Home

SAIT Trending Topics

FEATURED EVENT: 2019 Budget & Tax Update

The Annual Budget and Tax Update gives you the best opportunity to get up to speed on recent developments in tax, legislative changes and proposed changes announced in the National Budget Speech. 
 

Tax Conference

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

OTO GATEWAY MALL ACTIVATION

The Office of the Tax Ombud (OTO) will be in Durban as part of an ongoing awareness campaign to promote its free and impartial services. The campaign will create an interactive experience for taxpayers on how to lodge a complaint against SARS and the OTO service in general. In addition to the Gateway Mall Activation, the OTO will hold interactive engagements sessions with both private and public sector institutions to share information about the free and impartial services, as well as to...

Tax Ombud
INVITATION: TAX OMBUD STAKEHOLDER ENGAGEMENT IN DURBAN - 19 MARCH

How do we maintain a balance between SARS’ powers and duties, and the taxpayers’ rights and obligation? Join Judge Bernard Makgabo Ngoepe, Tax Ombud, as we discuss ways to ensure fair and equitable tax administration. The Minister of Finance, Tito Titus Mboweni, delivered his budget speech in parliament on 20 February 2019.

Tax Ombud
REQUEST FOR SUBMISSIONS: REVIEW IN TERMS OF S16(1)(B OF THE TAA 2011 

The Tax Ombud Judge Bernard Ngoepe is conducting an investigation into Fluidity of the Pay as you earn statements of accounts and SARS’s disregard of the timeframes prescribed by the Rules for the resolution of disputes. Stakeholders are requested to make submissions on the investigation which follows the recent approval by the then Finance Minister for the Tax Ombud to investigate the South African Revenue Service (SARS) in relation to systemic and emerging issues arising from taxpayers and...

Tax Ombud

TAX CASES

XYZ CC vs Commissioner of the South African Revenue Services

The Commissioner for the South African Revenue Service (“SARS”) brought an application in terms of rule 56(1)(b) of the Rules of the Tax Court for default judgment against the taxpayer in terms of section 129(2) of the Tax Administration Act, 28 of 2011 (“the Act”).

SARS Court Cases
XYZ (Pty) Ltd v C:SARS (CASE NO: 14189) - 20 December 2018

Income tax; lease; whether a lease premium is of a capital or revenue nature.

SARS Court 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

Legislative & Policy
(National Treasury & Parliament)

Consolidated Regulations After Amendments to Regulations: Electronic Services for the Purpose of the Definition of "Electronic Services" in Section 1(1) of the Value-Added Tax Act
Treasury
Explanatory Memorandum: Regulations Prescribing Electronic Services for the Purpose of the Definition of "Electronic Services" in Section 1(1) of the Value-Added Tax Act, 1991
Treasury
Government Gazette,: Regulations Prescribing Electronic Services for the Purpose of the Definition of "Electronic Services" in Section 1(1) of the Value-Added Tax Act, 1991
Treasury

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

​31 May 2019 New!



Next due date for comments :

SARS
​For information purposes



Next due date for comments :

SARS
Income Tax Act, 1962​​

Draft Binding General Ruling – Transitional rules for the taxation of interest payable by SARS under section 7E. Next due date for comments:15 March 2019 New!

SARS

International and Regional News
(OECD and ATAF)

OECD and United Arab Emirates renew partnership to strengthen tax co-operation

The OECD and the United Arab Emirates (UAE) signed a renewal of the Memorandum of Understanding (MoU) agreeing to extend their collaboration in providing regional seminars on international taxation for a further three years, to 2021.

OECD
Public consultation on the tax challenges of digitalisation

As part of the ongoing work of the OECD/G20 Inclusive Framework on BEPS and its Task Force on the Digital Economy (TFDE), the OECD is seeking public comments on possible solutions to the tax challenges arising from the digitalisation of the economy. This public consultation will focus on the key questions identified in the consultation document and raised in the written submissions received as part of the consultation process. A compilation of the written comments received will be published...

OECD
Finland deposits its instrument of acceptance for the Multilateral BEPS Convention

This document contains a list of signatories and parties to the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting. Under the provisions of the Convention, each jurisdiction is required to provide a list of reservations and notifications (the “MLI Position”) at the time of signature. The MLI Positions provided for each jurisdiction upon the deposit of the instrument of ratification, acceptance or approval and/or signature are...

OECD

CPD Events

PROFESSIONAL INSIGHT

Carbon Tax

Standing Committee on Finance passes Carbon Tax, implementation imminent

Deloitte
Africa tax in brief

AFRICA: African Continental Free Trade Area Agreement developments

Celia Becker - ENSafrica
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. 

Robert Gad, Megan McCormack and Jo-Paula Roman - ENSafrica
Reportable arrangement: proposed reporting burden on mining companies and rehabilitation trusts

The reportable arrangement provisions were established by the South African Revenue Service (“SARS”) with the objective of obtaining information on certain types of transactions. The circumstances under which a person should report an “arrangement” to SARS, as defined in section 34 of the Tax Administration Act, 2011 (the “TAA”), are contained in sections 34 to 39 of the TAA. Essentially, if an arrangement has certain characteristics as listed in section 35(1) of the TAA or if SARS has...

Kristel van Rensburg and Emile Cronje - ENSafrica
A creature of statute: A decision about the Tax Court’s power to increase understatement penalties

In the recent judgment of Purlish Holdings (Proprietary) Limited v The Commissioner for the South African Revenue Service (76/18) [2019] ZASCA 04, the Supreme Court of Appeal (SCA) had to pronounce on the South African Revenue Service’s (SARS) entitlement to impose understatement penalties on Purlish Holdings (Proprietary) Limited (Taxpayer) and the quantum thereof.

Louis Botha & Louis Kotze - Cliffe Dekker Hofmeyr
PWC Tax Alert: Interests in foreign companies held by SA residents via foreign trusts: New anti-avoidance measure

Since as far back as 2008, government has been concerned that the controlled foreign company (“CFC”) rules do not cater for situations where South African residents hold shares in foreign companies via foreign trusts. As part of a set of legislative measures to address this concern, the participation exemption (an exemption available in respect of foreign dividends if at least 10% of the total equity shares and voting rights in the company declaring the foreign dividend are held) is, with...

PWC
The proposed amendments regarding dividend stripping rules in the 2019 Budget

In our Special Edition Budget Speech Alert 2019, we discussed, among other things, National Treasury’s (NT) proposal to address abusive arrangements aimed at avoiding the anti-dividend stripping provisions in the Income Tax Act, No 58 of 1962 (Act). The purpose of this article is to delve into this issue in a...

Louis Botha - Cliffe Dekker Hofmeyr
When must reportable arrangements be disclosed to SARS?

Under the Tax Administration Act (28/2011), persons who enter into certain types of transaction must report the details of those transactions to the South African Revenue Service (SARS). These types of transaction are called 'reportable arrangements'.

Ben Strauss - Cliffe Dekker Hofmeyr
VAT deductions by holding companies

We look at the position of companies that acquire subsidiaries when it comes to the deductibility of VAT inputs in different scenarios.

Gerhard Badenhorst - TaxTalk Magazine

Tax News In The Press

No change to policy intent on capping tax-free foreign income

It is clear that the policy decision to cap tax-free foreign income from remuneration at R1 million is set to stay, but the administration of and practicalities around the amendment are still open for discussion.

Amanda Visser
Understanding travel allowance and capital gains tax

What’s best: a travel allowance or mileage reimbursed?

Business Live
Airlines plead for exemption from carbon tax

The airline industry made a strong plea in parliament on Tuesday to be exempted from the proposed carbon tax saying it will undermine its competitiveness.

Linda Ensor - Business Live
Technical glitch in the zero-rating of sanitary products

Strangely narrow definition in pending legislation will limit the intended relief and cause problems for retailers and the customs system.

Amanda Visser - Moneyweb
Slew of tax hikes and fuel increases waiting for consumers down the line

South African consumers, already up to their necks in debt, are in for another shock over the next few months. On Wednesday next week (March 6) petrol is expected to rise by 75 cents a litre while diesel could spike by as much as 92 cents a litre while illuminating Paraffin will increase by 74 cents a litre.

IOL
Sars targets religious entities

The South African Revenue Service (Sars) has its eye on tax exempted churches. Religious entities are not liable for income tax in South Africa and enjoy substantial tax benefits, including receiving breaks on donations.

ENCA