While the Tax Administration Act 28 of 2011 (TAA) determined and consolidated the powers and duties of SARS officials engaged in the administration of a tax Act, it also (to a certain extent) codified the rights and obligations of taxpayers to whom the TAA applies. Due to the fact that the TAA has now been in effect for a couple of years since its commencement date of 1 October 2012, there is greater understanding of how the legislation is being practically implemented.
The South African government has consistently expressed its support for small business. This support includes tax incentives. However, the point consistently missed is the critical need for the government not to disrupt cash flow, which is far more important than any of the so-called tax incentives to date.
In this article we discuss the recent changes in the transfer pricing landscape in South Africa, current developments and areas where certainty remains a challenge for multinationals currently invested in, or considering investing in South Africa.