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

CSARS v Clicks Retailers (Pty) Ltd (58/2019) [2019] ZASCA 187 (3 December 2019) (Media Summary)
Regulation 1556 GG 42873 - 29 November 2019
CSARS v Langholm Farms (Pty) Ltd (1354/2018) [2019] ZASCA 163 (29 November 2019)

TAX CASES

ABC Company v The Commissioner of SARS (IT 14106) (31 January 2019)

Whether the taxpayer was entitled to be a PBO and be allowed a tax exemption in terms of section 10(1).

SARS Court 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

Legislative & Policy
(National Treasury & Parliament)

Media statement - Minister Mboweni welcomes the Resignation of SASRIA Non-Executive Directors
Treasury
SAIT PIT and Employment Tax Work Group comments
SAIT International Tax Work Group comments

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

​15 November 2019



Next due date for comments :

SARS
​30 November 2019 New!



Next due date for comments :

SARS
​10 October 2019 New!



Next due date for comments :

SARS

International and Regional News
(OECD and ATAF)

Public comments received on the Global Anti-Base Erosion (GloBE) Proposal under Pillar Two

On 8 November 2019, interested parties were invited to provide comments on certain aspects of the Global Anti-Base Erosion (GloBE) Proposal under Pillar Two. The OECD is grateful to the commentators for their input and now publishes the public comments received.

OECD Revenue Statistics 2019 launches on Thursday 5 December 2019

Revenue Statistics 2019 provides data on government tax revenues from 1965 to 2018, including the tax to GDP ratio, revenues collected by central, state and regional governments, and the relative importance of personal and corporate income tax, social security contributions and taxes on goods and services in the tax mix.

OECD releases peer review reports on dispute resolution for Brazil; Bulgaria; China; Hong Kong, China; Indonesia; Russia and Saudi Arabia

The work on BEPS Action 14 continues with today's publication of the seventh round of stage 1 peer review reports. Each report assesses a country's efforts to implement the Action 14 minimum standard as agreed to under the OECD/G20 BEPS Project.

CPD Events

PROFESSIONAL INSIGHT

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 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

Tax News In The Press

Get Your Act Together Now, IMF Tells SA

[Daily Maverick] There is no missing the new urgency, particularly following the government's medium-term budget policy statement (MTBPS), which the International Monetary Fund says candidly confirmed SA's fragile fiscal and debt situation.

Country Could Be On Brink of a Tax Revolt

[The Conversation Africa] Tax revolts date back to biblical times. Throughout the ages they have exhibited similar symptoms of a decline in taxpayer morale and confidence in a government's ability to manage public finances for the greater good of its citizens.

Tom Moyane Warned Against Interfering With Witness in Assault Case

[News24Wire] Former SARS commissioner Tom Moyane, who appeared in the Roodepoort Magistrate's Court for the first time on Tuesday for allegedly assaulting the mother of his grandchild, has been warned against interfering with witnesses.

Tom Moyane Granted Leave to Cross-Examine Pravin Gordhan

[News24Wire] Former SARS boss Tom Moyane has been granted leave to cross-examine Public Enterprises Minister Pravin Gordhan, on certain conditions, at the state capture commission of inquiry.

NUMSA Humbled By South African Airways Management - and It Can't Lie About It

[Daily Maverick] The benefit of the failed strike action to the progressive tax-paying citizens is that Numsa will now approach the restructuring of Eskom much more sober and alive to the reality of the country in general. They will be the spoilt brats no longer!

The Price of Austerity - Adding Up the Costs of Economic Denialism

[Daily Maverick] Our minister of finance is perpetuating the myths of austerity economics at the very moment when many other parts of the world, and even the IMF, have been forced to acknowledge that it does nothing but damage.