SAIT News

Technical Inbox - Pick of the Week

SAIT is here to help members with all their tax-related queries! Click here to view a select few queries we received via the Tax Helpline.

 

 

FEATURED EVENT: Customs Seminar - The Trilogy of Customs: Tariff Classification, Valuation and Origin

The Customs Seminar seeks to fill a gap in the market by providing attendees with the basic essentials associated with customs duties. Day one of the seminar will focus on the three essentials of determining the charge payable (i.e. origin, classification and valuation). Day two of the seminar will focus on customs procedures via ship, air and road / rail and will include panel discussions on current hot topics of the day. The seminar will provide overall learning in terms of the South...

Interim PAYE Recon Deadline Reminder – 31 October 2017

Members are reminded of the EMP501 deadline at the end of this month.

 

Click here for useful information.

Legislative & Policy

Oman joins the Inclusive Framework on BEPS

The Sultanate of Oman has become the 103rd jurisdiction to join the Inclusive Framework on Base Erosion and Profit Shifting (IF on BEPS). Members of the IF have the opportunity to work together with other OECD and G20 countries on implementing the BEPS package consistently and on developing further standards to address BEPS issues.

OECD and tax administrations discuss BEPS implementation at regional meeting in the Slovak Republic

80 delegates from 20 countries and 11 organisations gathered in Bratislava for the third regional meeting of the Inclusive Framework on Base Erosion and Profit Shifting (BEPS) in the Eastern Europe and Central Asia region. This meeting belongs to a new series of regional events that offer participants from different regions in the world the opportunity to provide their views and input into the Inclusive Framework on BEPS.

Media Statement: Dr Mampho Modise appointed as the Deputy Director-General for the Public Finance division

TAX Announcements

BCR059 Asset for share transaction involving a foreign collective investment scheme
BPR 281 Disposal of a portion of land owned by a recreational club
BPR 282 Deductibility of socio economic and enterprise development expenditure

Call For Comment

Tax Administration Act, 2011​

Revised draft list of jurisdictionscontemplated in Article 2(2)(ii)(b) of the regulations specifying the Country-by-Country Reporting Standard for Multinational Enterprises

Next due date for comments: 3 November 2017 New!

​Employment Tax Incentive Act, 2013

Draft guide to the employment tax incentive (Issue 2)

Next due date for comments: ​31 October 2017

Customs & Excise Act, 1964​​

Draft rule amendments in relation to trade agreements

Form DA 185.4A2

Form DA 185.4A7

Draft rule amendments for the Generalized System of Preferences (GSP) Norway – The Registered Exporter System (REX system)

Next due date for comments: 4 October 2017  

TAX CASES

S Company v Commissioner for the South African Revenue Service (IT0122/2017) [2017] ZATC 2
Tax Court Judgments

SARS has released the following tax court decisions:

 

  • IT 14247 – Whether the Respondent was entitled to levy understatement penalties against the Appellant for both VAT and income tax 
  • IT 4036 – Whether SARS is precluded from raising an original assessment ('the STC assessment') on the taxpayer for secondary tax on companies ('STC') when it purported to do so
  • 13539/...
A Way to Explore v CSARS

PROFESSIONAL INSIGHT

National Health Insurance in the 2017 Budget Speech and the 2017 NHI White Paper.

Ahead of the 2017 October Budget speech, with much to discuss, including the fate of South African Airways, it is unclear if finance minister Malusi Gigaba will prioritise the National Health Insurance (NHI) and address the proposed NHI funding mechanisms. Government has assured South Africans that health remains a key priority and is committed to […]

Sugar Tax Update

The Sugar Tax was initially announced to be implemented in South Africa, from 1 April 2017, as a tax on most non-alcoholic beverages containing added caloric sweeteners/sugar. In the last few months, the proposed structure of this tax has changed. In February 2017, the National Treasury (“NT”) published a proposed new structure for this tax, […]

Tax Court confirms a hard line in relation to requests for reasons

 

Authors: Joon Chong, Partner and Wesley Grimm, Candidate Attorney (Webber Wentzel)

 

The Income Tax Court (Tax Court) recently handed down judgment in ITC 0032/2016 and ITC 0033/2016 which were two identical applications dealing with taxpayers' requests for reasons.

 

In both cases, the taxpayers (Taxpayers) sought an order in terms of rule 6 of the dispute resolution rules (Rules) that SARS be ordered to provide them with...

Understatement penalties for gross negligence

 

Authors: Joon Chong, Partner and Hillary Botha, Candidate Attorney (Webber Wentzel)

 

The Tax Court handed down judgement on 18 August 2017 in the case of ABC Proprietary Limited v C: SARS. The case primarily deals with understatement penalties in respect of both Value-Added Tax (VAT) and income tax defaults, in terms of section 222(1) the Tax Administration Act, 2011 (TAA). The case was an appeal by ABC Proprietary Limited (Taxpayer...

Transfer pricing master file and local file submission requirements finalised in South Africa

 

Author: Marcus Stelloh (Transfer Pricing)

 

The South African submission requirements for a master file and local file have been finalised. The only change to the ...

Africa tax in Brief

 

Author: Celia Becker (ENSafrica)

 

AFRICA: African Tax Administration Forum launches transfer pricing risk assessment toolkitDuring the International Conference on Tax in Africa held in Abuja from 26 to 28 September 2017, the African Tax Administration Forum launched its “Toolkit for Transfer Pricing Risk Assessment in the African Mining Industry”, providing tax administrations a step-by-step guide on how to review transfer pricing risks...

From Functional Analysis to Value Chain Analysis

 

Author: Okkie Kellerman (ENSafrica)

 

Attacks by the South African Revenue Service (“SARS”) on the transfer pricing practices of multinational enterprises (“MNEs”) are on the rise, leading to tax disputes with SARS over significant amounts of tax. MNEs operating in South Africa provide information to SARS in various forms such as annual Corporate Income Tax returns, Country-by-Country reports as well as the extensive Transfer Pricing...

Dividends tax: The importance of determining when a dividend is “due and payable”

 

Authors: Annalie Pinch & David Marais (CDH)

 

Section 64E(1) of the South African Income Tax Act, 1962 (the “Act”) provides that dividends tax must be levied at a rate of 20% of the amount of any dividend paid by any company, other than a headquarter company. In terms of section 64EA(a) of the Act, the beneficial owner of a cash dividend is liable for dividends tax in respect of that dividend. However, in terms of section 64F(1), a cash...

Raft of tax court judgments published on the SARS website consider various interesting issues

 

Author: Jerome Brink (CDH)

 

Section 132 of the Tax Administration Act, No 28 of 2011 (TAA) states that a judgment of the tax court dealing with an appeal under the dispute resolution provisions contained in the TAA must be published for general information and, unless the sitting of the tax court was public under certain stipulated circumstances, in a form that does not reveal the taxpayer’s identity. This provision is premised on the right...

CPD Events

Tax News In The Press

What’s at stake in Gigaba's first budget

There’s a great deal hanging on South Africa’s 2017 medium term budget policy statement. Three factors are at play: there is political turmoil around the governing African National Congress, the country’s economy is performing poorly and this is the first budgetary statement from the new Finance Minister Malusi Gigaba. The Conversation Africa’s Sibonelo Radebe asked Jannie...

19 October 2017 - SARS busts heroin, illegal skin cream and clothes worth R20-m
Finance Minister Announces New Board for National Carrier

[Govt of SA] The Minister of Finance, Malusi Gigaba, is pleased to officially announce the appointment of six new members to the Board of South African Airways (SAA), as well as the full slate of non- executive board members at the airline, which have been approved by the Cabinet.

Op-Ed - in Defence of Tom Moyane At SARS

[Daily Maverick] The SA Revenue Service (SARS) does not wish to interfere with hard-won media freedom. However, it is a fair demand that the media be held to its highest standards to be factual, accurate and truthful in its coverage of SARS. By SANDILE MEMELA.

Tax Ombud’s office ‘stretched to the limit’

The Office of the Tax Ombud has come under significant pressure amid budget and capacity constraints as complaints rose 62% to 3 454 during its past financial year.

Treasury Hosts Workshop On Financial Sector Ombud System Reforms, 17 Nov

[Govt of SA] The National Treasury will host a workshop for interested stakeholders to discuss reforms proposed to the financial sector ombud scheme system in South Africa. This follows the publication of a consultation policy document1 "A Known and Trusted Ombud System for All" in September.