Tax Breaks Newsletter - latest Issue
Volume 2016, Issue 369, 2016
Source: Tax Breaks Newsletter 2016, pp 1 –3 (2016)More Less
Legal precedent is an invaluable tool for interpreting legislation. If it can be demonstrated that a court has interpreted and applied the law in a particular manner in relation to a particular set of circumstances, it is likely that the same interpretation will be applied in subsequent decisions where the circumstances are similar. However, there are strict principles that should be followed when seeking to rely upon decided law as a basis for legal argument. If these are not observed, the conclusions drawn can be misleading.
Author Ben StraussSource: Tax Breaks Newsletter 2016, pp 3 –4 (2016)More Less
Recently the Cape Tax Court handed down an important judgement about value-added tax (VAT). The taxpayer (D) was a registered VAT vendor. It operated a foods delivery business. D contracted with food outlets and restaurants to advertise their menus in booklets which D had printed and delivered to households. Customers who wished to place orders for food phoned an operator at D's premises, who took the orders. D's staff would then pass the details of the order to the relevant food outlet, and despatch a driver to collect and pay for the food that had been ordered.
Author Rob CooperSource: Tax Breaks Newsletter 2016, pp 4 –6 (2016)More Less
South African businesses depend on mobile phones,computers, and telecom services to keep their businesses running smoothly. Depending on whether the devices are employer- or employee-owned as well as who pays for airtime and Internet access this reality brings with it a range of implications for payroll calculations as well as the employee's take-home pay. In many cases, employers have adopted bring-your-own-device (BYOD) strategies to allow employees flexibility in choosing the devices and contracts that meet their personal and business needs. In this case, they might give employees a regular allowance for their costs, or ask employees to claim their business expenses each month.
Author Steven JonesSource: Tax Breaks Newsletter 2016 (2016)More Less
Last month I was pontificating from my soap box about what I viewed as a petty bureaucratic action on the part of SARSin refusing to accept a power of attorney in my favour (as a tax practitioner) to submit an application for registration on behalf of a disabled taxpayer. That matter has not had a happy outcome (the taxpayer has had to go to a SARS office personally), and it seems like matters were just about to get worse.
Author Jerome BrinkSource: Tax Breaks Newsletter 2016, pp 6 –7 (2016)More Less
The current stressed economic times often have a negative effect on the performance and sustainability of many businesses across a range of industries. As a result, many companies are forced to restructure their debt, which often involves debt relief in various forms. From years of assessment commencing on or after 1 January 2013, the tax consequences flowing from debt reductions were amended. The Explanatory Memorandum on the Taxation Laws Amendment Bill 2012 provided the rationale for the amendments as follows. Debtors in distress seeking relief are a recurring economic concern. With the recent global financial crisis, an unusually large number of companies are experiencing financial distress. Relief for these companies is essential if local economic recovery is to occur.
Author Lesedi SeforoSource: Tax Breaks Newsletter 2016, pp 7 –8 (2016)More Less
Those who have interacted with the Office of the Tax Ombud (OTO) since its inception will be quite pleased about the proposals contained in the 2016 draft Tax Administration Laws Amendment Bill. It is fair to say that tax specialists were somewhat sceptical of the OTO's effectiveness when the Tax Administration Act was enacted back in 2012, especially when comparisons were made with similar organisations in other tax jurisdictions. Major concerns included issues of independence, as well as the ability of the OTO to compel SARS to remedy complaints received from taxpayers.
Author Nthathi KhumaloSource: Tax Breaks Newsletter 2016 (2016)More Less
The High Court recently held that a certain Mr Brown must submit a response to a SARS lifestyle questionnaire, or suffer the consequences. SARS may in terms of the Tax Administration Act (the TAA) in administering a tax Act, require a taxpayer or another person to submit relevant material (orally or in writing) within a reasonable period. SARS delivered a lifestyle questionnaire to Mr Brown, who was not registered as a taxpayer and never submitted an income tax return. SARS requested information relating to Mr Brown and his spouse's personal particulars and circumstances, investments and assets, properties, and income and expenses.