Authors: Nicole Paulsen and Gigi Nyanin (DLACliffeDekkerHofmeyr) On 11 July 2014, the new dispute resolution rules (new Rules) under s103 of the Tax Administration Act, No 28 of 2011 (TAA) were promulgated in Government Notice 550, published in Government Gazette No 37819.
Author: Nyasha Musviba
Tax penalty if you put too much in new savings accounts
Author: Laura du Preez You will be penalised if your contributions to government’s proposed tax-free savings accounts are higher than the annual or lifetime limits. National Treasury plans to introduce the products on March 1, 2015.
Value-Added Tax and the disposal of a partnership interest to the remaining partner
Author: Andrew Lewis (DLA Cliffe Dekker Hofmeyr) It appears that there is often uncertainty whether the transfer of an interest in a partnership from one partner to another (ie either a new or existing partner) should be subject to value-added tax (VAT).
Venture Capital regime needs overhaul
In the 2014 Budget Speech, the Minister of Finance noted the importance of small business and entrepreneurship in facilitating the creation of jobs in the private sector. In this regard, specific mention was made of proposed amendments to the venture capital company (“VCC”) tax regime in order to enhance support for entrepreneurial development.
Confusion over pension fund contributions
Author: Evan Pinkworth (BDLive) Most companies are in the dark on how to amend payrolls to accommodate the retirement fund and tax reforms coming in March next year, according to experts at a “Do or Die” pensions conference on Friday. The risk is that the new system may reduce take-home pay, and add fuel to existing threats from unions to go on strike over proposed pension changes.From March 1 next year, employer contributions to retirement funds will be included in employees’ salary packages and taxed as a fringe benefit.
Companies feel the pinch from changes to tax act
Author: Amanda Visser (BDLive) Some local companies are starting to feel the pinch following changes to the Income Tax Act which reclassify debt to equity when certain characteristics are present. Tax experts said last week the changes caught companies — whose loans from their multinational holding companies were subordinated in favour of creditors when they
Aviation industry may face carbon taxes in South Africa in 2015
Author: Fabio Miceli (NortonRoseFulbright) If recent events between the European Union and the airlines of China, the USA and Russia are any guide, South Africa would do well to consider very carefully the impact of the carbon tax on the airline industry. The updated carbon tax policy paper, published in March 2013, is informed by the following framework: a rate of R120 per ton of CO2 equivalent, increasing at 10% per year for the first five years. The objective is that a portion of the revenues generated through the carbon tax will be directed towards funding the energy efficiency savings incentive.
SARS must not bully audited taxpayers
Authors: Andrew Wellsted and Rivalani Mutshinya (NortonRoseFulbright) A recent appeal case South African Revenue Service v Pretoria East Motors (Pty) Ltd, sets out the standard that SARS is expected to uphold when auditing taxpayers. SARS must try to understand the systems used by taxpayers before raising additional assessments and imposing penalties for incorrect tax treatment. The court criticised SARS for employing bullying tactics when dealing with taxpayers.
The Davies Tax Committe says Tax not really the problem
Author: BDlive The Davis tax committee’s discussion document on the taxation of small and medium enterprises (SMEs) could open up a useful debate on SA’s small business sector and how to boost it. This is because what the committee says, in a subtle sort of way, is that tax is not really the problem. True, the burden of compliance is a major concern for small businesses, which according to one study cited by the committee spend 255 hours a year on average to deal with all tax-compliance matters.
State wants tax consultant's bail revoked
The State asked the Cape Town Magistrate’s Court on Tuesday to revoke bail granted to a tax consultant accused of fraudulently claiming tax refunds. Heide Jasmine was accused of filing false claims for refunds amounting to R80 847, based on false medical expenses, since she was released on bail.