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SAIT Trending Topics

FEATURED EVENT: 2019 VAT Audit: Common Pitfalls

VAT vendors are facing a changing landscape in respect of non-compliance issues that are being detected during a VAT audit. The paperwork required to comply with SARS’s verification process is often unavailable and/or incomplete, leading to a revised assessment of the vendor’s VAT liability. 

Tax Conference
TAX DIRECTORY

Attention all Tax Practitioners! Be sure to list your practice in the next edition of TaxTalk. The special Jul/Aug edition of TaxTalk is an annual personal income tax return guide of use to the general public. This edition will also be available for sale at selected stores nationwide – just in time for Tax Season! For more info and to book your spot, contact editor@thesait.org.za. Deadline for bookings: 31 May 2019...

Tania Wolson - TaxTalk Magazine

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

DA 180 - Notes to the form - 17 May 2019
DA 180.02A.2 - Fuel combustion non stationary source allowance - 17 May 2019
DA 180 form - 17 May 2019

TAX 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
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
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

Legislative & Policy
(National Treasury & Parliament)

Report on the consultation process for the amendments to regulations in terms of Financial Sector Regulation Act, 2017

Draft amendments to the Financial Sector Regulations, made in terms of sections 61(4), 288 and 304 of the Financial Sector Regulation Act, 2017 (Act No. 9 of 2017) (FSRA), and which were published in Government Notice No. R405 of 29 March 2018, are set out in the Schedule, were published for comment on 18 March 2019, and were also submitted to Parliament on that date. The period allowed for comment was until close of business on 27 March 2019, in accordance with section 288(8) of the FSRA....

Treasury
Media Advisory: Minister will introduce the new Commissioner for the South African Revenue Service (SARS)
Treasury
Media statement: Appointment of new SARS Commissioner
Treasury

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

​20 May 2019 31 May 2019 Due date extended to 14 June 2019 New!



Next due date for comments :

SARS
​20 May 2019 31 May 2019   Due date extended to 14 June 2019 New!



Next due date for comments :

SARS
NEWSFLASH: Customs Act amended to include Carbon Tax Rules for enforcement and collection

Draft rules have been inserted for implementation of the carbon tax, to provide details on the envisaged carbon tax administration, including the registration of clients, licensing of emissions facilities, carbon tax environmental levy accounting and application of allowances as rebates, all of which need to be synchronised with the essential systems development.

 

Note: 

 

Form DA 180 – Environmental Levy Return for Carbon Tax will be added at a...

SARS

International and Regional News
(OECD and ATAF)

Public comments received on draft report on tax morale

On 10 April 2019, interested parties were invited to provide comments on its forthcoming publication "What is driving tax morale? An empirical analysis on social preferences and attitudes towards taxation". The OECD is grateful to the commentators for their input and now publishes the public comments received.

Dominica joins international efforts against tax evasion and avoidance

At the OECD Headquarters in Paris, H.E. Sharlene Shillingford-McKlmon, Ambassador of Dominica to the European Union, signed the Multilateral Convention on Mutual Administrative Assistance in Tax Matters (the Convention) in the presence of the OECD Deputy Secretary-General Ludger Schuknecht. Dominica is the 128th jurisdiction to join the Convention....

OECD
Dominica joins international efforts against tax evasion and avoidance

Today, at the OECD Headquarters in Paris, H.E. Sharlene Shillingford-McKlmon, Ambassador of Dominica to the European Union, signed the Multilateral Convention on Mutual Administrative Assistance in Tax Matters (the Convention). Dominica is the 128th jurisdiction to join the Convention.

CPD Events

PROFESSIONAL INSIGHT

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
The widening budget deficit: The need for a bigger economic pie

Budget 2019 was a difficult one. Our article unpacks some of the problems and looks at the options to make things better.

Greg Smith - TaxTalk Magazine
Bad and Doubtful Debts

Who decides when a debt has gone bad and what are the tax implications of a debt waiver for debtors and creditors? Our article looks at a complex minefield of changing rules.

Jerome Brink - TaxTalk Magazine
Two Sides to Every Bitcoin

Our article gets behind what Bitcoin is and describes the tax implications to be taken into account when transacting in it.

Natasha Wilkinson - TaxTalk Magazine
The True Cost of a Carbon Tax

Our authors examine the cost to corporate South Africa of complying with the soon to be implemented carbon tax and ask whether the tax rate is sufficient to incentivise behavioural changes in a low-growth environment.

Jenna Mason & Nicole De Jager - TaxTalk Magazine
Debt Benefit Amendments Regarding the Funding of Allowance Assets

Do the recent changes to the debt benefit regime relating to allowance assets achieve the intended result? Or is there still a possibility for tax avoidance in this area? Our article looks at a few scenarios.

Leanie Groenewald & Ruvé Van Rooyen - TaxTalk Magazine
The Latest Amendments: Foreign Companies Held by Foreign Trusts

Legislation that came into effect recently brought changes to the regime for foreign companies held by foreign trusts with South African beneficiaries. Our article examines the current position.

Professor Phillip Haupt - TaxTalk Magazine
Managing the Rising Costs of Healthcare Provision

Price rises in medical aid and medical costs can be potholes in the road to investing for the future. Find out how to manage these.

Lara Warburton - TaxTalk Magazine

Tax News In The Press

Retailers beware: The gift card and tax

Gift cards can land business owners in trouble if they aren’t accounted for properly.

Amanda Visser - Moneyweb
Is financial emigration going to help me to get out of “expat taxes”?

Expat taxes is possibly the most talked about topic at the moment in the tax world. Many taxpayers are devising their own ideas of schemes to get around the expat taxes and here is what you need to know when planning your affairs around the expat taxes.

Willem Oberholzer and Jade Els - IOL
The Economic Cost of Tax, Our Low Savings Rate and Red Tape

For years, policymakers have worried that our savings rate is too low. International comparisons often show that South Africa has one of the lowest savings rates in the world. These numbers generate widespread anxiety, and for good reason. Savings are the key to capital formation, and every economic theory -- even Marxism -- teaches that capital formation is necessary to raise wages and stimulate long-term economic growth. Why have our tax policies become opposed to it?

Ruan Jooste - Daily Maverick
The ire of SA taxpayers is clearly on display

The blatant squandering of tax money has had a devastating effect on the government’s ability to collect taxes.

Amanda Visser - Business Live
Why South Africa should seriously consider taxing its wealthy citizens

It’s one method of closing the inequity gap that exists between the wealthy and poor.

Samson Mbewe, Ingrid Woolard and Dennis Davis - Moneyweb
SARS seeks technology to curb revenue leakages in illicit tobacco industry

The South African Revenue Service (SARS) has embarked on a number of strategic initiatives to curb revenue leakages emanating from illegal and unethical practices in the illicit economy.

SARS