Author: Gerhard Badenhorst of ENSafrica The VAT legislation has been amended with effect from 1 April 2014 to give effect to government’s proposal that all foreign suppliers of electronic services in South Africa are required to register for VAT in South Africa. The legislation amendment places an obligation on foreign suppliers to register for VAT in South Africa if they make supplies of electronic services in excess of R50 000 in a 12 month period to South African customers who are either tax resident in South Africa, or where payment for the services by such customers originates from South African banking accounts.
Author: Nyasha Musviba
The extensive powers of SARS in requesting “relevant material”
Author: Gary Vogelman and Alexa Muller of ENSafricaThe South African Revenue Service (“SARS”) has extensive powers in terms of the Tax Administration Act No. 28 of 2011 (“the TAA”). In terms of section 46(1) of the TAA, SARS may, for the purposes of the administration of a tax Act in relation to a taxpayer (“Taxpayer”), require such taxpayer or another person (“Third Party”) to submit relevant material that SARS requires within a reasonable period. SARS may require such relevant material to be submitted orally or in writing.
Withdrawal of assessments under the Tax Administration Act
Section 98 of the Tax Administration Act (28/2011) provides for the withdrawal of an assessment by the South African Revenue Service (SARS) in certain circumstances. Before its amendment, Section 98 allowed for the withdrawal of an assessment – despite no appeal having been noted or objection lodged – that was issued: to the incorrect taxpayer; in respect of the incorrect tax period; or as a result of an incorrect payment allocation.
Convertible debt instruments
Author: Arnaaz Camay of ENSafrica The Taxation Laws Amendment Act, 31 of 2013 (the “TLAA”) introduced with effect from 1 April 2014, a new section 8F into the Income Tax Act, 58 of 1962 (the “Act”) in order to reduce the opportunity for the creation of equity instruments that are artificially disguised as debt instruments (“hybrid debt instruments”).
First tax professionals could qualify by year-end
Author: Ingé Lamprecht| JOHANNESBURG – An estimated 3 000 individuals could qualify as tax professionals in the next five years. Last month the South African Quality Authority (Saqa) registered “tax professional” as an occupational qualification. Saqa is responsible for overseeing the development of the National Qualification Framework (NQF) in South Africa. The qualification will give students specialist tax knowledge and practical experience. It was introduced following a request from the South African Revenue Service (Sars) and the South African Institute of Tax Professionals (Sait) in 2008 to the Finance, Accounting, Management Consulting and other Financial Services (Fasset) Seta for the development of a qualification in tax. Ronel de Kock, head of education at Sait, says Fasset commissioned research into the need for and the potential uptake of a tax qualification. The research, finalised in July 2009, confirmed that such a need existed and the process was started. The Big Four professional Read More …
The VAT registration amendments: will these changes streamline the registration process?
The Taxation Laws Amendment Act, No 31 of 2013 introduced amendments to the VAT registration provisions contained in the Value-Added Tax Act 89 of 1991 (“the VAT Act”), aimed primarily at streamlining the VAT registration process. These amendments came into force on 1 April 2014.
Tax Dispute Resolution
Authors: Peter Dachs and Bernard Du Plessis (ENSafrica) Times have certainly changed. Ten years ago a tax query from a SARS assessor would find its way to the desk of the financial director or in-house tax advisor who would send it off to their auditors. The auditors would, in turn, give it to their tax department who would draft a reply to SARS and hope the matter went away. If not, an informal meeting between the financial director and tax advisor at the audit firm would usually settle the dispute.
Global standard on exchange of tax information will help fight against tax evasion
A new global standard on the exchange of tax information intended to raise the bar on international cooperation will make it easier for the authorities to track down tax cheaters and fight tax evasion, says PwC. But the new standard also raises questions around privacy and cost implications, in particular for developing countries in Africa. The Organisation for Economic Cooperation and Development (OECD) recently announced plans for a global common reporting standard for the automatic exchange of information between the tax authorities.
CORPORATE RULES: DISPOSAL OF ASSETS WITHIN 18 MONTHS OF ACQUISITION
1. Summary This ruling deals with the effect of section 42(7) on the disposal of assets in terms of an “intra-group transaction” as defined in section 45(1) when the disposal will take place within 18 months of the assets having been acquired in terms of an “asset-for-share transaction” as defined in section 42(1).
New Binding General Ruling on the Address to be Reflected on Tax Invoices
This ruling clarifies that the address of the recipient and supplier to be reflected on a tax invoice, debit or credit note is either: The physical address from where the enterprise is being conducted; The postal address of the enterprise; or Both the physical and postal addresses of the enterprise.