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

Draft EM on Tariff PhaseDown Notices for 2020
Draft Tariff Notice S1P1 EPA PhaseDowns
Draft Tariff Notice S1 Note G

TAX CASES

A Company v The Commissioner for the South African Revenue Service (IT 24510) [2019] ZATC 1 (17 April 2019)

The taxpayer carries on business as a high street retailer of clothing, comestibles and general merchandise.  As part of the facilities offered to its customers, it ‘sells’ gift cards.  These can be redeemed for goods at any of the taxpayer’s stores.  The question in this appeal from the additional assessment by the Commissioner of the taxpayer’s taxable income in the 2013 fiscal year is whether the revenue from the ‘sale’ of the taxpayer’s gift cards during that year constituted part of its...

SARS Court Cases
MRS X vs C:SARS - TC - IT 13380 - 27 January 2016

The applicant derived income as beneficiary of four inter vivos trusts, namely the A Trust, the B Trust, the C Trust and the D Trust. Her tax affairs for the 2009 tax year were subjected to an audit by the respondent and it was found that the applicant had under-declared her income for 2009.

SARS Court Cases
XYZ CC vs Commissioner of the South African Revenue Services

The Commissioner for the South African Revenue Service (“SARS”) brought an application in terms of rule 56(1)(b) of the Rules of the Tax Court for default judgment against the taxpayer in terms of section 129(2) of the Tax Administration Act, 28 of 2011 (“the Act”).

SARS Court Cases

Legislative & Policy
(National Treasury & Parliament)

SAIT VAT Technical Work Group comments
SAIT Business Transactional and Finance Tax Work Group comments
SAIT Business Incentives Work Group comments

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

27 September 2019



Next due date for comments :

SARS
11 October 2019 New!



Next due date for comments :

SARS
11 September 2019



Next due date for comments :

SARS

International and Regional News
(OECD and ATAF)

OECD Taxation Working Paper: The Potential of Tax Microdata for Tax Policy

This paper explores one distinctive form of the ‘big data’ of economics – individual tax record microdata – and its potential for tax policy analysis. The paper draws on OECD collaborations with Slovenia and Ireland in 2018 where tax microdata was used.

As the pace of tax reform slows, countries are urged to take bolder action

Tax Policy Reforms 2019 describes the latest tax reforms across all OECD countries, as well as in Argentina, Indonesia and South Africa. The report identifies major tax policy trends and highlights that fewer countries have introduced comprehensive tax reform packages in 2019 compared to previous years.

OECD/G20 Inclusive Framework on BEPS delivers tax transparency: Action 13 Country-by-Country reporting shows big progress

The OECD has released the outcomes of the second phase of peer reviews of the BEPS Action 13 Country-by-Country (CbC) reporting initiative, demonstrating strong progress in the implementation of a key element in continuing efforts to improve the taxation of multinational enterprises (MNEs) worldwide.

CPD Events

PROFESSIONAL INSIGHT

PWC Synopsis June 2019

A monthly journal, published by PwC South Africa, that gives informed commentary on current developments in the tax arena, both locally and internationally.

PWC
South African Tax Court rules in favour of taxpayer in ‘most favoured nation’ test case

On 12 June 2019 the Cape Town Tax Court delivered its judgment in the dividends tax test case between ABC Pty Ltd (Taxpayer) and the South African Revenue Service (SARS). The case pertained to SARS’s refusal to refund dividends tax overpaid by the Taxpayer following the Taxpayer’s interpretation of the ‘most favoured nation’ provision (MFN clause) in the double taxation agreement (DTA) between South Africa (SA) and the Netherlands (SA/Netherlands DTA) (Dutch MFN clause), read with...

Mareli Treurnicht and Emil Brincker - Cliffe Dekker Hofmeyr
PWC Tax Alert - 2019 Tax Filing Season

On Friday, 28 June 2019 the SA Revenue Service (“SARS”) issued a public notice requiring taxpayers to submit their tax returns for the 2019 year of assessment. 

PWC
Video: Proposed gambling tax draft legislation

Louis Botha, Associate in the Tax & Exchange Control practice, joined eNCA to discuss the proposed gambling tax draft legislation that will be introduced during 2019.

Louis Botha - Cliffe Dekker Hofmeyr
PWC Tax Alert - Dutch “Most Favoured Nation Clause”: South African Tax Court finds in favour of taxpayer

The “most favoured nation clause” (or “MFN clause”) in the double taxation agreement between South Africa and the Netherlands (“the SA-Netherlands DTA”) has been the subject of a number of our Tax Alerts.

PWC
SARS issues binding class ruling regarding unbundling transaction

Section 46 of the Income Tax Act, No 58 of 1962 (Act) provides tax relief where a company (Unbundling Co) wishes to unbundle its shareholding in a subsidiary (Unbundled Co), to the company’s own shareholders. The Unbundling Co’s shareholders’ indirect shareholding in the Unbundled Co is converted to a direct shareholding, in proportion to their shareholding in the Unbundling Co.

Tsanga Mukumba and Louis Botha - Cliffe Dekker Hofmeyr
SARS AUDIT: HOW FAR BACK CAN THEY GO?

Imagine SARS is conducting an audit on a company for the most recent year of assessment. The company has a loan payable to a shareholder which originated in the 1980’s. SARS decides to extend the scope of the audit to the shareholder in order to establish whether the amount of money lent to the company in 1980 reflects/represents an after-tax amount, effectively resulting in an audit in respect of the 1981 year of assessment, some 38 years after the 1981 tax year ended. Can SARS extend its...

Legal professional privilege protection available to taxpayers too

In a litigious context, the doctrine of legal professional privilege provides that communications between an attorney and a client are protected from disclosure in litigious proceedings. The protection afforded to a litigant in terms of this doctrine is aimed at encouraging and protecting the full and honest disclosure of information by clients to their legal advisors when seeking legal advice, which is necessary for the proper functioning of the South African adversarial system of...

AUTHORS: Emil Brincker and Louise Kotze - Cliffe Dekker Hofmeyr
A (quin)tessential consideration for the commercial property sector: Section 13quin of the Income Tax Act

Recently, the South African Property Owners Association (SAPOA) released its Office Vacancy Report for the first quarter of 2019. According to one of the key findings of the report, there has been a quarter on quarter decline in SAPOA’s assessment of the square meterage of commercial property under development from 559,000 sqm to 404,000 sqm.

AUTHORS:Tsanga Mukumba and Louis Botha -Cliffe Dekker Hofmeyr

Tax News In The Press

Expat Tax 'Will Damage SA Economy'

[Daily Maverick] Experts say future taxes collected on foreign funds will be but a drop in the state's ocean of debt. They will, however, increase the breadth of the target pool, as new laws bring more people into the local tax net.

In the Build-Up to WEF, Mboweni Is Reticent On Treasury's Surprise Economic Recovery Plan

[Daily Maverick] At a media briefing on 2 September, Finance Minister Tito Mboweni refused to answer questions about a strategy document - unexpectedly published by the National Treasury on 27 August - that proposes wide-ranging structural reforms to boost SA's deteriorating economy.

SARS Helps the Hearing Impaired This Deaf Awareness Month

[SAnews.gov.za] With September marking Deaf Awareness Month, the South African Revenue Service (SARS) is set to assist people with hearing impairments at several of its branches around the country.

2 September 2019 - SARS to help persons with hearing impairments
Cosatu to Mboweni - Withdraw Incoherent Economy Document

[News24Wire] Trade union federation Cosatu demanded that National Treasury withdraws its recently released document to encourage economic growth, saying it makes government incoherent, confused and unreliable.

Minister Discusses E-Tolls With Civil Society

[SAnews.gov.za] Transport Minister Fikile Mbalula has met with the Organisation Undoing Tax Abuse (OUTA) and the Automobile Association (AA) to discuss urban tolling and the Gauteng Freeway Improvement Project (GFIP).