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SAIT Trending Topics

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

Draft Rule on tobacco product counter
Rule amendment to item 200.08 – Places where container depots may be established
BPR 329 Tax consequences of intra-group restructuring and subsequent sale of assets to third party

TAX CASES

TCIT 13988 CPT 1 November 2018

Income tax; section 24C; loyalty programme; whether the Appellant was entitled to a section 24C allowance in respect of a loyalty programme it administered

SARS Court 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

Legislative & Policy
(National Treasury & Parliament)

SAIT International Tax Work Group comments
SAIT Tax Administration Technical Work Group comments
SAIT VAT Technical 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 invites public input on the Secretariat Proposal for a "Unified Approach" under Pillar One

As part of the ongoing work of the OECD/G20 Inclusive Framework on BEPS (the Inclusive Framework), the OECD is seeking public comments on a Secretariat Proposal for a "Unified Approach" under Pillar One.

Montenegro joins international efforts against tax evasion and avoidance

Today, at the OECD Headquarters in Paris, Biljana Peranović, Director General of the Directorate for Tax and Customs of Montenegro, signed the multilateral Convention on Mutual Administrative Assistance in Tax Matters (the Convention) in the presence of the OECD Director of Legal Affairs, Nicola Bonucci. Montenegro is the 130th jurisdiction to join the Convention.

Denmark deposits its instrument of approval for the Multilateral BEPS Convention

Today, Denmark deposited its instrument of approval for the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (BEPS) with the OECD’s Secretary-General, therewith underlining its strong commitment to prevent the abuse of tax treaties and BEPS by multinational enterprises. For Denmark, the MLI enters into force on 1 January 2020.

CPD Events

PROFESSIONAL INSIGHT

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 Alert

Legislative developments: Draft amendments to anti-dividend stripping rules released for public commentAs was announced in the Budget, it is proposed that the amendments take effect on 20 February 2019 (i.e. on Budget Day).Dow...

PWC
PWC Synopsis May 2019

A monthly journal, published by PwC South Africa, that gives informed commentary on current developments in the tax arena, both locally and internationally. Through analysis of and comment on new laws and judicial decisions of interest, Synopsis helps executives to identify developments and trends in tax law and revenue practice that may affect their business.

PWC
Splitting hairs… VAT Case 1558

Suppliers often make single supplies of goods or services to their customers which comprise of various component parts such as, for example, various goods purchased in a supermarket, some of which are subject to VAT at the standard rate and some of which are zero rated. Other examples include tour operators who charge a single fee for a tour package which may comprise of standard rated accommodation and zero-rated international travel, or an insurer who charges a single premium for providing...

Varusha Moodaley and Gerhard Badenhorst - Cliffe Dekker Hofmeyr
Proposed amendments to clarify income tax treatment of statutory mergers

Sections 113 and 115 of the Companies Act, 2008 provide for an automatic statutory merger of two companies. The transfer occurs by way of operation of law, and barring any express prohibition to the contrary in a contractual arrangement, no third party consent is generally required to implement the merger. This type of transaction may typically give effect to a desired corporate reorganisation, in terms of which an existing company is liquidated, wound up and/or deregistered. 

Authors: Robert Gad, Megan McCormack and Jo-Paula Roman - ENS
Carbon Tax

The President has signed the Carbon Tax Act into law, which will be effective from 1 June 2019.

 

Deloitte
Tax exemption is not a formality – the Tax Court considers the PBO status of a non-profit company

In terms of s30 of the Income Tax Act, No 58 of 1962 (Act), an entity can only become a public benefit organisation (PBO) if it meets the requirements in that section and is approved by the South African Revenue Service (SARS) as a PBO. In practice, to be approved as a PBO, an application must be submitted to SARS’s Tax Exemption Unit (TEU).

Louis Botha & Louis Kotze - Cliffe Dekker Hofmeyr
Substance over form: A UK judgment about the avoidance of capital gains tax

In the United Kingdom, capital gains tax (CGT) under the Taxation of Chargeable Gains Act, 1992 (TCGA) is charged, inter alia, where a taxpayer disposes of an asset for an amount greater than the base cost at which such taxpayer initially purchased the asset.

Louis Botha and Tsanga Mukumba - Cliffe Dekker Hofmeyr

Tax News In The Press

No More Half-Measures On Corporate Taxes

[Daily Maverick] One particularly toxic aspect of globalisation has not received the attention it deserves: Corporate tax avoidance. Multinationals can all too easily relocate their headquarters and production to whatever jurisdiction levies the lowest taxes.

Endgame - Classified Igi Report On SARS - New Investigation Into Rogue SSA Agents Promised

[Daily Maverick] By making public a classified 2014 IGI report into State Security Agency deep cover operatives at SARS, the EFF has opened a Pandora's box and also allowed some of the red onesies' own smallanyana skeletons to escape. In the meantime, the Inspector General of Intelligence has undertaken to revisit evidence not included in the 2014 report. Someone is going to see their guava.

Draft IN 16 (Issue 3) - Exemption from income tax - foreign employment income
EFF's Julius Malema Asked SARS 'Rogue Unit' Boss for Help

[News24Wire] EFF president Julius Malema, through his attorney, once approached the former SA Revenue Service (SARS) executive at the centre of the "rogue unit" saga, Johann van Loggerenberg, for help with his tax affairs.

Malema Denies He Asked SARS 'Rogue Unit' Boss for Help

[News24Wire] Julius Malema has denied that he asked for help with his taxes or that he accepted the South African Revenue Service's (SARS) version of events regarding the "rogue unit".

SARS 'Rogue Unit' Boss Claims to Have Evidence of Meeting With Malema

[News24Wire] The former SARS executive at the centre of the "rogue unit" saga, Johann van Loggerenberg, says he has recorded phone calls and emails that prove EFF leader Julius Malema had asked for help with his tax affairs through his attorney at the time.