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

TURKS AND CAICOS TIEA GG 42021 9 November 2018

Bilateral TIEAs are agreements between the governments (tax administrations) of two jurisdictions to enable them to exchange tax information upon request.

SARS
BPR 313 Foreign share buyback

This ruling determines the income tax effect of a share buyback by a non-resident company from a resident trust.

 

SARS
Binding Private Ruling (BPR) 312 – Tax implications of the variation of employment contracts

This ruling determines the tax consequences of payments made pursuant to the cancellation of a profit share agreement entered into between an employer and certain of its employees.

SARS

TAX CASES

CSARS v Amawele Joint Venture CC (908/2017) [2018] ZASCA 115 (19 September 2018)

VAT – zero rating of supplies of services in terms of s 11(2)(s), read with s 8(23) of the Value-Added Tax Act 89 of 1991 – whether supplies made in terms of the Housing Subsidy Scheme referred to in s 8(23).

SARS Court Cases
Kangra Group (Pty) Ltd v CSARS (A20/18) [2018] ZAWCHC 104 (27 August 2018)

Whether damages paid by the Appellant as a result of breach of contract, after it sold its coal business, is properly deductible in terms of section 11(a), specifically, whether such payment was incurred in the production of income.

SARS Court Cases
CSARS v Respublica (Pty) Ltd (1025/2017) [2018] ZASCA 109 (12 September 2018)

Value-Added Tax Act 89 of 1991 – whether the supply of a building and related goods and services to an educational institution for use by its students under a written agreement ...

SARS Court Cases

Legislative & Policy
(National Treasury & Parliament)

Comments & public hearings: 2018 Medium Term Budget Policy Statement (MTBPS)

The Standing Committee on Finance and the Select Committee on Finance invites you to submit written submissions on the 2018 Medium Term Budget Policy Statement (MTBPS) that will be tabled on 24 October 2018. Click here to read more.

Parliamentary Monitoring Group
No relevant National Treasury tax-related news from 1 - 19 October 2018
National Treasury
No relevant National Treasury tax-related news from 21 - 30 September 2018
National Treasury

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

Draft public notice relating to the incidences of non-compliance by a person in terms of section 210(2) that are subject to a fixed amount penalty in accordance with section 210 and 211

The incidences of non-compliance, that are subject to a fixed amount penalty in accordance with section 210(1) and 211 of the Act, are listed for public comment.Next due date for comments: 30 October 2018

SARS
​Income Tax Act, 1962

Draft list of qualifying physical impairment or disability expenditure & Draft ITR-DD Form – Confirmation of Diagnosis of Disability. Next due date for comments: 5 November 2018

SARS
INVITATION FOR COMMENT ON THE DRAFT ANTI-AVOIDANCE OF TAX BILL, 2018

The Anti-Avoidance of Tax Bill aims to give SARS the necessary legal mechanisms to tackle aggressive and illegal avoidance.

Government Gazette

International and Regional News
(OECD and ATAF)

11th Meeting of the Global Forum on Transparency and Exchange of Information for Tax Purposes, 20-22 November 2018, in Punta del Este, Uruguay

Global cooperation to fight tax evasion and avoidance has grown rapidly over the past few years. Tax Transparency and Exchange of Information between tax authorities about financial assets and activities of their taxpayers abroad has proved to be a valuable tool in this fight. New efforts to ensure a worldwide level playing field and global implementation of transparency standards will top the agenda during the 11th meeting of the Global Forum...

OECD
OECD and tax officials from Eastern Europe and Central Asia discuss BEPS implementation in Armenia

Over 60 delegates from 16 countries, international and regional organisations, business, civil society and academia gathered in Yerevan, Armenia on 7 - 9 November 2018 for a regional meeting of the Inclusive Framework on BEPS in Eastern Europe and Central Asia.

OECD and tax officials from Eastern Europe and Central Asia discuss BEPS implementation in Armenia

Over 60 delegates from 16 countries, international and regional organisations, business, civil society and academia gathered in Yerevan, Armenia on 7-9 November 2018 for a regional meeting of the Inclusive Framework on BEPS in Eastern Europe and Central Asia. This was the latest in a series of regional meetings offering participants from...

OECD

CPD Events

PROFESSIONAL INSIGHT

Managing your Tax Compliance Status

Manual tax clearance certificates have been replaced with a tax compliance status functionality on eFiling. How well does the My Compliance Profile work? And what can one do in case of problems? Our authors explore the issue in detail.

Joon Chong & Carryn Alexander for TaxTalk Magazine
The exemption of scholarships or bursaries awarded to disabled employees

An exemption came into effect in 2018 which provides income tax relief for scholarships and bursaries awarded to disabled persons for study purposes. What are the requirements for recipients and for employers that provide funding for disabled employees?

Jaco Faber & Herman Viviers for TaxTalk Magazine
Doing your objection right

When initiating a dispute with SARS it is important to start off on a solid foundation. Our author provides ways to get it right.

Suzanne Smit for TaxTalk Magazine
Disputes and the SARS Service Charter

Disputes between taxpayers or practitioners and SARS: We ask what has changed since the publication of the SARS Service Charter.

 

Elle-Sarah Rossato for TaxTalk Magazine
PWC Tax Alert - Legislative developments: Revisions to the debt relief rules

Section 19 of the Income Tax Act, 1962 (“the Act”) and paragraph 12A of the Eighth Schedule to the Act, which contain the “debt relief” rules, underwent substantial amendment in the 2017 legislative cycle. These amendments gave rise to significant practical problems.

PWC
Legislative developments: The doubtful debt allowance regime

Section 11(jA) of the Income Tax Act, 1962 (Act No. 58 of 1962) (“the Act”) makes provision for a “doubtful debt” allowance for banks (as a class of “covered person” as defined in section 24JB of the Act). In January 2018, section 11(jA) was amended (effective for years of assessment commencing on or after 1 January 2018). These amendments were driven by the coming into effect of IFRS 9, the impairment requirements of which are vastly different from those of IAS39, which preceded IFRS9. The...

PWC
PwC Synopsis - October 2018

The South African Income Tax Act, 1962 (Act No. 58 of 1962), as amended (“the Income Tax Act”), is just that: a single Act of Parliament (assented to and that commenced in 1962) that has been regularly amended (by more than 100 amending Acts of Parliament and Government Notices) since 1962.

PWC
Significant new Namibian tax law proposals

In the Namibian Budget Speech held in March 2018, far-reaching reforms to the Namibian tax system were proposed, promising to substantially change the basis of taxation in Namibia and impact existing and new business transactions in the country. These proposals have now been fleshed out and, while subject to amendment, the parameters of these changes have been clarified. The key details of these tax proposals are summarised below. Introduction of a residency basis of taxationA significant...

by the ENSafrica tax department
Changes to the debt relief provisions from 1 January 2019

The Income Tax Act has always contained rules that give rise to tax implications for debtors whose debts are reduced or eliminated for less than the face value of the debt. These provisions are contained in section 19 and paragraph 12A to the Income Tax Act. Depending on how the proceeds of a debt were utilised or the how the debt arose, the provisions can trigger income tax recoupments, a reduction in the tax cost of assets or both.  Subject to exclusions the debt relief provisions are...

KPMG SA

Tax News In The Press

Tax implications of offshore assets overlooked

More and more South Africans are investing offshore using their annual foreign investment allowance, but few of them are giving much thought to the tax and estate planning implications of doing so.

Martin Hesse - IOL
1 November 2018 - Tax Season 2018 - Preliminary Results
Moyane fired because he failed to defend himself

The CEO of the South African Institute for Tax Professionals Keith Engel says SARS Commissioner Tom Moyane has been fired because he had failed to defend himself against allegations of mismanagement.

Townpress South Africa
29 October 2018 - SARS sounds the 48-hour call to file
Sars clarifies its stance on medical expense claims

After complaints that tax credits for out-of-pocket expenses were disallowed.The South African Revenue Service (Sars) says there has been no policy change with regards to the risk treatment of medical expense claims.

Ingé Lamprecht - Moneyweb
Sars reminds taxpayers to file returns before Wednesday

The South African Revenue Service (Sars) has announced that individual taxpayers have 48 hours left to file their personal income tax returns before tax season closes on Wednesday, 31 October. 

IOL