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FEATURED EVENT: 2019 Budget Review Trilogy

You are invited to attend the 2019 Budget Review Trilogy to find out what South Africa’s economic future holds for you and your business. The event will be held at three regional venues for your convenience: Cape Town, Durban and Johannesburg. Click here to book now.

Tax Conference

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

Interpretation Note 95 (Issue 2) – Deduction for energy-efficiency savings

This Note provides guidance on the deduction for energy-efficiency savings under section 12L read with the Regulations.

SARS
Binding Private Ruling (BPR) 315 – Future expenditure

This ruling determines the application of the definition of “future expenditure” in section 24C(1) to a precious metals purchase contract.

SARS
Income Tax Act

Updating the Tables of interest rates: Table 1 – Interest rates on outstanding taxes and interest rates payable on certain refunds of tax and Table 2 – Interest rates payable on credit amounts 

SARS

TAX CASES

ABC (Pty) Ltd and C:SARS (IT14426) - 13 December 2018

This appeal is concerned with the application of provisions of the Employment Tax Incentive Act 26 of 2013 (the Act), which provides for an employment tax incentive (“ETI”) in the form of a deduction from the employees’ tax (“PAYE”) payable to the employer to support the creation of new jobs for employees under the age of 30 years.

SARS Court Cases
Tax Payer v Commissioner for the South African Revenue Service (VAT1558) [2018] ZATC 3 (5 December 2018)

This matter is concerned with the interpretation and application of s 8(15) of the Value-Added Tax Act 89 of 1991 (‘the Act’). It takes the form of an appeal against additional Value-Added Tax (‘VAT’) assessments raised by the respondent, the Commissioner for the South African Revenue Service (‘CSARS’), against the appellant, …, in the amount of R3 444 764 for its 06/2009, R4 631 620 for its 06/2010 and R5 932 209 for its 06/2011, VAT periods and interest.

SARS Court Cases
Supreme Court of Appeal - CSARS v Big G Restaurants

Income tax – s 24C of the Income Tax Act 58 of 1962 – whether income of taxpayer in years of assessment received or accrued in terms of franchise agreement – used to finance future expenditure incurred by taxpayer in the performance of obligations under that agreement – income and obligations must originate from the same contract.

SARS

Legislative & Policy
(National Treasury & Parliament)

Media statement: Publication of the 2018 Tax Acts and Accompanying Documentation

The President has signed into law three 2018 tax bills, that give legislative effect to the tax proposals announced by the Minister of Finance in his annual National Budget Speech delivered on 21 February 2018.

  • Rates and Monetary Amounts and Amendment of Revenue Laws Act, 2018 (Act No. 21 of 2018) (2018 Rates Act)
  • the Taxation Laws Amendment Act, 2018 (Act No 23 of 2018) (2018 TLAA) and
  • the Tax Administration Laws Amendment Act, 2018 (Act No 22 of 2018) (2018...
National Treasury
2018 Tax Acts

 

Click here to view the 2018 Amendment Acts that were promulgated on 17 January 2019.

National Treasury
BUDGET 2019

The Minister of Finance, Hon. Tito Titus Mboweni will table the 2019 Budget in Parliament on 20 February 2019 at 2pm. All the documents relating to the MTBPS, including the Minister's speech, will be available on this website as soon as the Minister starts speaking in Parliament. 

 

National Treasury

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

Income Tax Act, 1962

This BGR provides clarity on the no-value provision in respect of the rendering of transport services by an employer to employees in general, and must be read with BGR 42 dated 22 March 2017 “No-value provision in respect of transport services”. Next due date for comments: 21 January 2019 New!

SARS
Media Statement and related documents: Publication of the Draft Carbon Tax Bill for public comment

The Minister of Finance recently announced the implementation of the carbon tax effective from 1 June 2019. The Draft Carbon Tax Bill makes provision for the carbon offset allowance in terms of Section 13. The National Treasury today publishes the Draft Regulation on the Carbon Offset for a second round of public comment and further consultation. Next due date for comments: 14 December 2018

National Treasury
Inviting technical tax proposals for Annexure C of the 2019 Budget Review

National Treasury invites taxpayers, tax practitioners and members of the public to submit tax proposals of a technical nature (and not of a policy nature) to be considered for possible inclusion in Annexure C of the 2019 Budget Review. Next due date for comments: 23 November 2018.

SARS & National Treasury

International and Regional News
(OECD and ATAF)

OECD Tax Talks: Save the date and register now

Tuesday, 29 January 2019,15:00 - 16:00 (CET) - With a number of recent and upcoming developments in the OECD's international tax work, we invite you to join experts from the Centre for Tax Policy and Administration for a live webcast. A detailed list of topics is forthcoming.

OECD
Corporate tax remains a key revenue source, despite falling rates worldwide

Taxes paid by companies remain a key source of government revenues, especially in developing countries, despite the worldwide trend of falling corporate tax rates over the past two decades, according to a new report from the OECD.  

OECD
OECD, SARS and National Treasury continue partnership to strengthen tax co-operation

The OECD, the South African Revenue Service (SARS) and National Treasury of South Africa (National Treasury) signed a Memorandum of Co-operation (MoC), agreeing to continue to work together in the area of taxation. The MoC is in place until December 2023.

OECD

CPD Events

PROFESSIONAL INSIGHT

Is your tax objection late? Here’s what to do

SARS raises additional assessments all the time and for various reasons but mostly, an additional assessment, whether it be on VAT, income tax or PAYE is raised by SARS following an audit/verification.

Nico Theron - Unicus Tax Specialists SA
PWC Tax Alert - Fixed non-compliance penalties on Corporate Income Tax returns implemented

Government Notice No. 1372, published in Government Gazette No. 42100, provides for the imposition of fixed amount penalties in terms of sections 210 and 211 of the Tax Administration Act, 2011 (Act No. 28 of 2011) in respect of corporate income tax (“CIT”) returns.

PWC
SA tax penalties on companies

On 14 December 2018, the public notice that allows the South African Revenue Service (“SARS”) to impose penalties on companies for not submitting income tax returns was gazette. This is a new addition to the legion of penalties already faced by companies and permits the imposition of a monthly penalty on a company ranging from anything between R250 to R16 000 a month.

Nico Theron - Unicus Tax Specialists SA
New e-services regulations: widening invisible VAT net

In response to the ever-increasing world of e-commerce and cross-border digital trade, South Africa introduced legislation with effect from 1 June 2014 which requires foreign suppliers of e-services to register as value added tax (VAT) vendors. The National Treasury stated at the time that the amendment did not impose a new tax, but merely shifted the tax liability for e-services from the local recipient to the foreign supplier. South Africa was one of the first countries in the world to tax...

Gerhard Badenhorst & Varusha Moodaley - Cliffe Dekker Hofmeyr for International Law Office
Important judgment for taxpayers regarding the valuation of trading stock

In C:SARS v Volkswagen SA (Pty) Ltd (1028/2017) [2018] ZASCA 116 (19 September 2018) the Supreme Court of Appeal (SCA) dealt with important principles in the Income Tax Act, No 58 of 1962 (Act), specifically s22 of the Act dealing with amounts to be taken into account in respect of trading stock. The judgment will likely have far-reaching consequences for many taxpayers and this article provides a brief analysis of the key issues and principles underpinning the judgment.

Jerome Brink - Cliffe Dekker Hofmeyr
No tax on interest? Ruling pertaining to convention between South Africa and Brazil

On 24 July 2006 the Convention between the Government of the Republic of South Africa and the Government of the Federative Republic of Brazil for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income, came into force. The convention, similar to other double tax agreements, determines the taxing rights of each country where a resident of one contracting state earns income from a source in the other contracting state. On 4 July 2018 the South...

Louis Botha - Cliffe Dekker Hofmeyr for International Law Office
Is the Office of the Tax Ombud doing its job?

Since its establishment in October 2013, under Section 15 of the Tax Administration Act (28/2011) the Office of the Tax Ombud (OTO) has been expected to enhance South Africa's tax administration system.

Jessica Carr - International Law Office
In the end, there can be only one contract – the SCA considers section 24C of the Income Tax Act

On 3 December 2018, the Supreme Court of Appeal (SCA) handed down judgment in CSARS v Big G Restaurants (Pty) Ltd (157/18) [2018] ZASCA 179 (3 December 2018), concerning s24C of the Income Tax Act, No 58 of 1962 (Act).

Louis Botha - Cliffe Dekker Hofmeyr
Disallowance of use of assessed loss

In the recent case of Commissioner for the South African Revenue Service v Digicall Solutions (Pty) Ltd,(1) the Supreme Court of Appeal (SCA) was requested to consider whether the commissioner for the South...

Gigi Nyanin - International Law Office

Tax News In The Press

12 questions investors ask on the Section 12J tax incentive

As South Africans return to work in 2019, many will be considering whether to reduce their February tax liability by taking advantage of the Section 12J tax deduction. For every R100 invested in a Section 12J company an investor (individuals, companies and trusts) can reduce their tax by up to R45 making the net investment only R55.

Jonti Osher and Dino Zuccollo - IOL
SARS Rissik Street Branch Reopened

The SARS Rissik Street branch has been reopened after being temporarily closed due to structural damage after flooding. The branch is once again fully operational as from 16 January 2018.

SARS
The taxing issue of SA’s finances

Has there been a substantial deterioration in the economic environment that could warrant tax hikes?

Ingé Lamprecht - Moneyweb
Caution needed about the hype around ‘pervasive profit shifting’

A recent study on the role of large foreign multinational companies in shifting profits from South Africa to ‘tax havens’ has been welcomed, but also criticised.

Amanda Visser - Moneyweb
Understanding the Section 12J marketplace

The Section 12J investment class is anticipated to increase from R3.7bn to R5.5bn by the end of the current financial year.

Jonty Sacks - Moneyweb
OPINION: Debate around the Carbon Tax Bill getting hotter by the day

The current COP24 taking place in Poland and the recent announcement by Finance Minister Tito Mboweni that the South African government is going ahead with the implementation of Carbon Tax in June 2019 comes amid many questions - most of which will remain unanswered due to the contentious nature of the levy.

Hannes Meyer - IOL