May 11, 2020

Reviewing the record of review

In a judgment delivered on 17 February 2020, the Gauteng High Court dealt with a matter regarding a “record of review”, and its relevance relating to a review application brought by the Applicant in the matter, Medtronic International (“Medtronic”), on the refusal by the South African Revenue Service’s (“SARS”) refusal to reduce certain interests and penalties imposed on its Value-Added Tax (“VAT”) statement of account. Medtronic was the victim of large-scale fraud to the value of approximately R460 million and as a result, fell behind with its tax obligations (the payment of VAT in particular). To correct the situation, it approached […]
May 11, 2020

A&P services and zero-rated supplies

On 3 April 2020, the Supreme Court of Appeal delivered a judgement against Diageo South Africa (Pty) Ltd (“Diageo SA”) in a value-added tax (“VAT”) matter relating to the supply of advertising and promotion (“A&P”) services to various non-South African brand owners in the group. Diageo SA entered into an agreement with the foreign brand owners for the A&P of their products in South Africa. The brand owners invested in A&P to build and maintain brand recognition and generate sales by way of enhanced brand equity. The brand owners relied on Diageo SA to build their brands locally through A&P […]
May 11, 2020

The give and take of share transfers

Many business transactions are concluded in terms of section 42 of the Income Tax Act. The section essentially allows a transfer of an asset by a person to a company, in exchange for equity shares in that company, allowing for tax neutral transaction. The South African Revenue Service has recently issued Binding Private Ruling 339, relating to a transaction in which listed shares are transferred to a collective investment scheme (CIS) in exchange for participatory interests in a collective investment scheme. The parties to the transaction are a resident discretionary investment family trust (herein referred to as the Applicant), and a resident CIS as defined in the Collective Investment Schemes Control Act (herein referred to as the Fund). The facts The Applicant […]
April 20, 2020

Totsiens Annette

Totsiens Hoe sê ‘n mens op een dag totsiens vir so baie mense wat oor die jare soo diep in jou hart ingekruip het? Ek het wonderlike herinneringe van die firma en sy mense en ook van baie kliënte wat ek vir altyd sal koester. Dankie dat ek deel kon wees van T Roos vir 45 jaar. Dit het regtig altyd vir my gevoel asof ek deel is van ‘n span wat saam hard kan werk maar ook saam baie pret kan hê. Die gesegde sê: “Die beste plek om te wees is binne-in iemand se hart” – Dis waar […]
April 20, 2020

When is Capital Gains Tax not incurred?

Section 9HA of the Income Tax Act deals with deemed disposals by a deceased person. This section of the Act often causes some confusion, especially where there are heirs or legatees other than the surviving spouse. In terms of the provision, a deceased person is treated as having disposed of his or her assets at the date of death, for an amount received or accrued equal to the market value of those assets as at the date of death.This deeming provision does not apply to the following circumstances: Assets of, or for the benefit of the deceased’s surviving spouse. An […]
April 20, 2020

Tax relief amid COVID-19

While South Africa is currently in a state of lockdown during which a significant number of businesses have had to cease operations, some relief from a tax perspective has been announced by the government. Tax-compliant businesses with a turnover of less than R50 million will be allowed to defer (importantly, not have waived) 20% of their pay-as-you-earn liabilities over the next four months, and a portion of their provisional corporate income tax payments, without penalties or interest over the next six months. There is, however, a legal and practical difficulty in the proposed relief. Legal While President Ramaphosa and his […]
April 20, 2020

COVID-19 lockdown and SARS

President Cyril Ramaphosa declared a national state of disaster following the outbreak of COVID-19 which has also been declared a pandemic by the Word Health Organisation (WHO) on the 15th March 2020. How will the lockdown impact my taxes and PAYROLL? As part of the announcement made by President Cyril Ramaphosa the tax following relief measures were announced to assist businesses in distress due to the COVID-19 lockdown: A tax subsidy of up to R500 per month for the next 4 months for private sector employees earning below R6,500 as per Employment Tax Incentive (ETI). Details are yet to be […]
April 6, 2020

COVID-19 Relief Mechanisms

Small Business Sector Tax Relief SARS TAX RELIEF IS NOT AUTOMATIC If the company can afford the tax liability, the company is required to pay the full amount.  Proof to be provided that company is unable (due to the effect of COVID-19) to pay the liability.  Tax relief is aimed at distressed companies. Contributions to UIF and SDL Potential temporary reduction in employer and employee contributions to both UIF and SDL. Requirements are still to be confirmed. Delay of payments of taxes Relief Options Requirements PAYE liabilities Defer 20% of prospective PAYE liability over the next 4 months Turnover ≤ […]
March 24, 2020

TROOS measures during the national lockdown

Dear clients, To mitigate the impact of the COVID 19 outbreak we at T ROOS ACCOUNTANTS have introduced the following measures to ensure we provide the same quality of services to our clients before and during the lockdown period: Clients are welcome to visit our offices till close of business on Thursday the 26th of March 2020. Face to face meetings with clients will be possible up to Thursday the 26th of March 2020, thereafter only telecom or skype meetings will be available. For clients located in the Bloemfontein area we have made our messenger available to collect documents from […]