The Tax Administration Act, No 28 of 2011 (TAA) introduces the 'understatement penalty' in Chapter 16. Section 223 contains an 'understatement penalty percentage table'. According to the SARS Short Guide on the TAA (Guide), the penalty will be determined by locating each case within the table that assigns a percentage to objective criteria. SARS carries the onus of proving that the grounds exist for imposing the understatement penalty.
In certain circumstances, SARS can enter into a compromise agreement with a taxpayer, where the taxpayer undertakes to pay less than the full amount of a tax debt and SARS undertakes to permanently write off the remaining portion.
Proposed changes to tax legislation regarding trusts will not take place immediately, National Treasury has said. At present, the conduit principle operating in trust tax law allows for income that accrues in a trust to be taxed in the hands of the beneficiary. The proposed amendments aim to eradicate income-splitting opportunities afforded through this principle, but should have no effect on special trusts.
I was having a discussion with a friend the other day about my exasperation with the English language, as I'm sure I'm not alone in wondering why there are so many different words for one particular thing.
National Treasury and SARS recently published documents for public comment containing proposals aimed at limiting the deductibility of interest payments in certain circumstances. The changes involve four categories of transactions: debt between connected persons, transfer pricing, acquisition debt, and hybrid debt.
The proposed carbon tax could add between R15 billion and R20 billion per annum to state coffers. National Treasury published an updated carbon tax policy paper in May for public comment. It proposes that a carbon tax of R120 per ton of CO2 emitted be introduced from 1 January 2015, and that it should increase by 10% per annum.