JOHANNESBURG – The regulation of tax practitioners, due to start on July 1 this year, could see thousands of practitioners leave the system. This follows prolonged efforts to clean up an industry where every Tom, Dick and Harry could previously file returns and offer tax advice.
Tax News
Can interest really be claimed on share acquisitions?
It has become well known through case law and practice that interest on loans used to acquire shares may not be deducted by the taxpayer. This is because taxpayers earn exempt dividend income and it is impossible to show that the interest deduction is directly connected with the production of taxable income.
Taxation of government grants
Generally, government grants or subsidies under incentive programmes have always been exempt from income tax in the hands of the recipient. However, some subsidies or grants were indeed taxable and the tax legislation lacked overall policy direction. This often led to confusion about the nature of the receipt.
SARS eyes global companies' tax structures
Multinationals based in SA – particularly in the mining, automotive, pharmaceutical and finance sectors – will need to pay special attention to taxes. The South African Revenue Service (Sars) said this week that it plans to increase its scrutiny of multinationals when it comes to tax compliance, particularly with regard to transfer pricing and double taxation, which it has identified as a problem.
SARS Consults On Thin Capitalization Rules
The South African Revenue Service (SARS) is consulting on a draft interpretation note to provide taxpayers with guidance on the application of the arm’s length basis in the context of determining whether a taxpayer is thinly capitalized and, if so, calculating taxable income without claiming a deduction for the expenditure incurred on the excessive portion of finance.
IFRS on shares to be incorpotated into income tax
The introduction of International Financial Reporting Standards into the Income Tax Act is setting a dangerous precedent, according to tax and legal experts. The changes will bring about a fundamental change in the way South Africans will be taxed in future, and will certainly not simplify tax matters.
Most of your tax money well-spent – Gordhan
PRETORIA – Minister of Finance Pravin Gordhan attempted to reassure South Africans that most of the money collected through taxes is being used for the correct purposes. At a media briefing on Tuesday, held to share the preliminary outcome of revenue collection for the 2012-13 financial year, Gordhan said that South Africans are asking that their money be well-spent and rightly so.
Justice Zak Yacoob to head up enquiry into allegations against Sars Commissioner
Following allegations of impropriety involving Sars commissioner Oupa Magashula Retired Constitutional Court judge Zak Yacoob has been appointed to probe allegations of impropriety involving Sars commissioner Oupa Magashula, Finance Minister Pravin Gordhan said on Tuesday.
Summary Tax Guide for 2013/2014
TAX GUIDE – 2013/2014
SA Income Tax Tables 2012 – 2013
SA Income Tax Tables 2012 – 2013