Despite constructive regulatory changes in the tax administration environment, there are concerns about the lack of cost effective remedies for taxpayers in cases where SARS fails to comply with its obligations.
Tax can make or break the potential returns from an investment in residential property. To benefit from possible tax breaks while avoiding the pitfalls, investors should be aware that different investment vehicles can significantly increase or reduce their tax liability. In this article we focus on the purchase of property for the purpose of earning a return rather than for use as a primary residence.
While big business may have been ready to meet SARS' 28 June deadline for disclosing certain third-party information, many small and medium enterprises may not even know about it - even though the deadline has already passed. For that matter, it is probably questionable whether estate agents and small legal firms in particular are even aware of the new requirements.
The recently promulgated Tax Administration Act, No. 2011 (TAA), introduces the Office of the Tax Ombud (the Tax Ombud). According to Section 14 read with Section 259 of the TAA, the Minister of Finance must appoint a person as Tax Ombud within one year after the commencement date of the TAA, which was on 1 October 2012. The Minister further announced in his 2012 Budget Speech on 22 February 2012 that the Tax Ombud will be appointed during the course of this year (2013).
The regulation of tax practitioners, due to start on 1 July this year, could see thousands of practitioners leave the system. This follows prolonged efforts to clean up an industry where every Tom, Dick and Harry could previously file returns and offer tax advice.