Tax Breaks Newsletter - Volume 2006, Issue 241, 2006
Volume 2006, Issue 241, 2006
Source: Tax Breaks Newsletter 2006, pp 1 –2 (2006)More Less
Extracted from text ... MONEYWEB No. 241 February 2006 TAX AVOIDANCE The controversial draft new general anti-avoidance rule By KATHY THERSBY AS WE reported last month, the South African Revenue Service has been taking steps towards beefing up its anti-avoidance legislation. In our lead story of the January issue, Ernest Mazansky, director at Werksmans Tax, provided the background to SARS's discussion paper on the matter that was released in November. According to Mazansky, the paper is a comprehensive and wellresearched document that looks at difficulties in legislating and enforcing a general anti-avoidance rule (GAAR). A number of countries' rules were considered and discussions ..
Source: Tax Breaks Newsletter 2006 (2006)More Less
Extracted from text ... TAXING ISSUES Kathy Thersby Editor SHORTLY after this issue goes to press, the Finance Minister will announce his 2006 Budget, the thought of which reminded me of some unpleasant changes brought about by the 2005 Budget but which only take effect in 2006. Those receiving a travel allowance must note that the deemed private kilometres will be increased from 16 000 to 18 000, and drivers of company cars must expect the fringe benefit rate to be hiked to 2.5 per cent from 1.8 per cent (4 per cent for second and subsequent cars) from next month. ..
Source: Tax Breaks Newsletter 2006, pp 3 –4 (2006)More Less
Extracted from text ... Moneyweb's TAX BREAKS February 2006 3 INDEPENDENT CONTRACTORS Taxman keeps eagle eye on 'employee-to-contractor' tactic By KATHY THERSBY TAX authorities are still closely monitoring people who change their tax status from employee to independent contractor in order to gain tax advantages. The South African Revenue Service is particularly suspicious of taxpayers who become independent contractors and then continue to provide services to their so-called former employers, warns PricewaterhouseCoopers tax partner Gerald Seegers. "Many taxpayers have tried to change their tax status from employee to independent contractor, as contractors do not have employees' tax deducted from earnings - and get ..
Tax compliance increasingly important as stricter regulations clamp down on tax transgressions : tax complianceSource: Tax Breaks Newsletter 2006 (2006)More Less
Extracted from text ... TAX COMPLIANCE THE FACE of human resources is changing. Human resource practitioners have had to grapple with technical challenges that fall outside of the ambit of their expertise, such as ascertaining whether their company policies on assignees to foreign countries comply with tax regulations and Sarbanes-Oxley requirements. Although the phenomenon of globalisation has been in our midst for a considerable period, many stakeholders, both public and private entities, are yet to struggle with the immense opportunities and profound challenges it presents. This is the recurring theme that emerged during discussions at the Ernst & Young Global Mobility Conference held ..
Author Brigitte Keirby-SmithSource: Tax Breaks Newsletter 2006, pp 4 –6 (2006)More Less
Extracted from text ... 4 February 2006 Moneyweb's TAX BREAKS THIS article is the second and final in a series that aims to highlight the increased tax complexities and current trends in the design of share incentive schemes. AS MENTIONED in my previous article, share incentives (excluding broad-based plans) are, with effect from 26 October 2004, subject to new legislation that is far less favourable for taxpayers. These provisions are housed in SHARE INCENTIVE SCHEMES New legislation makes share incentives far less favourable By BRIGITTE KEIRBY-SMITH a new section 8C and aim to address the perceived weaknesses in the existing section 8A which, ..
Author Jackie CameronSource: Tax Breaks Newsletter 2006, pp 6 –7 (2006)More Less
Extracted from text ... 6 February 2006 Moneyweb's TAX BREAKS TAX ON BUSINESS New tax shocker for business By JACKIE CAMERON BUSINESSES have been calling for a change to the Regional Services Council (RSC) levies, saying they are a huge headache to manage. But the replacement options are set to create a new administrative nightmare for companies and will add to costs for customers in the long run. What's more, there's a nasty sting looming for export-oriented businesses, which will have to absorb an additional cost. That was the warning from tax expert, Des Kruger, tax director at Mallinicks Inc in Cape Town, ..
Author Paul FerreiraSource: Tax Breaks Newsletter 2006, pp 7 –8 (2006)More Less
Extracted from text ... Moneyweb's TAX BREAKS February 2006 7 FLAT TAX SYSTEMS A flat tax for South Africa? By PAUL FERREIRA ACCORDING to documents put out by National Treasury on last year's Budget day, the estimated tax revenue for the fiscal year ended 31 March 2005 is some R345bn and the estimated cost of the South African Revenue Service collecting this tax revenue is some R4.6 million. That is a 1.33 per cent collection cost, which compares with 0.52 per cent in the USA and 1.44 per cent in France. To this should be added the taxpayer's own costs, including the cost ..