Home

SAIT Trending Topics

IT’S TAX FILING SEASON – WE SPEAK FAIRNESS

The 2018 Tax Filing Season is upon us, and the OTO is committed to providing an impartial and fair service, maintaining a balance between SARS’s powers and duties on the one hand, and taxpayers’ rights and obligations on the other.

Tax Ombud
University of Pretoria: Research on the effect of a change in the VAT rate

Anculien Schoeman, a PhD student at the University of Pretoria is conducting a study to obtain your views about aspects of the South African VAT system. Participants of this survey should earn income other than just a salary (eg a tax practitioner, lawyer, doctor, farmer), or be involved in the management of a business (eg sole proprietor, company, close corporation etc). The questionnaire should take you around 20 minutes to complete.

 

Anculien Schoeman - University of Pretoria
Regional Representatives

As part of our continued effort to serve our members, SAIT regularly meets with SARS representatives at a regional and national level to raise pertinent operational issues affecting the tax community.  SAIT has enlisted volunteer representatives in each of the 13 regions to act on behalf of the Institute at these meetings.  As a member, you are able to raise your SARS related issues with us upon receipt of a Call for Comments relevant to your region.

SAIT Technical

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

BCR 063 Income Tax implication of settlement agreement

This ruling determines the treatment of contributions made by employer companies to a trust in terms of a settlement agreement and how the amounts accruing to or received by the trust and the beneficiaries of the trust will be treated.

SARS
IN 101 Section 24I - Gains or losses on foreign exchange transactions

This Note provides guidance on the interpretation and application of section 24I. Section 24I3 deals with the income tax treatment of foreign exchange gains and losses on exchange items as well as premiums or like consideration received or paid in respect of FCOCs entered into and any consideration paid in respect of an FCOC acquired by certain persons.

SARS
BPR 307 Relief from double taxation of interest

This ruling determines whether South Africa or Brazil has the taxing rights in respect of interest income on bonds issued by the government of Brazil and paid to a South African resident.

SARS

TAX 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
TCIT 13251 and VAT 1077 JHB 16 May 2018

​Income Tax & VAT; full bench (3 judges) of the Tax Court i.t.o section 118(5) of the TAA; estimated assessments based on extrapolation of 7 month data; Commissioner concedes that the amount of assessments needs to be reduced prior to appeal hearing commencing without altering the assessments accordingly; under-declaration of income and turnover through the intentional manipulation of taxpayer’s point of sales system (POS);   additional tax 200 %.

SARS Court Cases

Legislative & Policy
(National Treasury & Parliament)

Media Statement: Extension of SARS Acting Commissioner's term

The Minister of Finance, Mr Nhlanhla Nene, has re-appointed Mr Mark Kingon as Acting Commissioner of the South African Revenue Service (SARS) for a further 90 days beginning on June 17.

National Treasury
Carbon Tax Bill: Treasury response to submissions

The Portfolio Committee on Environmental Affairs and the Standing Committee on Finance received a briefing from the National Treasury on its responses to the various comments from various stakeholders on the draft Carbon Tax Bill 2017. In addition, a number of the stakeholders, including a university professor, a non-governmental organisation representative, the Congress of South African Trade Unions (COSATU), the World Wide Fund for Nature (WWF), a Metals SA company and ESKOM,  gave their...

Parliamentary Monitoring Group
Latest Published Government Gazette

Click here to read the latest published goverment gazette.

Ivy Botopela - Government Printing

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

Call for Submissions - The independent panel of experts to review the current list of vat zero-rated items

On 25 April 2018, the Minister of Finance published the Terms of Reference for the Independent Panel of Experts to review the current list of zero-rated items, and consider the most effective way to mitigate the impact of the increase in the VAT rate on poor and low-income households. Next due date for comments: 24 May 2018 New!

National Treasury
Income Tax Act, 1962​

Draft Guide on MAPs: DTAs or tax treaties as they may be referred to, are international agreements between the governments of two jurisdictions aimed at eliminating double taxation with respect to taxes on income and on capital without creating opportunities for non-taxation or reduced taxation through tax evasion or avoidance.  Next due date for comments: ​15 June 2018 New!

SARS
Tax Administration Act, 2011

Draft notice about returns to be submitted by a person in terms of section 25:  Persons specified in the Schedule to the Notice must submit returns for the 2018 year of assessment, as defined in the Schedule, within the periods specified in the Schedule. Next due date for comments: 23 May 2018

SARS

International and Regional News
(OECD and ATAF)

OECD launches programme in Abidjan to support Côte d'Ivoire in implementing new international tax standards

On 4 July 2018, in Abidjan, an OECD delegation met with the State Secretariat to the Prime Minister in charge of Budget and State Portfolio to discuss the progress made in the implementation of new international standards to combat tax fraud and tax evasion.

OECD
OECD releases BEPS discussion draft on the transfer pricing aspects of financial transactions

Public comments are invited on a discussion draft on financial transactions, which deals with follow-up work in relation to Actions 8-10 ("Assure that transfer pricing outcomes are in line with value creation") of the BEPS Action Plan.

OECD
Public comments received on the scope of the future revisions of Chapter IV (Administrative Approaches) and Chapter VII (Intra-group services) of the Transfer Pricing Guidelines

Public comments received on the scope of the future revisions of Chapter IV (Administrative Approaches) and Chapter VII (Intra-group services) of the Transfer Pricing Guidelines

CPD Events

PROFESSIONAL INSIGHT

The biggest ITR12 fails

As challenging as filing your tax return can be, be sure to take the time to avoid the typical recurring mistakes. Check your tax return against this list of the seven most common errors.

Nyasha Musviba for TaxTalk Magazine
Medical aid credits

In 2012, SARS changed the way it treats medical expenses on the income tax return. Instead of allowing your medical aid contributions to be deducted against your taxable income, a medical credit was introduced.

Nicci Courtney-Clarke & Alicia Human for TaxTalk Magazine
Tax on pension annuities

We look at why taxpayers may be required to pay in tax on pensions or annuities on assessment and how they can avoid a repetition of this each year.

Marc Sevitz for TaxTalk Magazine
Retirement: Keeping up with contributions and records

Saving for retirement can hold tax benefits. We take a closer look at how this works in practice.

Isabeau Brincker for TaxTalk Magazine
How to deal with SARS queries and assessments

Queries from SARS can take various forms and require appropriate responses from taxpayers. We look at ways to deal with these queries to best effect.

Suzanne Smit & Ruaan van Eeden for TaxTalk Magazine
The SARS refund process

Sometimes taxpayers receive assessments stating that they are entitled to a refund, only to be informed that their tax affairs are subject to an audit or verification. Read on to learn about the SARS refund process.

Nico Theron and Denise Roodt for TaxTalk Magazine
What happens when you have a second income?

The South African tax system is based on a progressive tax rate table, meaning that the more taxpayers earn, the higher the marginal tax rate and the more tax is payable on assessment. We discuss the income tax implications for taxpayers who earn supplementary income in addition to remuneration.

Maya Nikolova for TaxTalk Magazine
Does tax on earnings from investments discourage you from investing?

In the current economic environment, and with the high tax rates, it is important to use all the tax breaks provided by law. One such tax-free benefit is a tax-free investment product.

Marelize Loftie-Eaton for TaxTalk Magazine
How travel allowances work

With the 2018 tax season upon us, we revisit the fundamentals of the travel claim, and expand on related concepts.

Thamsanqa Msiza for TaxTalk Magazine

Tax News In The Press

Rising wages and interest costs a slippery slope – Treasury official

Fiscus under increasing pressure amid new spending demands and disappointing growth.

Ingé Lamprecht - Moneyweb
Silent, Defiant Moyane Holds Press Conference - or Did He?

[Daily Maverick] Tom Moyane called a press briefing on Monday morning but refused to speak at it. His attorney Eric Mabuza was light on facts and could not be cajoled into answering direct questions. Welcome to the Moyane press conference that actually wasn't.

Revenue Service On Sentencing of Taxpayers for Failure to Submit Tax Returns

[Govt of SA] Ten taxpayers have been convicted and sentenced since April 2018 for failure to submit outstanding tax returns. Fines ranging from R2000 to R20 000, as well as admission of guilt fines have been handed down by the courts.

SARS' Moyane to Brief Media On 'Latest Developments'

[News24Wire] South African Revenue Services commissioner Tom Moyane is set to brief the media on Monday about 'current matters' as he continues to face an inquiry into the governance of the tax agency.

No fast-tracking of incorrect tax compliance for tax clearance

The enhanced tax compliance status system, introduced more than two years ago, seem to be working smoothly.

Amanda Visser - Cape Times / Press Reader
Ten taxpayers sentenced for failure to submit tax returns

Ten taxpayers have been convicted and sentenced since April 2018 for failure to submit outstanding tax returns. Fines ranging from R2000 to R20 000, as well as admission of guilt fines have been handed down by the courts.

SARS