Home

SAIT Trending Topics

PwC’s Tax Controversy and Dispute Resolution Survey

SARS has recently come under the microscope when President Ramaphosa called in his State of the Nation address for urgent steps to strengthen SARS. The Acting Commissioner for SARS has already brought about significant change at SARS.

 

The purpose of the survey is to be a barometer of the perceptions of taxpayers in relation to tax controversy and dispute resolution in order to establish a baseline which can support constructive engagement with SARS.  In order for us to do...

Elle-Sarah Rossato - PWC
SAIT & SAIPA LAUNCH TAX CHRONICLES MONTHLY

It is a pleasure for SAIT and SAIPA in collaboration, to introduce this brand-new magazine, Tax Chronicles Monthly

SAIT News
FEATURED EVENT: Tax Indaba 2018

5 days, 1 800 delegates, 50+ tax topics – Join the biggest tax event in South Africa from 10-14 September 2018 at the Sandton Convention Centre. 

Tax Conference

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

FAIR PLAY ISSUE 9

Welcome to the ninth issue of the Office of the Tax Ombud’s stakeholder newsletter, Fair Play, a vibrant and informative newsletter which aims to keep stakeholders abreast of important matters affecting the Office and developments in the tax recourse sphere. Click the link below to read the full newsletter or find it on our Publications Page.

Tax Ombud
SARS mobile tax unit schedule – August

Services offered at these mobile units:  Completion & submission of tax returns, submission of PAYE recons & e@syfile™ statements of account, general queries, banking detail changes and changes to registered particulars.  Click here to view schedule.

SARS
SARS e@syFile/eFiling consultation sessions

A SARS Support Consultant, Riaan Lesch, will visit Port Elizabeth again on the 22nd and 23rd August 2018.

 

On Wednesday 22nd August an e@syFile training session will be held in the Taurus venue on the 7th floor at SARS Port Elizabeth between 09:30 and 12:30. This session will include changes to the e@syFile application for the coming reconciliation period starting from 15...

SARS e@syfile/eFiling

TAX CASES

ABC (Pty) Ltd and C:SARS (Case number: 13879)

Under-declaration of gross income.

SARS Court Cases
Commissioner for the South African Revenue Service v ABC Holdings Limited (IT14294) (11 July 2018)

Tax Court – Practice – Exception; Rule 32 Statement.

SARS Court Cases
CSARS vs KWJ Investments Service Pty Ltd - 31 May 2018

Gross income – whether a cession of a dividend right constitutes a receipt or accrual for the purposes of gross income – if so, does a practice generally prevailing in terms of provision (iii) to s 79 (1) of the Income Tax Act 58 of 1962 apply.

SARS Court Cases

Legislative & Policy
(National Treasury & Parliament)

Media Statement: Update on PIC issues
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
VAT Panel: Recommendations on Zero Ratings in the Value-Added Tax System

The Value-Added Tax (VAT) rate was increased from 14% to 15% on 01 April 2018, as announced in the February 2018 National Annual Budget. Following the announcement of the VAT increase, concerns have been raised, in Parliamentary and other processes, about its impact on poor and low-income households. The increase in VAT would raise the tax on the poorest 50% of households by around R1.8 billion or an average of R216 per household per annum.

National Treasury

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

Income Tax Act, 1962​

Draft guide on venture capital companies. Next due date for comments: 31 August 2018 New!​

SARS
Income Tax Act, 1962​

Draft guide on mutual agreement procedures (MAPs). Next due date for comments: ​15 June 2018

SARS
Call for Submissions - The independent panel of experts to review the current list of vat zero-rated items

On 25 April 2018, the Minister of Finance published the Terms of Reference for the Independent Panel of Experts to review the current list of zero-rated items, and consider the most effective way to mitigate the impact of the increase in the VAT rate on poor and low-income households. Next due date for comments: 24 May 2018 New!

National Treasury

International and Regional News
(OECD and ATAF)

Ukraine signs landmark agreement to strengthen its tax treaties

Today, Ukraine signed the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (the Convention). Ukraine becomes the 83rd jurisdiction to join the Convention, which will update the existing network of bilateral tax treaties to reduce opportunities for tax avoidance by multinational enterprises.

OECD
OECD Secretary-General Tax Report G20 Finance Ministers, Buenos Aires, Argentina, July 2018

This report contains two parts. Part I is a report on the activities and achievements of the OECD’s tax agenda, and is made of two subparts: looking back at significant achievements and looking ahead at the further progress needed, in particular through the OECD/G20 Inclusive Framework on BEPS. Part II is a Progress Report to the G20 by the Global Forum on Transparency and Exchange of Information for Tax Purposes.

OECD
OECD/IMF Report on Tax Certainty - 2018 Update

This report explores the nature of tax uncertainty, its main sources and effects on business decisions and outlines a set of concrete and practical approaches to help policymakers and tax administrations shape a more certain tax environment.

OECD

CPD Events

PROFESSIONAL INSIGHT

Oops, I didn’t get my DTA relief!

According to the Act a dividend is defined as any amount that is transferred or applied by a SA resident company that is for the benefit or on behalf of any person in respect of any share in that company, but specifically excludes a reduction in contributed tax capital and a share repurchase.

Shazia Raviduth - Transfer Pricing
ENSafrica tax revenews | issue 11

Issue 11 of ENSafrica’s tax revenews, a snapshot of the latest tax developments in South Africa. advance tax rulings binding private ruling 308: assumption of contingent liabilities and the cession of a right of recovery.

by the ENSafrica tax department
If no tax debt, SARS must pay refund: notable judgment on Tax Administration Act's refund provisions

Taxpayers often claim that the South African Revenue Service (SARS) delays the payment of refunds. In light of this observation, the judgment in Top Watch (Pty) Ltd v The Commissioner of the South African Revenue Service is particularly notable.

Louis Botha - International Law Office
Tax attorney explains SARS' new strategy to tackle tax evasion

Tax evasion has naturally always been a criminal offense in South Africa, the only difference now is that South African Revenue Services (SARS) has begun a public campaign to clamp down on serial offenders – according to Darren Britz, a Tax Attorney at Gauteng-based consultancy Tax Consulting South Africa.

Darren Britz - Tax Consultancy SA
The cloud of doubt no longer hanging over doubtful debts?

Following on from our previous tax alerts regarding the various proposed amendments pursuant to the draft Taxation Laws Amendment Bill, 2018 (draft TLAB) published for public comment on 17 July 2018, we discuss in this Tax Alert another significant proposed legislative amendment, specifically related to the allowance for doubtful debts set out in s11(j) of the Income Tax Act, No 58 of 1962 (Act).

Jerome Brink - Cliffe Dekker Hofmeyr
tax revenews | issue 10

Below, please find issue 10 of ENSafrica’s tax revenews, a snapshot of the latest tax developments in South Africa. case law

By the ENSafrica tax department
Treasury includes cryptocurrency in draft tax legislation

On 16 July 2018, National Treasury’s draft Taxation Laws Amendment Bill (draft TLAB) was published for public comment. The draft TLAB has encapsulated a first for South African taxpayers by introducing legislative provisions for cryptocurrency in the proposed amendments.

Cliffe Dekker Hofmeyr
Decrypting the law: Proposed VAT Act amendments affecting cryptocurrencies

The former Minister of Finance stated in his Budget Review on 21 February 2018 that the income tax and value-added tax (VAT) treatment of cryptocurrencies are addressed by existing provisions in the South African tax law. Regarding VAT, it was recognised that the supply of cryptocurrencies can cause administrative difficulties in the VAT system; and to address these issues, it was proposed that the VAT legislation be amended. 

Gerhard Badenhorst - Cliffe Dekker Hofmeyr
2018 Legislative cycle: Proposed VAT amendments

The draft Taxation Laws Amendment Bill, 2018 and the draft Tax Administration Laws Amendment Bill were released for public comment on 16 July 2018 and include proposed amendments to the Value-Added Tax Act, 1991.

PWC

Tax News In The Press

SARS working on restoring credibility and trust — Kingon

Acting South African Revenue Service (Sars) commissioner Mark Kingon is faced with the grim task of restoring the revenue collectors’ credibility following his appointment by President Cyril Ramaphosa in March this year.

​Thulebona Mhlanga - Mail & Guardian
Recommended items for zero-rating will cost fiscus R4bn

The final report by the ministerial panel of experts investigating the expansion of zero-rated value-added tax (Vat) items has, in most parts, been welcomed.

Amanda Visser - Moneyweb
Proposed tax changes will hurt venture capital investments

Proposed changes to the venture capital company (VCC) tax incentive may have devastating implications for the industry, and several VCCs are at risk of losing their VCC status. The tax incentive was introduced in 2008 to encourage equity funding in small businesses, by providing investors with a full tax deduction on the amount invested with a VCC, provided the funds are invested for five years. 

Amanda Visser - IOL
BRICS V Legal Forum Conference 2018, 24 August 2018, Cape Town International Convention Centre

The BRICS Legal Forum conferences are aimed at enhancing mutual understanding and communication among legal circles, promoting practical legal cooperation, and advancing the rule of law. Focus is on improving the discourse and decision-making powers of the developing countries by pushing the establishment of a more justified international order and system. Pre-eminent legal speakers from across the BRICS countries will address a range of contemporary topics including BRICS themes: ...

The Law Society of South Africa (LSSA)
Proposed tax change could hit unit trust investors

One of the reasons collective investment schemes, such as unit trusts, are so popular among individual investors is that buying and selling underlying assets is not subject to capital gains tax (CGT). The Taxation Laws Amendment Bill (TLAB), published earlier this month, includes an amendment that may change this.

Amanda Visser - IOL
SARS to revive Large Business Centre, revamp e-filing

The South African Revenue Service (SARS) is planning a number of large-scale changes to improve its tax collection figures and ensure compliance, including bringing back the Large Business Centre (LBC) and a revamp of the e-filing platform.

Tehillah Niselow - Fin24