Background ITC 13003 [2013] involved the disposal of shares by a taxpayer and whether the proceeds realised constituted gross income and were of a revenue nature. The taxpayer happened to be a Special Purpose Vehicle and it was argued that the proceeds of the sale of shares were of a capital nature. There were also additional costs incurred which were closely associated with the acquisition of the shares in question. These costs incurred were the so-called ’equity-kicker’ and ‘indemnity costs’.
Tag: GAAR
SA Shines In Global Tax Rankings
South Africa is one of only 18 countries that comply fully with international standards on the transparency and exchange of taxpayers information, the Treasury said in a statement on Wednesday. The exchange of tax information on request refers to when one tax authority seeks financial information from its counterpart. It relates to both individual and corporate taxpayers, according to the Global Forum on Transparency and Exchange of Information for Tax Purposes.South Africa outperformed countries like the United Kingdom, United States, Qatar and Mauritius.
Czech-mate: Sars closes in on Krejcir
Czech businessman Radovan Krejcir. File photo: Thobile Mathonsi Johannesburg – Twelve people dead, two on trial and one fighting extradition. They all have one thing in common: convicted Czech fugitive, Radovan Krejcir. But South African law enforcement haven’t been able to nail him for violent crime yet, so they went after him Al Capone style – for tax evasion. Around 4pm on Friday, the SA Revenue Service served Krejcir with a preservation order which stated that all his assets had been placed under the control of a curator.
SA model has to explain expensive gifts to SARS
Cape Town – A South African swimwear model, Candice van der Merwe, may be summoned to the Cape High Court to explain the origins of $15.3m (R155m) she claims was a gift from an unnamed Arab admirer. Van der Merwe says the astounding sum was a gift from “a companion” she met at a private Seychelles resort.
Sars to clamp down on tobacco companies
President Jacob Zuma’s eldest son Edward Zuma was listed as a director at the Amalgamated Tobacco Manufacturing company until 2011. Photo: Marilyn Bernard Johannesburg – Sars will be asking the National Prosecuting Authority to prosecute 15 local tobacco manufacturers and importers for tax evasion and smuggling as they continue probing and clamping down on illicit trade. And other traders, who are at “a risk of non-compliance” have been issued a warning of “regular and random audits and verification exercises”. Should any of these traders be found to be non-compliant, their manufacturing licences could be withdrawn.
SARS Successfully Opposes Business Rescue Application
A recent judgment of the North Gauteng High Court dealt with the powers of the South African Revenue Service to bring an application under section 177 of the Tax Administration Act for the sequestration, liquidation or winding-up of a taxpayer that is a tax debtor (CSARS v Miles Plant Hire (Pty) Ltd, judgment delivered on 30 September 2013).
Securities lending – tax implications arising from the taking of cash collateral
South African residents are taxed on their worldwide income. In particular, the Income Tax Act includes in “gross income” any amount received or accrued that is not of a capital nature. Based on case law, an amount “accrues” to a taxpayer when the taxpayer becomes unconditionally entitled to receive it (CIR v Genn and Company (Pty) Ltd, (20 SATC 113)).
Tax Adminstration Act No 28 of 2011 – Tax Litigation
Tax litigators will now have to consider, inter alia, the impact of certain provisions under the Tax Administration Act No. 28 of 2011 (the TAA) as amended by the Tax Administration Laws Amendment Act No. 21 of 2012 on the doctrine of legal professional privilege and a recent judgment reflecting the view of a court with regards to the adherence to the rules of the Tax Court by the South African Revenue Service (SARS).
International Tax – Mutual Assistance between South Africa and UK DTA
In the recent case of Ben Nevis (Holdings) Limited & Metlika Trading Limited v The Commissioners for HMRC (Her Majesty’s Revenue and Customs) [2013] EWCA, the Court of Appeal of England and Wales considered the interpretation of the mutual assistance provisions in the double tax agreement (DTA) between the United Kingdom (UK) and South Africa (SA).
Binding Ruling – BPR 143 – Headquarter company
Binding Private Ruling 143, dated 2 May 2013, issued in terms of section 76Q of the Income Tax Act No. 58 of 1962 (the Act), deals with whether certain preference shares held by the applicant (a public company incorporated and resident in South Africa) qualify as equity shares in the context of the definition of headquarter company in section 1 of the Act.