Category: Uncategorized

Dealing with indirect tax data is the key to effective indirect tax management. But the variety of indirect tax data required by different jurisdictions and the sheer quantity of relevant data generated by large organizations can present a range of logistical issues. With the increased reliance on indirect taxes and the “fair tax” debate putting companies’ affairs firmly in the spotlight, we consider some key challenges faced by multinational tax, trade and finance departments.

Section 8F of the Income Tax Act, dealing with hybrid debt instruments was substituted by the Taxation Laws Amendment Act of 2013. In its substituted form the provision is considerably broader in scope than its predecessor. In particular it appears that certain subordination agreements may render the subordinated debt subject to reclassification as hybrid debt with potentially costly consequences. The new treatment applies to amounts incurred on or after 1 April 2014. In terms of section 8F if a debt instrument falls into classification as a hybrid then the effect is that interest incurred in respect of the hybrid debt instrument:

Dear Employer From 1 April 2014 it will be time to submit your Employer Annual Reconciliation for the period 1 March 2013 to 28 February 2014. You are encouraged to submit your reconciliation early as this will give you time to resolve any issues which may arise. To help you get ready to submit, we would like to tell you about the changes you may expect this year: • Updated version of e@syFile™ Employer availableRemember to always backup your current information on your computer prior to installing a new version of e@syFile™ Employer, as the installation may delete your current information.

New research from the Grant Thornton International Business Report (IBR) reveals that 64% of South African business leaders would welcome more global co-operation and guidance from tax authorities on what is acceptable and unacceptable tax planning, even if this provided less opportunity to reduce tax liabilities across borders This figure is in line with BRIC business leader responses (68%) while globally 53% of executives surveyed would also welcome greater global co-operation.

JOHANNESBURG, 1 April 2014 – The 1st of April is traditionally the day we report our preliminary revenue outcome within twelve hours after the close of the fiscal year at midnight on the 31st of March. The February 2014 Budget sets SARS a revenue target of R899 billion. For the 2013/14 fiscal year which ended at midnight— SARS collected R899.7 billion which is R0.7 billion above the revised estimate in the 2014 Budget. Tax revenues grew and exceeded the previous year’s revenue collections of R814.1 billion by R85.7 billion Nominal GDP growth for 2013 remained subdued at 8.3% but tax revenue grew by 10.5%

Products that are complex, hard to understand or hit you with excessively high penalties if you stop or reduce your contributions will not be allowed in National Treasury’s proposed savings accounts. Investments housed within the proposed tax-incentivised savings accounts will have to be good for your financial health – the financial services industry will not be allowed to offer complex, difficult-to-understand products or those that hit you with high penalties if you stop or reduce your contributions, National Treasury says.

Author: Amanda Visser (BDlive) The headache of fictional loans attracting fictional interest “forever and a day” — caused by transfer-pricing rules changing in 2012 — appears to have been relieved by the latest budget. Before the Treasury’s move this year, a secondary transfer pricing adjustment — which occurs in some transactions between a company and its foreign subsidiaries — had been treated as a deemed loan. The problem is that a company can almost never get a deemed loan off its books as it is not a loan requiring repayment. The loan attracts interest, which has a tax implication, and this was set to become a recurring problem for companies and tax practitioners.

Author: Yasmeen Suliman (KPMG) It is well known that the growth of the South African economy is languishing, and unemployment levels are dangerously high. Without real economic growth, it is unlikely that sufficient sustainable jobs will be created to reduce unemployment levels significantly. Tax collections are also under pressure; a depressed economy means lower tax collections. With a ballooning government deficit, the National Treasury has to collect more revenue to fund expenditure. One could almost label our situation as desperate – and, as everyone knows, desperate times call for drastic measures.

The South African Income Tax Act 58 of 1962 defines a “spouse” in relation to any person as a person who is a partner of such person in a marriage, customary relationship or union recognised as a marriage under the laws of South Africa or any religion. The definition also includes a same-sex or heterosexual relationship which the Commissioner is satisfied is intended to be permanent. Spouses married out of community of property are taxed separately on their individual incomes.

THE controversial Customs Control Bill adopted by Parliament’s finance committee on Wednesday includes a “fallback” provision allowing for a return to the current customs control system should the new one fail. A similar clause was included in the law that introduced value-added tax in 1991, allowing for a legal alternative to be implemented quickly if things do not work out as planned. The committee also adopted the Customs Duty Bill and the Customs and Excise Amendment Bill as part of a total revamp by the South African Revenue Service (SARS) of the customs system.