SAIT Trending Topics

Tax Administration Act, 2011​

Draft Interpretation Note 15 (Issue 5) – Exercise of discretion in case of late objection or appeal

Next due date for comments :​31 March 2018

SARS
Technical Inbox - Pick of the Week

SAIT is here to help members with all their tax-related queries! Click here to view a select few queries we received via the Tax Helpline.

 

 

SAIT Technical
FEATURED: Budget Review Trilogy - February 2018

What lies ahead for you and your business?  SAIT and FPI invite you to attend the 2018 Budget Review Trilogy to find out what South Africa’s economic future holds. Three regional venues are conveniently available to interested attendees. Our esteemed experts will interpret the impact of National Treasury’s Budget Review through a live screening of the National Budget Speech followed by a panel discussion at our Cape Town event. Durban and Johannesburg will follow on the following days.

SAIT CPD

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

IN24 PBO trading rules - partial taxation of trading receipts
DTA Brazil Protocol GG 41432
Schedule to Customs and Excise Rules 1995 as amended

TAX CASES

Latest Tax Court Judgment
SARS
The Commissioner for SARS v Reunert Ltd (971/2016) [2017] ZASCA 153 (22 November 2017)

Legislative & Policy
(National Treasury & Davis Tax Committee)

Governments should make better use of energy taxation to address climate change

Taxes are effective at cutting harmful emissions from energy use, but governments could make better use of them. Greater reliance on energy taxation is needed to strengthen efforts to tackle the principal source of both greenhouse gas emissions and air pollution, according to a new OECD report.

Countries must strengthen tax systems to meet Sustainable Development Goals

Major international organizations -including the IMF, OECD, UN and World Bank Group- today called on governments from around the world to strengthen and increase the effectiveness of their tax systems to generate the domestic resources needed to meet the Sustainable Development Goals (SDGs) and promote inclusive economic growth.

OECD
2018 Budget: Debt benefit triggered by changes in terms or conditions of a debt - request for postponement of effective date

SAIT has made a submission to Treasury to request that the effective date of the debt benefit triggered by changes in T's and C's of a debt be postponed to 1 January 2019 in the 2018 Budget.  Please click here to read more.

SAIT Tax Policy

Call For Comment

​​Tax Administration Act, 2011

Returns of information to be submitted by third parties in terms of section 26 of the Tax Administration Act, 2011. Next due date for comments: 14 February 2018​

SARS
​​Tax Administration Act, 2011

Returns of information to be submitted by third parties in terms of section 26 of the Tax Administration Act, 2011. Next due date for comments:14 February 2018​.

SARS
​Income Tax Act, 1962

Draft Interpretation Note on lease premiums. Next due date for comments: ​11 May 2018.

SARS

International and Regional News
(OECD and ATAF)

Tax community makes urgent plea for a rethink of new debt waiver rules

Tax experts and industry bodies have made an urgent plea for an amendment to and a postponement of new debt waiver rules which became effective last month (January 2018).

Amanda Visser

CPD Events

PROFESSIONAL INSIGHT

Tax devils laying in the technical detail

With a burgeoning interest bill, free tertiary education to fund and 2018 tax collections expected to fall short of budget by over R50 billion, taxpayers in South Africa are bracing themselves for some bad news on budget day.
Media sources abound with experts’ views on the ‘big ticket’ items – which taxes will be targeted for rate increases and whether new taxes such as a wealth tax will be introduced. Little is, however, made around budget time of the contents of ‘Annexure C’ to the...

KPMG SA KPMG SA
Confessions (and predictions) of a tax nerd

It is a concern, isn’t it? The “it” being the budget deficit that is predicted to be above 4.3% of GDP (the number mentioned around the time of the midterm budget). I say it is a concern – it is certainly a concern to me. But then again, I am a tax nerd (and enthusiast), up to my ears in tax and the collection thereof. I deal with this (not the deficit, but the result thereof) and its collection agent (SARS) on a daily basis. Does the man (or woman) on the street really worry about it? Is he...

KPMG SA KPMG SA
No more delays, carbon tax in South Africa is a burning reality

South Africa’s environmental resources are facing serious challenges in the form of air and water pollution as well as climate change, with the cost of pollution not being taken into consideration when determining the final price of products or services. Societies are affected as a result of excessive pollution and the current climate change challenges being experienced.

Candice Gibson
Webber Wentzel E-Alert: Property developers will face cash flow pressure due to VAT on temporary rental of residential units

The curtains have come down on section 18B of the Value-Added Tax Act, No. 89 of 1991 (VAT Act) and the resultant impact may catch a few residential property developers off-guard. The VAT relief afforded to such developers in section 18B of the VAT Act was introduced in 2011 and provided that where fixed property consisting of a "dwelling" (essentially a property used predominantly as a place of residence) was developed by a "developer" (as defined in the VAT Act) wholly for the purpose of...

Chetan Vanmali, Des Kruger & Andile Miya - Webber Wentzel
Amendments to the taxation of debt restructures

Since 1 January 2013, section 19 of the Income Tax Act, 1962 (the “Act”) and paragraph 12A of the Eighth Schedule to the Act (the “Eighth Schedule”) have determined the tax implications where a debt owing by a taxpayer is cancelled, waived, forgiven or discharged for no consideration (or for consideration that is less than the amount of the debt). 

Carmen Gers & David Marais
Potential VAT cash flow problem for residential property developers

The recent end of the value-added tax (“VAT”) relief period for property developers in South Africa, who temporarily let their residential units, may have a significant impact on their cash flow.  

Anne Jenkinson & Annelie Giles
Did the punishment fit the crime? The Tax Court reduces an understatement penalty imposed by SARS

The imposition of understatement penalties in terms of Chapter 16 of the Tax Administration Act, No 28 of 2011 (TA Act) and the factors to consider when imposing such a penalty: An issue that our courts have not dealt with much. In this regard, the judgment of the Tax Court in XYZ CC v The Commissioner for the South African Revenue Service (Case No. 14055) (as yet unreported), handed down on 20 November 2017, sets out some helpful principles. 

Louis Botha
Taxation of subsistence allowances – SARS issues new ruling

On 24 January 2018, the South African Revenue Service (SARS) issued Binding Private Ruling 291 (BPR 291), which deals with the taxation of subsistence allowances paid by an employer to its employees under certain circumstances. BPR 291 specifically related to the interpretation of s8(1)(a)(i)(bb) read with s8(1)(c) of the Income Tax Act, No 58 of 1962 (Act).

Louis Botha
Tax victory for automotive manufacturers

A recent Supreme Court of Appeal (SCA) judgment (Volkswagen South Africa (Pty) Ltd v CSARS) provided much needed clarity that Productive Asset Allowance (PAA) certificate amounts granted to automotive manufacturers are capital in nature as their purpose is to incentivise capital investments.

Joon Chong, Partner, Webber Wentzel

Tax News In The Press

Budget 2018: 5 tax questions to watch

South Africa has been gripped with a renewed sense of optimism amid indications of political change, rand strength and an improved economic outlook, but the country’s fiscal situation remains challenging.

Ingé Lamprecht
Budgeting to End Violence?

[ISS] Surely no one would want to trade places with South Africa's Minister of Finance Malusi Gigaba on 21 February when he presents the national budget to Parliament. Political uncertainty and repeated downgrades from international rating agencies have placed enormous pressure on an economy that has been struggling to keep from falling back into recession.

12 February 2018 - SARS to engage industry stakeholders on Sugary Beverages Levy
Op-Ed: 2017 worst year yet for S.A tax payers

For taxpayers, this year is the worst ever, and the next two years are projected to be even worse.

SARS Wars - Tom Moyane's Multiple Storms

[Daily Maverick] On Friday, SARS Commissioner Tom Moyane called a last-minute press conference after a hot batch of acrimonious letters between himself and Minister of Finance Pravin Gordhan were leaked to the Mail & Guardian. Moyane was hoping to defend his dignity and increasingly tarnished status as the head of the country's most crucial economic cog, the revenue collection service. And while technocrats tried to explain away a R30.4-billion shortfall flagged by Gordhan in his Budget...

Treasury Welcomes FATF Outcome of Plenary Discussion

[SA Govt] The National Treasury and the Financial Intelligence Centre (FIC) welcome the decision taken by the Financial Action Task Force (FATF) at its Plenary meeting held in Paris last week (22 to 24 February).