Home

SAIT Trending Topics

FEATURED EVENT: 2018 Effective handling of SARS queries, audits and dispute resolution

This practical workshop focuses on the much dreaded SARS dispute and controversy process covering everything that is required to be successful in resolving disputes with SARS, including the fundamental principles and SARS operational responses.

Tax Conference

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

Binding Private Ruling (BPR) 311 – Photovoltaic solar energy plants

This ruling determines the deductibility of expenditure to be incurred to install photovoltaic solar energy plants at sites owned and leased by the applicant.

SARS
Guide on mutual agreement procedures (Issue 2) and Minimum information requirements for MAP requests
SARS
Comprehensive guide to capital gains tax (Issue 7)

These guides are issued in terms of the Tax Administration Act, 2011. These guides are neither "official publications" as defined in the Act, nor are they binding on SARS. They are merely intended to assist taxpayers in the practical interpretation and application of the requirements set by law.

SARS

TAX CASES

Commissioner for the South African Revenue Service v Digicall Solutions (Pty) Ltd (927/2017) [2018] ZASCA 137 (28 September 2018)

Income Tax Act 58 of 1962 – s 103(2) – taxpayer company – successive changes in shareholding in consecutive tax years – sole purpose from time of first change in shareholding to preserve and utilise assessed loss for set-off against future income – assessed loss carried over to next tax year – second acquisition of shares – income thereafter received by taxpayer – income indirect result of first acquisition of shares – set-off of assessed loss against income disallowed.

SARS Court Cases
C:SARS v Volkswagen S A (Pty) Ltd (1028/2017) [2018] ZASCA 116 (19 September 2018)

Income tax – valuation of stock at year end – s 22(1)(a) of Income Tax Act 58 of 1962 – whether stock to be valued in accordance with International Accounting Standard 2 (IAS 2 or AC 108) at net realisable value.

SARS Court Cases
CSARS v Amawele Joint Venture CC (908/2017) [2018] ZASCA 115 (19 September 2018)

VAT – zero rating of supplies of services in terms of s 11(2)(s), read with s 8(23) of the Value-Added Tax Act 89 of 1991 – whether supplies made in terms of the Housing Subsidy Scheme referred to in s 8(23).

SARS Court Cases

Legislative & Policy
(National Treasury & Parliament)

Draft Response documents on the 2018 draft tax bills

The National Treasury today publishes the draft Taxation Laws Amendment Bill, 2018 (TLAB) and draft Tax Administration Laws Amendment Bill, 2018 (TALAB). The TLAB and TALAB include the legislative amendments for the more complex tax proposals that were announced in the 2018 Budget Review on 21 February 2018.

National Treasury
Speech by Minister of Finance Mr. Nhlanhla Nene 2018 Tax Indaba

It is my honour to give this opening address to the 2018 Tax Indaba. Tax policy and tax administration are not usually seen as especially interesting topics in the eyes of the general public, but that has certainly changed after the events of the past few years.

National Treasury
Media Statement: Release for public comment: Report by the Independent Panel on the review of the current list of zero-rated VAT items

The Minister of Finance today releases the report by the Independent Panel on the review of the current list of items that are zero-rated for VAT purposes for public comment by 31 August 2018. The Minister appointed the panel after the announcement in the budget in February of the increase in the rate of value-added tax (VAT) from 14 to 15 per cent effective from 1 April 2018. 

National Treasury

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

Customs & Excise Act, 1964​​​

Form DA 185Form DA 185.4A14Form DA 185.4A15Form DA 185.4B11Form DA 185.4B12Form DA 185.4B13Comment sheet

Next due date for comments :23 October 2018New!​

SARS
​Income Tax Act, 1962

Draft list of qualifying physical impairment or disability expenditureDraft ITR-DD Form –Confirmation of Diagnosis of Disability

Next due date for comments :5 November 2018

SARS
​Income Tax Act, 1962

Draft list of qualifying physical impairment or disability expenditure: Draft ITR-DD Form – Confirmation of Diagnosis of Disability. Next due date for comments: 5 November 2018 New!

SARS

International and Regional News
(OECD and ATAF)

Platform for Collaboration on Tax to discuss domestic resource mobilisation challenges on 9 October

The four partner organisations to the Platform for Collaboration on Tax (PCT) will discuss critical challenges and opportunities for mobilising domestic resources to meet countries' development priorities, at the upcoming IMF-World Bank annual meetings in Bali, Indonesia.

OECD
Tax Inspectors Without Borders making significant progress towards strengthening developing countries' ability to effectively tax multinational enterprises

An innovative international co-operation initiative that deploys qualified experts in developing countries to strengthen their ability to effectively tax multinational enterprises has achieved significant milestones over the past year, according to a new annual report.

OECD
Multilateral Convention to Implement Tax Treaty Related Measures to Prevent BEPS

In November 2016, over 100 jurisdictions concluded negotiations on the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting ("Multilateral Instrument" or "MLI")  that will swiftly implement a series of tax treaty measures to update international tax rules and lessen the opportunity for tax avoidance by multinational enterprises. The MLI already covers over 75 jurisdictions and will enter into force on...

OECD

CPD Events

PROFESSIONAL INSIGHT

Webber Wentzel Event: Panel discussion on dispute resolution issues with the Office of the Tax Ombud

Dispute resolution complaints rank as the second most common category of complaints received by the Office of the Tax Ombud (OTO), with more than 700 complaints (almost 30% of total complaints) received in the 2017/2018 year. Non-payment of refunds is the most common complaint with more than 800 complaints in 2017/2018 (almost 35% of total complaints), and the refunds complaints often have a...

Webber Wentzel
Disallowance of the utilisation of an assessed loss

In the recent case of Commissioner for the South African Revenue Service v Digicall Solutions (Pty) Ltd(927/2017) [2018] ZASCA 137 (28 September 2018), the Supreme Court of Appeal (SCA) was requested to consider whether the Commissioner for the South African Revenue Service (Commissioner) was correct in disallowing the utilisation by Digicall Solutions (Pty) Ltd (Taxpayer) of certain assessed losses, in terms of s103(2) of the Income Tax Act, No 58 of 1962 (Act).

Gigi Nyanin - Cliffe Dekker Hofmeyr
Interest-free loans to trusts: Proposed amendments, public comments & National Treasury’s response

In the 2018 draft Taxation Laws Amendment Bill, 2018 (Draft TLAB), published on 16 July 2018, it was proposed that s7C of the Income Tax Act, No 58 of 1962 (Act) should be further amended, to broaden the scope of the provision. The proposed amendment relates specifically to s7C(1)(ii)(bb).

Louis Botha - Cliffe Dekker Hofmeyr
No capital gains tax? Ruling on the disposal of property by a PBO

On 31 August 2018, SARS published Binding Private Ruling 309 (BPR 309), which deals with the disposal of an asset by a public benefit organisation (PBO). Specifically, the ruling dealt with the application of the definition of “gross income” in s1 of the Income Tax Act, No 58 of 1962 (Act) and the capital gains tax exemption in paragraph 63A of the Eighth Schedule to the Act.

Louis Botha - Cliffe Dekker Hofmeyr
PWC Tax Alert: SARS to impose administrative penalties for outstanding corporate income tax returns

On Monday, 1 October 2018, SARS notified taxpayers that – from December this year – administrative penalties will be imposed for outstanding corporate income tax returns.

Elle-Sarah Rossato - PWC
Africa tax in brief

DEMOCRATIC REPUBLIC OF CONGO: Amendment of Mining Regulation publishedDecree No. 18/024, amending the Mining Regulation, was published in the Official Gazette on 12 June 2018. 

Celia Becker - ENSafrica
Punitive proposed amendment to South Africa’s transfer pricing provisions

Transfer pricing is a self-assessment mechanism that aims to ensure that taxpayers identify all potential cross-border transactions, operations, schemes, agreements or understandings that have been entered into between connected persons (referred to as “potentially affected transactions”), to ensure that all such potentially affected transactions have been concluded and implemented on an arm’s length basis. Ideally, where a taxpayer has been a participant to a potentially affected...

Jens Brodbeck, Jo-Paula Roman, Megan McCormack and Scott Salusbury - ENSafrica
Impact of China’s investment on the South African tax base

The news that China has committed to invest approximately R200-billion in South Africa was greeted with much fanfare throughout the country. Approximately ZAR33-billion of this will constitute a loan to Eskom, which is particularly good news given the funding requirements of the entity. A loan will also be advanced to Transnet in the amount of ZAR4-billion.

Peter Dachs - ENSafrica
Tax avoidance – when does it apply?

Groups of companies often wish to restructure or rationalise their operations. This generally involves a transfer of companies and/or assets between various entities. There are many commercial drivers for such transactions.

Peter Dachs - ENSafrica

Tax News In The Press

Stress-free tax filing

Tips on how to submit your return efficiently.

Wouter Fourie - Moneyweb
Warning of second increase in VAT

With the new finance minister set to deliver the medium-term budget policy statement later this month, tax experts have warned of a likely increase in VAT in the coming year.

Noloyiso Mtembu - IOL
Tax survey highlights areas for service delivery improvements

A recent survey by PwC on the tax experience of more than 5 300 of its corporate clients with the South African Revenue Service (Sars) points to an expected increase in tax audits and disputes.

Amanda Visser - Moneyweb
Tax survey highlights areas for service delivery improvements

A recent survey by PwC on the tax experience of more than 25 300 of its corporate clients with the South African Revenue Service (Sars) points to an expected increase in tax audits and disputes.

Amanda Visser - Moneyweb
Tax Ombud’s office has come a long way

When advocate Eric Mkhawane first walked into the Office of the Tax Ombud about five years ago, he expected to find a fully functional operation.

Ingé Lamprecht - Moneyweb
Tax refunds: There are still issues, Ombud says

The Office of the Tax Ombud says it is not yet satisfied with the manner in which the South African Revenue Service (Sars) is dealing with delays with regard to tax refunds.

Ingé Lamprecht - Moneyweb