Author: BDO Binding Private Ruling 157 dealt with the income tax consequences arising from, and the attribution rules applicable to a distribution of foreign assets made by non-resident discretionary trusts to a beneficiary who is a resident of South Africa, and the subsequent donation by the beneficiary of such assets to another non-resident trust.
Tag: Tax Adminstration Act
Determining A 'Group Of Companies' For Purposes Of The Corporate Rules
Author: Andrew Lewis (CliffeDekkerHofmeyr) The Income Tax Act, No 58 of 1962 (the Act) contains a definition of a ‘group of companies’ in s1 of the Act. However, a narrower definition of the term ‘group of companies’ is contained in s41 of the Act, which applies to certain corporate tax roll-over rules and other provisions contained in the Act. It is important to identify which companies fall within the different definitions of a ‘group of companies’ in order to determine whether one qualifies for the applicable tax relief.
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.
Changes To The Taxation Of Dividends In Employee Share Schemes
Author: Stephan Spamer & Mareli Treurnicht (ENS) As a general rule, subject to certain exceptions, local dividends received and accrued to a South African tax resident are exempt from normal tax in terms of section 10(1)(k) of the Income Tax Act, 1962 (“ITA”). One such exception applies to employee share schemes by virtue of the application of section 10(1)(k)(i)(dd).
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.
Ngoepe appointed as new tax ombudsman
By Chantelle Benjamin Retired Judge Bernard Ngoepe said during his appointment as SA’s new tax ombudsmad that he would like to create confidence with the public. Judge Bernard Ngoepe. (M&G) Newly appointed tax ombudsman retired Judge Bernard Ngoepe said on Thursday that his biggest challenge will be creating confidence in the newly established office so the public feel they have someone to assist them with their grievances against the South African Revenue Service (Sars).
Render unto Caesar – Harsh Tax Penalties Reviewed
JOHANNESBURG – Taxpayers who accidentally reduce their tax liability due to a reasonable mistake without any intent to defraud the Taxman, won’t be subjected to harsh understatement penalties in future. The Tax Administration Laws Amendment Bill was introduced in the National Assembly last week and revises regulations to such an extent that the South African Revenue Service (Sars) won’t impose penalties in cases where the understatement by the taxpayer “results from a bona fide inadvertent error”. This follows criticism from tax practitioners and taxpayers on the harsh penalties previously imposed even where taxpayers had no intention of deceiving Sars.
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
Experts Welcome Revised Definition Of Incentives In Tax Bill
Author: Amanda Visser (Business Day) Proposed changes to the definition of the research and development tax incentives have been toned down or not included in the Taxation Laws Amendment Bill that was tabled in Parliament at the end of last month. Tax experts widely welcomed the revised approach by the Treasury from the initial draft version that was released in July. The previous definition would have excluded all research and development that did not qualify as “world-beating”.