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.
Tag: Tax Adminstration Act
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.
SARS: 15 years in jail a warning to rogue staff
SARS hopes a long jail sentence handed down to a former employee convicted of racketeering will deter staff from committing fraud. Yesterday (23 May 2013), the Cape Town High Court sentenced Edmund Fredericks and Aaron Carelse to 15 years in jail. Judge Daniel Dlodlo found that Fredericks, a former SARS employee, had been the key figure in several VAT and income tax scams. The two men were found guilty of fraud, forgery and “participating in an enterprise through a pattern of racketeering”.
Tax on foreign employment income likely to change
It is common practice in many multinational organisations for employees to render services in more than one country. In the case of South African tax residents working abroad on long-term assignments, the recent announcement in the 2013 budget regarding proposed changes to the foreign earnings exemption may potentially affect their South African tax liability in relation to foreign-earned remuneration.
Courts reel in SARS ‘fishing expeditions’ against taxpayers
Source: Evan Pickworth (BusinessDay live) OPEN-ended fishing expeditions by the South African Revenue Service (SARS) could come under attack as court actions begin to mushroom against tax assessments in South Africa, a tax conference heard on Wednesday.
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.
Does Sars invade your privacy?
Behind the Taxman’s controversial warrantless search powers. Finding a balance between taxpayers’ rights and Sars’s powers to search premises can prove difficult, especially in cases where a tax official does not have a warrant. The “warrantless search and seizure”, a controversial new power introduced in the Tax Administration Act that came into effect last year, has been debated at length since it was first proposed a couple of years ago. The criticism against the provision stems from fears that a warrantless search could infringe certain constitutional rights of taxpayers such as taxpayers’ right to privacy or fair administrative action.
Recognition of the controlling bodies of tax practitioners?
The Tax Administration Act, 2011, has been amended to require tax practitioners to register with a recognised controlling body by 1 July 2013, in addition to the existing requirement that they register with SARS. This amendment is intended to provide a framework that will ensure that tax practitioners are appropriately qualified and that a mechanism is available, both to taxpayers and SARS, to address misconduct.
Safeguard Against Penalties With A Tax Opinion
South African Revenue Services (SARS) may raise understatement penalties if prejudice has been caused to them or the fiscus. Penalties can be imposed at 25% or 50% in the case of a ‘substantial understatement’. There are however circumstances when, notwithstanding that the taxpayer has erred, SARS will remit the penalty if the taxpayer is in possession of an opinion by a registered tax practitioner.
Do you know your rights as a taxpayer?
Concern over lack of remedies when Sars oversteps. Despite constructive regulatory changes in the tax administration environment, there are concerns about the lack of cost effective remedies for taxpayers in cases where the South African Revenue Service (Sars) fails to comply with its obligations.