On 5th April 2013, the Commissioner: South African Revenue Service issued Government Notice number 260, which appeared in Government Gazette number 36346 on 5th April 2013, setting out returns of information which must be submitted by third parties in terms of section 26 of the Tax Administration Act, No 28 of 2011.
Author: Nyasha Musviba
South Africa’s tax treaty with the DRC provides a new avenue for international investment
The tax treaty entered into between the Democratic Republic of Congo (DRC) and South Africa provides opportunity to promote South Africa as a hub for inward investment into the DRC. The tax treaty provides multinational companies with alternative investment opportunities in the DRC.
Shareholders liable for tax debts of companies on winding up
By Ben Strauss, Director, Tax, Cliffe Dekker Hofmeyr Be aware of potential liabilities. The Tax Administration Act, No 28 of 2011 (TAA) took effect on 1 October 2012. Among other things, the TAA makes third parties liable for the tax debts of taxpayers, under certain circumstances. In terms of s181 of the TAA, shareholders of a company can be liable for the tax debts of a company on winding up.
Sars has increased powers under the Tax Administration Act
An overview The recently promulgated Tax Administration Act, No. 28 of 2011 (TAA) contains provisions that grant some dramatically increased powers to the South African Revenue Service (Sars). Tax recovery on behalf of foreign governments Section 185 of the TAA contains the measures available to Sars to recover tax on behalf of foreign governments. Broadly defined, the provisions of section 185 provide that revenue authorities of a foreign country (with which South Africa has a tax treaty) can request Sars to assist in the collection of foreign taxes due by a person to that country.
Busting tax fiddles
In recent years international lawyers and accountants have built a web of corporate opacity which has enabled tax avoidance and corruption on an alarming scale. Private financial wealth sitting on tax havens has grown to around US$ 21 trillion, of which $9trillion is from developing countries. Some minuscule jurisdictions, such as the Cayman Islands, have become the legal home to trillions of dollars of corporate assets, offering the unbeatable attractions of zero taxation plus secrecy. Some industries are now dominated by them: half the world’s shipping is registered there.
Expert gives assurance on SA, Mauritius tax deal
THE renegotiated double-taxation agreement between South Africa and Mauritius should not be a concern to any group that has structured its affairs properly, says Werksman tax head Ernest Mazansky. His comments come as South Africa has renegotiated its double-taxation agreement with Mauritius following earlier concerns by the South African Revenue Service (SARS) and the Treasury that South African multinationals were abusing the current treaty, negotiated in 1996.
Shuttleworth takes Reserve Bank to court
Pretoria – Billionaire IT entrepreneur and the first South African in space, Mark Shuttleworth, has turned to the Pretoria High Court in a bid to recover the 10 percent exit levy (more than R250 million) imposed on him by the South African Reserve Bank when he transferred more than R2 billion out of the country. His legal team, headed by Gilbert Marcus SC, on Monday asked Judge Francis Legodi to set aside the decision by the Reserve Bank that he had to pay this amount – and he wants to be refunded.
The Design of the Carbon Tax
On 27 February 2013 the Minister of Finance announced that a carbon tax will be introduced with effect from 1 January 2015. He also announced that a carbon tax policy paper would be published that will contain the details for the carbon tax. That policy paper was published on 2 May 2013. This article contains the key design features of the carbon tax as set out in the policy paper.
Year in Review – 2012 Tax Developments in South Africa
During 2012 a number of significant amendments were made to the tax legislation in South Africa. This report provides a brief description of certain of these amendments which may be of interest to foreign companies that conduct business in South Africa as well as those seeking investment opportunities in South Africa.
South Africa introduces a withholding tax on interest
Currently South Africa does not impose a withholding tax in respect of interest paid to any offshore investors. However as from 1 July 2013, the Income Tax Act (58 of 1962) will impose a new withholding tax on interest paid by a resident person to or for the benefit of any foreign person.