Home

SAIT Trending Topics

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

In General

Guide for tax rates/duties/levies (Issue 14): This guide provides a current and historical view of the rates of various taxes, duties and levies collected by SARS.

SARS
Income Tax Act, 1962

Interpretation Note 1 (Issue 3) – Provisional tax estimates

 

This Note provides guidance on the interpretation of the law relating to provisional tax

SARS
BPR 318 - Corporatisation of a collective investment scheme in property

This ruling determines the tax consequences arising out of the conversion of a collective investment scheme in property to a corporate REIT in accordance with the procedure set out in Notice 42 of 2014 issued by the Registrar of Collective Investment Schemes under the Collective Investment Schemes Control Act 45 of 2001.

SARS

TAX CASES

ABC (Pty) Ltd and C:SARS (IT14426) - 13 December 2018

This appeal is concerned with the application of provisions of the Employment Tax Incentive Act 26 of 2013 (the Act), which provides for an employment tax incentive (“ETI”) in the form of a deduction from the employees’ tax (“PAYE”) payable to the employer to support the creation of new jobs for employees under the age of 30 years.

SARS Court Cases
Tax Payer v Commissioner for the South African Revenue Service (VAT1558) [2018] ZATC 3 (5 December 2018)

This matter is concerned with the interpretation and application of s 8(15) of the Value-Added Tax Act 89 of 1991 (‘the Act’). It takes the form of an appeal against additional Value-Added Tax (‘VAT’) assessments raised by the respondent, the Commissioner for the South African Revenue Service (‘CSARS’), against the appellant, …, in the amount of R3 444 764 for its 06/2009, R4 631 620 for its 06/2010 and R5 932 209 for its 06/2011, VAT periods and interest.

SARS Court Cases
Supreme Court of Appeal - CSARS v Big G Restaurants

Income tax – s 24C of the Income Tax Act 58 of 1962 – whether income of taxpayer in years of assessment received or accrued in terms of franchise agreement – used to finance future expenditure incurred by taxpayer in the performance of obligations under that agreement – income and obligations must originate from the same contract.

SARS

Legislative & Policy
(National Treasury & Parliament)

Budget 2019

Over the medium term, spending reductions amount to R50.3 billion, 54 per cent of which comes from compensation budget adjustments. * Provisional allocations of R75.3 billion are budgeted over the 2019 medium-term expenditure framework (MTEF) period, mainly for Eskom’s reconfiguration plan. * Since the 2018 Medium Term Budget Policy Statement the contingency reserve has been increased by R6 billion in 2019/20 to respond to requests for fiscal support from smaller stateowned companies....

National Treasury
Carbon Tax Bill: finalisation & voting; Financial Matters Amendment Draft Bill: briefing

The Committee met with the National Treasury for finalisation and adoption of the Carbon Tax Bill. The Committee also received a briefing and discussed the Financial Matters Bill.

Parliamentary Monitoring Group
Media Advisory: Save the date - Media Workshop

As part of equipping journalists with information to help them with their reporting of the Budget and related issues, Treasury will host a media workshop on 19 February 2019. Details of what will be presented at the workshop will follow in due course.

Treasury

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

National Legislation

Consultation paper and media statement  – Policy proposals for crypto assets. Due date for comments: 15 February 2019

SARS
Income Tax Act, 1962

This BGR provides clarity on the no-value provision in respect of the rendering of transport services by an employer to employees in general, and must be read with BGR 42 dated 22 March 2017 “No-value provision in respect of transport services”. Next due date for comments: 21 January 2019 New!

SARS
Media Statement and related documents: Publication of the Draft Carbon Tax Bill for public comment

The Minister of Finance recently announced the implementation of the carbon tax effective from 1 June 2019. The Draft Carbon Tax Bill makes provision for the carbon offset allowance in terms of Section 13. The National Treasury today publishes the Draft Regulation on the Carbon Offset for a second round of public comment and further consultation. Next due date for comments: 14 December 2018

National Treasury

International and Regional News
(OECD and ATAF)

OECD invites taxpayer input on eighth batch of dispute resolution peer reviews

Improving the tax treaty dispute resolution process is a top priority of the BEPS Project. The Mutual Agreement Procedure (MAP) peer review and monitoring process under Action 14 of the BEPS Action Plan was launched in December 2016 with the peer review process now well underway.

OECD
Mauritania joins international efforts against tax evasion and avoidance

At the OECD Headquarters in Paris, H.E. Aichetou Mint M’Haiham, Ambassador of Mauritania to France, signed the Multilateral Convention on Mutual Administrative Assistance in Tax Matters (the Convention) in the presence of the OECD Deputy Secretary-General Ludger Schuknecht. Mauritania is the 127thjurisdiction to join the Convention.

OECD
Signatories and parties to the multilateral convention to implement tax treaty related measures to prevent base erosion and profit shifting

This document contains a list of signatories and parties to the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting. Under the provisions of the Convention, each jurisdiction is required to provide a list of reservations and notifications (the “MLI Position”) at the time of signature.

OECD

CPD Events

PROFESSIONAL INSIGHT

How to complete your provisional tax return

With the deadline for second provisional tax returns and payments fast approaching, we provide you with information and tips to help you prepare in good time.

Nicci Courtney-Clarke - TaxTalk Magazine
Webber Wentzel E-Alert: Budget Review 2019

The Budget Review 2019 (Budget) was released by the National Treasury this afternoon. Chapter 4 and Annexure C of the Budget introduce on a high-level changes to tax policies or tax clarifications that would be implemented in the draft taxation law and tax administration law amendment bills to be circulated mid-2019. In this e-alert, we discuss some of the notable points in Chapter 4 and Annexure C.

Webber Wentzel
Cliffe Dekker Hofmeyr - Special Edition: Budget Speech Alert

Our experts' views on today's Budget Speech.

Cliffe Dekker Hofmeyr
Cliffe Dekker Hofmeyr: Tax & Exchange Control Alert 15 February 2019

SALE OF LEASE RIGHTS AND LEASE PREMIUM: The tax treatment of lease premiums continues to be a vexing issue.

A DIVER’S QUANDARY: THE ROLE OF DOMESTIC LAW IN INTERPRETING DOUBLE TAXATION AGREEMENTS: In the international tax law arena, agreements for the avoidance of double taxation (DTAs) are, very simply, concluded between states with a view to prevent, mitigate or discontinue the levying of tax in respect of the same income, profits or gains or tax imposed in respect of the same...

Cliffe Dekker Hofmeyr
Africa tax in brief

AFRICAN UNION: African Continental Free Trade Area Agreement developments

Celia Becker - ENSafrica
New tax change taxes dividends in a collective investment scheme

Dividends declared by South African resident companies or non-resident companies, the shares of which are listed on a South African exchange, are subject to dividends tax of 20%. The tax liability in the case of a cash dividend is that of the beneficial owner of the dividend. The beneficial owner is the person entitled to the benefit of the dividend attaching to a share. If it is a cash dividend, then the company declaring the dividend has to withhold the dividends tax and pay it over to the...

Magda Snyckers - ENSafrica
Win for the employer: Judgment on the Employment Tax Incentive Act

In the recent case of ABC (Pty) Ltd v The Commissioner for the South African Revenue Service (Case No 14426) (as yet unreported), the Tax Court was required to decide whether ABC (Pty) Ltd (Taxpayer) could claim the employment tax incentive (ETI) in terms of the Employment Tax Incentive Act, No 26 of 2013 (Act) in respect of certain periods. In deciding the matter, the court not only considered the provisions of the Act, but also considered and applied various principles of South...

Louis Botha & Louis Kotze - Cliffe Dekker Hofmeyr
Finality to Debt Benefit Rules

The Taxation Laws Amendment Act, 2018 (“TLAA”), which was promulgated on 17 January 2018, amended South African tax legislation by overhauling two provisions relating to the reduction of debt, (the “Debt Benefit Rules”), namely section 19 of the Income Tax Act, 1962 (the “ITA”) and paragraph 12A of the Eighth Schedule to the ITA (the “Eighth Schedule”). This article will examine the notable areas where the legislation per the TLAA differs and the importance of the timing of the application...

Siyanda Gaetsewe - ENSafrica
PWC Tax Alert - Carbon tax developments

On Tuesday, 5 February 2019, the Standing Committee on Finance adopted the Carbon Tax Bill. The Bill will now head towards the parliamentary vote process. In addition, the draft Customs and Excise Amendment Bill will be tabled in parliament on 20 February 2019 along with the 2019 Budget.

PWC

Tax News In The Press

Business Is it possible to turn around SA’s tax regime? Dennis Davis lays it out for us

South Africa’s tax system has the unenviable task of striking a fine balance between providing for those who are presently disadvantaged, while being as conducive to economic growth as possible in a highly unequal society. “If we could grow the economy at 5%, a tax committee would be irrelevant,” High Court Judge Dennis Davis told the Gibs Economic Outlook Conference.

City Press
Venture capital company tax regime under review. Again.

National Treasury has proposed that the venture capital company (VCC) tax regime again be reviewed to prevent abuse.

Ingé Lamprecht - Moneyweb
Finland deposits its instrument of acceptance for the Multilateral BEPS Convention

This document contains a list of signatories and parties to the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting. Under the provisions of the Convention, each jurisdiction is required to provide a list of reservations and notifications (the “MLI Position”) at the time of signature.

OECD
Expat tax: Treasury willing to hear concerns about new amendments

National Treasury has invited key stakeholders to a workshop early next month to address continued concerns around the amended foreign income tax exemption. The change is set to become effective on March 1, 2020. In terms of the amended section of the Income Tax Act, South Africans working abroad will in future be taxed in South Africa on any foreign income exceeding R1 million. This will have a major impact on the competitiveness of South African professionals and the remuneration policy of...

Carin Smith - Fin24
South Africa’s big expat tax – these are your options

An amendment to the South African Income Tax Act, which will have hard-hitting consequences for citizens working outside South Africa, will come into force in March 2020. South Africans earning an income abroad should be considering their options, says Sovereign Trust SA.

Business Tech
How your effective income tax rate has changed

When British prime minister Margaret Thatcher came to power in the UK in the late 1970s, inflation had started rearing its ugly head.

Ingé Lamprecht - Moneyweb