Home

SAIT Trending Topics

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

DA 180.01A.1 - Fuel combustion stationary source - 17 May 2019
DA 180.01A.2 - Fuel combustion non stationary source - 17 May 2019
DA 180.02A.1 - Fuel combustion stationary source allowance - 17 May 2019

TAX 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
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

Legislative & Policy
(National Treasury & Parliament)

Edward CHR Kieswetter CV
Treasury
Nugent Commission Report pages 197 and 198
Treasury
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

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

Income Tax Act, 1962

Draft Interpretation Note – Apportionment of surplus and minimum benefit requirements – Pension Funds Second Amendment Act. 

Due date for comments: 31 May 2019

 

 

SARS
National Legislation

Consultation paper and media statement  – Policy proposals for crypto assets. Due date for comments: 15 February 2019

SARS
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

International and Regional News
(OECD and ATAF)

Egypt’s updated transfer pricing guidelines part of tax reform agenda

Egypt has updated its transfer pricing guidelines as a result of a collaborative initiative between the Egyptian Ministry of Finance, the OECD’s Centre for Tax Policy and Administration (CTPA) and the African Tax Administration Forum (ATAF).

African Tax Administration Forum (ATAF)
Model Tax Convention on Income and on Capital 2017 (Full Version)

This publication is the tenth edition of the full version of the OECD Model Tax Convention on Income and on Capital.

OECD
Reforms in a few countries drive a decline in average OECD labour taxes

Income tax and social security contributions declined slightly for the average worker across the OECD in 2018, driven by major reforms in a handful of countries, according to a new OECD report.

CPD Events

PROFESSIONAL INSIGHT

Offshore Trusts

This five-part article looks at off shore trusts and basic considerations, tax emigration, the dividend participation exemption, funding a foreign trust and new substance rules.

Various Authors - TaxTalk Magazine
6 things you always wanted to know about investing in private equity & venture capital

Our article explores the somewhat unknown areas of private equity and venture capital investing by means of six simple questions.

Peter Nurcombe-Thorne - TaxTalk Magazine
Real Estate Investment Trusts

We provide a background to the position of real estate investment trusts in South Africa, explain how this has improved in a short time and we also look at future issues.

Estienne de Klerk - TaxTalk Magazine
Strike a Balance for Success

How to provide for short-term needs while not neglecting long-term provision for retirement. Our article provides some sage advice.

Janet Hugo - TaxTalk Magazine
Sugar Tax

In this two-part article, we provide commentary on the sugar tax as a health promotion measure by BDO’s Dr Ferdie Schneider and Chairperson of the SA Canegrowers Association Graeme Stainbank.

Various Authors - TaxTalk Magazine
Timing of tax on gift cards

The timing of income tax in relation to retailer gift cards was recently an issue in the interesting case in the Cape Town Tax Court, case number IT 24510, reported as A Company v The Commissioner for the South African Revenue Service (IT 24510) [ZATC] 1 (17 April 2019).

Ben Strauss - Cliffe Dekker Hofmeyr
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
Controlled foreign company comparable tax threshold to be decreased

The 2019 Budget noted that a global downward trend in corporate taxation rates may lead to an unintended increase in the imputation of controlled foreign companies' (CFCs') net income in South African shareholders' taxable income. This could occur despite the fact that at its inception, a CFC has operated in a jurisdiction with tax rates which met the present threshold currently contained in Paragraph (i) of the proviso to Section 9D(2A)(l) of the Income Tax Act.

Tsangadzaome Mukumba - Cliffe Dekker Hofmeyr for International Law Office
ENSafrica tax revenews - issue 23 - April 2019

Please find issue 23 of ENSafrica’s tax revenews, a snapshot of the latest tax developments in South Africa.

ENSafrica

Tax News In The Press

Draft Rule Amendments on Carbon Tax
Sars welcomes new Commissioner Kieswetter

The South African Revenue Service on Wednesday formally welcomed Edward Kieswetter to his new role as the Commissioner of the revenue collector. Kieswetter commenced his duties on Wednesday, replacing disgraced erstwhile Sars boss Tom Moyane, who left behind a broken tax collection agency and a multibillion-rand revenue shortfall.

Brenda Masilela - IOL
Why SA needs a wealth tax

It’s well-established that South Africa has one of the most unequal income distributions in the world. Despite significant efforts by the State to stimulate inclusive growth, the income gap between the rich and the poor has continued to widen in post-apartheid South Africa.

Ingrid Woolard - Stellenbosch University - Fin24
New VAT rules lead global tax reform

South Africa is one of numerous jurisdictions globally implementing new value-added tax (VAT) rules designed to rise to the challenges of a digitising marketplace that can operate beyond the reaches of the tax authorities.

Kevin Davie - Mail & Guardian
Small enterprise: The canary in the coal mine of a toxic business environment

Does government see small formal enterprises as an asset or a burden? Their demise suggests it is at least indifferent to their plight.

Johannes Wessels - Moneyweb
Tax Ombud: ‘Systemic investigations the way forward’

Outgoing CEO Eric Mkhawane reflects on five years of resolving issues between taxpayers and Sars.

Ingé Lamprecht - Moneyweb