Author: Amanda Visser (Businessday, bdlive.co.za) Shareholders will in certain circumstances be held responsible for the tax debt of a company when there is a voluntary winding up, even if they are not involved in the day-to-day management of the company. Some tax experts have argued the provision in the Tax Administration Act (TAA) that allows the South African Revenue Service (SARS) to hold shareholders liable for the tax debt of a company is inequitable.
Author: Nyasha Musviba
Carbon tax has an ozone hole in it
Some really curious things have been happening recently on the climate change front. By and large, a strange silence has descended. Perhaps it’s just that the media is fed up with it. But that belies what is actually taking place. The first thing is that carbon dioxide levels are continuing to rise. Far from wringing your hand
Proposed amendments to the taxation of trusts
Author: Doria Cucciolillo (The SAIT) Background According to the 2013/2014-budget review the National Treasury intends to amend current income tax legislation that relates to trusts. At present trusts function as flow-through mechanisms and therefore provide loopholes to avoid taxes. The proposed amendments aim to reduce the available tax saving schemes involving trusts, but will have no effect on so-called special trusts (established to take care of minor children and persons with disabilities). This article investigates the income tax consequences of the proposed changes.
Mutual assistance provisions in double tax agreement between United Kingdom and South Africa
In the recent case of Ben Nevis (Holdings) Limited & Metlika Trading Limited v The Commissioners for HMRC (Her Majesty’s Revenue and Customs) [2013] EWCA, the Court of Appeal of England and Wales considered the interpretation of the mutual assistance provisions in the double tax agreement (DTA) between the United Kingdom (UK) and South Africa (SA).
Conversion of a share block scheme into sectional title – exemption from transfer duty
With effect from 1 January 2013 transfer duty is no longer payable in respect of a transaction contemplated in item 8 of schedule 1 of the Share Blocks Control Act, No 59 of 1980, whereby a right to or interest in the use of immovable property conferred by virtue of the ownership of a share in a share block company is converted to ownership of the immovable property concerned.
Tax Ombud: Lots of bark, but will it bite?
How the office could affect taxpayers. The recently promulgated Tax Administration Act, No. 2011 (TAA), introduces the Office of the Tax Ombud (the Tax Ombud). According to section 14 read with section 259 of the TAA, the Minister of Finance must appoint a person as Tax Ombud within one year after the commencement date of the TAA, which was on 1 October 2012. The Minister further announced in his 2012 Budget Speech on 22 February 2012 that the Tax Ombud will be appointed during the course of this year.
Connected Person Forex Rules To Provide Limited Protection
The current Income Tax rules that defer tax effects for related party debts and other exchange items are to be replaced with new, revised rules. The revised rules are generally narrower than the current rules and the replacement of the old rules will trigger both one-off and ongoing tax effects for many taxpayers, the majority of which, one suspects, are unaware of the consequences.
STC credits: Planning required to ensure it does not go to waste
When dividends tax was introduced with effect from 1 April 2012 many companies still possessed STC credits. These STC credits arose from the fact that more dividends were received by or accrued to the company in the last dividend cycle than dividends declared during such a dividend cycle. The balance of STC credits as at 31 March 2012 are carried forward into the dividends tax system in terms of section 64J of the Income Tax Act (hereafter the Act).
Gauntlett: Shuttleworth bid could be devastating for SA
Mark Shuttleworth’s bid to have SA’s exchange control declared unconstitutional could have a devastating effect on the country, says Jeremy Gauntlett. Jeremy Gauntlett SC, for the South African Reserve Bank (SARB), argued on Tuesday that the order sought by Shuttleworth in the high court in Pretoria was “the most radical court order imaginable”.
Fiscal residence – new Mauritius DTA provision modifies the test for companies
Recent news articles on international tax have focused heavily on the use by multinational companies of tax-friendly regimes through which to hold investments and to transact business. Heads of industry have been summoned to appear before legislators to explain their companies’ tax structures and transactions. Much has been made in the course of these discussions of the use of benefits afforded under tax treaties to mitigate exposure to tax. It is perhaps significant that these issues did not raise their head when economies were booming, and one may be forgiven for observing that there is an air of desperation in economies whose tax revenues have suffered from the economic downturn of the past few years and which now cast about for scapegoats.