Tax Breaks Newsletter - Volume 2016, Issue 364, 2016
Volume 2016, Issue 364, 2016
Author Esther Van SchalkwykSource: Tax Breaks Newsletter 2016, pp 1 –2 (2016)More Less
The recently promulgated Tax Administration Laws Amendment Act 2015 added to SARS' information gathering powers, particularly as far as legal professional privilege is concerned. The law now specifies a procedure for the assertion of legal professional privilege by taxpayers in respect of relevant material requested by SARS during an inquiry or search and seizure.
Author Heinrich LouwSource: Tax Breaks Newsletter 2016, pp 2 –3 (2016)More Less
On 21 January 2016, SARS issued Binding Private Ruling 217. The ruling deals with the estate duty implications for non-resident individual investors, specifically where such an investor, who is a resident in Country X, purchases a linked investment plan from a company incorporated and resident in Country X, which carries on the business of life insurance. The key issue was how certain sections of the Estate Duty Act 45 of 1955 would apply.
Author Mareli TreurnichtSource: Tax Breaks Newsletter 2016 (2016)More Less
With effect from 1 March 2015, National Treasury introduced tax-free investments (TFI). In this regard, the Income Tax Act 58 of 1962 was amended to introduce a new Section 12T, in addition to the notice and regulations published in the Government Gazette on 25 February 2015.
Source: Tax Breaks Newsletter 2016 (2016)More Less
One thing I have to hand to SARS - they're looking everywhere for additional revenue. Now before any of our subscribers who are SARS employees get uptight with me, let me state up front that this is as it should be. Any country's tax system can only be respected if each participant in such country's economy contributes their legal and fair share to the national fiscus. Even welfare organisations, which are (for the most part) exempt from tax, still need to be compliant, particularly when it comes to those activities that are considered not to be a core part of their welfare activities.
Author Chris EagarSource: Tax Breaks Newsletter 2016 (2016)More Less
Welfare organisations that raise funding through the sale of donated goods, quite common for the likes of the Hospice and Salvation Army, should have some concern about the latest SARS VAT Guide 414 for Welfare Organisations and Associations Not for Gain ('the Guide').
Author Amanda VisserSource: Tax Breaks Newsletter 2016, pp 5 –6 (2016)More Less
The massive fallout since the Panama Papers exposé again highlighted the importance of comprehensive measures to stem the tide of tax non-compliance. The Panama Papers (millions of files from offshore law firm, Mossack Fonseca) revealed ways in which the rich and famous hid their money in so-called tax havens.
Author David WarnekeSource: Tax Breaks Newsletter 2016, pp 6 –8 (2016)More Less
The 2016 Budget contained some cryptically-worded proposals relating to the taxation of trusts. These have not received much attention in the media, which is probably due to the technical nature of the proposals. On the other hand, trusts are a popular planning vehicle in South Africa, and a great deal of comment was elicited last year by the release of the Davis Tax Committee's discussion document on estate duty. The document proposed fundamental changes to the taxation of trusts.
Author Seelan MuthayanSource: Tax Breaks Newsletter 2016 (2016)More Less
Taxpayers are often unaware of their VAT registration liabilities, which can result in a retrospective VAT registration. This regularly leads to a liability for output tax on supplies made, as amounts charged are generally deemed to be VAT inclusive. On the other hand, taxpayers may have incurred expenses during this period, and may not be in a position to claim input tax deductions as they would not be in possession of valid tax invoices. This is as a result of them being effectively registered for VAT when they incurred the expenses, with the tax invoices being rendered invalid as they would not contain the taxpayer's VAT registration number (which would not yet have been issued).