SAIT Trending Topics

The 1% Problem – VAT Increase

Do you see the increase in the VAT rate as a threat to your business?  Christo Theron (TradeTaxPlus) will unpack the following points in a 2 hour webinar on Friday, 23 March 2018:


-              Your right to increase your price

-              The rules to comply with the transition

-              What if you get it wrong?

-              Let’s get real in practice


The webinar is aimed at highlighting the most critical issues you need to be...

Davis Tax Committee Media Statement: Goodbye Matthew Lester

The Davis Tax Committee (DTC) is sad to announce the passing away of one of its Members, Professor Matthew Lester, following a short illness. Professor Lester was appointed as a Member of the DTC by the Minister of Finance on 17 July 2013. He served with distinction from 17 July 2013 until his untimely death on 12 March 2018.

Did you know…

…that the Tax Helpline has a dedicated eFiling and E@syfile specialist to help you with your software issues.  With the Employer Recon season opening on 2 April 2018, members are urged to begin preparations early and not to leave EMP501 recon submissions until the last minute. Some of the issues that you may experience, that our eFiling specialist can help you with, include:


  • Download and installation problems with the new...
SAIT Technical

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

E@syFile workshop for new Clerks

Ayanda Takela of Ionize Technology will be hosting an e@syFile Employer workshop for new users of e@syFile employer. The Bloemfontein date will be 11 April 2018 at 09:00 – 10:00 and the Kimberley session will be 12 April 2018 from 10:00 – 11:00.


Venue for Bloemfontein - SARS Office Boardroom Room 16 Ground floor. Please confirm if there are any interested new recruits to attend the session in...

Revised Third party notice - section 26 of TAA - 20180223

In this notice, any term or expression to which a meaning has been assigned in a “tax Act” as defined in section 1 of the Tax Administration Act, 2011, has the meaning so assigned, unless the context indicates otherwise, ...

BPR 296 Disposal by a German Limited partnership of its assets to its sole member

This ruling determines whether the disposal by a German Kommanditgesellschaft limited partnership of its assets to its sole member and the immediate disposal of the assets by that member to another German Kommanditgesellschaft limited partnership of which that person is also a sole member results in a disposal for that member, a resident, for capital gains tax purposes.


Latest Tax Court Judgment

Legislative & Policy
(National Treasury & Parliament)

PC Finance: Committee Report on 2018/19 Budget

The committee meeting Committee Report on 2018/19 Budget on 2018-03-06 is now available.

Parliamentary Monitoring Group
SAIT comment on Second Draft Carbon Tax Bill

We set out our high-level comments on the Second Draft Carbon Tax Bill (Bill) in this submission. Please click here to read submission.

SAIT Tax Policy
Comment: Draft Carbon Tax Bill

The Standing Committee on Finance invites stakeholders and interested parties to submit written submissions on the ...

Parliamentary Monitoring Group

Call For Comment
SAIT member comments can be directed to

Tax Administration Act, 2011​

Draft IN 15 (Issue 5) – Exercise of discretion in case of late objection or appeal. Next due date for comments:​ 31 March 2018

Income Tax Act, 1962​

Draft IN on section 18A: Audit certificate. Next due date for comments: 30 April 2018

​Income Tax Act, 1962

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


International and Regional News

Tax Conference Victoria Falls

Driving Economic Revival through Taxation Policy and Practice. A high level discussion forum for business leaders across all sectors of the economy.

  • Date: 16 – 18 May 2018
  • Venue: Elephant Hills Hotel Zimbabwe

Click here to view Conference flyer and ...

Tax Matrix
OECD releases third round of peer reviews on implementation of BEPS minimum standards on improving tax dispute resolution mechanisms and calls for taxpayer input for the fifth round

As the BEPS Action 14 continues its efforts to make dispute resolution more timely, effective and efficient, eight more peer review reports have been released today. These eight reports highlight how well jurisdictions are implementing the Action 14 minimum standard as agreed to in the OECD/G20 BEPS Project.


CPD Events


PwC Tax Alert: Budget proposals regarding Tax Administration and Dispute Resolution

The 2018 Budget proposals includes amendments in the tax administration space. Apart from the developments in the corporate income tax space, we have also seen a specific focus on developing tax administration in the VAT space. Other highlights include the change in the official interest rate and that taxpayers must be notified when an audit begins. 

Elle-Sarah Rossato
Future expenses deductible now – a judgment about Section 24c of the Income Tax Act

Section 24C of the Income Tax Act, No 58 of 1962 (Act) provides for an allowance in respect of future expenditure to be incurred under a contract. On 3 November 2017, the Tax Court handed down its decision in B v The Commissioner for the South African Revenue Services (Case No: IT 14240) (as yet unreported). The case dealt with an appeal brought by B (Taxpayer) against the additional assessments raised by the South African Revenue Service (SARS).

Louis Botha and Louise Kotze
The Reality of State Owned Companies in SA

The Budget Review for 2018-19 informs us that “In cases where state owned companies are making large investments in infrastructure, capital expenditure reduces profitability. Even after these investments are paid for, profitability is unlikely to match private-sector profit rates because these entities often provide public goods and services below the cost of production to enable economic activity……”

Brian Kantor
Surviving the transition to a 15% VAT rate

The South African Minister of Finance, Malusi Gigaba, tabled the 2018/19 Budget in Parliament on Wednesday, 21 February 2018. Government announced a lower than predicted 1% increase in the value-added tax (“VAT”) rate from the current 14% to 15% with effect from 1 April 2018.

Anne Jenkinson & Annelie Giles
tax ENSight

Below, please find the links to ENSafrica’s latest tax ENSight, covering the latest tax developments across Africa; what the implications of a 15% VAT rate will be; whether pension funds, PBOs and universities are tax exempt in South Africa; and a summary of the latest amendments to REITs in terms of corporate reorganisations.

by the tax department
Unpacking the VAT rate increase

It is by now common knowledge that the standard rate of VAT will increase from 14% to 15% with effect from 1 April 2018. Although some vendors may be aware that certain transitional provisions exist in the VAT Act which deal with the specific rules that apply in the event of an increase in the VAT rate, there was absolutely no need for vendors and their advisors to consider these provisions in the last 25 years, since the last increase in the VAT rate.

VAT rate increase: what you need to consider

The Minister of Finance announced in his recent Budget Speech that the VAT rate would be increased from 14% to 15% with effect from 1 April 2018. 

Chetan Vanmali & Des Kruger
VAT rate increase: What VAT rate should be charged?

The Minister of Finance announced in his Budget Speech of 21 February 2018 that the standard rate of VAT will increase from the current 14% to 15% with effect from 1 April 2018.

Gerhard Badenhorst
Budget Speech 2018: Any good news for the Independent Power Producers?

On 2 February 2018, the Department of Public Enterprises announced that Eskom will buy more power from Independent Power Producers (IPPs). It is hoped that this will end the years of uncertainty and postponements that delayed approximately R58 billion of new investment into South Africa.



Tax News In The Press

Presidency On Suspension of SARS Commissioner

[Govt of SA] President Cyril Ramaphosa has today, 19 March 2018 informed the South African Revenue Service (SARS) Commissioner Tom Moyane of his suspension with immediate effect pending the institution of disciplinary proceedings.

Treasury Appoints Mark Kingon As South African Revenue Service Acting Commissioner

[Govt of SA] Mr Mark Kingon has been appointed as Acting Commissioner for the South African Revenue Service (SARS) following the suspension of Mr Thomas Moyane, the Commissioner of SARS by the President.

#GuptaLeaks Collateral Damage - KPMG SA Makes a Bold Attempt At Clawing Itself Out of an Ethical Hole

[Daily Maverick] There are many - political leaders, public officials, private sector instances - whose reputations were shredded through their close proximity to the Gupta family. Some of those implicated will never recover. Global auditing giant KPMG suffered a massive body blow as Guptas' auditors and consultants, as well as for the role the firm played in the SARS "rogue unit" narrative. In its latest progress update on the day SARS commissioner Tom Moyane was suspended, KPMG has made a...

End of the Road for Ex SARS Boss Tom Moyane?

[Daily Maverick] The suspension by President Cyril Ramaphosa of SARS Commissioner Tom Moyane on Monday night brings to an end a 42-months' long reign of terror which not only saw the haemorrhaging of skilled staff and the relentless persecution of senior executives, including former finance minister Pravin Gordhan, but also the reduction of the once-formidable revenue service to a hollow shell. Under Moyane, one of Jacob Zuma's most loyal pawns, SARS became a key and vital player of the...

Revenue Service Boss Axed in Blunt Statement From Presidency

[Daily Maverick] The Presidency confirmed in a statement on Monday night that President Cyril Ramaphosa has informed South African Revenue Service (SARS) Commissioner Tom Moyane of his suspension with immediate effect pending the institution of disciplinary proceedings. By DAILY MAVERICK STAFF REPORTER.

Acting SARS Commissioner Announced

[News24Wire] Mark Kingon has been appointed as the acting SARS commissioner, National Treasury has confirmed.