Tag: Bronwin Richards
Kickbacks are not tax deductible – state capture-related ruling
Can a business claim a tax deduction for money it pays as a bribe or kickback? Under section 23(o) of the Income Tax Act, the answer is no. Kickbacks are not tax deductible. The provision was introduced in 2005 to support South Africa’s anti-corruption efforts. It denies a tax deduction for any payment that amounts to corrupt activity under our main anti-corruption statute, the Prevention and Combating of Corrupt Activities Act 12 of 2004 (the PCCAA).
VAT foreign subsidiary anomaly
National Treasury is set to address a critical anomaly in the Value-Added Tax Act, No. 89 of 1991 (VAT Act). This anomaly has significant implications for multinational companies with foreign subsidiaries.
Constitutional Court judgment on economic substance
To the relief of Coronation Investment Management SA (Coronation), the Constitutional Court has overturned the Supreme Court of Appeal’s (SCA) judgment in favour of the South African Revenue Service (SARS).
SARS Commissioner vs tax practitioners – do your due diligence
During the April 2024 SARS Revenue Results Announcement Media Conference, the South African Revenue Service (SARS) Commissioner brought to light concerning observations regarding non-compliance and delinquent behaviour by tax practitioners.
