March 4, 2020

Tax liability in financial emigration

Section 9H of the Income Tax Act deals with matters relating to the cessation of residency in South Africa. This section essentially states that where a person that is a resident ceases to be a resident during any year of assessment, that person must be treated as having disposed of his assets on the date immediately prior to ceasing his residency, and re-acquiring the same assets on a date immediately thereafter. This is referred to as a “deemed disposal”. Similarly, the year of assessment will be deemed to have ended immediately prior to the cessation and to have started on […]
March 4, 2020

Section 7C of the Income Tax Act explained

What is section 7C? This section of the Income Tax Act is an anti-avoidance measure aimed at transactions between connected persons and trusts, where a trust is funded by low interest or interest-free loans. This is usually done to ensure that assets form part of the trust’s capital, and the funder (who is usually a trustee or founder of the trust) allows for the transfer of ownership of the assets, and the creation of a loan account in said person’s favour. The sections allow for any loan, advance or credit by a connected person, directly or indirectly to a trust, […]
March 4, 2020

You should get a financial advisor

It’s not to say you spend finances irresponsibly, but having a reputable financial advisor comes in handy. Depending on your financial needs, your advisor may be a financial or retirement planner, money manager or a wealth manager. Either way, getting assistance from those who specialise will help you get greater returns for the bucks you spend on their services. They’ll help you strategise Whether your financial objective is to donate to charity, leave a financial legacy for your offsprings, or minimise your tax burden and debt, financial advisors strategise and keep you informed on methods that will benefit you. They’ll […]
March 4, 2020

Are my donations being taxed?

BPR 338 deals with the tax treatment of payments made to a Public Benefit Organisation (PBO) at a fundraising event, under section 30 of the Income Tax Act. The ruling is essentially an interpretation of section 18A of the Act and seeks to clarify the situation for PBOs and funders. In terms of the transaction, the Applicant (a resident company registered as a PBO) will host an event for the explicit purpose of fundraising, but this event will be managed by a third-party events management company. As is commonplace, persons attending the events will make payments to participate in activities […]
February 5, 2020

For how long can your taxes haunt you?

In terms of section 99 of the Tax Administration Act, 28 of 2011, an assessment may not be made three years after the date of an original assessment by the South African Revenue Service (SARS), or in the case of a self-assessment by a taxpayers (such as in the case of a Value-Added Tax return), five years after the date of an original assessment. These periods are generally referred to as the prescription rules and are in place to ensure that finality is eventually brought to a tax period. Essentially, therefore, the prescription rules provide that tax periods do not […]
February 5, 2020

Understanding the Diesel Refund Scheme

Farming is a qualifying activity under the Diesel Refund Scheme. Most farming enterprises will qualify to be registered for the Diesel Refund Scheme. The person carrying on the farming enterprise may, therefore, apply for registration with the Diesel Refund Scheme, provided the enterprise is registered for VAT. In terms of section 75(1C)(a)(iii) of the Customs and Excise Act 91 of 1964 (the section): “the Commissioner may investigate any application for a refund of such levies on distillate fuel to establish whether the fuel has been… (iii) delivered to the premises of the user and is being stored and used or has been used in accordance […]
February 5, 2020

Do you have tax debt?

With the tax filing season for individuals now closed, taxpayers may find themselves with tax debt that is due. This may be due to administrative penalties as a result of the non-submission of tax returns, the submission of a return without payment, only partial payment or debt arising from an audit assessment. The South African Revenue Service (“SARS”) provides assistance to taxpayers in managing their tax debt. As an initial phase, SARS will remind taxpayers of the amount of tax due before the due date. This is done by way of an assessment with the relevant due date indicated thereon […]
February 5, 2020

What happens during liquidation?

The South African Revenue Service (“SARS”) issued Binding Private Ruling 336 on 6 December 2019. In terms of this ruling, a listed resident company (“the Company”) previously granted a loan to its wholly-owned resident subsidiary (“the Subsidiary”) in order for the Subsidiary to acquire shares in the Company. The Company subsequently decided to deregister the Subsidiary. In order to affect the deregistration, the Subsidiary proposed to, in anticipation of its deregistration, distribute all its assets (the Company shares) to the Company as a dividend in specie and as a liquidation distribution as contemplated in section 47 of the Income Tax Act.[1]  In […]
January 23, 2020

‘n Voorspoedige 2020!

‘n Voorspoedige 2020 word vir al ons T Roos  kliënte en personeel toegewens! Mag julle elkeen ‘n jaar van onvoorwaardelike liefde, nimmereindigende vrede en tonne voorspoed en geluk geniet. Mag julle elke dag God se droom vir julle lewe uitleef.   ‘n Vriendelike verwelkoming aan al ons personeel, ons vertrou julle het die feestyd geniet en lekker uitgerus.  ‘n Vriendelike verwelkoming ook aan die nuwe personeel wat by ons T Roos “familie” aangesluit het, ons weet julle gaan dit baie geniet hier en vertrou dat julle ‘n aanwins tot die praktyk sal wees.