Disputing SARS decision and assessments
A taxpayer who is aggrieved by an assessment or decision of SARS against that taxpayer has the right to dispute that assessment or decision. If an original assessment has not been issued, SARS may request a taxpayer to submit an amended return to correct an undisputed error made in the prior return. In the case […]
SARS efiling identity theft
It has been communicated to SAICA members over the last few weeks that there appears to be an increasing incidence of cases where certain individuals are defrauding the South African Revenue Services (SARS).The fraud involves using taxpayer eFiling profiles to create fictitious refunds or divert actual refunds. The former is done by submitting fictitious returns […]
SARS rules that students do not qualify as employees
In a Binding Private Ruling issued on 6 July 2021, SARS has made strict ruling on an Employment Tax Incentive Act (ETI) scheme that has been doing the rounds. It is not often that negative rulings get published and it is therefore a unique situation that should serve as a warning to those participating in […]
Tax neutral asset for share transactions
The Income Tax Act contains various provisions in terms of which transactions can occur between specified parties without adverse tax consequences being incurred in respect of those transactions. These provisions are contained in sections 41 to 47 of the Income Tax Act and are generally known as the “group relief provisions”. Apart from certain value-shifting and general […]
Beware of scams during filing season
In late August 2020, a large credit bureau in South Africa was the target of a data breach where millions of private individual and company data records were compromised. This data leakage, coupled with the tax filing season, makes for the perfect opportunity for taxpayers’ information to be abused, subjecting taxpayers to potential financial loss. Scammers thrive on the inherent vulnerability of taxpayers during the tax season and know how to capitalise on the taxpayers’ struggles in dealing with […]
Scammers posing as SARS officials are on the rise
In late August 2020, a large credit bureau in South Africa was the target of a data breach where millions of private individual and company data records were compromised. This data leakage, coupled with the tax filing season, makes for the perfect opportunity for taxpayers’ information to be abused, subjecting taxpayers to potential financial loss. […]
Is SARS wriggling out of its obligations?
Section 45 of the Value-Added Tax Act makes provision for the payment of interest on delayed VAT refunds. In terms of section 45(1) of the Act, the South African Revenue Service (“SARS”) must, within 21 business days after the date on which the vendor’s return in respect of a tax period is received, refund the vendor. This is provided that […]
DO YOU FALL WITHIN THE “CONNECTED PERSONS” DEFINITION?
On 28 January 2020, SARS released interpretation note 67 providing guidance on the term “connected persons” in section 1(1) of the Income Tax Act. The interpretation note itself is voluminous but worthy of a short discussion as one may fall within this definition without knowing. The definition allows for the following scenarios to be regarded […]
BOERDERYBEDRYWIGHEDE: BELASTINGIMPLIKASIES
Boerdery in Suid-Afrika is soos tweede natuur vir baie Suid-Afrikaners, maar die belastingimplikasies van boerderybedrywighede laat ‘n paar vrae ontstaan wanneer ‘n belastingpligtige se belasbare inkomste bepaal word. Die belasting van boerderybedrywighede is onderhewig aan ‘n unieke stel belastingreëls. SARS vereis dat alle inkomste en uitgawes wat verband hou met boerderybedrywighede afsonderlik openbaar word sodat […]
INTRA-GROUP TRANSACTIONS: HOW IT WORKS
The South African Revenue Service (“SARS”) issued a private binding ruling (BPR329) on 27 September 2019 on the tax implications of intra-group transactions and the subsequent sale of the relevant assets to a third party outside the group of companies. The taxpayer in this regard wants to implement a Broad-Based Black Economic Empowerment transaction in terms of which immovable […]