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Women in Tax Survey

If you are a female in the tax industry, we want to hear from you! Please take 2 minutes to complete our Women in Tax Survey. The survey results will be published in the next issue of TaxTalk. We thank you in advance for your participation and valuable feedback.

TaxTalk Magazine
FEATURED EVENT: 2018 VAT Risks and Issues in Business Operations by Christo Theron

With the increase in the VAT rate on 1 April 2018, SARS is likely to intensify its focus on non-compliance with VAT legislation and potential avoidance schemes. The onus is on the taxpayer to ensure compliance with VAT legislation. This starts with an understanding of the legal framework within which VAT operates, the requirements of the VAT Act and linking this to the actual operations conducted by the organisation. 

SAIT CPD
Diesel Refund Survey

We are running a survey to determine whether participants are experiencing delays in receiving diesel refunds from SARS.  Please participate in this survey if you claim the diesel refund either on your business/operation’s behalf (e.g. you are a farmer or a mining company employee) or on behalf of your client/s (i.e. you are a tax practitioner).  The survey will run until 18 May 2018.

SAIT Technical

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

Guide to Complete and Submit a Recognition of Transfer Form
DA 8 Application for registration to submit report for Sea Cargo - External Form
BPR 301 Taxation of dividends received by a borrower under a securities lending arrangement

TAX CASES

Latest Tax Court Case

TCIT 13726 Port Elizabeth 13 February 2018.

SARS Court Cases
CSARS v Executors of Estate Late Sidney Ellerine - 28 March 2018

This case concerns the valuation of preference shares for the purposes of determining a capital gain in terms of paragraph 40 read together with paragraph 31(3)(a)(i) of the Eighth Schedule to the Income Tax Act 58 of 1962 (the Act).

SARS Court Cases
SARS and Short and Another CPT 7 February 2018

The Commissioner for the South African Revenue Service has come on appeal from the judgment of the Tax Court (Cape Town) upholding the appeal by the respondents to that court against the assessment by SARS of transfer duty on the value of the property acquired by them in terms of an agreement they concluded.

SARS

Legislative & Policy
(National Treasury & Parliament)

Comment: Draft Rates and Monetary Amounts and Amendment of Revenue Laws “VAT” Bill

The Standing Committee on Finance and the Select Committee on Finance invites stakeholders and interested parties to submit written submissions on the Draft Rates and Monetary Amounts and Amendment of Revenue Laws “VAT” Bill.

Luvuyo Ngwayishe - Parliamentary Monitoring Group
The Davis Tax Committee concludes its work within 5 years

The Davis Tax Committee (DTC) is pleased to announce the publication of four more final reports and the conclusion of its work based on its Terms of Reference.

The Davis Tax Committee
Minister’s Speech at the SARS 2017/18 Preliminary Revenue Outcome Announcement
Treasury

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

​Income Tax Act, 1962

Draft Guide on the calculation of the tax payable on lump sum benefits (Issue 3). Next due date for comments: 29 June 2018 New!​​

SARS
Income Tax Act, 1962  

Draft IN 93 (Issue 2) –​ The taxation of foreign dividends. Next due date for comments: 29 June 2018.

SARS
Income Tax Act, 1962  

Draft IN 93 (Issue 2) –​ The taxation of foreign dividends. Next due date for comments: 30 June 2018 New!​

SARS

International and Regional News
(OECD and ATAF)

OECD addresses the misuse of residence/citizenship by investment schemes

Today’s revelations from the “Daphne Project” on the Maltese residence and citizenship by investment schemes underline the crucial importance of the the OECD’s work to ensure that the integrity of the OECD/G20 Common Reporting Standard (CRS) is preserved and that any circumvention is detected and addressed.

OECD to release Taxing Wages 2018 on Thursday 26 April

Taxing Wages 2018, the OECD’s annual publication on the taxes levied on wages and salaries in member countries, will be released on Thursday 26 April at 11:00 Paris time (09:00 GMT).

OECD and IGF invite comments on a draft practice note that will help developing countries address profit shifting from their mining sectors via excessive interest deductions

Building on BEPS Action 4, this practice note has been prepared by the OECD under a programme of co-operation with the Intergovernmental Forum on Mining, Minerals, Metals and Sustainable Development (IGF), to help guide tax officials on how to strengthen their defences against BEPS. Deadline for comment: 18 May 2018.

CPD Events

PROFESSIONAL INSIGHT

PWC Alert: Davis Tax Committee: Final reports and conclusion of work

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.

PWC
Raising jurisdictional issues

In Lion Match Company (PTY) LTD v Commissioner for the South African Revenue Services (2018) ZASCA 36 (27 March 2018), the Taxpayer noted an appeal against the disallowance of an objection raised in response to an additional assessment issued by SARS.

Heinrich Louw and Louise Kotze - Cliffe Dekker Hofmeyr
It’s complete: The Davis Tax Committee releases its final reports

On 12 April 2018, the Davis Tax Committee (DTC), issued a media statement (Media Statement) in which it announced the publication of four additional final reports and the conclusion of its work based on its Terms of Reference (ToR).

Louis Botha - Cliffe Dekker Hofmeyr
Disrupting the Disrupted: The Dawn of Fintech Regulation in the Twin Peaks New World Order

The South African Revenue Service (SARS) has effectively broken the regulator blood oath taken in 2014 that had frozen the South African cryptocurrency market in the realm of regulatory neutrality for the past 3 years. In accordance with the user alert published in 2014 by the South African Reserve Bank (SARB), the Financial Services Board (FSB), SARS and the Financial Intelligence Centre, the regulators adopted the "users beware" stance in respect of cryptocurrencies, stating that...

Seshree Govender - Webber Wentzel
Ghana to increase VAT, tax on mobile, money transactions, and tax on imports to fund free education

Ghana announced proposals to increase the VAT rate by 2%, impose a 1% tax on all mobile money transactions, and charge a special tax of 1% on all imports to finance the free senior high school programme.

BDO
Lesotho launches Voluntary Disclosure Programme and increases VAT rate

The Minister of Finance, launched a Voluntary Disclosure Programme (VDP) on 6 February 2018 which grants amnesty from prosecution and the imposition of additional taxes on outstanding income tax and value added tax liabilities. The scope of the VDP covers tax liabilities from 1 April 2005.

BDO
ENSafrica tax revenews

Below, please find issue 2 of ENSafrica’s tax revenews, a snapshot of the latest tax developments in South Africa. case law High Court, Western Cape Division: L Taxpayer v CSARS

by the tax department
PWC Synosis March 2018

A monthly journal, published by PwC South Africa, that gives informed commentary on current developments in the tax arena, both locally and internationally. Through analysis of and comment on new laws and judicial decisions of interest, Synopsis helps executives to identify developments and trends in tax law and revenue practice that may affect their business.

PWC
Medical rebate, adjusted today gone tomorrow

The Income Tax Act 58 of 1962 (ITA) was amended in 2012 to provide for a different method of treating medical expenses for individuals. The former system, which allowed for a deduction of medical aid contributions against an individual's taxable income, was replaced by a medical tax credit system (MTC). The MTC consists of the medical scheme fees tax credit (section 6A) and the additional medical expenses tax credit (section 6B).

Wesley Grimm - Webber Wentzel

Tax News In The Press

Sars tackles non-compliance with submission of tax returns

Drop in compliance over recent years has been significant.

Amanda Visser - Moneyweb
Treasury Considers Conditional Grants for Scholar Transport

[News24Wire] National Treasury has confirmed it is looking at making changes to the scholar transport funding model in South Africa.

More clarity on tax treatment of bitcoin, but…

The South African Revenue Service’s (Sars) announcement that it considers cryptocurrencies to be intangible assets and not currencies has brought an end to widespread speculation about the nature of cryptocurrencies.

Ingé Lamprecht - Moneyweb
SARS, NPA to prosecute taxpayers for outstanding returns

The South African Revenue Service (SARS) has embarked on a new initiative with the National Prosecuting Authority (NPA) to prosecute non-compliant taxpayers, including prominent South Africans, who have failed to submit returns. Taxpayers who are found guilty will end up with a criminal record.

SARS
R1 Million Denel Bursary to Supra's Son - Solidarity Threatens Action

[News24Wire] Trade union Solidarity has warned that it won't hesitate to take action against any state owned enterprise (SOE) if it continues to squander tax-payers money, following revelations that Denel paid a bursary of more than R1m to the son of North West premier Supra Mahumapelo.

SARS Probe - SBI Pledges Support to Pillay

[CAJ News] THE Small Business Institute (SBI) has rejected the resignation by board member, Ivan Pillay, who has been slapped with criminal charges alongside his former colleagues at the South African Revenue Service (SARS).