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

Interpretation Note 106 – Deduction in respect of certain residential units

This Note provides guidance on the interpretation and application of section 13sex which provides for an allowance on any new and unused residential unit or improvements to a residential unit used for the purpose of trade and an additional allowance on that residential unit if it qualifies as a low-cost residential unit.

SARS
Acquittal of Customs Declarations
Tax Administration Act, 2011 - ​GG 42100 - Notice 1372

Incidences of non-compliance by a person in terms of section 210(2) of the Tax Administration Act, 2011, that are subject to a fixed amount penalty in accordance with sections 210(1) and 211 of the Act.

SARS

TAX CASES

C:SARS v Volkswagen S A (Pty) Ltd (1028/2017) [2018] ZASCA 116 (19 September 2018)

Income tax – valuation of stock at year end – s 22(1)(a) of Income Tax Act 58 of 1962 – whether stock to be valued in accordance with International Accounting Standard 2 (IAS 2 or AC 108) at net realisable value.

SARS Court Cases
CSARS v Amawele Joint Venture CC (908/2017) [2018] ZASCA 115 (19 September 2018)

VAT – zero rating of supplies of services in terms of s 11(2)(s), read with s 8(23) of the Value-Added Tax Act 89 of 1991 – whether supplies made in terms of the Housing Subsidy Scheme referred to in s 8(23).

SARS Court Cases
Kangra Group (Pty) Ltd v CSARS (A20/18) [2018] ZAWCHC 104 (27 August 2018)

Whether damages paid by the Appellant as a result of breach of contract, after it sold its coal business, is properly deductible in terms of section 11(a), specifically, whether such payment was incurred in the production of income.

SARS Court Cases

Legislative & Policy
(National Treasury & Parliament)

Media statement: Extension of SARS Acting Commissioner’s Term (14/12/2019)

The Minister of Finance, Mr Tito Mboweni, has re-appointed Mr Mark Kingon as Acting Commissioner of the South African Revenue Service (SARS) for a further 90 days beginning on December 13, or until such date as a new Commissioner for SARS is appointed by the President.

National Treasury
National Legislation

Amendments were made to the Tax Administration Laws Amendment Bill [Bill 39—2018] as tabled by the the Minister of Finance in the National Assembly on 24 October 2018. Tax Administration Laws Amendment Bill: Tax Administration Laws Amendment Bill [B39—2018]...

SARS
MTBPS 2018

The Minister of Finance, Hon. Tito Mboweni presented the 2018 Medium Term Budget Policy Statement (MTBPS) to Parliament. Click here to view all the documents relating to the MTBPS, the Minister's speech and webcast. 

National Treasury

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

INVITATION FOR COMMENT ON THE DRAFT ANTI-AVOIDANCE OF TAX BILL, 2018

The Anti-Avoidance of Tax Bill aims to give SARS the necessary legal mechanisms to tackle aggressive and illegal avoidance.

Government Gazette
Income Tax Act, 1962​

Draft Guide on MAPs: DTAs or tax treaties as they may be referred to, are international agreements between the governments of two jurisdictions aimed at eliminating double taxation with respect to taxes on income and on capital without creating opportunities for non-taxation or reduced taxation through tax evasion or avoidance.  Next due date for comments: ​15 June 2018 New!

SARS
Tax Administration Act, 2011

Draft notice about returns to be submitted by a person in terms of section 25:  Persons specified in the Schedule to the Notice must submit returns for the 2018 year of assessment, as defined in the Schedule, within the periods specified in the Schedule. Next due date for comments: 23 May 2018

SARS

International and Regional News
(OECD and ATAF)

Tax revenues continue increasing as the tax mix shifts further towards corporate and consumption taxes

Tax revenues in advanced economies have continued to increase, with taxes on companies and personal consumption representing an increasing share of total tax revenues, according to new OECD research.

OECD
Qatar signs landmark agreement to strengthen its tax treaties

Qatar signed the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (the Convention), becoming the 85th jurisdiction to join the Convention, which now covers nearly 1 500 bilateral tax treaties.

OECD
OECD Pensions Outlook 2018

The 2018 edition of the OECD Pensions Outlook examines how pension systems are adapting to improve retirement outcomes. It focuses on designing funded pensions and assesses how different pension arrangements can be combined taking into account various policy objectives and risks involved in saving for retirement.

OECD

CPD Events

PROFESSIONAL INSIGHT

Transfer pricing: Evolution or revolution?

This article takes a brief walk down memory lane on the evolution of transfer pricing in South Africa with respect to the legislation and audits, and looks at future developments we can possibly anticipate.

Nishana Gosai for TaxTalk Magazine
Transfer pricing for financial transactions: Expect significant changes

A discussion draft recently published by the OECD could mean significant changes to transfer pricing when it comes to loans and guarantees, cash pooling and captive insurance within groups of companies. Our author gives advice on timeous preparation of the documentation required to support a position taken.

Okkie Kellerman for TaxTalk Magazine
South Africa & Africa: Transfer Pricing Documentation in a Post-BEPS World

Our article guides you through all the recent developments in transfer pricing documentation requirements in South Africa and the rest of Africa.

Christian Wiesener for TaxTalk Magazine
The risks of refunds

This article looks at when a taxpayer is entitled to a refund, when SARS can refuse to pay a refund and the remedies available to taxpayers in the face of such a refusal.

Natasha Wilkinson for TaxTalk Magazine
The Assign Services case: Its effect for the “employer”

A recent judgment of the Constitutional Court pronounced on whether workers in some circumstances are employees of a labour broker or of the company where they are placed. We look at the implications in terms of the Fourth Schedule.

Advocate Kevin Burt for TaxTalk Magazine
Managing your Tax Compliance Status

Manual tax clearance certificates have been replaced with a tax compliance status functionality on eFiling. How well does the My Compliance Profile work? And what can one do in case of problems? Our authors explore the issue in detail.

Joon Chong & Carryn Alexander for TaxTalk Magazine
The exemption of scholarships or bursaries awarded to disabled employees

An exemption came into effect in 2018 which provides income tax relief for scholarships and bursaries awarded to disabled persons for study purposes. What are the requirements for recipients and for employers that provide funding for disabled employees?

Jaco Faber & Herman Viviers for TaxTalk Magazine
Doing your objection right

When initiating a dispute with SARS it is important to start off on a solid foundation. Our author provides ways to get it right.

Suzanne Smit for TaxTalk Magazine
Disputes and the SARS Service Charter

Disputes between taxpayers or practitioners and SARS: We ask what has changed since the publication of the SARS Service Charter.

 

Elle-Sarah Rossato for TaxTalk Magazine

Tax News In The Press

Don't hold SA's economy hostage to high-carbon companies

Despite having been consulted since 2010 when the Carbon Tax Bill was first mooted, the heavy emitters have reacted with predictable outrage and scare-mongering to the recent tabling of the Carbon Tax Bill. Yet two points are drowned out by what is essentially a distraction.

Louise Naudé - Fin24
29 November 2018 - Penalties for outstanding corporate income tax returns to kick in soon

SARS will soon impose administrative non-compliance penalties for outstanding Corporate Income Tax (CIT) returns.  Administrative non-compliance penalties will be imposed on companies that fail to submit an income tax return as required under the Income Tax Act, 1962, for years of assessment ending during the 2009 and subsequent calendar years, where SARS has issued that company with a final demand, and where the company fails to submit the outstanding return within 21 business days of the...

Slow reform at Sars to trigger 'another year of unimpeded tax fraud'

The slow pace of reform at the South African Revenue Service (Sars), together with February’s expected tax increases, have awarded another year of unimpeded tax fraud to illegal cigarette companies registered by Sars. This is according to chairperson of the Tobacco Institute of Southern Africa, François van der Merwe, who said until government was able to collect taxes from those who evade paying, it should think extremely carefully about increasing taxes again on the legal market.

Sizwe Dlamini - IOL
23 November 2018 - SARS crushes 26 illegal vehicles in war on non-compliance
South African finance minister tables carbon tax bill

Finance Minister Tito Mboweni recently tabled the carbon tax bill in Parliament, giving effect to the announcements made in the 2017 and 2018 Budget statements. The carbon tax will become effective from 1 June 2019. The Government News Agency quoted Mboweni as stating that: “Climate change poses the greatest threat facing humankind, and South Africa intends to play its role in the world as part of the global effort to reduce greenhouse gas emissions.”

ESI Africa
Law Matters: Is SA side-stepping the uprising of Cryptocurrencies?

Are Treasury and the Reserve Bank side-stepping the uprising of Cryptocurrencies? Cryptocurrency has gained significant traction in the past few years and has become a risky, but potentially lucrative, investment or trading option. South Africa has been a bit slow on the uptake in regulating the use of cryptocurrencies and, for the most part, their use been unregulated. 

Wade Ogilvie and Arnold Mbeje - IOL