TaxTalk Articles

A new practitioner’s perspective on Tax Court proceedings – lessons from a baptism of fire


Darron West recounts his introduction to the Tax Court and shares practical insights from his experience


“There can be no excuse for a lack of preparation: the procedures and the documents that precede the appeal itself lend themselves to a state of considerable preparedness.”


Despite considerable education in and exposure to tax law itself, I only recently enjoyed my introduction to proceedings in the Tax Court.  While the necessary procedural principles are set out in the Tax Court Rules promulgated under section 103 of the Tax...

Taxation of trusts to be revisited


The recent Davis Committee Report on Estate Duty has revealed that SARS is concerned with the use of trusts for tax planning purposes.


“South Africa has well established rules and case law dealing with the taxation of trusts. SARS also recently introduced new tax returns for trusts that require far more detailed disclosures by taxpayers in accordance with these principles.”


The Davis Tax Committee First Interim Report on Estate Duty (DTC Report) was released for public comment on 13 July 2015. The DTC Report, in essence, proposes...

Will you be paying more for Nkandla than you have to – even after death?


Braam Mathee discusses the amount of tax payable on the estate of a deceased.


Essentially, as long as the residue is left to a tax-deductible person such as the surviving spouse or an approved charity, the estate duty will only be the 20 per cent rate instead of 25 per cent, saving a quarter of the amount that one would otherwise pay in estate duty.”


It may be that death and taxes are the only two certain things in this life, as Benjamin Franklin claimed. But the amount of tax we must pay when we die is by no means...

FATCA legislation to dramatically impact SA financial services sector


South African companies who do business with US organisations, whether in South Africa, Africa, Europe or further afield, must comply with the United States Foreign Account Tax and Compliance Act (FATCA), or risk being excluded from lucrative markets the world over.


“FATCA is a series of US-led tax compliance rules for financial institutions to collect, verify and report information on US customers, especially those with offshore accounts and investments.”


South African companies who do direct and indirect business with US...

How to substantiate an input tax deduction without a tax invoice


In some cases the court will allow for the deduction of input tax without a tax invoice


“This judgment proves that it is worth fighting SARS if the law supports your argument.”


The VAT process is fairly simple if you have a tax invoice to substantiate your entitlement to an input tax deduction.However, if the supplying vendor fails to issue you with a tax invoice, the question then arises as to whether you, as the recipient vendor, can rely on section 20(7) or section 16(2)(f) of the Vale-Added Tax Act No 89 of 1991 (the “VAT Act”)...

Tax risk management – cutting through the complexity


Joubert Botha argues for a consistent methodology and approach to tax process management with clarity on accountability and responsibility between the tax function and the organisation


Accountability in terms of the enforcement of the practical application of the tax strategy and policy is key, as what is written on paper should be applied in practice.


A lot has been published, and even more said, about the importance of tax risk management (TRM), the advantages of TRM and the importance of a good TRM framework that should be...

Permanent Establishment and ITC 1326


Nico Theron looks at the recent judgement of ITC 1326 and its wider implications for Permanent Establishment in relation to the double tax treaty between South African and the United States of America.


“From a South African tax perspective, the judgement arguably casts the permanent establishment net wider than what the Commentary may have led some to believe.”


In the recent seminal judgement of ITC 1326, the Tax Court was faced with the daunting task of interpreting the definition of “Permanent Establishment” as contained in the...