Section 162 of the Companies Act, Act 71 of 2008 (“the Companies Act”) introduced a new mechanism which allows a broad range of interested and related persons, including qualifying organs of state, the opportunity to apply to court for an order declaring a director of a company delinquent or placing him under an order of probation. Notwithstanding the negative social ramifications such an order has, there are also severe adverse consequences to a director’s
Author: Nyasha Musviba
A taxpayer is entitled to object to an assessment on the grounds that the information given in his return was incorrect
One of the issues in GB Mining v Commissioner: SARS [2014] ZASCA 29 was the deductibility or otherwise of expenditure that had been outlaid by the taxpayer, GB Mining and Exploration (SA) (Pty) Ltd, in an attempted rescue of a company listed on the Johannesburg Stock Exchange, OTR Mining Ltd, with the intent that GB Mining would transfer its business to OTR and become its principal shareholder, thereby securing access to the JSE.
Sars to focus on certain areas this tax season
The South African Revenue Service (Sars) will pay particular attention this season on medical aid claims, retirement fund contributions, income protection policy contributions and taxpayers who submit revised returns for previous years. This is according to acting Sars commissioner Ivan Pillay. “We are doing this deliberately. We are telling you up front. We don’t want to catch you out. We’re saying don’t go there,” he said.
Noose tightens on tax dodgers
Author: Philani Nombembe (Times Live) Dodgy tax consultants are hitting the SA Revenue Service hard with more than R80-million in fraudulent claims filed during the past financial year. This week the Cape Town Regional Court sentenced tax practitioner Zaida Johaar to four years in prison for income tax fraud. The hefty sentence, despite Johaar being a first offender, underlines the new severity with which tax fraud is regarded.
How to calculate your medical tax credit
Author: Ingé Lamprecht New system less beneficial to higher income earners. JOHANNESBURG – In an effort to improve the fairness and equity of the tax system, tax deductions for medical aid contributions and expenses have gradually been replaced with a tax credit system over the last few years.
Reportable arrangements and retrospectivity
Author: Carmen Moss-Holdstock of DLA Cliffe Dekker Hofmeyr The South African Revenue Service (SARS) recently issued an updated Draft Notice listing transactions that constitute reportable arrangements for purposes of s35(2) of the Tax administration Act No 28 of 2011 (TAA). The Draft Notice, once finalised, is intended to replace any previous notices issued in respect of reportable arrangements under s80M(2)(c) and s80N(4) of the Income Tax Act No 58 of 1962 (ITA).
Donations made between spouses
Sections 54 to 64 of the Income Tax Act, No 58 of 1962 (Act) provide for the imposition of donations tax on the value of any property disposed of by way of a donation. Donations tax is levied at a rate of 20% of the value of the asset or the amount of money donated, and the donor is generally liable for payment.
Launch of 2014 Tax Season
The South African Revenue Service (SARS) launches the 2014 Tax Season. This annual campaign has evolved into an important partnership between government and taxpayers who make a vital contribution to our country’s tax system.
VAT Treatment of loyalty programmes
By Carin Grobbelaar and Janine Swanepoel, Grant Thornton Cape Loyalty programmes are gaining more popularity as companies aim to make their products and services more attractive than their competitors’ offers. These programmes are widely used as incentive schemes to encourage spending and build loyalty by rewarding customers with discounts, vouchers and other benefits.
Will SARS’ Interpretation Note No. 77 reduce the compliance burden for employer-provided telecommunication equipment and services?
By Bruce Russell, Tax Consultant, Grant Thornton Cape Employers provide their employees with telecommunication devices and services to enable them to work more efficiently. While the intention may be that these will be used solely for business purposes, there is often an element of private use of the devices, airtime and data.