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FEATURED EVENT: Tax Indaba 2018

5 days, 1 800 delegates, 50+ tax topics – this and more culminated in the 2017 Tax Indaba which was held from 11-15 September 2017 at the Sandton Convention Centre.  Since its debut in 2011, the event has grown in leaps and bounds over the years. This is evidenced by the inauguration of the Finance Minister as one of the keynote speakers at this year’s event as well as the extensive media coverage that followed on TV news channels, radio stations and in printed media. Thanks to the...

SAIT CPD
PwC’s Tax Controversy and Dispute Resolution Survey

SARS has recently come under the microscope when President Ramaphosa called in his State of the Nation address for urgent steps to strengthen SARS. The Acting Commissioner for SARS has already brought about significant change at SARS.

 

The purpose of the survey is to be a barometer of the perceptions of taxpayers in relation to tax controversy and dispute resolution in order to establish a baseline which can support constructive engagement with SARS.  In order for us to do...

Elle-Sarah Rossato - PWC
Make sure your tax practice is listed in TaxTalk’s Tax Directory

If you forgot to book your spot in TaxTalk’s Jul/Aug 2018 Tax Directory, you’re still in time to get listed in the Sep/Oct 2018 edition! Bookings can be made by emailing editor@thesait.org.za. Deadline for submission is 29 July.

 

WHAT DOES THE standard LISTING LOOK LIKE?

...

TaxTalk Magazine

Tax Administration & Interpretation
(SARS and Office of the Tax Ombud)

Interpretation Note 102 – Classification of risk policy and the once-off election to transfer certain policies or classes of policies issued before 2016 to the risk policy fund

This Note provides guidance on – the interpretation and application of the definition of “risk policy” in section 29A(1); and the once-off election by an insurer to transfer certain policies or classes of policies issued before 1 January 2016 to the risk policy fund under section 29A(13B).

SARS
SARS mobile tax unit schedule – all regions

Services offered at these mobile units:  Completion & submission of tax returns, submission of PAYE recons & e@syfile™ statements of account, general queries, banking detail changes and changes to registered particulars.  Click here to view schedule.

SARS
BCR 063 Income Tax implication of settlement agreement

This ruling determines the treatment of contributions made by employer companies to a trust in terms of a settlement agreement and how the amounts accruing to or received by the trust and the beneficiaries of the trust will be treated.

SARS

TAX CASES

Commissioner for the South African Revenue Service v Massmart Holdings Limited (IT14294) [2018] ZATC 2 (11 July 2018)

Tax Court – Practice – Exception – Procedure of excepting to a pleading finds application in an appeal to the tax court.  Exception that statement of grounds of appeal lacks averments sufficient to sustain the appeal, dismissed.

SARS Court Cases
Commissioner for the South African Revenue Service v Massmart Holdings Limited (IT14294) [2018] ZATC 2 (11 July 2018)

Tax Court – Practice – Exception – Procedure of excepting to a pleading finds application in an appeal to the tax court. Exception that statement of grounds of appeal lacks averments sufficient to sustain the appeal, dismissed.

SARS Court Cases
CSARS vs KWJ Investments Service Pty Ltd - 31 May 2018

Gross income – whether a cession of a dividend right constitutes a receipt or accrual for the purposes of gross income – if so, does a practice generally prevailing in terms of provision (iii) to s 79 (1) of the Income Tax Act 58 of 1962 apply.

SARS Court Cases

Legislative & Policy
(National Treasury & Parliament)

Draft dispute resolution rules under Section 103

SAIT has commented on the draft dispute resolution rules under Section 103 of the Tax Administration Act.

SAIT Tax Policy
Consequential amendment to definition of "permanent establishment"

SAIT has commented on the consequential amendment to the definition of "permanent establishment" in the Income Tax Act.

SAIT Tax Policy
Latest Published Government Gazette

Click here to read the latest published goverment gazette.

Rentia Janse Van Niewenhuizen - Government Printing

Call For Comment
SAIT member comments can be directed to taxpolicyadmin@thesait.org.za

National Legislation​

2018 Draft Taxation Laws Amendment Bill, 2018 Draft Explanatory Memorandum on the 2018 Draft TLAB, 2018 Draft Tax Administration Laws Amendment Bill, 2018 Draft Memorandum on the objects of 2018 Draft TALAB & Media Statement.

Next due date for comments: 16 August 2018 New!

SARS
Income Tax Act, 1962​

Draft guide on venture capital companies. Next due date for comments: 31 August 2018 New!​

SARS
Income Tax Act, 1962​

Draft guide on mutual agreement procedures (MAPs). Next due date for comments: ​15 June 2018

SARS

International and Regional News
(OECD and ATAF)

Platform for Collaboration on Tax invites final comments on a revised version of its report on the “Taxation of Offshore Indirect Transfers of Assets”

The Platform for Collaboration on Tax – a joint initiative of the IMF, OECD, UN and World Bank Group – has undertaken, at the request of the G20, the development of a series of “toolkit” reports to help guide developing countries in the implementation of policy options for issues in international taxation of greatest relevance to these countries.

OECD
Global Forum publishes tax transparency compliance ratings for seven jurisdictions and welcomes three new members

The Global Forum on Transparency and Exchange of Information for Tax Purposes (the Global Forum), published today seven peer review reports assessing compliance with the international standard on tax transparency and exchange of information on request (EOIR).

OECD
Major enlargement of the global network for the automatic exchange of offshore account information as over 100 jurisdictions get ready for exchanges

Today, the OECD published a new set of bilateral exchange relationships established under the Common Reporting Standard Multilateral Competent Authority Agreement (CRS MCAA), bringing the total number of relationships to over 3200, an increase of more than 500 since April of this year.

OECD

CPD Events

PROFESSIONAL INSIGHT

Tax Revenews | Issue 9

Case Law:  Supreme Court of Appeal: CSARS v South African Breweries

By the ENS Tax department
If no tax debt, SARS must pay the refund: An interesting judgment about the TAA’s refund provisions

It is often mentioned by taxpayers that in their opinion, the South African Revenue Service (SARS) delays the payment of refunds to taxpayers. In light of this observation, the judgment in Top Watch (Pty) Ltd v The Commissioner of the South African Revenue Service (Johannesburg Case No: 2017/4557 and Pretoria Case No: 2016/90099) (judgment delivered on 12 June 2018) is particularly interesting.

Louis Botha - Cliffe Dekker Hofmeyr
South Africa's first transfer pricing case?

Section 31 of the Income Tax Act, No 58 of 1962 (Act) contains South Africa’s transfer pricing provisions which constitutes one of the most contentious areas of tax law not only in South Africa, but around the world. Historically, there has been no judicial precedent in South Africa regarding the application of s31 of the Act and in particular the important “arm’s length” principle. However, in Crookes Brothers Ltd v Commissioner for the South African Revenue Service [2018] ZAGPHC...

Jerome Brink - Cliffe Dekker Hofmeyr
What documents do you need before completing your tax return?

This article aims to provide you with a checklist of information and documents required to make your ITR12 completion as painless as possible

Annelie Laage for TaxTalk Magazine
Recent changes to fringe benefits

Fringe benefits seem like a good idea: Things your employer gives you for free. But working out the tax implications of these non-cash payments can be an arduous task. The article discusses the main changes to fringe benefits in recent years.

Rob Cooper for TaxTalk Magazine
Independent contractors versus employees

For tax and legal purposes, it is important that employers distinguish between employees and independent contractors. Let us demystify the distinction.

Kobus Muller for TaxTalk Magazine
From IRP5 to tax assessment

IRP5s are somewhat like family: they can cause you a lot of headaches but you can’t (and probably don’t want to) live without them. This article aims to provide logical guidance to enable you to make 2018 the year in which you conquer the unavoidable “family reunion” which is the Tax Season.

Adv. Carien van Dijk for TaxTalk Magazine
Loan funding to offshore trusts: the interaction of applicable tax anti-avoidance measures

South African tax resident individuals may consider, whether for estate planning purposes or otherwise, to advance funds to offshore trusts for investment abroad. The South African tax implications arising from the terms of the loan funding arrangement with the offshore trust should, however, also be taken into account. Certain tax anti-avoidance measures are aimed at curbing the transfer of wealth to offshore trusts on loan account where such loans bear interest at below market related...

Hannelie La Grange - ENSafrica
Africa tax in brief

AFRICA: Africa Tax Administration Forum signs renewal of MoU with OECDThe Organization for Economic Co-operation and Development (“OECD”) and the African Tax Administration Forum, on 20 June 2018, signed the renewal of their Memorandum of Understanding (“MoU”) until June 2023, consolidating the agreement between the two organisations to work together in order to improve tax systems in Africa. Cooperation efforts include work in the areas of tax incentives for investment, transfer pricing,...

Celia Becker - ENSafrica

Tax News In The Press

Minister Nhlanhla Nene Appoints New Advisory Board of Government Pensions Administration Agency

[Govt of SA] The Minister of Finance has appointed a new Advisory Board for the Government Pensions Administration Agency (GPAA) which administers the payment of pensions on behalf of the Government Employees Pension Fund (GEPF) and National Treasury. The appointment was effective from 3 July 2018.

Tom Moyane Won't Be Prosecuted for Alleged Assault of Teen

[News24Wire] Suspended SARS commissioner Tom Moyane will not be prosecuted for the alleged assault of a 17-year-old girl, who is the mother of his grandchild, the National Prosecuting Authority (NPA) has confirmed.

Taxpayers remain responsible for their tax affairs

Several taxpayers have in recent times learnt the hard way that they ultimately remain responsible for their tax affairs. They have been named and shamed and fined for not filing their tax returns, in many instances multiple returns over several years.

Amanda Visser - Moneyweb
A technocrat with a big vision is needed to lead Team SARS

One unique thing about SA is the political views associated with the South African Revenue Service (SARS). To most South Africans, SARS is more than just a bureaucratic institution. It is a brand, much like a national sports team.

Keith Engel for Business Live
SA cane growers hit hard by sugar tax

The sugar industry’s annual sales have declined by 27 percent as a result of the Health Promotion Levy (HPL) - commonly called the sugar tax - and imported sugar.  According to Chris Fitzgerald, Illovo South Africa’s spokesperson, Illovo had forecast a decrease in its sales to the beverage sector by at least 30 percent.

Givel Majola - IOL Business Report
SARS Starts Publishing Names of Convicted Tax Offenders

[News24Wire] Acting commissioner of the SA Revenue Service Mark Kingon was not joking when he said last week that taxpayers failing to file returns would face the law.