There has been a great deal of noise about SARS’ trust penalties. On my reading, the real story is both simpler and more significant. SARS has not invented a new penalty. It has extended an old section 210 mechanism to a new class of taxpayer — trusts — at a time when revenue collection and…
In the landscape of modern tax administration, the principle that the burden of proof rests on the taxpayer is a fundamental tenet. This principle dictates that it is the taxpayer’s responsibility to substantiate their tax positions, despite the significant disparity in available resources between individual taxpayers and the government. While this framework aims to ensure…
VDP as recourse on the omission of historic foreign receipts From March 2001, the Republic of South Africa (RSA) transitioned from a source-based tax system to a residence-based system. The implication of such for South African tax residents being the imposition of taxes, in RSA, on worldwide derived. RSA being party to double tax treaties…
[Durban, 03 March 2021] The full bench of the Western Cape High court recently delivered judgment¹ (Cloete J dissenting) in a favour of a taxpayer who, according to the Tax Court, was simply abusing process. When studying the judgment of the Tax Court, it is difficult to see how the taxpayer’s approach was anything more…
The media is rife with comments regarding the economic impact of the outbreak of the COVID-19 virus (the so-called “Coronavirus”) in South Africa. Many people have been asked, or is required, to work from home in order to curb the spread of the virus. Is there at least some form of tax break associated with…
Many seem to be surprised by comments in the 2020 Budget Review documents released on 26 February 2020 to the effect that financial emigration status and tax residency status are not synonymous. There also seems to be confusion about the impact on a person’s tax residency status if, as mentioned in the 2020 Budget, the…
[vc_row][vc_column][vc_column_text]At the launch of the 2019 filing season, SARS publicly stated that “Many taxpayers still do not declare rental income from properties and we will improve our data matching in this regard by collaborating with the Deeds Office” and that “This matching will also allow us to better enforce non-compliance in the declaration of Capital…
Most companies would by now have filed their ITR14 for the 2021 tax year and many would have been selected for verification. This means they will have to file the dreaded IT14SD. The IT14SD is not particularly difficult to complete and should not be a problem per se (given that the required recons would ideally already…
Law Changes: TAX CLEARANCE CERTIFICATES The importance of a tax clearance certificate for most businesses cannot be overstated. It often happens though that SARS raises an assessment giving rise to an unexpected tax liability that affects the business’ tax standing. This, in turn, almost always adversely affects the business. Simply paying the extra tax assessed…
Many businesses are struggling to make ends meet. Unfortunately, in these circumstances, employers may be unable to pay salaries but nevertheless still issue IRP5 certificates indicating the salary to which the employee became entitled (despite the fact that it may not have been actually paid). This is often not well received by the employee when…
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