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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
FEATURED EVENT: Cross-border Considerations for the Global Client

The worldwide advisory and compliance web is closing-in. Local advisors must be ready to comply and manage the twists and turns of foreign rules and the impact of non-compliance. The 2018 Cross-border Considerations for the Global Client workshop intends to ignite industry awareness, and although it has an international angle, it will have a definite South African perspective, given the current tax, wealth, succession and compliance landscape. To register, click on the town of your choice ...

SAIT CPD
OFFICE OF THE TAX OMBUD SURVEY - HAVE YOUR SAY!

Please help us to understand and improve on your quality of experience by completing this and sharing with us your experience(s). Please click here to complete the survey.

The Office of the Tax Ombud

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

DTA Protocol Cyprus GG 39295

Protocol amending the agreement between the government of the Republic of South Africa and the government of the Republic of Cyprus for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and on capital.

SARS
DTA Kenya GG 39422

Agreement between the government of the Republic of South Africa and the government of the Republic of Kenya for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income.

SARS
DTA Hong Kong GG 39444

Agreement between the government of the republic of South Africa and the government of the Hong Kong special administrative region of the People’s Republic of China for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income.

SARS

TAX 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
TCIT 13626 JHB 17 May 2018

Income Tax; trading stock; whether there was a diminution in value of the Appellant’s trading stock for the relevant years of assessment.

SARS Court Cases
Red Ant Security Relocation Services (Pty) Ltd and Commissioner of SARS

(Case no. 2999/18) The applicant sought urgent interdictory relief aimed at reinstatement of its tax compliance status so that it can generate a tax clearance certificate pending the determination of review proceedings instituted by it.

SARS Court Cases

Legislative & Policy
(National Treasury & Parliament)

Latest Published Government Gazette

Click here to read the latest published goverment gazette.

Rentia Janse Van Niewenhuizen - Government Printing
Media Statement: Extension of SARS Acting Commissioner's term

The Minister of Finance, Mr Nhlanhla Nene, has re-appointed Mr Mark Kingon as Acting Commissioner of the South African Revenue Service (SARS) for a further 90 days beginning on June 17.

National Treasury
Carbon Tax Bill: Treasury response to submissions

The Portfolio Committee on Environmental Affairs and the Standing Committee on Finance received a briefing from the National Treasury on its responses to the various comments from various stakeholders on the draft Carbon Tax Bill 2017. In addition, a number of the stakeholders, including a university professor, a non-governmental organisation representative, the Congress of South African Trade Unions (COSATU), the World Wide Fund for Nature (WWF), a Metals SA company and ESKOM,  gave their...

Parliamentary Monitoring Group

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

Tax Administration Act, 2011​

Dispute resolution rules in terms of section 103 of the Tax Administration Act, 2011

Next due date for comments :​26 June 2018

SARS
Income Tax Act, 1962​

Draft guide on venture capital companies

Next due date for comments :31 August 2018New!​

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)

Vanuatu signs the Multilateral Convention on Mutual Administrative Assistance in Tax Matters

Vanuatu today signed the Multilateral Convention on Mutual Administrative Assistance in Tax Matters, making it the 123rd jurisdiction to join the world’s leading instrument for boosting transparency and combating cross-border tax evasion.

OECD releases new guidance on the application of the approach to hard-to-value intangibles and the transactional profit split method under BEPS Actions 8-10

Today, the OECD released two reports containing Guidance for Tax Administrations on the Application of the Approach to Hard-to-Value Intangibles under BEPS Action 8; and
Revised Guidance on the Application of the Transactional Profit Split Method under BEPS Action 10.

OECD and ATAF continue to strengthen tax co-operation in Africa

Today, the OECD and the African Tax Administration Forum (ATAF) signed a renewal of their Memorandum of Understanding (MoU) until June 2023, agreeing to continue to work together to improve tax systems in Africa. The MoU sets their co-operation towards the achievement of the common objective of promoting fair and efficient tax systems and administrations in Africa.

OECD

CPD Events

PROFESSIONAL INSIGHT

A long-awaited guide on venture capital companies published for comment

The VCC tax regime was introduced into the Income Tax Act, No 58 of 1962 (Act) in 2009 and is aimed at encouraging investment into small and medium-sized enterprises and junior mining companies. Section 12J of the Act encompasses the relevant legislation governing VCCs and provides for the formation of an investment holding company, described as a VCC, where investors subscribe for shares in the VCC (venture capital shares) and claim an income tax deduction for the subscription price...

Gigi Nyanin - Cliffe Dekker Hofmeyr
Urgent reinstatement of tax compliance status granted

For certain taxpayers, a tax clearance certificate is of utmost importance in ensuring that it is able to receive payment and to tender for new services. In the recent Gauteng High Court decision (Red Ant Security Relocation and Eviction Services (Pty) Ltd v CSARS (2999/18)), the taxpayer applied for urgent interdictory relief for reinstatement of its tax compliance status in order to be able to generate a tax clearance certificate pending determination of review proceedings which...

Joon Chong - Webber Wentzel
tax revenews | issue 7

Below, please find issue 7 of ENSafrica’s tax revenews, a snapshot of the latest tax developments in South Africa. case law Tax Court, Johannesburg: IT 13251 & VAT 1077

The ENSafrica Tax Department
The Capital v Revenue question in the context of government grants: The SCA decides in favour of the motor manufacturing industry.

In the recent case of Volkswagen South Africa (Pty) Ltd v Commissioner for South African Revenue Service 80 SATC 179, the age-old question of whether a receipt is capital or revenue in nature was addressed by the Supreme Court of Appeal (SCA), in the context of government grants paid to motor vehicle manufacturers.

Louis Botha and Louise Kotze - Cliffe Dekker Hofmeyr
Africa tax in brief

COMOROS: Treaty with United Arab Emirates enters into forceThe income tax treaty between the Comoros Islands and the United Arab Emirates, signed on 26 March 2015, entered into force on 2 January 2018 and generally applies from 1 January 2019. 

Celia Becker - ENSafrica
Controlled foreign companies: look before you leap

Section 9D of the Income Tax Act, 1962 (the “Act”) is aimed at South African residents who directly or indirectly hold more than 50% of the total participation (broadly speaking shares) or voting rights in a foreign company. A foreign company in this context is classified as a controlled foreign company (“CFC”).In terms of section 9D, the “net income” of the CFC is included in the relevant resident’s income in proportion to the resident’s effective participation rights in that CFC, thus...

Carmen Gers & Simone Krupanandham - ENSafrica
Reducing the cost of transfer pricing compliance for MNEs

Many countries have become more focused on combating tax avoidance. As such, transfer pricing compliance has become much more burdensome due to substantial documentation requirements and multiple filing deadlines. Multinationals (“MNEs”) have to take action to control their transfer pricing risks, but the cost of doing so could substantially increase.Before base erosion and profit shifting (“BEPS”), transfer pricing compliance was mostly local, requiring local transfer pricing documentation...

Okkie Kellerman - ENSafrica
Mauritius Supreme Court sheds some light on priority of tax claims in liquidations

In The Car Company Ltd (in Liquidation) v. The Mauritius Revenue Authority, the Commercial Division of the Supreme Court ruled that the amount of taxes due under the Value Added Tax Act and the Income Tax Act (value-added tax (“VAT”), pay-as-you-earn (“PAYE”) and tax deducted at source (“TDS”)), do not form part of the estate in liquidation and have to be paid to the Mauritius Revenue Authority (“MRA”)...

Xavier Koenig - ENSafrica
Accrual of amount on cession of right to dividends

Generally speaking, dividends paid by South African companies are exempt from income tax in the hands of shareholders. The dividends may, however, be subject to dividends tax, subject to certain exemptions.

Ben Strauss - Cliffe Dekker Hofmeyr

Tax News In The Press

Don’t get caught in the complexities when investing offshore

South Africans invest offshore for a number of reasons: to protect their wealth from domestic political or economic risk, to access markets and opportunities unavailable locally, or to diversify across countries, regions and currencies.

Nick Jeffrey - IOL Personal Finance
Stellenbosch University Law Clinic Fights Tampon Tax

[News24Wire] The Stellenbosch University (SU) Law Clinic has joined the fight to topple tampon tax and has made a written submission to National Treasury to include feminine hygiene products on the list of zero-rated VAT items.

SARS reminds VAT vendors to submit outstanding returns or face legal action

The South African Revenue Service (SARS) is reminding Value-Added Tax (VAT) vendors to submit their outstanding returns to avoid administrative penalties and/or criminal prosecution.

SARS
Suspended Tax Boss Tom Moyane Tells SARS Man to Fake Illness Ahead of KPMG Meeting

[News24Wire] News24 can today publish the recording of a telephone call during which suspended SARS boss Tom Moyane instructs an employee of the service to feign illness to avoid speaking to investigators with auditing firm KPMG.

Study into Tax Ombud’s capacity to be completed soon

The Office of the Tax Ombud expects to finalise a study within the next month or two aimed at determining whether it has enough capacity, staff and appropriate expertise.

Ingé Lamprecht - Moneyweb
Classic FM Tax Administration Research Interview

Michael Avery is joined by Prof Sharon Smulders (UNISA) & Keith Engel (SAIT) to discuss the actual cost of the Tax Administration Research Project. (Download and listen to interview).

Classic FM Classic Business Tax