Legislative & Policy

Media Statement: Announcement of the new board of South African Airways
Onsite-visit in Tbilisi to launch Induction Programme and assist Georgia in the implementation of the new international tax standards

On 16 October 2017, an OECD delegation met in Tbilisi the Georgian First Deputy Minister and Head of Georgia Revenue Service Giorgi Tabuashvili and Deputy Minister Lasha Khutsishvili to discuss the progress of the country in implementing the new international standards to combat tax avoidance and tax evasion.

Public consultation on transfer pricing matters - 6-7 November 2017

The OECD will hold a public consultation event on transfer pricing matters on 6-7 November at the OECD Conference Centre in Paris, France.

TAX Announcements

Notice 1117 GG 41186 20 October 2017
South Africa draft list of jurisdictions without CbC CAAs as at 17 10 2017
TAX OMBUD ANNUAL REPORT 2016/17

The Tax Ombud Annual Report 2016/17 has been tabled in Parliament. The report details salient features pertaining to the strategic outcomes of the Office of the Tax Ombud.

Call For Comment

Customs & Excise Act, 1964​​

Part 1 of Schedule No. 1 to create 8-digit tariff subheadings under 2809.20 to include a phosphoric content of 78 per cent or more

Next due date for comments: ​​13 October 2017 New!

Customs & Excise Act, 1964​

Draft Amendment Explanatory Memorandum

Next due date for comments: ​13 October 2017

Customs & Excise Act, 1964​​

Draft rule amendments in relation to trade agreements

Form DA 185.4A2

Form DA 185.4A7

Draft rule amendments for the Generalized System of Preferences (GSP) Norway – The Registered Exporter System (REX system)

Next due date for comments: 4 October 2017 New!

TAX CASES

Nondabula v Commissioner SARS and Another EC 27 June 2017

PROFESSIONAL INSIGHT

Global Tax Reset - Transfer Pricing Documentation Summary
Taking money abroad lawfully – Just use your single discretionary allowance

 

Author: Louis Botha (CDH)

 

In our Alert of 29 Sept '17 (South Africans working and living abroad – the Excon considerations), we dealt with the exchange control (Excon) rules applicable to South African residents who work abroad on a temporary basis. One of the aspects that we briefly touched on, was the single discretionary allowance (SDA), which all South Africans who are 18 years or older...

Equality of a different kind - Proposal to amend the debt reduction rules applicable to mining companies

Author: Candice Gibson (CDH)

 

Section 36 of the Income Tax Act, No 58 of 1962 (Act) contains unique provisions which are only applicable to mining operations, and which set out the manner in which redemption allowances and unredeemed capital expenditure are calculated. The definition of “capital expenditure”, as provided for in s36, contains a list of expenditure regarded as capital expenditure for purposes of mining operations, such as expenditure...

WHEN SHOULD SARS CONDONE A LATE APPEAL?

Author: Nico Theron (Unicus Tax Specialists SA)

 

In a recent application to the Johannesburg Tax Court (018/2016), the court was asked to condone an appeal submitted late by the taxpayer.

 

The facts are simply that the taxpayer filed an appeal more than 75 business days after the notice of disallowance of the taxpayer’s objection. The reason for late submission is that the taxpayer’s representative thought that the appeal was filed on e...

UNDERSTATEMENT PENALTIES

Author: Nico Theron (Unicus Tax Specialists SA)

 

In a recent case before the Johannesburg Tax Court (IT 14247), the court was faced with the question of what constitutes a prejudice to SARS or the fiscus. Understanding this is important because SARS can only raise an understatement penalty (USP) if there was a prejudice to SARS or the fiscus. SARS can also only raise an additional assessment under section 92 of the Tax Administration Act, No. 28 of...

Revised proposals where conversions of debt to equity (and more!) could result in income tax for the debtor

Author: Joon Chong, Partner (Webber Wentzel)

 

The draft Taxation Laws Amendment Bill, 2017 (DTLAB) provided for new sections 19A and 19B in the Income Tax Act 58 of 1962 (the Act) to provide for recoupment of interest arising from conversions of debt to equity. Recoupment is an income tax concept which generally means expenses which were previously claimed as a deduction for income tax purposes must now be added to income and subject to income tax, ie...

South Africans working and living abroad – the excon considerations

Author: Louis Botha (CDH)

 

Despite some people not being aware of it, an important issue to consider in this regard is the exchange control (Excon) laws that apply to such persons. In terms of the Exchange Control Regulations, 1961 (Regulations) read with the Currency and Exchanges Manual for Authorised Dealers (AD Manual), where a South African person who is a resident for Excon purposes works abroad, there are specific rules that apply. Section B.4(...

Infographic: filing guide for the master file (MF) and local file (LF) in South Africa

Graphene Economics™ has compiled a document outlining the South African filing requirements for the transfer pricing master file and local file.

 

 

Amendments to section 7C

Section 7C is an anti-avoidance section targeting zero or low interest loans provided to trusts by natural persons purportedly to facilitate the transfer of wealth and estate planning, resulting in loss of donations tax and estate duty to the fiscus. This provision currently applies to loans provided to a South African trust by (i) a natural person that is a "connected person' in relation to the trust; or (ii) a company, at the instance of that natural person, and that natural...

CPD Events

Tax News In The Press

16 October 2017 - SARS easyFile workshops on employer reconciliation submission
Revenue Service On Cocaine Bust At OR Tambo Airport

[Govt of SA] South African Revenue Service (SARS) Customs officials seized 30kg of cocaine estimated at close to R9-million in two separate incidents at OR Tambo International Airport today.

Op-Ed: 2017 worst year yet for S.A tax payers

For taxpayers, this year is the worst ever, and the next two years are projected to be even worse.

SARS Wars - Tom Moyane's Multiple Storms

[Daily Maverick] On Friday, SARS Commissioner Tom Moyane called a last-minute press conference after a hot batch of acrimonious letters between himself and Minister of Finance Pravin Gordhan were leaked to the Mail & Guardian. Moyane was hoping to defend his dignity and increasingly tarnished status as the head of the country's most crucial economic cog, the revenue collection service. And while technocrats tried to explain away a R30.4-billion shortfall flagged by Gordhan in his Budget...

Treasury Welcomes FATF Outcome of Plenary Discussion

[SA Govt] The National Treasury and the Financial Intelligence Centre (FIC) welcome the decision taken by the Financial Action Task Force (FATF) at its Plenary meeting held in Paris last week (22 to 24 February).

Zimbabwean Man Steals 27 Sheep, Jailed for 'Economic Sabotage'

[New Zimbabwe] A ZIMBABWEAN man who was sent to jail for 10 years after making off with almost all of a Delmas farmer's sheep may appeal against his sentence, which two high court judges described as "very severe".