Interpretation Note 64

In this practical training session, we unpack Tax Court judgment IT 24852 (Taxpayer EPP v SARS), where a taxpayer sought to deduct R38.8 million after customs and excise refund claims became time-barred. Explore the critical distinction between expenditure and loss under section 11(a), the timing of deductions, the impact of prescribed refund claims, understatement penalties, interest, and potential post-judgment remedies through reduced assessments and prescription exceptions under the Tax Administration Act

This Tax Court VAT Section 21 Judgment examines the VAT treatment of financial services, focusing on whether certain banking activities qualify as exempt supplies.

The case highlights the interpretation of “financial services” under VAT legislation and clarifies the boundaries between taxable and exempt transactions, offering key insights into compliance, input tax claims, and structuring within the banking sector.

VAT Ruling VR 014 (9 January 2026) approves the page-space and varied turnover-based apportionment methods under sections 17(1) and 41B of the VAT Act.

Supreme Court of Appeal dismisses SARS’s appeal in CSARS v Erasmus, holding that SARS could not use a rule 31 statement to revise the factual basis and remedy of a GAAR assessment after issuing the assessment.

Binding Private Ruling 428 examines the income tax consequences of a Delayed Contribution Equity Investment Structure (DCEIS), confirming that phased share subscription proceeds constitute contributed tax capital rather than gross income.

The ruling also clarifies the interaction between sections 11D and 8(4)(a), confirming that qualifying R&D expenditure remains deductible without triggering recoupment consequences under the Income Tax Act.

Draft SARS Interpretation Note (2025-42) outlining how section 7C of the South African Income Tax Act applies to loans, advances, or credit provided by a connected natural person to a trust, including definitions, application rules, and anti-avoidance measures to prevent tax-free wealth transfers via low or interest-free loans.