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.



SAIT Technical
Tax Helpline - Closing for festive season

Kindly note that the SAIT Tax Helpline query service will be closed for the festive season from 08/12/2017 until 08/01/2018.

SAIT Technical

Legislative & Policy

OECD Tax Talks: Save the date

With a number of important recent and upcoming developments in the OECD's international tax work, we invite you to join senior members from the OECD's Centre for Tax Policy and Administration (CTPA) for the latest tax update.

Media Statement: National Treasury and the South African Revenue Service on 10th Annual Edition of Tax Statistics
OECD seeks input on new tax rules requiring disclosure of CRS avoidance arrangements and offshore structures

Today the OECD is releasing a consultation document seeking stakeholder input on model mandatory disclosure rules. The model rules target promoters and service providers with a material involvement in the design, marketing or implementation of a CRS avoidance arrangements or offshore structure. They would require such intermediaries to disclose information on the scheme to their local tax authority.

TAX Announcements

Notice 1308 GG 1308 8 December 2017
IN67 Issue 2 - Connected persons
IN97 Taxation of REITs and controlled companies

Call For Comment

Customs & Excise Act, 1964​​​​

Draft amendment of rules under section 8 - reporting of conveyances and goods ("RCG")

Next due date for comments :19 January 2018New!

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!​



The Commissioner for SARS v Reunert Ltd (971/2016) [2017] ZASCA 153 (22 November 2017)
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


Fiscal Pressure - Tax hikes are not the solution

South Africa suffers from a trifecta of social challenges, namely: inequality, poverty and high levels of unemployment. This, when coupled with the state of economic stagflation, rampant government expenditure and bureaucratic paralysis is creating unprecedented fiscal pressure.

Joon Chong, Partner and Wesley Grimm, Candidate Attorney
Economic growth slows in Q3

Most sectors are lagging the recovery in agriculture and mining
Statistics South Africa (StatsSA) reported on December 5th that the South African economy expanded by 2.0% quarter-on-quarter (q-o-q) during the third quarter of 2017, which was higher than the 1.6% q-o-q predicted by a Bloomberg survey last week amongst local economists. In addition, StatsSA revised higher the growth rates recorded in Q2 (+2.8% q-o-q from +2.5% q-o-q previously) and lowered its estimate...

Christie Viljoen
Travelling abroad and travel allowances – what you can and can’t do

Europe, America, Asia – for South Africans fortunate enough to do so, travelling abroad is, safe to say, something that they enjoy. It is common for travellers to buy foreign currency from an Authorised Dealer (AD), such as a bank or authorised dealer in foreign exchange, in order to pay for the expenses that they will incur abroad. However, it is important to keep in mind that according to South Africa’s exchange control laws, there are rules regarding the use of such travel allowances. In...

Louis Botha
Economic outlook 2018

All eyes are on the ANC elective conference in December 2017 and the February 2018 fiscal budget speech for a clearer view of the direction for politics, policy and the economy at large. In the interim, high levels of uncertainty prevail, with investors pressing pause on key investment decisions, and business and consumer confidence languishing in negative territory.
In an environment of uncertainty and low growth, real private sector fixed investment has...

Maura Feddersen
Deductibility of legal expenses

For purposes of determining the taxable income derived by any person from carrying on a trade, s11(c) of the Income Tax Act, No. 58 of 1962 (Act) provides for the deduction of legal expenses which arise in the course of or by reason of a taxpayer’s ordinary trading operations. More specifically, any legal expenses actually incurred by a taxpayer in respect of “any claim, dispute or action at law arising in the course of or by reason of the ordinary operations undertaken by the [taxpayer] in...

Gigi Nyanin
A win against SARS: late delivery of SARS’s rule 31 Statement

On 17 October 2017 the Tax Court (Western Cape Division: Cape Town) delivered judgment in the matter between S Company v The Commissioner for the South African Revenue Service (SARS) under case number IT0122/2017. The judgment was handed down by Judge Cloete. This judgment is of great interest to any taxpayers currently involved in prolonged disputes with SARS, in particular where there are delays on the part of SARS.

Mareli Treurnicht
Various amendments on the Taxation Laws Amendment Bill, 2017

In this article covering the Taxation Laws Amendment Bill, 2017 (TLAB), we discuss amendments to the Income Tax Act, 1962 (ITA) on the contributed tax capital (CTC) limitations to non-resident shareholders, amendments relevant to long-term insurers, alignment of section 24JB to the International Financial Reporting Standards 9 (IFRS 9), and the additional doubtful debt deduction available to banks. All references to "section" in this e-alert are to sections in the ITA.

Joon Chong, Partner; Craig Miller, Director and Darren Roy, Senior Tax Manager
Hybridicity is History

On 24 November 2017, the Government released Exposure Draft (ED) legislation to counteract “hybrid mismatches”. This follows from its commitment in the 2016 Federal Budget to adopt the key recommendations set out in Action 2 of the Organisation for Economic Co-operation and Development’s (OECD) Base Erosion and Profit Shifting (BEPS) project following a review by the Board of Tax.
Australia now joins the United Kingdom (...

Femi Oke
OECD launches “the ten global principles in fighting tax crime”

The Organisation for Economic Cooperation & Development (“OECD”) recently published its first global reference guide for fighting tax crime. Against the background of the publication of The Paradise Papers and other explosive leaks on offshore structures and alleged tax evasion, this publication is a timely one.
The guide defines tax crime widely as “intentional conduct that violates a tax law” and urges countries to benchmark themselves against each of the ten global principles...

Femi Oke

Tax News In The Press

13 December 2017 - 12 Years for VAT fraudster
Sars plans to revive tax courts

The South African Revenue Service (Sars) hopes to reinstitute tax courts as it steps up its enforcement efforts.

Ingé Lamprecht
National Treasury and the South African Revenue Service On 10th Annual Edition of Tax Statistics

[Govt of SA] National Treasury and the South African Revenue Service are pleased to announce the release of the 10th annual edition of the Tax Statistics today, on Tuesday 12 December 2017.

Personal Income Tax Revenue Dwindles As SA Economy Slows

[News24Wire] Returns from personal income tax have moderated over the years, mainly due to the slowing economy, according to a report by the South African Revenue Service (SARS) and National Treasury.

12 December 2017 - Tax statistics for 2017
Standing Committee On Finance Must Get Stuck Into Steinhoff International Holdings N.V.

[DA] David Maynier MP, DA Shadow Minister of Finance, correspondence with Yunus Carrim, Chairperson of the Standing Committee on Finance, is enclosed [here]