Unitrans tax deduction appeal dismissed: What went wrong?

[Joon Chong] The Gauteng High Court recently dismissed the appeal of Unitrans Holdings against the Tax Court judgment which had denied a tax deduction for interest incurred...

Proposed tax law amendments raise concerns for global business outsourcing

[Joon Chong] Proposed amendments to the tax laws will make it very difficult for controlled foreign companies with foreign business establishments to outsource functions...

Tax assessment appeal: Can it be amended?

[Graeme Palmer] When appealing against an assessment, a taxpayer is required to file a statement of grounds of appeal, which is referred to as a Rule 32 Statement...

Repair vs improvement: Why it matters to Sars

[Graeme Palmer] When determining a taxpayer's taxable income expenditure of a capital nature, such as an improvement to an asset, is not deductible. The Income Tax Act does, however, provide for the deduction of expenditure incurred on repairs for the purposes of trade...

What are taxpayers' rights to a refund from Sars?

[Graeme Palmer] Sars is obliged to refund a taxpayer in two instances. First, if an amount is properly refundable to a taxpayer under a tax Act and reflected in an assessment. Second, where an amount is erroneously paid to Sars in excess of the amount payable under an assessment...

New tax dispute resolution rules in place with immediate effect

[Joon Chong] New tax dispute resolution rules provide for, amongst others, 80 days to submit an objection and more independence of an ADR facilitator...

Increasing quota for frozen chicken imports as SA prices rise

[Virusha Subban] In a recent amendment to Schedule 4 of the Customs and Excise Act, it was announced that the annual quota for frozen bone-in cuts of chicken originating in or imported from the US would be increased...

What foreign employers need to know about required Sars registration

[Joon Chong] National Treasury proposed in the February 2023 Budget that it intends to align the obligations on South African and foreign employers, which creates certain practical issues...

Why Sars can't have the 'money and the box'

[Graeme Palmer] 'Money or the Box' is a game where a contestant must choose between the money or an undisclosed prize in a box. In Lance Dickson Construction CC v CSARS, a full bench of the Western Cape High Court said, in the context of understatement penalties, Sars is not entitled to ask for both the money and the box...

Kenya: Country-by-country reporting thresholds introduced from 1 January 2023

[Francis Mayebe] The Kenyan Government, in its latest Finance Act 2022, has enacted some key changes in the area of direct tax, including an important update on the country-by-country (CbC) reporting threshold for multinational companies...

Can Sars search and seize your property without a warrant?

[Francis Mayebe] Section 62 of the Tax Administration Act, which permits the search of premises not identified in a warrant, has been under scrutiny for many years due to its potential to infringe the right to privacy...

Examining the unintended consequences of Most Favoured Nation Clauses in tax treaties

[Francis Mayebe] Bilateral tax treaties are mainly based on the principle of reciprocity. Under this principle, one state negotiates better treaty terms with another in exchange for making a particular concession...

Japan and South Africa: 2023 shifting trends in international tax

[Francis Mayebe] Will Japan's recent implementation of the global minimum tax accelerate the discussions around the implementation of the GloBE rules?...

Sars partially lifts prohibition on distributions from resident trusts to offshore trusts

[Joon Chong] Sars will now consider applications from South African-resident trusts for approval to distribute funds to non-resident trusts...

Income tax and VAT implications of crypto mining

[Joon Chong] Crypto assets can be earned as rewards from proof of work or proof of stake mining, and the tax payable will be different from each activity...

Income tax return filing dates for the 2022 year of assessment

[Joon Chong] Sars has announced the deadline dates for filing income tax returns for the 2022 year of assessment as well as the details of those exempt from filing returns...

Electronic dispute process now available to employers objecting to Sars admin penalties

[Joon Chong] Sars has enabled its current dispute process on eFiling to employers requesting a remission, or objecting and appealing against administrative penalties on late or non-submission of EMP501 Employer Reconciliation Declarations...

Vital to note different due dates for separate tax liabilities

[Joon Chong] Case law and the Tax Administration Act provide clear authority that income tax liabilities arise when the ITA34 assessments are issued by Sars, and for VAT and payroll tax liabilities, on the date the relevant payments and returns are due...

Implications of ConCourt ruling for all loyalty programme providers

[Joon Chong] The Constitutional Court recently handed down judgment on the Clicks Retailers (Pty) Ltd v CSARS case, which has wide ramifications for all loyalty programme providers...

Taxpayers retain the right to privacy - ConCourt

[Graeme Palmer] The Tax Administration Act requires Sars officials to preserve the secrecy of taxpayer information. In the Public Protector v CSARS, the Constitutional Court had to decide whether the Public Protector's subpoena powers trumped those of Sars obligations to keep taxpayers' information secret...