Understanding Your Rights as a Taxpayer
Tax Assessments and the Promotion of Administrative Justice Act (PAJA). We all pay taxes in one way or another, but as a taxpayer, it is important to understand your rights when dealing with tax authorities, the laws applicable, and whether your constitutional rights might be affected. One of the most common taxes paid is personal […]
What to Do When Tax Is Not Cut and Dried
Do you have a complex transaction, and don’t know which way SARS will go? Ask them upfront! Many entities enter into complex transactions where the tax issues are not cut and dried, but the risk of SARS ruling against them is too great. The good news is that since October 2006, there has been a […]
When SARS Says ‘No’, They Must Tell You Why
Taxpayers have the right to obtain reasons for decisions by SARS. When I was about three years old, my mother admonished me not to play with matches, and like the precocious brat I was, I demanded to know “why”. Many a parent, faced with similar demands from their offspring, would be tempted to exert parental […]
Handling Payroll for Freelance Workers in South Africa
Managing payroll for freelance workers involves a few key points, including understanding legal requirements, setting clear payment structures, and using the right tools. Here’s a practical overview to help businesses handle freelance payroll effectively. Legal Obligations Freelancers are generally considered independent contractors, but businesses still have some legal responsibilities. 1. Tax Obligations Freelancers are responsible […]
Tax Planning Strategies for Small Business Owners
As a small business owner in South Africa, managing your tax responsibilities effectively is key to maintaining financial health. By adopting smart tax planning strategies, you can reduce your tax burden and keep your business running smoothly. Here are some practical strategies to consider: 1. Utilise Allowable Deductions One of the simplest ways to reduce […]
Claiming Foreign Tax Credits
Back in the day when I was still running my tax practice full-time, I was called upon by a client to assist with the tax and accounting treatment of taxes withheld by a foreign country from income earned in that country—in this particular case, Botswana. The client’s query centred on the following two issues: Claiming […]
Mastering Record Keeping: How to Meet SARS’s Electronic Documentation Standards
Too often, taxpayers seem to forget that the most important aspect of dealing with SARS is to ensure that they can discharge their burden of proof. As a taxpayer, it is on you to provide SARS with the relevant material that, on a balance of probabilities, supports your position. Taxpayers are required to retain relevant […]
VAT on Short-Term Lettings and Commissions
Are you acting as agent or principal—and what would be the pragmatic approach? There are very few people across the world who haven’t heard of Airbnb. Started in San Francisco in 2008, this multi-billion-dollar NASDAQ-listed company that employs around 7,000 people has revolutionised the short-term letting industry. Over four million property owners around the world […]
To Claim or Not to Claim—VAT, That Is…
Some vehicles you cannot claim VAT on, some you can—and knowing the difference can save you a lot of money. When can you claim input VAT on a vehicle? Most businesses that are registered for VAT will be aware that you generally cannot claim input VAT on the purchase of a ‘motor car’ as defined […]
The Tax Treatment of Relocation Expenses
Transferring staff? There are tax implications for them … and for you! If your business has branches in different locations, one of the best ways of offering key staff opportunities for career growth is to allow them to relocate. Relocating an existing staff member who has come to know and understand your systems, procedures, and […]
