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.
Tag: corpotate tax
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.
South Africa, Mauritius DTA Revisions Could Catch Out Multinationals
by Lorys Charalambous, Tax-News.com, Cyprus According to Johan Hatting, PricewaterhouseCoopers’ senior international tax manager, the revised double taxation agreement (DTA) between South Africa and Mauritius, which was signed on May 17 this year and should, from January 1, 2015, replace the original treaty signed in July 1996, could prove problematic for South African multinationals.
New tax form required for claiming relief for foreign taxes imposed or withheld on SA residents, says Deloitte
Issued by: Magna Carta (PR) Taxpayers claiming relief for foreign taxes improperly imposed or withheld should take note that they are now required to complete a new declaration form that must be completed before relief can be claimed, says Deloitte. “The form (‘FTW 01’) is applicable to South African residents seeking relief for improperly imposed or withheld foreign taxes in terms of Section 6quin of the Income Tax Act, which was introduced with the Tax Laws Amendment Bill of 2011,” says Louise Vosloo, Director in International Tax at Deloitte.
SA, Mauritius sign new tax treaty
South Africa has signed a new tax treaty with Mauritius, accounting firm PriceWaterhouse Cooper (PwC) said The abuse of the old, 1996 treaty was the main reason for the new treaty, said PwC international tax senior manager Johan Hatting (SUBS: CORR). Some had feared the SA Revenue Service and the National Treasury would simply terminate the treaty because it was being abused by South African multinationals, he said.
Tax act could be subject to litigation
Source: Evan Pickworth (BusinessDay live) It may take a long time to bed down what the new Tax Administration Act means because there are a host of sections which could be subject to litigation, according to high court judge and government tax review head Dennis Davis.
Consideration for the surrender of a right to acquire shares
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).
Taxman always rings twice
The government is gearing up to rake in a bigger share of multinational corporations’ profits. The Treasury and SARS yesterday invited public comment on their “Proposed limitations against excessive interest tax deductions” [excessive deductions of interest from taxable income].
Double taxation a headache for SA corporates
By Ingé Lamprecht African countries are turning to tax collection. JOHANNESBURG – After a number of years where some African countries have generally focused on attracting investment, developing infrastructure and creating jobs, a number of countries are now turning their attention to tax collection in an effort to supplement their state coffers.