What’s new in the world of tax?
On 21 July, National Treasury and the South African Revenue Service (SARS) released the second batch of draft tax amendments for the 2019 legislative cycle, which includes both proposed substantive tax amendments, and administrative changes. This follows the release of the first batch on 10 June 2019, dealing predominantly with addressing abusive arrangements aimed at […]
Audit certificates: What you need to know?
The South African Revenue Service (“SARS”) issued Interpretation Note 112 on 21 June 2019 to provide guidance on the interpretation and application of the audit certificate requirement as set out in section 18A of the Income Tax Act.[1] For background purposes – section 18A provides a taxpayer with an income tax deduction for bona fide […]
Your payroll administration questions answered
As payroll administrators ourselves, we encounter a few frequently asked questions that employers, business owners or those responsible for payroll administration within organisations struggle with. Below we have a detailed answer for you on these burning questions you are facing. We hope that you find them insightful. Question: At what stage is an employer required […]
Tax season 2019: What can you expect?
SARS recently released two media statements, in which it notes several improvements made to eFiling for the 2019 tax season, including the issue of customised notices indicating specific documents required in the event of an audit or verification and a simulated outcome issued before a taxpayer has filed. What is the tax season? Tax season […]
Changes regarding payroll taxes
The South African Revenue Service (“SARS”) has recently made changes with regards to the management of payroll taxes in order for employers to more effectively manage their own accounts by way of a number of functions and tools. SARS states that the aim of these changes is to allow employers to ensure that all their […]
REQUESTS FOR SUSPENSION OF PAYMENT FROM SARS
Since its introduction, the “pay now, argue later” rule relating to disputed amounts of tax has been and remains to be the subject of much controversy, and rightfully so. The basic premise is that even though you disagree with an amount of tax, once you have been assessed by SARS, the amount becomes due and […]
TAX IMPLICATIONS OF THE VARIATION OF EMPLOYMENT CONTRACTS
On 6 November 2018, the South African Revenue Service (“SARS”) issued a binding private ruling (“BPR 312”) in accordance with sections 78(1) and 87(2) of the Tax Administration Act.[1] This ruling set out the tax implications of varying employment contracts. Here the applicant (a resident company) previously entered a profit share arrangement with Mr X, […]
ADMIN PENALTIES FOR OUTSTANDING CORPORATE INCOME TAX RETURNS
In general, all registered companies must submit corporate income tax (“CIT”) returns within 12 months of the end of the company’s financial year-end. This is applicable to all companies that are resident in South Africa, that receive source income in South Africa, or that maintain a permanent establishment or a branch in South Africa. On […]
NON-RESIDENT SELLERS OF IMMOVABLE PROPERTY
Section 35A of the Income Tax Act[1] came into effect on 1 September 2007 and sets out the capital gains tax consequences of the sale of immovable property situated in South Africa in instances where the seller is not a South African tax resident. In terms of these provisions, the purchaser of the immovable property […]
MANAGEMENT’S RESPONSIBILITY
Throughout the audit of a set of financial statements, the phrase “management/director’s responsibility” appears. It is included in the engagement letter, the financial statements and the auditor’s report. But what does it mean? Management is responsible for the management of the business, for implementing and monitoring of internal controls in the business, and in terms […]
