Author: Daniel Areias & Johan Kotze (Bowman Gilfillan) All taxation , in one way or another, may impact upon fundamental human rights. However, to ensure that the imposition is not absolute, section 5 of the Promotion of Administrative Justice Act provides that every person, whose rights may have been materially and adversely affected by administrative action, may request written reasons for that action from the administrator responsible.
Tag: corpotate tax
Group tax: A simple solution?
Ingé Lamprecht New bill introduces complications. JOHANNESBURG – The benefits of a group taxation system should be investigated. Zweli Mabhoza, head of taxation services at SizweNtsalubaGobodo, says one of the reasons why group taxation – where legal entities within a group of companies are treated as one taxpayer – has been opposed in the past, is because South Africa does not have sufficient skills to support the introduction of such a complicated tax system.
Tax Ombud: Lots of bark, but will it bite?
How the office could affect taxpayers. The recently promulgated Tax Administration Act, No. 2011 (TAA), introduces the Office of the Tax Ombud (the Tax Ombud). According to section 14 read with section 259 of the TAA, the Minister of Finance must appoint a person as Tax Ombud within one year after the commencement date of the TAA, which was on 1 October 2012. The Minister further announced in his 2012 Budget Speech on 22 February 2012 that the Tax Ombud will be appointed during the course of this year.
Receiver Throws Information Net Wider
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.
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.
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.
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.