Home

SAIT Trending Topics

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

Media statement of the 2019 Draft Income Tax Amendment Bill
Notice 997 GG 42584 19 July 2019
Media statement re the 2019 Budget Draft Tax Bills for public comment - 21 JULY 2019

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)

Special Appropriation Bill on Eskom
Treasury
Speech by the Minister of Finance Mr Tito Mboweni on the Special Appropriation Bill on Eskom
Treasury
2019 Budget Draft Tax Bills for public comment
Treasury

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

National Legislation

Consultation paper and media statement  – Policy proposals for crypto assets. Due date for comments: 15 February 2019

SARS
Income Tax Act, 1962

This BGR provides clarity on the no-value provision in respect of the rendering of transport services by an employer to employees in general, and must be read with BGR 42 dated 22 March 2017 “No-value provision in respect of transport services”. Next due date for comments: 21 January 2019 New!

SARS
Media Statement and related documents: Publication of the Draft Carbon Tax Bill for public comment

The Minister of Finance recently announced the implementation of the carbon tax effective from 1 June 2019. The Draft Carbon Tax Bill makes provision for the carbon offset allowance in terms of Section 13. The National Treasury today publishes the Draft Regulation on the Carbon Offset for a second round of public comment and further consultation. Next due date for comments: 14 December 2018

National Treasury

International and Regional News
(OECD and ATAF)

Eswatini joins the Inclusive Framework on BEPS

The Inclusive Framework on BEPS welcomes Eswatini bringing to 132 the total number of countries and jurisdictions participating on an equal footing in the Project.

Tax revenues in Asian and Pacific economies rebound

Tax-to-GDP ratios increased in the majority of Asian and Pacific economies covered by a new OECD report published today. Nine of the economies in the publication increased their tax-to-GDP ratios between 2016 and 2017, compared with only three in the preceding year, according to Revenue Statistics in Asian and Pacific Economies 2019.

OECD releases latest results on preferential regimes and new results on no or only nominal tax jurisdictions

Progress continues on implementing the BEPS Action 5 minimum standard, with a further 22 jurisdictions changing their laws to address harmful tax practices. On 19 July 2019, the Inclusive Framework on BEPS approved the latest results of reviews of jurisdictions’ domestic laws conducted by the OECD Forum on Harmful Tax Practices.

CPD Events

PROFESSIONAL INSIGHT

Carbon Tax

Carbon tax effective from 1 June 2019 following Presidential
assent.

 

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
PWC Tax Alert - Promulgation of the Carbon Tax Act

On 23 May 2019, two important notices were published in the Government Gazette. Notice no. 42483 is to the effect that the Carbon Tax Act, 2019 (Act No. 15 of 2019), has been assented to by the President, and Notice no. 42480 is to the effect that the amendments to the Customs and Excise Act, 1964 (Act No. 91 of 1964), which make provision for the administration and collection of the carbon tax, have also been assented to.

PWC
Norton Rose Fulbright bolsters white-collar crime, investigations and tax practices

Norton Rose Fulbright has expanded its white-collar crime, investigations and tax practices in New York with the addition of partners Carlos F. Ortiz and Mayling C. Blanco.

Looking abroad: Some possible insight into South Africa’s forthcoming gambling tax

In the 2019 Budget Speech, the Minister of Finance announced that draft legislation pertaining to the long-awaited gambling tax would be published for public comment in 2019. We discussed this announcement in our Special Edition Budget Speech Alert of 20 February 2019. The draft legislation will possibly be published with the...

Louis Botha & Louis Kotze - Cliffe Dekker Hofmeyr
PWC Tax Alert - Get ready for carbon tax

Carbon Tax (“CT”) is set to become effective on 5 June 2019. SARS recently published the draft amendments to the rules and schedules as well as the forms relating to the registration requirements, collection and administration of the CT. The due date for comments on these draft amendments has been extended to 14 June 2019.

PWC
Investing abroad? The foreign investment allowance is at your disposal

It is common nowadays for South African persons to diversify their investment portfolio and to invest in foreign jurisdictions. When doing so, South African residents must ensure that they transfer funds abroad in a manner that complies with South Africa’s exchange control rules. In our Tax & Exchange Control Alert of 6 October 2017, we explained how South African resident individuals can make use of their annual single discretionary allowance (SDA) of R1 million, to transfer and take...

Louis Botha - Cliffe Dekker Hofmeyr
PWC Synopsis April 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

Tax News In The Press

Parliament to Abide By High Court Ruling, Will Not Take Action Against Gordhan Yet

[News24Wire] Parliament will abide by the Gauteng High Court's ruling to suspend Public Protector Busisiwe Mkhwebane's remedial action against Public Enterprises Minister Pravin Gordhan pending a full review of her SARS report.

From Russia to Mantashe With Love - Chernobyl and the Culture of Climate Meltdown

[Daily Maverick] In mid-July 2019, Minister Gwede Mantashe put nuclear back on the table after months of presidential promises that it was unaffordable. A confluence of forces and events, from the climate denialism of Opec to the concerns of the South African coal industry, were discernible in the minister's energy budget speech. Somewhere behind it all, it seemed, lay the hand of Vladimir Putin. And to explain the fallout, we had the global TV smash-hit series 'Chernobyl'.

  ASK AN ADVISOR

I am 69 years old and still working. I contribute to a medical aid and two retirement annuities (RAs). Is my medical aid fully tax deductible and would I be able to gain a bigger tax relief by paying extra money into my RA? What would be the formula for me to use to calculate if I can benefit taking the above into consideration?

Trevor Lee
Minister Tito Mboweni - Special Appropriation Bill

[Govt of SA] Minister of Finance, Hon T Mboweni, MP

Premier Job Mokgoro Delivers North West Budget Speech and Hosts National Anti-Corruption Strategy Workshop, 25 and 26 Jul

[Govt of SA] It's all systems go for the tabling of the Budget Speech and the hosting of the Public Consultation workshop on National Anti-Corruption Strategy

SARS Pays Out R3.5 Billion in Refunds to MobiApp Users

[SAnews.gov.za] With two weeks left before branch filing opens, the South African Revenue Service (SARS) has encouraged taxpayers to beat the queues by filing their returns on the SARS MobiApp and eFiling.