Category: Income Tax

Does Sars invade your privacy?

Nyasha Musviba

Behind the Taxman’s controversial warrantless search powers. Finding a balance between taxpayers’ rights and Sars’s powers to search premises can prove difficult, especially in cases where a tax official does not have a warrant. The “warrantless search and seizure”, a controversial new power introduced in the Tax Administration Act that came into effect last year, has been debated at length since it was first proposed a couple of years ago. The criticism against the provision stems from fears that a warrantless search could infringe certain constitutional rights of taxpayers such as taxpayers’ right to privacy or fair administrative action.

Consideration for the surrender of a right to acquire shares

Nyasha Musviba

Section 8C under the spotlight. The South African Revenue Service (Sars) issued Binding Private Ruling 147 (ruling) on 14 May 2013. It deals with the tax treatment of compensation received by an employee for the surrender of a right to acquire shares under s8C of the Income Tax Act, No 58 of 1962 (Act).

SARS catching up with the Mpisanes

Nyasha Musviba

The SA Revenue Service (SARS) has been granted permission to seize five properties belonging to Shauwn and Sbu Mpisane, it was reported.Mpisane’s firm had history with tax returns Mpisane’s firm had history with tax returns. Mpisane lawyers accuse prosecution of suppressing information Mpisane lawyers accuse prosecution of suppressing information The five properties were in a trust which would be held by SARS pending the outcome of an ongoing investigation into the couple’s business and personal financial affairs, The Mercury reported.

Safeguard Against Penalties With A Tax Opinion

Nyasha Musviba

South African Revenue Services (SARS) may raise understatement penalties if prejudice has been caused to them or the fiscus. Penalties can be imposed at 25% or 50% in the case of a ‘substantial understatement’. There are however circumstances when, notwithstanding that the taxpayer has erred, SARS will remit the penalty if the taxpayer is in possession of an opinion by a registered tax practitioner.

How tax can affect your residential property investment

Nyasha Musviba

Returns, pitfalls and tax breaks in a nutshell Tax can make or break the potential returns from an investment in residential property. To benefit from possible tax breaks while avoiding the pitfalls, investors should be aware that different investment vehicles can significantly increase or reduce their tax liability. In this article we focus on the purchase of property for the purpose of earning a return rather than for use as a primary residence.

Wider powers for Sars a wake-up call

Nyasha Musviba

Sars has gazetted far-reaching new regulations that will give it access to a greater range of third-party information it can use to cross-check returns submitted by taxpayers.”These new regulations will greatly enhance Sars’ ability to verify the accuracy of information submitted by taxpayers,” says Ettiene Retief, chairperson of the National Tax and Sars Stakeholders Committees at the South African Institute of Professional Accountants (Saipa). “It’s a clear indication that Sars is getting more serious about collecting the tax monies due to it.”