Legislative & Policy

Media Statement: Local Government Revenue and Expenditure: First Quarter Local Government Section 71 Report For the period: 1 July 2017 – 30 September 2017
Treasury
Platform for Collaboration on Tax: comments received on draft toolkit on the taxation of offshore indirect transfers

On August 1st 2017, interested parties were invited to provide comments on the discussion draft of a toolkit on the Taxation of Offshore Indirect Transfers. The Platform for Collaboration on Tax is grateful to the commentators for their input and now publishes the public comments received during the consultation period.

International tax co-operation: Key indicators and outcomes

Over the last 50 years, the OECD led the way on tax issues and has been at the forefront of promoting transparency and co-operation in tax matters. Discover the international state of play with an interactive map presenting key indicators and outcomes of the OECD work on international tax matters, with close to 150 countries and jurisdictions.

TAX Announcements

IN67 Connected Persons
International Mail
Draft rules under section 8 - reporting of conveyances and goods

Call For Comment

Customs & Excise Act, 1964​​​

Draft rule amendment – Health promotion levy on sugary beverage.

 

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

SARS
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

SARS
Customs & Excise Act, 1964​​​

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

 

SARS

TAX CASES

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

GETTING THE DEAL THROUGH: PRIVATE M&A 2018

Private M&A is a comprehensive overview of the laws and regulations governing cross-border private mergers and acquisitions in jurisdictions worldwide. Topics covered include: legal structures and regulations; commonly appointed advisors; documentation and formalities; due diligence and disclosure; pricing; financing; conditions, pre-closing covenants and termination rights; representations, warranties, indemnities and post-closing covenants; tax considerations; and employees, pensions...

Sibonelo MdluliCharles Douglas
GETTING THE DEAL THROUGH: PRIVATE MERGERS AND ACQUISITIONS 2018 – SOUTH AFRICA

Private M&A is a comprehensive overview of the laws and regulations governing cross-border private mergers and acquisitions in jurisdictions worldwide. Topics covered include: legal structures and regulations; commonly appointed advisors; documentation and formalities; due diligence and disclosure; pricing; financing; conditions, pre-closing covenants and termination rights; representations, warranties, indemnities and post-closing covenants; tax considerations; and employees, pensions...

Sibonelo MdluliCharles Douglas
Announcement of further revisions to the debt reduction rules in the Income Tax Act

The current s19 and paragraph 12A of the Eighth Schedule (Eighth Schedule) were introduced into the Income Tax Act, No 58 of 1962 (Act) with effect from years of assessment commencing on or after 1 January 2013. In essence, these provisions contain the debt reduction rules which attempt to create a uniform system that provides relief to persons under financial distress in certain circumstances. In simple terms, the relevant provisions set out the tax implications arising in respect of a debt...

Jerome Brink
Recent public notice

The following public notice relating to the requirement to submit transfer pricing documentation has recently been published by the South African Revenue Service: Notice in terms of section 25 of the Tax Administration Act requiring the submission of country-by-country, master file and local file returns

by the tax department
New debt relief measures provide limited or no relief

Authors: Joon Chong, Partner and Graham Viljoen, Director at Webber Wentzel

The reduction of debt in the Income Tax Act, 1962 is currently dealt with in section 19 and paragraph 12A of the Eighth Schedule. A reduction/waiver of debt for more than the fair value of the consideration paid by the debtor for such waiver could result in, mainly, income tax recoupments (section 19) or reductions of base costs of assets or capital losses (paragraph 12A). For example, where a...

Africa tax in brief

ANGOLA: Introduction of transfer pricing unitA transfer pricing unit, set up as an administrative technical structure forming part of the Large Taxpayers Directorate of the General Tax Administration, was launched on 25 September 2017 and will be responsible for monitoring compliance with Angola’s transfer pricing regime introduced by Presidential Decree No.147/13 of 1 October 2013. ETHIOPIA: Treaty with Cyprus enters into forceThe Cyprus/Ethiopia Income Tax Treaty, 2015 entered into force...

Celia Becker
Unutilised capital losses – can SARS impose understatement penalties?

In terms of section 222(1) of the South African Tax Administration Act, 2011 (the “TAA”), “[i]n the event of an ‘understatement’ by a taxpayer, the taxpayer must pay, in addition to the ‘tax’ payable for the relevant tax period, the understatement penalty determined under subsection (2) unless the ‘understatement’ results from a bona fide inadvertent error” (our emphasis).It is thus clear that where the South African Revenue Service (“SARS”) raises an additional assessment imposing an...

Nicolette Smit
Relocating from South Africa? Key steps to undertake in the emigration process

There are a number of considerations when relocating to another country that involve much more than a mere physical departure and the taking up of permanent residence in a foreign country. In South Africa, an individual will continue to be regarded as a South African resident for exchange control purposes until such time as the South African Reserve Bank (the “SARB”) has provided him/her with formal emigration approval. An individual will further still be regarded as a South African tax...

Hannelie La Grange
SA politics again centre stage as MPC convenes for last time in 2017

Political and policy uncertainty are to be at the forefront as the Monetary Policy Committee (MPC) of the South African Reserve Bank (SARB) meets for the last time this year to consider interest rates. The central bank determines a monetary policy stance that assures price stability by keeping consumer inflation inside the target band of 3% – 6% annually.
In July, the MPC lowered interest rates for the first time since mid-2012, bringing the policy rate to 6.75% and prime rate to 10.25...

Maura Feddersen

Tax News In The Press

National Treasury On Local Government Revenue and Expenditure for 1 July 2017 - 30 September 2017

[Govt of SA] Local Government Revenue and Expenditure: First Quarter Local Government Section 71 Report For The Period: 1 July 2017 - 30 September 2017

11 December 2017 - Lackay loses CCMA case against SARS
Minister Malusi Gigaba On Accounting Irregularities in Steinhoff International Holdings Financial Statements

[Govt of SA] The Minister of Finance, Malusi Gigaba, notes with grave concern the statement by Steinhoff International Holdings N.V., on Tuesday evening, with regard to accounting irregularities in its recent financial statements.

Right of Reply - Zapiro's Depiction of Moyane Amounts to Trial By Media

[Daily Maverick] Cartoonist Zapiro's depiction of SARS Commissioner Tom Moyane (30 November 2017) borders on racism and the perpetuation of prejudice and stereotypes. By Sandile Memela of the SA REVENUE SERVICE.

Revenue Service Lost 506 Employees Since Start of Year

[News24Wire] The South African Revenue Service (SARS) has lost 506 employees since the start of the year.

Davis tax report proposes bill of rights

The Davis tax committee and the office of the tax ombud have again stressed the need for the introduction of a taxpayer bill of rights and a service charter to guarantee taxpayers’ rights.

 

Amanda Visser