Tax Breaks Newsletter - Volume 2014, Issue 339, 2014
Volume 2014, Issue 339, 2014
Source: Tax Breaks Newsletter 2014, pp 1 –2 (2014)More Less
Some years ago when I was still a member of the Welsh Male Voice Choir of South Africa, there was an amusing moment at one rehearsal where the choristers were battling with a particularly difficult piece of music containing unusual phrasing, when after numerous unsuccessful attempts on our part to get the breathing in the right place, our exasperated music director exclaimed: "Gentlemen, there is no breath after 'death'!"
Author Charl HallSource: Tax Breaks Newsletter 2014, pp 2 –3 (2014)More Less
Author Bruce BoschSource: Tax Breaks Newsletter 2014, pp 3 –4 (2014)More Less
Section 24(I)(10) of the Income Tax Act deals with unrealised foreign exchange gains or losses between a South African resident taxpayer and a foreign connected person. For the purposes of Section 24(I)(10), the unrealised foreign exchange gains or losses arising in the course of trade were disregarded for income tax purposes. The foreign gains or losses were only included as part of taxable income upon realisation of the exchange item (for example, repayment of the loan or settlement of a related party creditor).
Author Andrew LewisSource: Tax Breaks Newsletter 2014, pp 4 –6 (2014)More Less
The tax implications for the various participants of a share incentive scheme are complex, and the legislation is not necessarily clear. In recent years, share incentive schemes have been a particular focus of SARS and National Treasury, with regular amendments to the tax legislation. It is no wonder that we see a number of binding private and binding class rulings being issued by SARS that relate to share incentive schemes.
Source: Tax Breaks Newsletter 2014 (2014)More Less
This month our eyes and ears are full of the Oscar Pistorius trial as well as the release of the Public Protector's somewhat less-than-flattering account of the so-called 'security upgrades' at the President's private home. It's also election time - that wonderful event that comes around every five years, where the fairy tales begin, not with "Once upon a time..." but rather "If elected, I promise to...". Promises of jobs, infrastructure, and the like ... we've heard it all before.
Author Inge LampbrechtSource: Tax Breaks Newsletter 2014, pp 6 –8 (2014)More Less
An increase in the standard Value-added Tax (VAT) rate of 14% by one or two percentage points could reduce the pressure on the fiscus, and would bring South Africa more in line with a number of tax jurisdictions around the world. However, it will be an extremely unpopular move with unions and other political groups, who argue that it will be to the detriment of the poor.
Author Graeme PalmerSource: Tax Breaks Newsletter 2014 (2014)More Less
As governments around the world come under pressure to collect tax to meet their growing needs and budget deficits, there has been an increase in cross-border co-operation between different tax authorities. This can be seen in the treaties concluded between countries to limit tax avoidance transactions, the sharing of information by tax authorities with other countries, and assistance offered to foreign governments in tax collection and enforcement.
Author Heinrich LouwSource: Tax Breaks Newsletter 2014 (2014)More Less
The factual circumstances in respect of which the ruling was made are as follows: Company Y is a company incorporated and resident in foreign country Y. Company X is a companyincorporated and resident in country X. Company X is also a wholly-owned subsidiary of Company Y. Company X is to be listed on the JSE Limited. Its business is investment in foreign debt instruments, on which it will receive interest returns. Company X intends to raise funds for its business by issuing certain preferred securities. The preferred securities will be issued through its branch in country Y, and would be redeemable after five years or more at the same amount paid for them; confer preferred rights to dividends; generally not carry any voting rights; rank pari passu with all other preferred securities; and rank in preference to ordinary shares.