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

Draft EM - Regulations prescribing electronic services
Consolidated Regulations after Draft Amendments to Regulations electronic services
Draft Amendments to Regulations prescribing electronic services section 1(1) of the VAT Act

Legislative & Policy
(National Treasury & Davis Tax Committee)

SAIT comments on SARS draft guide to understatement penalties

SAIT’s Tax Administration Work Group made detailed comments and references to case law in the SAIT comments on SARS draft guide to understatement penalties. Please click here to read more.

 

SAIT Tax Policy
OECD announces further developments in BEPS implementation

The Inclusive Framework on BEPS has released additional guidance to give certainty to tax administrations and MNE Groups alike on the implementation of Country-by-Country (CbC) Reporting (BEPS Action 13). The Inclusive Framework also approved updates to the results for preferential regime reviews conducted by the Forum on Harmful Tax Practices (FHTP) in connection with BEPS Action 5.

Media Statement: Illicit request for payment of services
Treasury

Call For Comment

​​Tax Administration Act, 2011

Returns of information to be submitted by third parties in terms of section 26 of the Tax Administration Act, 2011. Next due date for comments: 14 February 2018​

SARS
​​Tax Administration Act, 2011

Returns of information to be submitted by third parties in terms of section 26 of the Tax Administration Act, 2011. Next due date for comments:14 February 2018​.

SARS
​Income Tax Act, 1962

Draft Interpretation Note on lease premiums. Next due date for comments: ​11 May 2018.

SARS

CPD Events

PROFESSIONAL INSIGHT

Confessions (and predictions) of a tax nerd

It is a concern, isn’t it? The “it” being the budget deficit that is predicted to be above 4.3% of GDP (the number mentioned around the time of the midterm budget). I say it is a concern – it is certainly a concern to me.

KPMG SA
No more delays, carbon tax in South Africa is a burning reality

South Africa’s environmental resources are facing serious challenges in the form of air and water pollution as well as climate change, with the cost of pollution not being taken into consideration when determining the final price of products or services. Societies are affected as a result of excessive pollution and the current climate change challenges being experienced.

Candice Gibson
Webber Wentzel E-Alert: Property developers will face cash flow pressure due to VAT on temporary rental of residential units

The curtains have come down on section 18B of the Value-Added Tax Act, No. 89 of 1991 (VAT Act) and the resultant impact may catch a few residential property developers off-guard. The VAT relief afforded to such developers in section 18B of the VAT Act was introduced in 2011 and provided that where fixed property consisting of a "dwelling" (essentially a property used predominantly as a place of residence) was developed by a "developer" (as defined in the VAT Act) wholly for the purpose of...

Chetan Vanmali, Des Kruger & Andile Miya - Webber Wentzel
Amendments to the taxation of debt restructures

Since 1 January 2013, section 19 of the Income Tax Act, 1962 (the “Act”) and paragraph 12A of the Eighth Schedule to the Act (the “Eighth Schedule”) have determined the tax implications where a debt owing by a taxpayer is cancelled, waived, forgiven or discharged for no consideration (or for consideration that is less than the amount of the debt). 

Carmen Gers & David Marais
Potential VAT cash flow problem for residential property developers

The recent end of the value-added tax (“VAT”) relief period for property developers in South Africa, who temporarily let their residential units, may have a significant impact on their cash flow.  

Anne Jenkinson & Annelie Giles
Did the punishment fit the crime? The Tax Court reduces an understatement penalty imposed by SARS

The imposition of understatement penalties in terms of Chapter 16 of the Tax Administration Act, No 28 of 2011 (TA Act) and the factors to consider when imposing such a penalty: An issue that our courts have not dealt with much. In this regard, the judgment of the Tax Court in XYZ CC v The Commissioner for the South African Revenue Service (Case No. 14055) (as yet unreported), handed down on 20 November 2017, sets out some helpful principles. 

Louis Botha
Taxation of subsistence allowances – SARS issues new ruling

On 24 January 2018, the South African Revenue Service (SARS) issued Binding Private Ruling 291 (BPR 291), which deals with the taxation of subsistence allowances paid by an employer to its employees under certain circumstances. BPR 291 specifically related to the interpretation of s8(1)(a)(i)(bb) read with s8(1)(c) of the Income Tax Act, No 58 of 1962 (Act).

Louis Botha
Tax victory for automotive manufacturers

A recent Supreme Court of Appeal (SCA) judgment (Volkswagen South Africa (Pty) Ltd v CSARS) provided much needed clarity that Productive Asset Allowance (PAA) certificate amounts granted to automotive manufacturers are capital in nature as their purpose is to incentivise capital investments.

Joon Chong, Partner, Webber Wentzel
SAVING SARS: WHY SARS IS FAILING AND WHAT CAN BE DONE TO GET IT BACK ON TRACK

Tax-related bombshells have been dropping one after the other in recent months, prompting observers to question the performance of the South African Revenue Service (SARS) and the path it has been taking.
In the Medium-term Budget Speech on 25 October 2017, Finance Minister Malusi Gigaba indicated that growth projections for 2017 have been approximately halved, from 1.3% tabled at the time of the Budget, to 0.7%.  The tax revenue deficit was estimated to be ZAR 50.8 billion in 2017/ 18...

Patricia Williams

Tax News In The Press

Parliament On 2018 Budget Speech

[Govt of SA] Parliament and the Budget

South Africa to Tackle Tax Avoidance - Ramaphosa

[News24Wire] South Africa will continue to play a leading role in international efforts to stem the tide of various forms of tax avoidance, President Cyril Ramaphosa said.

Cosatu rejects budget as anti-poor

South Africa’s biggest labour group criticised finance minister Malusi Gigaba’s annual budget, saying plans to raise the sales-tax rate and curb expenditure in a bid to contain debt would hurt the poor.

Mike Cohen, Bloomberg
Budget 2018: 10 things you need to know

1. VAT increased from 14% to 15%

Ingé Lamprecht
Income tax: This is what you’ll pay

National Treasury will raise almost R7 billion from the personal income tax system through lower-than-inflation increases to tax rebates and brackets, effectively collecting taxes by stealth.

Ingé Lamprecht
Cosatu Statement On Budget Speech Expectations

[COSATU] COSATU has welcomed President Ramaphosa's State of the Nation Address. Workers are pleased that it unveils a serious programme to arrest corruption and the nation's decay and to lift the economy out of recession and create employment for workers.