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: Planning for High Net Worth Individuals by Cheryl Howard

High-net-worth individuals and families have complex financial affairs that require specialist advice on various business, tax, financial and succession matters. The aim of this seminar is to equip attendees with the essential skills and knowledge they need to provide high-quality wealth management advice. The course will cover a wide range of topics, including tax planning and management, offshore versus onshore options, asset allocation, personal wealth management, estates, and wills and...

Industry meeting with Tax Ombud regarding EMPSA

SAIT recently attended an industry meeting at the Office of the Tax Ombud, to discuss the problems encountered with the SARS PAYE Statement of Account. Please click here to view the minutes of the meeting.

Legislative & Policy

The Global Forum on Tax Transparency intensifies the pressure on tax evaders worldwide

In the aftermath of the release of the “Paradise Papers”, 200 delegates from more than 90 delegations met in Yaoundé, Cameroon for the 10th meeting of the Global Forum on Transparency and Exchange of Information for Tax Purposes which now includes 147 countries and jurisdictions.

OECD launches programme to assist Cameroon to implement new international tax standards

On 16 November 2017, an OECD delegation met Cameroon’s Minister of Finance Alamine Ousmane Mey in Yaounde to discuss progress being made in implementing the new international standards to combat tax avoidance and tax evasion.

African Ministers call for action to combat tax evasion in Africa

Today, in the margins of the 10th Global Forum meeting on Transparency and Exchange of Information for Tax Purposes held in Yaoundé, Cameroon Finance Minister Alamine Ousmane Mey, led a discussion with Ministers, high level representatives and officials from Africa on tax fraud and avoidance.

TAX Announcements

Notes to sugary beverage return DA 179 10 Nov 2017
DA179 Health and Promotion Levy return for sugary beverages
DA 185 4B2 - Manufacturing warehouse

Call For Comment

Customs & Excise Act, 1964​​​

Draft rule amendment – Health promotion levy on sugary beveragesCompletion Notes for the sugary beverage Levy returnForm DA 179Form DA 185.4B2

Next due date for comments: 30 November 2017 New!​

Customs & Excise Act, 1964​​​

Draft rule amendment – Health promotion levy on sugary beveragesDA 179 – Completion Notes for the sugary beverage Levy returnDA 179  - Health Promotion Levy return for sugary beverages draft formDA 185.4B2 – Manufacturing Warehouse

Next due date for comments: 30 November 2017 New!​

Customs & Excise Act, 1964​​​

Draft rule amendment – Health promotion levy on sugary beverage.

 

Next due date for comments: 30 November 2017 New!​ 

TAX CASES

B v Commissioner for the South African Revenue Services (IT14240) [2017] ZATC 3 (3 November 2017)
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/...

PROFESSIONAL INSIGHT

Feedback report on KPMG Family Business Conference 2017

KPMG Enterprise South Africa, hosted its fourth Family Business Conference on 18 and 19 September 2017, at the Radisson Blu in Sandton. With the initial day of the conference focusing on key business related matters of tax and driving growth through partnering with a private equity business, the assisted attendees in having an intimate understanding of the role “family dynamics” play in the operations within family businesses.
Under the facilitation of Alan Barr – KPMG’s Head of Family...

Share Bite Backs

A look at some of the latest changes in the tax landscape of share buy-back transactions and the issues to be aware of. 

Share buy-back transactions have been on the radar of National Treasury and SARS for a number of years. It appears as if 2017 is the year that the anticipated tax changes finally materialised. This article provides an initial overview of the likely impact of the developments in this regard. It should be noted that, at the time of writing, the amendments to the...

Painful Extractions

Not only is realising gains from business operations in Africa often a daunting task, but repatriating hard-earned profits from the continent can also frequently bring its own challenges. This article considers a number of legal and practical factors that may hinder profit extraction. 

Missed opportunities in the tax proposals

We often focus on tax law changes that do occur; however, many of the biggest tax law issues are those that are not addressed by new legislation. We take a look at five such cases that could have benefited from a change to the law. 

Each year in February, South Africans wait in anticipation for the Minister of Finance to deliver the annual fiscus budget speech in Parliament as part of the Budget Review, wherein he reviews South Africa’s financial position in the previous financial...

Is Action 13 Papering over the Cracks?

A review of whether country-by-country reporting in the African context will yield BEPS-busting results or if the restraints on the continent mean that the measures only look good on paper. 

Tax avoidance, particularly by multinational enterprises, has plagued tax authorities for years. However, in recent years, there has been a concerted effort, notably in developed countries, to combat and increase international cooperation in tax matters. These measures seem especially relevant...

International Tax in a Disrupted World

We take a look at the key developments in international and expatriate tax developments from the past year. 

Recent business, economic and political disruptions, both on a local and global scale, have substantially affected how companies manage their tax affairs. These disruptions, including the new USA Administration, Brexit, the BEPS initiative and various disclosure and reconciliation requirements by SARS for all the taxes, will continue to impact businesses. 

Exploring the VAT space

This year brought various important changes to the VAT space. So, in case you missed them, we have included a brief summary of these changes for your reference. 

The world of VAT in South Africa saw a number of interesting developments in 2017. These included changes to legislation, binding rulings and draft interpretation notes. Below, some of the more pertinent developments are discussed. 

Continental Drifts

We take a high-level look at the state of tax policies in seven African countries.

Africa is the second largest continent, consisting of 54 countries. Each county operates its own tax system in its own unique way, interpreting tax legislation in different ways compared to its neighbouring countries and often basing its interpretations on prevailing practices. Although countries across Africa may have borrowed some parts of their tax legislation from others, over time they have been...

Base Erosion and Blame Shifting

We take a look at how South Africa is beginning to follow the continental trend of viewing transfer pricing mismatches as a criminal offence. 

Much has been written about transfer pricing, especially following the completion of the G20/OECD BEPS Project. The current buzz word is “tax transparency” which is considered to be the panacea to the interesting debate that governments are not collecting their “fair share” of taxes. 

CPD Events

Tax News In The Press

Department to Engage On Water Debt Recovery

[SAnews.gov.za] The Portfolio Committee on Water and Sanitation has advised the Department of Water and Sanitation to engage with Cooperative Governance Department (COGTA) and National Treasury to ensure the withholding of owing municipalities' equitable share.

16 November 2017 - Tax Season - One week left
Where Is Zuma's Real Declaration of Interests?

[Daily Maverick] I will not rest until we have answers to all the questions regarding President Jacob Zuma's sources of income and his tax affairs.

What the Hijacking of South Africa's Treasury Means for the Economy

[The Conversation Africa] South Africa has been rocked by news that President Jacob Zuma has bulldozed the country's National Treasury to adopt a fee free higher education proposal without following standard process and scrutiny. This is reportedly what's behind the resignation of the Treasury's respected head of budgeting, Michael Sachs. The Conversation Africa's Sibonelo Radebe asked Seán Muller to weigh up the implications.

15 November 2017 - SARS busts 15.1kg of crystal/ephedrine worth R4.5-million
‘Sars using procedural tactics to collect additional revenue’

As stakeholders await more information about the commission tasked with the inquiry into tax administration and governance at the South African Revenue Service (Sars), some tax practitioners have reported a marked increase in verification or audits.