The Tax Administration Act No. 28 of 2011 (TAA) which (except for a few sections) came into effect on 1 October 2012, has introduced new rules governing reportable arrangements.
Author: Nyasha Musviba
NWK judgment analysed
Judgment in the case of Mariana Bosch and Ian McClelland v Commissioner for the South African Revenue Service (Case no A94/2012) was handed down on 20 November 2012 by a full bench of the Western Cape High Court. The main judgment was written by Davis J (Baartman J concurring) and a separate judgment was written by Waglay J. The matter was on appeal from the Tax Court.
Meaning of primary residence
The term ‘primary residence’ is defined in paragraph 44 of the Eighth Schedule to the Income Tax Act No. 58 of 1961 (the Act). The reason this definition has captured the minds of many is due to the exclusion on the gain or loss made on disposal of one’s primary residence,
Sale of shares in a foreign company
South African residents are taxed on their worldwide income. Accordingly, a capital gain arising from the sale of shares in a foreign company will be subject to South African tax unless an exemption applies or a double tax agreement provides otherwise.
Discretionary dividends received by a company
A “last minute” amendment in the Taxation Laws Amendment Act No. 22 of 2012, relating to the income tax treatment of dividends received by a company in certain circumstances, may have far-reaching tax implications for companies and therefore need to be taken into account for all dividends received or accrued on or after 25 October 2012.
Trusts – is the conduit principle in peril?
The announcement regarding trusts in the 2013 budget is notable for two reasons: its brevity and its lack of detail. Any comments made in advance of the publication of the first draft of the Taxation Laws Amendment Bill expected in June can therefore only be speculative.
Tax Ombud: Another toothless entity?
By Ingé Lamprecht Questions abound on its independence, limited powers. JOHANNESBURG – The tax industry has been lobbying for an ombud system as a cost-effective remedy for taxpayers for some time. The Tax Ombud, it was envisaged, could offer a remedy for taxpayers to use in instances of failures in service delivery and enforcement of rights with regards to tax administration, without the need to escalate to court at great cost and time delay.
How the Mauritian tax treaty will affect business
Should foreigners invest directly into SA? The news* of the revised double tax agreement between South Africa and Mauritius (“the new DTA”) on Monday, 27 May, rang alarm bells for both Mauritian companies investing into South Africa as well as for South African companies expanding offshore via Mauritius.
Is your business ready for the carbon tax?
Strategy should take costs into account. Johannesburg – The carbon tax to be introduced on 1 January 2015 is the biggest change to the South African tax landscape since the introduction of capital gains tax in 2001. Households and businesses will all be affected to some extent and have until January 2015 to come to terms with, and devise a strategy for, the impact that a carbon tax may have on their operations.
What do Apple, Google and Starbucks have in common?
by Ingé Lamprecht Managing tax base erosion and profit shifting in a new world order. What do Apple, Google and Starbucks have in common? The US? Right. Adored by many South Africans? Right again. Moreover, these companies have all recently been under fire for not “paying their fair share” of taxes, especially in the UK. Yet they have all emphasised that they are following the tax laws to the letter.