstances the corporate rules provide relief from income tax when assets are disposed of between companies forming part of the same “group of companies” as defined in section 41(1). Generally these relief measures defer the income tax on income and capital gains until the asset is disposed of to a third party or until a de-grouping occurs.
Business Travel – Red or Green Lane?
Author: Cliff Watson (Grant Thornton) With the ever increasing mobility of business people globally, the requirement for regular cross border travel is increasing. Consultants and technicians are required to travel at a moment’s notice to provide services and goods to customers. However, travellers, and their employers, who are not paying attention to the VAT and customs duty rules may find themselves facing unnecessary tax risk.
What a Wicked Web We Weave, When We Issue Bogus VAT Invoices To Deceive!
Cash-strapped companies that are staring liquidation in the face sometimes resort to desperate measures to convince the court hearing an application for winding-up that they are not, in fact, insolvent and should not be wound up. A novel and imaginative method was adopted by the company, a VAT vendor, in ITC 1865 (2013) 75 SATC 250, though it is unlikely to become popular or to find its way into tax-planning manuals.
The Respective Jurisdiction Of The Tax Court And The High Court
An aggrieved taxpayer who wishes to institute legal proceedings against SARS in relation to some aspect of his tax affairs must be sure to raise his grievance in the proper forum. That forum may be either the Tax Court or the High Court.
SARS Successfully Opposes Business Rescue Application
A recent judgment of the North Gauteng High Court dealt with the powers of the South African Revenue Service to bring an application under section 177 of the Tax Administration Act for the sequestration, liquidation or winding-up of a taxpayer that is a tax debtor (CSARS v Miles Plant Hire (Pty) Ltd, judgment delivered on 30 September 2013).
Youth Wage Subsidy Bill Passed
Parliament adopted the employment tax incentive bill on Thursday as the Treasury prevailed in its three-year battle with trade union movement Cosatu over a youth wage subsidy.Although all opposition parties voted in favour of the bill, they said the standoff had watered it down, let down job-seekers and undermined the National Education Development and Labour Council (Nedlac).