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FEATURED EVENT: 2019 Submissions of ITR14

Considerations before submission of ITR 14: Limiting SARS disputes by getting it right the first time. The primary responsibility of the tax practitioner with regard to the submission of the ITR14 is to ensure that complete and accurate information is submitted to SARS and that defendable positions are taken whenever Uncertain Tax Positions arise. 

The tax compliance function is not simply an administrative function; the tax practitioner must exercise “reasonable care” when preparing...

Tax Conference

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

Urgent e@syfile/Efiling notice - Tax Practitioner Appointments

As a result of the e-services migration over the weekend, requests for Tax Practitioner appointments submitted on the Tax Practitioner page on the SARS website is currently not being routed to the appointment mailboxes for the respective offices.  This is a National issue and our IT team are hard at work to resolve the issue. Please inform your members not to submit any requests for appointments via the SARS website until further notice.  If an urgent appointment is required, they may submit...

SARS e@syfile/Efiling
MEDIA STATEMENT: Public Protector and Tax Ombud join forces to tackle tax-related grievances

A Memorandum of Understanding (MoU) that will see the Public Protector South Africa and the Office of the Tax Ombud (OTO) working closely together to resolve taxpayers’ complaints against the South African Revenue Service (SARS) was signed in Pretoria on Tuesday.

Tax Ombud
Important issues list for the PAYE 201902 season

Important things to remember for the PAYE EMP501 201902 submission starting 1 April 2019 – 31 May 2019

Start with a Sync Application Option 3 to check and see if there are bulk Tax numbers available. Ensure that you are using the data that was submitted for the Biannual period.

Export the Tax numbers via the Import/Export tab to your Payroll before doing Payroll run and the import for 201902.

Ensure that all the Zero’s...

SARS

TAX CASES

XYZ CC vs Commissioner of the South African Revenue Services

The Commissioner for the South African Revenue Service (“SARS”) brought an application in terms of rule 56(1)(b) of the Rules of the Tax Court for default judgment against the taxpayer in terms of section 129(2) of the Tax Administration Act, 28 of 2011 (“the Act”).

SARS Court Cases
XYZ (Pty) Ltd v C:SARS (CASE NO: 14189) - 20 December 2018

Income tax; lease; whether a lease premium is of a capital or revenue nature.

SARS Court 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

Legislative & Policy
(National Treasury & Parliament)

Report on the consultation process for the amendments to regulations in terms of Financial Sector Regulation Act, 2017

Draft amendments to the Financial Sector Regulations, made in terms of sections 61(4), 288 and 304 of the Financial Sector Regulation Act, 2017 (Act No. 9 of 2017) (FSRA), and which were published in Government Notice No. R405 of 29 March 2018, are set out in the Schedule, were published for comment on 18 March 2019, and were also submitted to Parliament on that date. The period allowed for comment was until close of business on 27 March 2019, in accordance with section 288(8) of the FSRA....

Treasury
Media Advisory: Minister will introduce the new Commissioner for the South African Revenue Service (SARS)
Treasury
Media statement: Appointment of new SARS Commissioner
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)

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.

OECD
OECD invites public comments on draft report on tax morale

As part of the ongoing work on tax morale, the OECD is seeking public comments on its forthcoming publication What's driving tax morale? An empirical analysis on social preferences and attitudes towards taxation. A first draft was presented and discussed at a conference on the Role of Tax Morale in Developing Countries organised by the OECD's Task Force on Tax and Development on 25 January 2019. The conference provided further inputs that have been included in this version for...

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

This document contains a list of signatories and parties to the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting. Under the provisions of the Convention, each jurisdiction is required to provide a list of reservations and notifications (the “MLI Position”) at the time of signature.

OECD

CPD Events

PROFESSIONAL INSIGHT

08/05/18 Tax Controversy & Dispute Resolution: Guide to Understatement Penalties by SARS SARS published Issue 2 of the Guide to Understatement Penalties on 18 April 2018. An understanding of this guide may be useful when under audit and at risk of un...
PWC
16/04/18 Tax Alert - Davis Tax Committee On 12 April 2018, the Davis Tax Committee released its four final reports and announced the conclusion of its work based on its Terms of Reference. Download PDF - 251 KB
PWC
06/04/18 Tax Alert - SARS’ Diesel Refund Scheme The diesel refund scheme provides relief from the Fuel Levy and Road Accident Fund (“RAF”) Levy. Download PDF - 251 KB
PWC
28/03/18 VAT Alert - Lesotho VAT rate increase Lesotho has issued an extraordinary Government Gazette , Volume 63, No.24, dated 23 March 2018, confirming that the VAT rate will be increased on 1 April 2018. Download PDF - 219 KB
PWC
16/03/18 VAT Alert Lesotho Lesotho has announced that the VAT rate will increase by 1 percentage point, to 15% (standard rate), with effect from 1 April 2018 (the “effective date”). Download PDF - 25 KB
PWC
14/03/18 Tax Alert - SARS debt collection by 3rd parties What you need to know when a third party contacts you on behalf of SARS to recover debt owed. Download PDF - 318 KB
PWC
05/03/18 Tax Alert - 2018 Budget - Customs & Excise amendments On Wednesday, 21 February 2018 the minister of finance delivered his budget speech and introduced a number of changes to customs and excise duties. Download PDF - 259 KB
PWC
23/02/18 VAT Alert - New draft VAT Regulations published - Extensive reform for electronic services Following the announcement in the Budget Review, National Treasury has published the draft Regulations and the draft explanatory memorandum to propose...
PWC
21/02/18 VAT Alert - New VAT Regulation- 15% VAT and the impact on your business The Minister of Finance (the “Minister”) announced, in the 2018 annual budget, that the VAT rate will increase by 1% to 15% with effect from 1 April 2018 (the “eff...
PWC

Tax News In The Press

When tax becomes a turning point for people to stay or leave

A change to the taxation of foreign trusts means any repatriated income or capital gains will now be taxed.

Amanda Visser - Moneyweb
Treasury might want to ease up on Sars

Consistently setting unachievable revenue collection targets is unlikely to help the turnaround.

Tertius Troost - Moneyweb
Africa is being left out of the digital tax loop

It’s a tricky issue. Tech companies are able to operate internationally very effectively, zooming down fibre optic cables from their tax havens. Should they be taxed in a different way? It’s now a leading topic on the global agenda, and African tax experts are hustling to join the discussions. Governments around the world have proposed varying solutions. Africa, however, is not necessarily happy with the progress, but potential solutions are out there.

Ruan Jooste - Daily Maverick
A to-do list for the new Sars Commissioner

The President has entrusted Edward Kieswetter as the new Commissioner for the South African Revenue Service (Sars).

Jean du Toit - IOL
Our heavy tax burden

The amount we pay in indirect taxes can equal the amount we pay in income tax, effectively doubling the average taxpayer’s tax rate.

Adriaan Kruger - Moneyweb
Harvesting low-hanging fruit will not lift Sars out of the doldrums

Internal cracks were developing before Moyane.

Barbara Curson - Moneyweb