What is it? Income tax is the normal tax which is paid on your taxable income. Examples of amounts an individual may receive, and from which the taxable income is determined, include – Remuneration (income from employment), such as, salaries, wages, bonuses, overtime pay, taxable (fringe) benefits, allowances and certain lump sum benefits Profits or losses from a business or trade
Tag: Tax Adminstration Act
SARS TAX SEASON 2013
What is it? Tax Season 2013 is open! It’s that time of the year again when you have to complete and submit your Income Tax Return (ITR12). We will help you through Tax Season 2013 with all you need to know so you can file easily and on time. Who is it for? Individuals (Provisional and non-provisional taxpayers)
IN 75 – Exclusion of Certain Companies and Shares From "group of companies"
This Note provides guidance on the application of the proviso to the definition in section 41(1). Under certain circumstances the corporate rules provide relief from income tax when assets are disposed of between companies forming part of the same “group of companies” as defined in section 41(1). Generally these relief measures defer the income tax on income and capital gains until the asset is disposed of to a third party or until a de-grouping occurs.
What a Wicked Web We Weave, When We Issue Bogus VAT Invoices To Deceive!
Cash-strapped companies that are staring liquidation in the face sometimes resort to desperate measures to convince the court hearing an application for winding-up that they are not, in fact, insolvent and should not be wound up. A novel and imaginative method was adopted by the company, a VAT vendor, in ITC 1865 (2013) 75 SATC 250, though it is unlikely to become popular or to find its way into tax-planning manuals.
The Respective Jurisdiction Of The Tax Court And The High Court
An aggrieved taxpayer who wishes to institute legal proceedings against SARS in relation to some aspect of his tax affairs must be sure to raise his grievance in the proper forum. That forum may be either the Tax Court or the High Court.
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).
Youth Wage Subsidy Bill Passed
Parliament adopted the employment tax incentive bill on Thursday as the Treasury prevailed in its three-year battle with trade union movement Cosatu over a youth wage subsidy.Although all opposition parties voted in favour of the bill, they said the standoff had watered it down, let down job-seekers and undermined the National Education Development and Labour Council (Nedlac).
SARS audits and taxpayers’ rights
The Tax Administration Act, Act 28 of 2011 (‘the TAA’) came into effect on 1 October 2012. Its promulgation brought with it many changes to not only taxpayers’ rights and obligations but the reciprocal rights and obligations on the part of the South African Revenue Service (‘SARS’) in its continuous business of revenue collection. Some of the amendments and repeals of sections previously contained in the Income Tax Act, Act 58 of 1962 (‘the Act’) have seen a welcome improvement in taxpayers’ rights. One of these improvements is contained in section 42 of the Act.
Issue of shares as consideration
In order for the ownership of assets to pass from a seller to a buyer it is necessary that the parties agree three essential elements: price, terms and structure. These three elements are interdependent in any transaction. For instance, after agreeing the price of a transaction, i.e. the number of rands or rand value of other consideration the seller will receive, the parties will need to agree the terms such as whether the price will be paid by means cash, debt and/or shares as well as the timing of these payments.
SARS to fight for its fair share of the tax pie
Earlier this year Minister Pravin Gordhan (“the Minister”) announced the members of the Tax Review Committee (“the committee”) as well as the committee’s terms of reference. The terms of reference for the committee include inquiring into the role of the South African tax system in the promotion of inclusive economic growth, employment creation, development and fiscal sustainability. The committee is required to take into account recent domestic and global developments and, in particular, the long-term objectives of the National Development Plan (NDP) and thereafter make recommendations to the Minister. Any tax proposals arising from these recommendations will be announced as part of the normal budget and legislative processes.