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SAIT Trending Topics

Diesel Refund Survey

We are running a survey to determine whether participants are experiencing delays in receiving diesel refunds from SARS.  Please participate in this survey if you claim the diesel refund either on your business/operation’s behalf (e.g. you are a farmer or a mining company employee) or on behalf of your client/s (i.e. you are a tax practitioner).  The survey will run until 18 May 2018.

SAIT Technical
Size limit for the upload of supporting documents on eFiling increased

Taxpayers that have to upload supporting documents (relevant material) using eFiling should make sure the documents meet the standards and best practices.

SARS
Women in Tax Survey

This survey is closed. Thank you to all participants who took part in the survey and provided us with their valuable feedback. Look out for the results in the May/June 2018 edition of TaxTalk.

TaxTalk Magazine

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

SARS e@syFile/eFiling consultation sessions

A SARS Support Consultant will be available at the SARS Bloemfontein branch (Office 38) for one-on-one eFiling/e@syFile consultations. 

 

Dates as follows:

 

  • 09 May 2018
  • 10 May 2018
  • 29 May 2018
  • 30 May 2018

 

The SARS Kimberley branch consultations will take place on 31 May 2018. Time slot for all consultation sessions: 09:00-14:00.

 

SARS e@syfile/eFiling
Guide to Complete and Submit a Recognition of Transfer Form

This guide in its design, development, implementation and review phases is guided and underpinned by the SARS values, code of conduct and the applicable legislation. Should any aspect of this guide be in conflict with the applicable legislation the legislation will take precedence.

SARS
BPR 301 Taxation of dividends received by a borrower under a securities lending arrangement

This ruling determines whether a South African sourced dividend received by a borrower in terms of a securities lending arrangement must be included in the “income” of the applicant and whether any related securities lending expenditure will be deductible.

SARS

TAX CASES

Latest Tax Court Case

TCIT 13726 Port Elizabeth 13 February 2018.

SARS Court Cases
CSARS v Executors of Estate Late Sidney Ellerine - 28 March 2018

This case concerns the valuation of preference shares for the purposes of determining a capital gain in terms of paragraph 40 read together with paragraph 31(3)(a)(i) of the Eighth Schedule to the Income Tax Act 58 of 1962 (the Act).

SARS Court Cases
SARS and Short and Another CPT 7 February 2018

The Commissioner for the South African Revenue Service has come on appeal from the judgment of the Tax Court (Cape Town) upholding the appeal by the respondents to that court against the assessment by SARS of transfer duty on the value of the property acquired by them in terms of an agreement they concluded.

SARS

Legislative & Policy
(National Treasury & Parliament)

Latest SAIT Submissions to National Treasury / SARS / Parliaments Finance Committees

SAIT have commented on various proposed amendments to tax legislation and draft interpretation notes in these submissions made on behalf of our members.

SAIT Tax Policy
Comment: Draft Rates and Monetary Amounts and Amendment of Revenue Laws “VAT” Bill

The Standing Committee on Finance and the Select Committee on Finance invites stakeholders and interested parties to submit written submissions on the Draft Rates and Monetary Amounts and Amendment of Revenue Laws “VAT” Bill.

Luvuyo Ngwayishe - Parliamentary Monitoring Group
The Davis Tax Committee concludes its work within 5 years

The Davis Tax Committee (DTC) is pleased to announce the publication of four more final reports and the conclusion of its work based on its Terms of Reference.

The Davis Tax Committee

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

​Income Tax Act, 1962

Draft Guide on the calculation of the tax payable on lump sum benefits (Issue 3). Next due date for comments: 29 June 2018 New!​​

SARS
Income Tax Act, 1962  

Draft IN 93 (Issue 2) –​ The taxation of foreign dividends. Next due date for comments: 29 June 2018.

SARS
Income Tax Act, 1962  

Draft IN 93 (Issue 2) –​ The taxation of foreign dividends. Next due date for comments: 30 June 2018 New!​

SARS

International and Regional News
(OECD and ATAF)

OECD addresses the misuse of residence/citizenship by investment schemes

Today’s revelations from the “Daphne Project” on the Maltese residence and citizenship by investment schemes underline the crucial importance of the the OECD’s work to ensure that the integrity of the OECD/G20 Common Reporting Standard (CRS) is preserved and that any circumvention is detected and addressed.

OECD to release Taxing Wages 2018 on Thursday 26 April

Taxing Wages 2018, the OECD’s annual publication on the taxes levied on wages and salaries in member countries, will be released on Thursday 26 April at 11:00 Paris time (09:00 GMT).

OECD and IGF invite comments on a draft practice note that will help developing countries address profit shifting from their mining sectors via excessive interest deductions

Building on BEPS Action 4, this practice note has been prepared by the OECD under a programme of co-operation with the Intergovernmental Forum on Mining, Minerals, Metals and Sustainable Development (IGF), to help guide tax officials on how to strengthen their defences against BEPS. Deadline for comment: 18 May 2018.

CPD Events

PROFESSIONAL INSIGHT

SARS speaks up: Some clarity provided on the taxation of cryptocurrencies in South Africa

On 6 April 2018, the South African Revenue Service (SARS) announced that it will continue to apply normal income tax rules to cryptocurrencies and will expect affected taxpayers to declare cryptocurrency gains or losses as part of their taxable income.

Candice Gibson - Cliffe Dekker Hofmeyr
PWC Alert: Davis Tax Committee: Final reports and conclusion of work

On 12 April 2018, the Davis Tax Committee released its four final reports and announced the conclusion of its work based on its Terms of Reference.

PWC
Raising jurisdictional issues

In Lion Match Company (PTY) LTD v Commissioner for the South African Revenue Services (2018) ZASCA 36 (27 March 2018), the Taxpayer noted an appeal against the disallowance of an objection raised in response to an additional assessment issued by SARS.

Heinrich Louw and Louise Kotze - Cliffe Dekker Hofmeyr
It’s complete: The Davis Tax Committee releases its final reports

On 12 April 2018, the Davis Tax Committee (DTC), issued a media statement (Media Statement) in which it announced the publication of four additional final reports and the conclusion of its work based on its Terms of Reference (ToR).

Louis Botha - Cliffe Dekker Hofmeyr
Disrupting the Disrupted: The Dawn of Fintech Regulation in the Twin Peaks New World Order

The South African Revenue Service (SARS) has effectively broken the regulator blood oath taken in 2014 that had frozen the South African cryptocurrency market in the realm of regulatory neutrality for the past 3 years. In accordance with the user alert published in 2014 by the South African Reserve Bank (SARB), the Financial Services Board (FSB), SARS and the Financial Intelligence Centre, the regulators adopted the "users beware" stance in respect of cryptocurrencies, stating that...

Seshree Govender - Webber Wentzel
Lesotho launches Voluntary Disclosure Programme and increases VAT rate

The Minister of Finance, launched a Voluntary Disclosure Programme (VDP) on 6 February 2018 which grants amnesty from prosecution and the imposition of additional taxes on outstanding income tax and value added tax liabilities. The scope of the VDP covers tax liabilities from 1 April 2005.

BDO
Ghana to increase VAT, tax on mobile, money transactions, and tax on imports to fund free education

Ghana announced proposals to increase the VAT rate by 2%, impose a 1% tax on all mobile money transactions, and charge a special tax of 1% on all imports to finance the free senior high school programme.

BDO
ENSafrica tax revenews

Below, please find issue 2 of ENSafrica’s tax revenews, a snapshot of the latest tax developments in South Africa. case law High Court, Western Cape Division: L Taxpayer v CSARS

by the tax department
PWC Synosis March 2018

A monthly journal, published by PwC South Africa, that gives informed commentary on current developments in the tax arena, both locally and internationally. Through analysis of and comment on new laws and judicial decisions of interest, Synopsis helps executives to identify developments and trends in tax law and revenue practice that may affect their business.

PWC

Tax News In The Press

Corporate tax rate in need of review

South Africa’s current rate of 28% is way above that of the global average of 24.29%.

Amanda Visser - Moneyweb
Sars tackles non-compliance with submission of tax returns

Drop in compliance over recent years has been significant.

Amanda Visser - Moneyweb
Treasury Considers Conditional Grants for Scholar Transport

[News24Wire] National Treasury has confirmed it is looking at making changes to the scholar transport funding model in South Africa.

More clarity on tax treatment of bitcoin, but…

The South African Revenue Service’s (Sars) announcement that it considers cryptocurrencies to be intangible assets and not currencies has brought an end to widespread speculation about the nature of cryptocurrencies.

Ingé Lamprecht - Moneyweb
SARS, NPA to prosecute taxpayers for outstanding returns

The South African Revenue Service (SARS) has embarked on a new initiative with the National Prosecuting Authority (NPA) to prosecute non-compliant taxpayers, including prominent South Africans, who have failed to submit returns. Taxpayers who are found guilty will end up with a criminal record.

SARS
R1 Million Denel Bursary to Supra's Son - Solidarity Threatens Action

[News24Wire] Trade union Solidarity has warned that it won't hesitate to take action against any state owned enterprise (SOE) if it continues to squander tax-payers money, following revelations that Denel paid a bursary of more than R1m to the son of North West premier Supra Mahumapelo.