CIR v Sunnyside Centre (Pty) Ltd [1996] 58 SATC 319 clearly stated that South African taxpayers must sleep in the (contractual) beds they make: “When a scheme works, no tears are shed for the Commissioner. That is because a taxpayer is entitled to order his affairs so as to pay the minimum of tax. When he arranges them so as to attract more than the minimum he has to grin and bear it.”
Author: Nyasha Musviba
Tax Administration Act – Applications to rescind a "judgment"
The judgment reported as Kadodia v CSARS [2013] 75 SATC 313 is a decision of the KwaZulu-Natal High Court in which the applicant taxpayer unsuccessfully applied to court for rescission of a “default judgement” granted against him in terms of section 114(1)(a)(ii) of the Customs and Excise Act, No. 91 of 1964 (the Customs and Excise Act). The judgment was in respect of an alleged underpayment of customs duty and value-added tax amounting to R171 731.
Tax Administration Act – Search and seizure requirements
In an unreported decision, Jen-Chih Huang and 13 others v Commissioner of SARS and others with case number: SARS 4/2013 and dated 18 November 2013 (the Unreported Judgment), Tuchten J of the North Gauteng High Court handed down an important judgment in relation to information and documentation obtained by the South African Revenue Service (SARS) in terms of Part D of the Tax Administration Act No. 28 of 2011 (the TAA).
Public Benefit Organisations (PBO) – Requirements for approval
Fiscal policy, as manifested in the Income Tax Act No. 58 of 1962 (the Act), is that philanthropy should be encouraged. The Act achieves this objective by providing that, subject to certain criteria being met and subject to limitations, charitable organisations enjoy a very favourable tax regime and taxpayers who make donations to such organisations may deduct the donations for income tax purposes.
International Tax – Bilateral assistance in tax matters
High net worth individuals and their associated trusts have in the past been identified by the South African Revenue Service (SARS) as posing a risk of non-compliance to tax legislation. The recent confirmation of a preservation order by the North Gauteng High Court in C: SARS v Krok and Jucool Enterprises Inc. (Case No. 1319/13) now renews the focus of SARS in this regard.
International Tax – OECD – Common Reporting Standard
On 13 February 2014, the Organisation for Economic Co-operation and Development (OECD) released a common reporting standard (CRS) document, which seeks to establish automatic exchange of tax information as the new global standard for governments.
International tax transparency: the need for automatic exchange of information
In recent years, the international tax environment has seen an increase in the global drive towards greater financial transparency and the automatic exchange of financial information, which replaces the earlier standard of information exchange on request.
Severance tax benefits – threshold increase
Tax on severance is an important aspect of the law for employers and employees to understand. The Basic Conditions of Employment Act, No. 75 of 1997 (BCEA) provides that an employer who dismisses an employee for ‘operational requirements’ must pay severance of one week’s remuneration for every completed year of service. However, this does not prohibit an employer from providing more than the statutory minimum in terms of a contract of employment, company policy, collective agreement or an agreement reached in terms of s189 of the Labour Relations Act, No. 66 of 1995 (LRA).
United States and South Africa Sign an Intergovernmental Agreement to Share Tax Information
Pretoria, June 9, 2014 – South African Minister of Finance, Mr Nhlanhla Nene and U.S. Ambassador to South Africa Mr Patrick H. Gaspard, today signed an intergovernmental agreement to improve international tax compliance and to implement the Foreign Account Tax Compliance Act. This agreement promotes transparency between the two nations on tax matters and furthermore underscores growing international cooperation in the endeavor to end tax evasion worldwide.
New regulations for the zero rating of indirect exports
Author: Carmen Moss-Holdstock (CliffeDekkerHofmeyr) Background The Value-Added Tax (VAT) rules relating to the exportation of goods are rather complex and intricate. Many vendors do not always appreciate the issues that arise in circumstances where goods are exported, either by the vendor or the purchaser of the goods.