Home

SAIT Trending Topics

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

Binding Private Ruling (BPR) 310 – Customer loyalty programme

This ruling determines the income tax and VAT consequences of a customer loyalty programme.

SARS
OFFICE OF THE TAX OMBUD TO PARTICIPATE AT THE TAX INDABA

The OTO is pleased to be participating in the upcoming Tax Indaba 2018 scheduled for 10 to 14 September at the Sandton Convention Centre in Johannesburg. Once again, the Office will join thousands of influential voices in the tax sphere who attend this annual event in order to discuss pivotal issues regarding tax. Visit our exhibition stand at the Indaba to find out more about how we can help resolve your tax complaints against SARS. Make sure not to miss the Tax Ombud Judge Bernard Ngoepe...

Tax Ombud
SYSTEMIC ISSUES DEFINED

Please see the list of systemic issues as provided by the Office of the Tax Ombud. The list represents issues that if experienced by the taxpayer, they can approach the Office of the Tax Ombud without first engaging with SARS through their internal complaints office. The list will also serve as a living document and will be updated and amended when necessary.

Tax Ombud

TAX CASES

CSARS vs KWJ Investments Service Pty Ltd - 31 May 2018

Gross income – whether a cession of a dividend right constitutes a receipt or accrual for the purposes of gross income – if so, does a practice generally prevailing in terms of provision (iii) to s 79 (1) of the Income Tax Act 58 of 1962 apply.

SARS Court Cases
TCIT 13626 JHB 17 May 2018

Income Tax; trading stock; whether there was a diminution in value of the Appellant’s trading stock for the relevant years of assessment.

SARS Court Cases
Red Ant Security Relocation Services (Pty) Ltd and Commissioner of SARS

(Case no. 2999/18) The applicant sought urgent interdictory relief aimed at reinstatement of its tax compliance status so that it can generate a tax clearance certificate pending the determination of review proceedings instituted by it.

SARS Court Cases

Legislative & Policy
(National Treasury & Parliament)

VAT Panel: Recommendations on Zero Ratings in the Value-Added Tax System

The Value-Added Tax (VAT) rate was increased from 14% to 15% on 01 April 2018, as announced in the February 2018 National Annual Budget. Following the announcement of the VAT increase, concerns have been raised, in Parliamentary and other processes, about its impact on poor and low-income households. The increase in VAT would raise the tax on the poorest 50% of households by around R1.8 billion or an average of R216 per household per annum.

National Treasury
Comment & Public Hearing: 2018 TLAB & TALAB

The Standing Committee on Finance invites public comment on the 2018 Draft Taxation Laws Amendment Bill (TLAB) and the 2018 Draft Tax Administration Laws Amendment Bill (TALAB).  Both draft Bills give effect to the tax proposals announced on Budget Day (21 February 2018), as published in the Budget Review.

Parliamentary Monitoring Group
Media Statement: VAT Panel Report

The Chair of the Independent Panel of Experts for the review of the current list of VAT zero-rated items, Professor Ingrid Woolard, today requested from the Minister of Finance an extension of today’s deadline for the submission of its report. The Minister has agreed to extend the deadline from 31 July 2018 to 6 August 2018. The report will be made public soon thereafter.

National Treasury

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

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
Mineral and Petroleum Resources Royalty Act, 2008​

Draft IN on the meaning of "bulk" in Schedule 2. Next due date for comments: ​18 May 2018.

SARS

International and Regional News
(OECD and ATAF)

New brochure outlining the OECD’s work on tax

The mission of the OECD is to promote policies that will improve the economic and social well-being of people around the world. It provides a forum where governments can work together to share experiences and seek solutions to common problems, bringing our expertise to help governments understand the drivers of economic, social and environmental change and support sustainable and balanced growth.

OECD
Effective Carbon Rates 2018 releases Tuesday 18 September

Carbon pricing is a vital tool for keeping climate change in check while also improving air and water quality. The 2018 edition of Effective Carbon Rates 2018: Pricing Carbon Emissions through Taxes and Emissions Trading examines progress since 2012 in setting taxes and tradeable permits for carbon emissions in 42 OECD and G20 countries accounting for around 80% of global emissions.

OECD
OECD releases seven new transfer pricing country profiles and an update of a previously-released profile

The OECD has published new transfer pricing country profiles for Costa Rica, Greece, Republic of Korea, Panama, Seychelles, South Africa and Turkey. In addition, it has also updated the information contained in Singapore’s profile. The country profiles are now available for 52 countries.

OECD

CPD Events

PROFESSIONAL INSIGHT

Tax morality and the tax gap

Our authors explore the concepts of “tax morality” and “tax gap” in the context of declining tax revenues.

Ruaan Van Eeden and Johanci Meintjes for TaxTalk Magazine
New tripartite pact underpinned by tax technology beckons

Our authors take a critical look at restoring trust, the promises of fintech and the role of data in creating tax value.

Marcus Botha and Tim Dearden for TaxTalk Magazine
Short-term insurance Documents for VAT purposes

Short-term insurance transactions are arguably the most complicated transactions from a VAT perspective. It is therefore no surprise that SARS has issued a detailed guide on the VAT implications of short-term insurance transactions (VAT 421) and has published rulings to clarify the VAT implications of transactions specific to the industry.

Tania Els for TaxTalk Magazine
Tax returns: When does prescription commence to run?

Section 99 of the Tax Administration Act, No 28 of 2011 (TAA) deals with the period of limitations for issuing assessments. More specifically, s99(1)(b) provides that, in the case of a “self-assessment” for which a return is required, the South African Revenue Service (SARS) may not issue an additional or reduced assessment after five years from the date of assessment of the original assessment. The phrase “date of assessment” is defined in s1 of the TAA as the date that the return is...

Gigi Nyanin - Cliffe Dekker Hofmeyr
The Mauritian global business sector revamped

The legal framework in Mauritius is constantly evolving to keep pace with the rapidly changing economic environment. With the enactment of the latest Finance (Miscellaneous Provisions) Act, 2018 (the “Act”) on 9 August 2018, the government approved amendments to some 68 Acts, with regulations to follow shortly.

Xavier Koenig, Nashenta Vuddamalay Zindel and Avina Uckiah - ENSafrica
Reassurance for taxpayers seeking debt relief

Debt restructuring and relief within the business environment have been undertaken since time immemorial. Given the current economic climate, such debt restructuring and relief has increased and thus received concomitant increased attention from the relevant tax and finance authorities.

Jerome Brink - International Law Office
Exchange Control: Recent amendments to the Currency and Exchanges Manual for Authorised Dealers

As part of its review of South Africa’s exchange control rules, the Financial Surveillance Department of the South African Reserve Bank (FinSurv) from time to time issues exchange control circulars, notifying persons of changes to these rules.

Louis Botha - Cliffe Dekker Hofmeyr
VAT relief for residential property developers after expiry of section 18B

The South African Revenue Service (“SARS”) issued Binding General Ruling No. 48 (“BGR 48”) on 25 July 2018, which provides much needed clarification for residential property developers following the recent cessation of relief under section 18B of the Value-Added Tax Act, 1991 (the “VAT Act”).

Anne Jenkinson & Annelie Giles - ENSafrica
Corporate reorganisations: the dividend stripping pitfall

Under South African corporate reorganisation rules, tax consequences are deferred and do not crystalise at the time of the transaction, but a carefully planned restructuring transaction may result in hardship due to subsequent events. A recently proposed amendment illustrates this risk.Tax relief under the existing corporate reorganisation rules may be neutralised if assets acquired in terms of these rules are disposed of within 18 months.  

Nicolette Smit & Stephan Minne - ENSafrica

Tax News In The Press

‘Higher taxes not the answer to revenue shortfalls’

SA must increase its tax base and adopt enabling policies, Tax Indaba hears.

Ingé Lamprecht - Moneyweb
Sars might not be able to collect 40% of outstanding tax

Alongside missing its tax collection target for the year, the SA Revenue Service (Sars) is likely to struggle to collect about 40% of outstanding taxes.

Sunita Menon - Business Live
A high tax burden does have consequences

Social infrastructure enjoyed by highly developed countries is absent in South Africa, even though our tax-to-GDP ratios are similar.

Amanda Visser - Moneyweb
‘Higher taxes not the answer to revenue shortfalls’

Higher tax rates are not the solution to revenue shortfalls, a tax practitioner has warned.

Ingé Lamprecht - Moneyweb
Sars may not be able to collect 40% of its R143bn debt book

The South African Revenue Service (Sars) may not be able to collect about 40% of its outstanding debt book, which has ballooned from around R85 billion in 2015 to R143 billion.

Ingé Lamprecht - Moneyweb
SABC speaks to Acting SARS Commissioner Kingon at the Tax Indaba 2018

Acting Sars commissioner Mark Kingon has called on South Africans to work together to fight the scourge of tax evasion which he says is damaging the economy. Glorious Sefako-Musi spoke to Kingon and started off by asking him about the reports on the appointment of the Chief Officer for Governance, International Relations, Strategy and Communications, Hlengani Mathebula, by suspended Tax commissioner Tom Moyane.

SABC News