OUTSTANDING TAX RETURNS
Individuals who filed personal income tax returns and found that they owe money to SARS are encouraged to make their outstanding payments by 31 January 2018. This is for taxpayers who filed their returns during the 2017 Tax Season. Acting SARS spokesperson, Mr Sicelo Mkosi expressed that taxpayers who fail to oblige with the deadline […]
CLAIMING INPUT TAX FOR VAT PURPOSES ON IMMOVABLE PROPERTY
When a registered VAT vendor sells a property, that transaction is subject to VAT and not to transfer duty.[1] Where the purchaser of the property is itself a VAT vendor, input tax may be claimed against the acquisition price paid for the property, and which will in most instances effectively equate to the VAT charged […]
COMPANY TAX IN SOUTH AFRICA
If you are self-employed or a business owner, you have to pay company tax in South Africa. How much business tax you pay and what deductions you can claim will depend on the size and type of your business. What is company tax? Company tax (also called, “corporate income tax”) is what keeps our economy functional. There exists […]
DEDUCTIBILITY OF SED AND ED EXPENDITURE
The South African Revenue Service (“SARS”) recently issued a binding private ruling (“BPR”)[1] in which the income tax consequences of expenditure in respect of socio-economic development (“SED”) and enterprise development (“ED”) obligations were considered. The applicant in this case is a company that owns and operates a wind farm that generates electricity. In terms of […]
TAX CLEARANCE CERTIFICATES
Taxpayers may require SARS to issue them with a tax clearance certificate for various reasons. This includes a general confirmation that the relevant taxpayer’s affairs are all in order and up to date (a so-called “Good Standing” tax clearance certificate), or a certificate being required to participate in certain government tenders. Perhaps most notably in […]
IMPORTANT SARS DATES
There appears to be an increased focus recently by SARS in relation to tax compliance. We therefore want to highlight the below important dates again to our clients to ensure that they are always fully tax compliant. Non-compliance may lead to penalties being imposed against defaulting taxpayers, but also has wider potential implications. This includes […]
CHANGES TO THE DISPUTE MANAGEMENT PROCESS
The South African Revenue Service (SARS) recently introduced certain changes and improvements to its current dispute management process. Any taxpayer who is aggrieved by any assessment may request SARS to provide those reasons for the assessment sufficient to enable the taxpayer to formulate an objection. For the first time, taxpayers will be able to make […]
PAYE AND DIRECTORS’ (AND MEMBERS’) REMUNERATION FROM 1 MARCH 2017
Many would have noted reports in the national media that the Taxation Laws Amendment Act, 16 of 2016, was signed into law by President Zuma on 11 January 2017. One of the many changes that the Act brings into effect is the repeal of paragraph 11C of the Fourth Schedule to the Income Tax Act, […]
VAT AND COMMON LAW THEFT
A recent decision has created some interest in whether the taxpayers failing to pay over the correct amounts of VAT can be charged – in addition to other statutory crimes prescribed by the VAT Act, 89 of 1991 – with the common law crime of theft.In Director of Public Prosecutions, Western Cape v Parker[1] the […]
ASSETS HELD AS SECURITY BY SARS WHEN A COMPANY IS BEING LIQUIDATED
The KwaZulu-Natal High Court previously granted an application brought by Van der Merwe and others (acting as liquidators) requiring the Commissioner for the South African Revenue Service to release certain assets held by him under his control in a customs warehouse. The assets in question were being held by the Commissioner as security for payment […]
