Johannesburg – South Africa recorded a R770m trade surplus in November after a R12.39bn deficit the previous month, data from the South African Revenue Service (Sars) showed on Monday. The data incorporates previously excluded trade with South Africa’s regional neighbours Botswana, Lesotho, Namibia and Swaziland, collectively referred to as BLNS. When stripping out trade with the BLNS countries, the trade balance showed a R9.24bn deficit for November, narrower than the R20.97bn shortfall for October. Exports in November, including regional trade, were up 5.3%, while imports were down 8.8%, Sars said.
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Estate Planning – Letter of wishes
Estate planning is a tricky and complex matter, replete with many pitfalls for the testator and his professional advisers. Tax planning is of course an important dimension of estate planning, and a close familiarity, on the part of the planner, with the Estate Duty Act, the Income Tax Act – and of course the provisions of the Wills Act – is essential.
New Tax Clearance Certificate (Tcc) Application Process
Author: SARS Legal and Policy SARS have introduced an enhanced Tax Clearance Certificate application process on eFiling and in branches. This is the first step in the phased implementation of a modernised tax compliance process to be introduced in the first quarter of 2014.
Investors Need More Than What's on Offer
Author: Matthew Lester (BusinessDay) There is a new tax package on the way for special economic zones to replace the old industrial development zone package. It promises a preferential tax rate of 15% and enhanced building-tax allowances. Companies also stand to benefit from the employment tax incentive, regardless of the age of the employee.
A Conundrum? The VAT Consequences of a PBO Entering into a Joint Venture with a Third Party
Author: Prof Daniel Erasmus (TRM Services) A public benefit organisation (“PBO”) is a nonprofit company with members that includes the following objects as set out in its Memorandum of Incorporation: “… to develop technology and materials in support of such objectives…”. The PBO wants to enter into a Joint Venture arrangement with a company (“the Company”) that is able to contribute the skills and expertise “… to develop technology and materials in support of such objectives…”. But it only wants to do so if there are no adverse value-added tax (“VAT”) consequences.
Income protection policies: deduction for premiums to be abolished
By Dan Foster, associate director: International Executive Services, KPMG Employees earning remuneration are generally prohibited from claiming tax deductions for any expenditure other than those items listed in section 23(m) of the Income Tax Act (58 of 1962). This is in contrast to persons carrying on a trade independently of an employer. One of the few deductions still available to employees is for premiums paid on income protection insurance policies. Currently, such premiums are deductible if (a) the policy covers the person against loss of income as a result of
CRIMINAL INVESTIGATION IN RELATION TO A SERIOUS TAX OFFENCE: WHAT DOES THE
The Tax Administration Act, No. 28 of 2011 (TAA) took effect on 1 October 2012. In light of SARS’s strong emphasis on compliance, this article considers the procedures SARS should follow where it believes that a serious tax offence might have been committed. A ‘serious tax offence’ is defined as “a tax offence for which a person may be liable on conviction to imprisonment for a period exceeding two years without the option of a fine or to a fine exceeding the equivalent amount of a fine under the Adjustment of Fines Act, 1991 (Act no. 101 of 1991).”
Business Travel – Red or Green Lane?
Author: Cliff Watson (Grant Thornton) With the ever increasing mobility of business people globally, the requirement for regular cross border travel is increasing. Consultants and technicians are required to travel at a moment’s notice to provide services and goods to customers. However, travellers, and their employers, who are not paying attention to the VAT and customs duty rules may find themselves facing unnecessary tax risk.
Taxpayer's rights in respect of a suspension of payment of tax
Any taxpayer who wishes to object to or appeal against an assessment issued by the South African Revenue Service (“SARS”) must be aware that their obligation to pay any tax under that assessment is not automatically suspended by virtue of the submission of the objection or appeal itself. Any taxpayer who wishes for an objection or appeal to first be concluded before paying the tax due under an assessment would have to lodge a separate request for suspension of payment of tax in terms of section 164 of the Tax Administration Act No. 28 of 2011 (“the TAA”).
The headquarter tax regime
Introduction The definition of headquarter company (“HQC”) was introduced as section 9I of the Income Tax Act No. 58 of 1962 (“the Act”) with effect from the commencement of years of assessment commencing on or after 1 January 2011. The purpose of the HQC regime was to make South Africa an attractive location for multinationals wishing to invest in Africa.