President Jacob Zuma’s eldest son Edward Zuma was listed as a director at the Amalgamated Tobacco Manufacturing company until 2011. Photo: Marilyn Bernard Johannesburg – Sars will be asking the National Prosecuting Authority to prosecute 15 local tobacco manufacturers and importers for tax evasion and smuggling as they continue probing and clamping down on illicit trade. And other traders, who are at “a risk of non-compliance” have been issued a warning of “regular and random audits and verification exercises”. Should any of these traders be found to be non-compliant, their manufacturing licences could be withdrawn.
Author: Nyasha Musviba
Ngoepe appointed as new tax ombudsman
By Chantelle Benjamin Retired Judge Bernard Ngoepe said during his appointment as SA’s new tax ombudsmad that he would like to create confidence with the public. Judge Bernard Ngoepe. (M&G) Newly appointed tax ombudsman retired Judge Bernard Ngoepe said on Thursday that his biggest challenge will be creating confidence in the newly established office so the public feel they have someone to assist them with their grievances against the South African Revenue Service (Sars).
Render unto Caesar – Harsh Tax Penalties Reviewed
JOHANNESBURG – Taxpayers who accidentally reduce their tax liability due to a reasonable mistake without any intent to defraud the Taxman, won’t be subjected to harsh understatement penalties in future. The Tax Administration Laws Amendment Bill was introduced in the National Assembly last week and revises regulations to such an extent that the South African Revenue Service (Sars) won’t impose penalties in cases where the understatement by the taxpayer “results from a bona fide inadvertent error”. This follows criticism from tax practitioners and taxpayers on the harsh penalties previously imposed even where taxpayers had no intention of deceiving Sars.
Income protection policies: deduction for premiums to be abolished
By Dan Foster, associate director: International Executive Services, KPMG Employees earning remuneration are generally prohibited from claiming tax deductions for any expenditure other than those items listed in section 23(m) of the Income Tax Act (58 of 1962). This is in contrast to persons carrying on a trade independently of an employer. One of the few deductions still available to employees is for premiums paid on income protection insurance policies. Currently, such premiums are deductible if (a) the policy covers the person against loss of income as a result of
Experts Welcome Revised Definition Of Incentives In Tax Bill
Author: Amanda Visser (Business Day) Proposed changes to the definition of the research and development tax incentives have been toned down or not included in the Taxation Laws Amendment Bill that was tabled in Parliament at the end of last month. Tax experts widely welcomed the revised approach by the Treasury from the initial draft version that was released in July. The previous definition would have excluded all research and development that did not qualify as “world-beating”.
Davis Tax Committee Website Launched
The Davis Tax Committee website has just been launched. The website address is www.taxcom.org.za and it can be used to keep track of the work done by the Committee.Despite the fact that there are only three sub-committees in operation at the moment i.e. small business, tax base and tax mix (Macro) and BEPS, the Committee
South African Personal Income Tax
What is it? Income tax is the normal tax which is paid on your taxable income. Examples of amounts an individual may receive, and from which the taxable income is determined, include – Remuneration (income from employment), such as, salaries, wages, bonuses, overtime pay, taxable (fringe) benefits, allowances and certain lump sum benefits Profits or losses from a business or trade
SARS TAX SEASON 2013
What is it? Tax Season 2013 is open! It’s that time of the year again when you have to complete and submit your Income Tax Return (ITR12). We will help you through Tax Season 2013 with all you need to know so you can file easily and on time. Who is it for? Individuals (Provisional and non-provisional taxpayers)
CRIMINAL INVESTIGATION IN RELATION TO A SERIOUS TAX OFFENCE: WHAT DOES THE
The Tax Administration Act, No. 28 of 2011 (TAA) took effect on 1 October 2012. In light of SARS’s strong emphasis on compliance, this article considers the procedures SARS should follow where it believes that a serious tax offence might have been committed. A ‘serious tax offence’ is defined as “a tax offence for which a person may be liable on conviction to imprisonment for a period exceeding two years without the option of a fine or to a fine exceeding the equivalent amount of a fine under the Adjustment of Fines Act, 1991 (Act no. 101 of 1991).”
IN 75 – Exclusion of Certain Companies and Shares From "group of companies"
This Note provides guidance on the application of the proviso to the definition in section 41(1). Under certain circumstances the corporate rules provide relief from income tax when assets are disposed of between companies forming part of the same “group of companies” as defined in section 41(1). Generally these relief measures defer the income tax on income and capital gains until the asset is disposed of to a third party or until a de-grouping occurs.