Legislative & Policy

The SAIT Personal Tax Work Group made this submission to SARS on the Draft Interpretation Note on Foreign Pensions and Transfers
Alert: National Treasury Workshop on Financial Sector Ombud System Reforms
Governments rapidly dismantling harmful tax incentives worldwide: BEPS Project driving major changes to international tax rules

Governments have dismantled, or are in the process of amending, nearly 100 preferential tax regimes as part of the OECD/G20 BEPS standards to improve the international tax framework, according to a progress report released today.

TAX Announcements

BGR44 Meaning of 160 hours for purposes of section 4(1)(b)
Notice 1104 GG 41178 13 October 2017
EMP101e - Application for Registration PAYE SDL UIF - External (Form)

Call For Comment

Income Tax Act, 1962​​

Draft IN on exemptions – foreign pensions and transfers

Next due date for comments:​ 13 October 2017

Customs & Excise Act, 1964​

Draft amendmentExplanatory memorandum

Next due date for comments :​13 October 2017
New!

​Employment Tax Incentive Act, 2013

Draft guide to the employment tax incentive (Issue 2)

Next due date for comments :​31 October 2017

PROFESSIONAL INSIGHT

Domestic treasury management company criteria

A domestic treasury management company must meet certain residence requirements in order to qualify for a relaxation of the normal rules relating to the taxation of foreign currency gains and losses. The company in question must, in terms of the current definition, be incorporated in South Africa (or be deemed to be incorporated in South Africa) and have its place of effective management in South Africa.

 

The draft Taxation Laws Amendment Bill, 2017 (DTLAB) proposes that the...

Securities and collateral lending arrangement extended

Securities lending arrangement and collateral lending arrangement are defined for purposes of securities transfer tax and capital gains tax and provide relief in respect of the transfer of listed shares and listed South African government bonds, where such shares or bonds are returned to the borrower by the lender or to the lender by the borrower within a limited period of time.

 

National Treasury has recognised that the inclusion of foreign government listed bonds may...

Third-party backed shares: amendment of the provisions to cover certain qualifying purposes

Section 8EA of the Income Tax Act 58 of 1962 (ITA) contains certain anti-avoidance provisions that reclassify dividends as income where a preference share is subject to an "enforcement right" and / or "enforcement obligation".  Where either an "enforcement right" and / or "enforcement obligation" is given by a third party, the dividend in respect of such preference share will be taxed as income in the hands of the holder unless:

 

  • such preference share was issued for a "...
Tax implications of the assumption of contingent liabilities under the corporate reorganisation rules

It is common practice in South Africa for companies to restructure their groups and businesses. To ensure that sections 41 to 47 of the Income Tax Act 58 of 1962 (ITA) (Corporate Rules) are not misused when facilitating the sale or transfer of assets inside or outside of a group of companies, these rules prescribe the types of consideration to be received by the seller on the sale of its assets to the purchaser in order to qualify for the tax roll over relief contemplated by the Corporate...

The golden rule: SARS clarifies a vendor’s entitlement to claim input tax in respect of second-hand gold

Subjection to certain exceptions, the Value-Added Tax Act, No 89 of 1991 (VAT Act) entitles a vendor to claim a notional input tax deduction in respect of second-hand goods acquired under a non-taxable supply, where such second-hand goods are acquired from a resident of the Republic for the purpose of consumption, use or supply in the course of making taxable supplies.

ENSafrica commended for its Africa-wide expertise

ENSafrica is delighted to have been recognised for its Africa-wide property and construction, and banking, finance and restructuring expertise at the 2017 African Legal Awards.We thank you for your support and for continuing to entrust us with your most complex, high-value matters. Without you, this recognition simply would not have been possible. “It is in executing such mandates that we are able to create tailor-made teams of experts that cut across disciplines and jurisdictions to best...

The VAT Compliance Landscape

VAT use to be a simple tax for taxpayers to comply with. Returns would go in regularly with very little hassle and SARS’ audits or verifications seldom resulted in an assessment. Not anymore.  With VAT fraud being more prevalent now than ever before (at least that is what we are told), all taxpayers are seemingly treated on the assumption that there might be a snake in the grass.

Non-Executive Directors and VAT registration

SARS has recently issued Binding General Ruling (BGR) 40 (Remuneration paid to non-executive directors) and Binding General Ruling 41 (VAT treatment of non-executive directors).Following on from the conclusion in BGR 40 that an NED is not considered to be a common law employee (i.e. an NED director’s fees do not constitute remuneration), an NED is treated as an independent contractor for VAT purposes.Therefore, NEDs will be carrying on enterprises for VAT purposes on the basis that they...

Loan or credit advanced to a trust by a connected person

The Tax Laws Amendment Act of 2016, introduced anti-avoidance provisions to prevent estate duty and donations tax avoidance through the use of interest-free or low interest loans to a trust. These provisions, as contained in section 7C of the Income Tax Act No. 58 of 1962 (the “Income Tax Act”), are applicable to loans or credit advanced to a trust by a connected person and such loan or credit was provided before, on or after 1 March 2017.The provisions of section 7C are applicable to both...

CPD Events

Tax News In The Press

Hundreds of Traffic Fines Could Be Scrapped Following 'Landmark' Ruling

[News24Wire] Hundreds, and potentially thousands, of traffic fines issued in Johannesburg and Pretoria under the Administrative Adjudication of Road Traffic Offences (Aarto) Act may be scrapped, following a North Gauteng High Court ruling.

Courts Hears How Prisoner Walked Out of Court Cell and Killed Cop

[News24Wire] The Nelspruit High Court has heard how a suspected rhino poacher walked calmly out of the regional court's cells after bribing officers, before shooting and killing a Mpumalanga police officer, Constable Joseph Baloyi, outside his house in 2015.

Sassa to Face Scopa Over Grants Crisis

[News24Wire] The SA Social Security Agency will appear before Parliament's standing committee on public accounts (Scopa) on Tuesday to discuss the looming social grants crisis.

S.A: Beyond the 2017 Budget

Everyone has had time to digest how the R28 billion increase in the tax burden that largely falls on individuals will impact us.

True Cost of SONA - 'Parliament' Spokesperson Must Retract Misleading Statement

[DA] Newly appointed spokesperson for Parliament, Moloto Mothapo, must immediately retract the statement he issued on 26 February in which he seeks to deliberately mislead the public over the R11 million and counting spent on the 2017 State of the Nation (SONA) address.

Parliament Rejects DA's Allegations of R11 Million SONA Expenditure

[SA Govt] Parliament of the Republic of South Africa wishes to reject as selective analysis, one sided and misleading, the allegations that Parliament has spent over R11 million in organising and staging the State of the Nation Address on 9 February 2017.