Legislative & Policy

OECD releases first peer reviews of the BEPS Action 5 minimum standard on spontaneous exchange on tax rulings

As part of continuing efforts to improve tax transparency and the international tax framework, the OECD has released the first analysis of individual countries' progress in spontaneously exchanging information on tax rulings in accordance with Action 5 of the BEPS package of measures released in October 2015.

Provisional Financing Figures as at 30 November 2017
Treasury
Statement of the National Revenue, Expenditure and Borrowing as at 31 October 2017
Treasury

TAX Announcements

TCIT 14055 DBN 20 November 2017
Public Notice ito s25(7) extension of date to file returns
How to complete and submit your Country by Country information

Call For Comment

Tax Administration Act, 2011​

Revised draft list of jurisdictionscontemplated in Article 2(2)(ii)(b) of the regulations specifying the Country-by-Country Reporting Standard for Multinational Enterprises

Next due date for comments: 3 November 2017 New!

SARS
​Employment Tax Incentive Act, 2013

Draft guide to the employment tax incentive (Issue 2)

Next due date for comments: ​31 October 2017

SARS
Customs & Excise Act, 1964​​

Draft rule amendments in relation to trade agreements

Form DA 185.4A2

Form DA 185.4A7

Draft rule amendments for the Generalized System of Preferences (GSP) Norway – The Registered Exporter System (REX system)

Next due date for comments: 4 October 2017  

SARS

PROFESSIONAL INSIGHT

When to use a ‘Request for Reasons’ as an appropriate remedy

When does a dispute with South African Revenue Service (“SARS”) usually arise? Typically when the assessment is raised – so stop and consider…

  • The golden rule is that taxpayers must be given adequate reasons that will enable them to formulate an objection under Rule 7 of the Rules promulgated under section 103 of the Tax Administration Act, No. 28 of 2011 (“TAA”) (“The Rules”). When arriving at a decision to raise an assessment, the Commissioner is required to...
KPMG SA KPMG SA
Taxation Laws Amendment Bill, 2017

 

Authors: Joon Chong and Brian Dennehy, both Partners at Webber Wentzel

 

In this article covering the Taxation Laws Amendment Bill, 2017 (TLAB), we discuss amendments in the Income Tax Act, 1962 (ITA) on the new debt relief measures and the meaning of "debt" in the corporate rules. We also discuss amendments relevant to real estate investment trusts (REITs), securities lending arrangements and third-party backed shares, as well as the additional relief...

Taxation Laws Amendment Bill, 2017 - Individuals and International Tax

 

Author: Joon Chong, Partner, Webber Wentzel

 

The Taxation Laws Amendment Bill, 2017 was released on 25 October 2017 and has since been tabled to the Standing Committee on Finance. In this article, we discuss amendments in the bill on international tax as well as a few notable amendments relevant to individuals and trusts. 

 

All references to "section" below are to sections of the Income Tax Act, 1962.

Exchange control – update regarding post SVDP regularisation

 

Author: Louis Botha (CDH)

 

In our Tax and Exchange Control Alert of 15 September 2017, we discussed the process that persons can follow to regularise their offshore held assets from a tax and exchange control (Excon) perspective, if they did not do so prior to 31 August 2017: the date on which the Special Voluntary Disclosure Programme (SVDP) window period, for tax and Excon, came to an end. 

Louis Botha
No trade, no deduction – a judgment about s11(a) of the Income Tax Act

 

Author: Louis Botha (CDH)

 

On 20 April 2017, the Tax Court handed down its decision in X Group (Pty) Ltd v The Commissioner for the South African Revenue Service (Case No: 13671) (as yet unreported). The case dealt with an amount of R90 million that X Group (Pty) Ltd (Taxpayer) had claimed as an expense or loss during the 2007 year of assessment, which deduction was disallowed by the South African Revenue Service (SARS). 

Louis Botha
Feedback report on KPMG Family Business Conference 2017

KPMG Enterprise South Africa, hosted its fourth Family Business Conference on 18 and 19 September 2017, at the Radisson Blu in Sandton. With the initial day of the conference focusing on key business related matters of tax and driving growth through partnering with a private equity business, the assisted attendees in having an intimate understanding of the role “family dynamics” play in the operations within family businesses.
Under the facilitation of Alan Barr – KPMG’s Head of Family...

KPMG SA KPMG SA
Share Bite Backs

A look at some of the latest changes in the tax landscape of share buy-back transactions and the issues to be aware of. 

Share buy-back transactions have been on the radar of National Treasury and SARS for a number of years. It appears as if 2017 is the year that the anticipated tax changes finally materialised. This article provides an initial overview of the likely impact of the developments in this regard. It should be noted that, at the time of writing, the amendments to the...

Pieter van der Zwan, Pieter.vanderzwan@nwu.ac.za
Painful Extractions

Not only is realising gains from business operations in Africa often a daunting task, but repatriating hard-earned profits from the continent can also frequently bring its own challenges. This article considers a number of legal and practical factors that may hinder profit extraction. 

Celia Becker, cbecker@ensafrica.com
Missed opportunities in the tax proposals

We often focus on tax law changes that do occur; however, many of the biggest tax law issues are those that are not addressed by new legislation. We take a look at five such cases that could have benefited from a change to the law. 

Each year in February, South Africans wait in anticipation for the Minister of Finance to deliver the annual fiscus budget speech in Parliament as part of the Budget Review, wherein he reviews South Africa’s financial position in the previous financial...

Mmueledi Monatisa, mmueledimonatisa@eversheds-sutherland.co.za

Tax News In The Press

Revenue Service Corrects Reports On Payment of Jonas Makwakwa

The South African Revenue Service (SARS) wishes to correct inaccurate and untrue media reports that Chief Officer: Business & Individual Tax, Mr Jonas Makwakwa was paid a bonus while on suspension.

Govt of SA
The dangers of raising the Capital Gains Tax rate

Although it won’t raise significant amounts of revenue, the Capital Gains Tax (CGT) inclusion rate for individuals could be raised in 2018 as part of various steps to address South Africa’s widening budget deficit.

Ingé Lamprecht
Op-Ed: 2017 worst year yet for S.A tax payers

For taxpayers, this year is the worst ever, and the next two years are projected to be even worse.

SARS Wars - Tom Moyane's Multiple Storms

[Daily Maverick] On Friday, SARS Commissioner Tom Moyane called a last-minute press conference after a hot batch of acrimonious letters between himself and Minister of Finance Pravin Gordhan were leaked to the Mail & Guardian. Moyane was hoping to defend his dignity and increasingly tarnished status as the head of the country's most crucial economic cog, the revenue collection service. And while technocrats tried to explain away a R30.4-billion shortfall flagged by Gordhan in his Budget...

Treasury Welcomes FATF Outcome of Plenary Discussion

[SA Govt] The National Treasury and the Financial Intelligence Centre (FIC) welcome the decision taken by the Financial Action Task Force (FATF) at its Plenary meeting held in Paris last week (22 to 24 February).

Zimbabwean Man Steals 27 Sheep, Jailed for 'Economic Sabotage'

[New Zimbabwe] A ZIMBABWEAN man who was sent to jail for 10 years after making off with almost all of a Delmas farmer's sheep may appeal against his sentence, which two high court judges described as "very severe".