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

DA 161A Environmental Levy Account for Plastic Bags
Environmental Levy on Plastic Bags Manufactured in South Africa
Accounting for Duty

TAX 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
Supreme Court of Appeal - Milnerton Estates Ltd v CSARS

Income Tax – purchase price of erven in a township sold by developer – sales occurring in one tax year and all suspensive conditions fulfilled in that year – transfer registered and purchase price received in following year – whether purchase price deemed to have accrued in year that sale agreements concluded – s 24(1) of Income Tax Act 58 of 1962 – stare decisis

SARS
Sasol Oil v CSARS (923/2017) [2018] ZASCA 153 (9 November 2018)

Contracts for the sale of crude oil by one entity within the Sasol Group, to another, and the back to back sale of the same oil to yet another entity in the group, were not simulated in order to avoid a liability to pay tax; nor were they entered into solely for the purpose of avoiding the payment of tax for the purpose of s 103(1) of the Income Tax Act 58 of 1962.

SARS Court Cases with compliments of Webber Wentzel

Legislative & Policy
(National Treasury & Parliament)

Media Advisory: 2019 Public Economics Winter School
Treasury
Provisional Financing Figures as at 30 June 2019
Treasury
Draft Taxation Laws Amendment Bill, 2019 (INITIAL BATCH)

In 2013, retirement fund reform amendments were effected to the Income Tax Act regarding the annuitisation requirements for provident funds. The main objective of these amendments was to enhance preservation of retirement fund interests during retirement and to have uniform tax treatment across the various retirement funds, thus resulting in provident funds being treated similar to pension and retirement annuity funds with regard to the requirement to annuitise retirement benefits. These...

National 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)

OECD releases international exchange framework for CRS-related mandatory disclosure rules and updates its XML schemas for the exchange of CRS, CbC and tax ruling information

In order to support the automatic exchange of information collected under the OECD’s Model Mandatory Disclosure Rules on Common Reporting Standard (CRS) Avoidance Arrangements and Opaque Offshore Structures (MDRs), the OECD has today released the international administrative and operational framework for the exchange of information collected under the MDRs.

OECD
Belgium deposits its instrument of ratification for the Multilateral BEPS Convention

Belgium deposited its instrument of ratification for the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (multilateral convention or MLI) with the OECD’s Secretary-General, therewith underlining its strong commitment to prevent the abuse of tax treaties and base erosion and profit shifting (BEPS) by multinational enterprises.

OECD
India deposits its instrument of ratification for the Multilateral BEPS Convention

India deposited its instrument of ratification for the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (multilateral convention or MLI) with the OECD’s Secretary-General, therewith underlining its strong commitment to prevent the abuse of tax treaties and BEPS by multinational enterprises. For India, the MLI will enter into effect on 1 October 2019.

OECD

CPD Events

PROFESSIONAL INSIGHT

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
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

Tax News In The Press

8 July 2019 - SARS has noted media report
Gordhan Seeks a Slew of Interdicts to Halt Enforcement of the Public Protector's Remedial Actions

[Daily Maverick] Recording misgivings about the conduct and impartiality of Public Protector Busisiwe Mkhwebane, Public Enterprises Minister Pravin Gordhan is approaching the court for a series of interdicts to prevent the implementation of her latest finding against him regarding the establishment of the SARS intelligence unit.

Ramaphosa Has 30 Days to Discipline Gordhan - Public Protector

[News24Wire] Public Protector Busisiwe Mkhwebane has made another adverse finding against Public Enterprises Minister Pravin Gordhan, this time in relation to the establishment of the so-called "rogue unit" at the South African Revenue Service (SARS) in 2007.

Rebuilding SARS One Step At a Time - Kieswetter Tells MPs of a Culture of Fear and Loathing

[Daily Maverick] Just 65 days into the job, new SARS commissioner Edward Kieswetter on Thursday told MPS about how listening to his staff brought out tears and scepticism. 'Internally, the organisation has been traumatised... A climate of fear and intimidation has been installed in the organisation, racial tensions are palpable. People openly talk about trauma,' he said.

Tax season opens with strong warnings against non-compliance

The annual tax filing season for individuals has been officially launched in Pretoria by the South African Revenue Service (Sars). Last year nearly six million individuals filed their returns.

Amanda Visser - Moneyweb
Tax Season opens for eFilers and users of SARS MobiApp

Deputy Finance Minister, Dr David Masondo, and the Commissioner for the South African Revenue Service (SARS), Mr Edward Kieswetter, have launched Tax Season 2019 for taxpayers who use the updated digital channels, eFiling and the SARS MobiApp.

SARS