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Regional Representatives

As part of our continued effort to serve our members, SAIT regularly meets with SARS representatives at a regional and national level to raise pertinent operational issues affecting the tax community.  SAIT has enlisted volunteer representatives in each of the 13 regions to act on behalf of the Institute at these meetings.  As a member, you are able to raise your SARS related issues with us upon receipt of a Call for Comments relevant to your region.

SAIT Technical
PAGSA Newsflash 2018-14: UIF Declaration Changes Delayed

During 2017, a number of communications (PAGSA Newsflashes 201737, 201740, 201803 and PAGSA Newsletter 201801) were issued to inform you of the amendments to the Unemployment Insurance Act, as well as the intention that the current E03 Declaration specification that payrolls must comply with to create the monthly declaration file for submission to the Fund, will be changed to accommodate the new requirements resulting from the amendments.

Payroll Authors Group of South Africa
SARS NOTICE: MARCH 2018 VAT SUBMISSIONS

As you are aware the Minister of Finance announced an increase in the VAT rate from 14% to 15% as of 1 April 2018. The South African Revenue Service (SARS) would like to remind you that your March 2018 VAT201 submission is not affected by this change in the VAT rate. The March return you will receive on your SARS eFiling profile will be the same as the return you would have completed for February 2018, as well as any other VAT201 return which was due when the 14% VAT rate was still...

SARS

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

BCR 064 Participatory interest in a collective investment scheme

This ruling determines security transfer tax consequences of the transfer of a security that constitutes a participatory interest in a collective investment scheme, regulated by the Collective Investment Schemes Control Act 45 of 2002 (CISCA).

SARS
IN 101 Section 24I - Gains or losses on foreign exchange transactions

This Note provides guidance on the interpretation and application of section 24I. Section 24I3 deals with the income tax treatment of foreign exchange gains and losses on exchange items as well as premiums or like consideration received or paid in respect of FCOCs entered into and any consideration paid in respect of an FCOC acquired by certain persons.

SARS
BPR 307 Relief from double taxation of interest

This ruling determines whether South Africa or Brazil has the taxing rights in respect of interest income on bonds issued by the government of Brazil and paid to a South African resident.

SARS

TAX CASES

Commissioner for the South African Revenue Service v Char-Trade 117 CC t/a Ace Parking (776/2017) [2018] ZASCA 89 (31 May 2018)

Assessment issued for secondary tax on companies (STC) – S 64B and 64C of the Income Tax Act – Commencement of prescription – S 99 of the Tax Administration Act   Prescription commences to run against CSARS when return for STC is submitted by the taxpayer - Return for STC never submitted by taxpayer – Prescription never commenced  to run against CSARS – Assessment confirmed.

SARS Court Cases
Commissioner for the South African Revenue Service v KWJ Investments Service (Pty) Ltd (466/2017) [2018] ZASCA 81 (31 May 2018)

Gross income – whether a cession of a dividend right constitutes a receipt or accrual for the purposes of gross income – if so, does a practice generally prevailing in terms of provision (iii) to s 79 (1) of the Income Tax Act 58 of 1962 apply.

SARS Court Cases
Ruling by Tax Court - Employment exercised in SA in terms of DTA (TCIT 14218)

Whether the foreign income earned by the Appellant is taxable in South Africa.

SARS Court Cases

Legislative & Policy
(National Treasury & Parliament)

Draft dispute resolution rules under Section 103

SAIT has commented on the draft dispute resolution rules under Section 103 of the Tax Administration Act.

SAIT Tax Policy
Consequential amendment to definition of "permanent establishment"

SAIT has commented on the consequential amendment to the definition of "permanent establishment" in the Income Tax Act.

SAIT Tax Policy
Latest Published Government Gazette

Click here to read the latest published goverment gazette.

Rentia Janse Van Niewenhuizen - Government Printing

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

Income Tax Act, 1962  

Draft IN 93 (Issue 2) –​ The taxation of foreign dividends. Next due date for comments: 29 June 2018.

SARS
Income Tax Act, 1962  

Draft IN 93 (Issue 2) –​ The taxation of foreign dividends. Next due date for comments: 30 June 2018 New!​

SARS
Mineral and Petroleum Resources Royalty Act, 2008​

Draft IN on the meaning of "bulk" in Schedule 2. Next due date for comments: ​18 May 2018.

SARS

International and Regional News
(OECD and ATAF)

Platform for Collaboration on Tax invites final comments on a revised version of its report on the “Taxation of Offshore Indirect Transfers of Assets”

The Platform for Collaboration on Tax – a joint initiative of the IMF, OECD, UN and World Bank Group – has undertaken, at the request of the G20, the development of a series of “toolkit” reports to help guide developing countries in the implementation of policy options for issues in international taxation of greatest relevance to these countries.

OECD
Global Forum publishes tax transparency compliance ratings for seven jurisdictions and welcomes three new members

The Global Forum on Transparency and Exchange of Information for Tax Purposes (the Global Forum), published today seven peer review reports assessing compliance with the international standard on tax transparency and exchange of information on request (EOIR).

OECD
Major enlargement of the global network for the automatic exchange of offshore account information as over 100 jurisdictions get ready for exchanges

Today, the OECD published a new set of bilateral exchange relationships established under the Common Reporting Standard Multilateral Competent Authority Agreement (CRS MCAA), bringing the total number of relationships to over 3200, an increase of more than 500 since April of this year.

OECD

CPD Events

PROFESSIONAL INSIGHT

Africa tax in brief

AFRICA: Africa Tax Administration Forum signs renewal of MoU with OECDThe Organization for Economic Co-operation and Development (“OECD”) and the African Tax Administration Forum, on 20 June 2018, signed the renewal of their Memorandum of Understanding (“MoU”) until June 2023, consolidating the agreement between the two organisations to work together in order to improve tax systems in Africa. Cooperation efforts include work in the areas of tax incentives for investment, transfer pricing,...

Celia Becker - ENSafrica
The biggest ITR12 fails

As challenging as filing your tax return can be, be sure to take the time to avoid the typical recurring mistakes. Check your tax return against this list of the seven most common errors.

Nyasha Musviba for TaxTalk Magazine
Medical aid credits

In 2012, SARS changed the way it treats medical expenses on the income tax return. Instead of allowing your medical aid contributions to be deducted against your taxable income, a medical credit was introduced.

Nicci Courtney-Clarke & Alicia Human for TaxTalk Magazine
Tax on pension annuities

We look at why taxpayers may be required to pay in tax on pensions or annuities on assessment and how they can avoid a repetition of this each year.

Marc Sevitz for TaxTalk Magazine
Retirement: Keeping up with contributions and records

Saving for retirement can hold tax benefits. We take a closer look at how this works in practice.

Isabeau Brincker for TaxTalk Magazine
How to deal with SARS queries and assessments

Queries from SARS can take various forms and require appropriate responses from taxpayers. We look at ways to deal with these queries to best effect.

Suzanne Smit & Ruaan van Eeden for TaxTalk Magazine
The SARS refund process

Sometimes taxpayers receive assessments stating that they are entitled to a refund, only to be informed that their tax affairs are subject to an audit or verification. Read on to learn about the SARS refund process.

Nico Theron and Denise Roodt for TaxTalk Magazine
What happens when you have a second income?

The South African tax system is based on a progressive tax rate table, meaning that the more taxpayers earn, the higher the marginal tax rate and the more tax is payable on assessment. We discuss the income tax implications for taxpayers who earn supplementary income in addition to remuneration.

Maya Nikolova for TaxTalk Magazine
Does tax on earnings from investments discourage you from investing?

In the current economic environment, and with the high tax rates, it is important to use all the tax breaks provided by law. One such tax-free benefit is a tax-free investment product.

Marelize Loftie-Eaton for TaxTalk Magazine

Tax News In The Press

Sars may wish to appeal against its own victory in court case, says lawyer

A recent ‘bewildering’ Tax Court judgment means foreign workers may be able to get away with paying no tax while working in SA.

Charles Cilliers - The Citizen
Taxpayers remain responsible for their tax affairs

Several taxpayers have in recent times learnt the hard way that they ultimately remain responsible for their tax affairs. They have been named and shamed and fined for not filing their tax returns, in many instances multiple returns over several years.

Amanda Visser - Moneyweb
A technocrat with a big vision is needed to lead Team SARS

One unique thing about SA is the political views associated with the South African Revenue Service (SARS). To most South Africans, SARS is more than just a bureaucratic institution. It is a brand, much like a national sports team.

Keith Engel for Business Live
SA cane growers hit hard by sugar tax

The sugar industry’s annual sales have declined by 27 percent as a result of the Health Promotion Levy (HPL) - commonly called the sugar tax - and imported sugar.  According to Chris Fitzgerald, Illovo South Africa’s spokesperson, Illovo had forecast a decrease in its sales to the beverage sector by at least 30 percent.

Givel Majola - IOL Business Report
SARS Starts Publishing Names of Convicted Tax Offenders

[News24Wire] Acting commissioner of the SA Revenue Service Mark Kingon was not joking when he said last week that taxpayers failing to file returns would face the law.

Rising wages and interest costs a slippery slope – Treasury official

Fiscus under increasing pressure amid new spending demands and disappointing growth.

Ingé Lamprecht - Moneyweb