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HOW DID SARS GET INTO MY CARRY-ON?

vdp

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 […]

ABUSING TAX COURT PROCESSES WORK?

ABUSING TAX COURT PROCESSES

[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 […]

COVID-19: HOME OFFICES AND TAX DEDUCTIONS

Corporate Tax Savings Reviews

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 […]

SARS KNOWS ABOUT YOUR RENTAL PROPERTY

SARS KNOWS ABOUT YOUR RENTAL PROPERTY

[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 […]

SARS’ VERIFICATIONS, IT14SD, ADDITIONAL ASSESSMENTS AND UNDERSTATEMENT PENALTIES

SARS Verifications

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 […]

TAX CLEARANCE CERTIFICATES: LAW CHANGES

tax clearance certificates

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 […]

THE EMPLOYEES BAD DEBT DEDUCTION

THE EMPLOYEES BAD DEBT DEDUCTION

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 […]

SA Tax Penalties on Companies

Tax Penalties on Companies

Tax Penalties on Companies On 14 December 2018, the public notice that allows the South African Revenue Service (“SARS”) to impose penalties on companies for not submitting income tax returns was gazette. This is a new addition to the legion of penalties already faced by companies and permits the imposition of a monthly penalty on […]

Should Deposits be Included in Gross Income?

Should Deposits be Included in Gross Income

The question of whether deposits should be included in a taxpayer’s gross income has become a contentious topic in recent months following SARS’ increased interest in deposits. Taxpayers are, typically following submission of the ITR14 and subsequent IT14SD, requested to explain why deposits should not be included in gross income. In our view, the rationale […]