PwC analysis of economic growth rates and greenhouse gas emissions data for G20 economies PwC’s climate change analysts estimate that the global economies need to cut their energy related carbon emissions for every $ of GDP by 6.2% every year from now to 2100. That is more than five times the rate currently achieved.
Author: Nyasha Musviba
Online foreign gaming providers required to register for VAT under new legislation – even if they are not registered under the National Gambling Act
New legislation requiring foreign suppliers of electronic services to register for Value Added Tax (VAT) in South Africa may prove to be challenging for those providing online gaming services – especially as the supply of these services is not yet fully included in South Africa, says PwC. “Recent changes to the VAT legislation place a VAT registration obligation on these suppliers, irrespective of whether they are registered under the National Gambling Act of 2004,” says Gerard Soverall, PwC Head of Indirect Tax for Gauteng. The new legislation requiring foreign suppliers of electronic services to register for VAT in South Africa as soon as the total value of such supplies reaches R50 000 (about USD 4 500) came into effect from 1 June 2014.
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.
Finance Minister Nhlanhla Nene assures South Africans their pensions are safe
Finance Minister Nhlanhla Nene has called on South Africans to refrain from cashing in their provident fund savings when they resign or change jobs, adding that rumours that their retirement savings are under threat were “false”. The Minister was responding to rumours that have been doing the rounds in the public service circles that government was planning to nationalise employee pension funds.
Changes in Taxation Laws Amendment Bill in spotlight
Author: Rob Cooper The draft 2014 Taxation Laws Amendment Bill (TLAB) brings with it some important proposed changes to the formula that employers use to calculate the fringe benefit value of their contributions to employees’ defined benefit funds. The TLAB raises the possibility of making incorrect payroll calculations in certain circumstances, unless legislators make changes to some of their formulas and definitions. Under retirement reforms legislated in 2013, employer-paid contributions to a pension, provident or retirement annuity fund must be valued as a fringe benefit for employees with effect from 1 March 2015.
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.
Section 14 of the Prescription Act, No 56 of 1972 – A life line
It’s no joke, prescription is probably one of the most dreaded expressions in the legal profession, even more so when an attorney has to inform his client that his claim has prescribed. It’s probably the closest we can get to understanding how a medical doctor must feel when walking out into the hospital’s waiting room and having to tell hopeful family members that there was nothing more he could do for his patient.
Liquidation: The effect on leases
Although a tenant’s insolvency does not automatically terminate the lease or confer a right upon a landlord to cancel the lease, a landlord is not left without any remedies where a tenant is in breach of the lease before the tenant is wound-up. A recent judgment of the Supreme Court of Appeal (SCA) in Ellerine Brothers (Pty) Limited (Ellerine) v McCarthy Limited, clarified the legal position.
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.
Expenditure relating to deferred accruals
Background The taxpayer operated a mine. Firstly, it would extract mineral ore from the earth, and secondly, by smelting and other processes, it would extract a concentrate (containing the minerals) from the ore. The taxpayer sold the concentrate to a subsidiary company. In terms of the agreement with the subsidiary, and in respect of the sale of concentrate in any particular month, the purchase price would only be finally determined five months later. Section 24M of the Income Tax Act, No 58 of 1962 (Act) allows a taxpayer to include in its gross income an amount accruing to it in a particular tax year only in the tax year that the amount is finally determined.