Tag: Garlicke and Bousfield
Determining the donations tax threshold
Subject to any applicable exemption, donations tax is payable on the value of any property disposed of under any donation. With effect from 1 March 2018 an amendment to section 64(1) of the Income Tax Act, 1962 (the Act) introduced a dual system for donations tax.
Agreements must be honoured
Over the years, and particularly since the dawning of the Constitutional era, litigants have tried to rely on the principals of fairness and public policy to justify departure from certain contractual obligations.
Most favoured nation clauses
'Most favoured nation' clauses can be found in Double Taxation Agreements (DTA). These clauses are essentially where the tax treatment accorded by one state to another state must be no less favourable than the tax treatment extended to a third state.
Doing nothing is sheer folly!
A taxpayer who disputes a tax assessment has processes available in the Tax Administration Act, 2011 (Act) to contest the assessment. It is sheer folly for a taxpayer who contests an assessment not to avail himself of the mechanisms in the Act timeously.
Get your PBO application right
There are tax benefits for registering a non-profit organisation as a Public Benefit Organisation (PBO) with the South African Revenue Service (SARS), whether such organisation is a non-profit company, trust or association.
Recent amendments to the Competition Act
Amendments to the Competition Act were published in the Government Gazette in February 2019. These are, however, not yet in force pending the publication of a date to be proclaimed by the President. Some of the more prominent changes to the Act are as follows.
Imposing penalties for understatements
In addition to the tax payable, SARS can impose penalties on a taxpayer for an 'understatement'. In a standard case, and depending on the taxpayer’s behaviour, penalties can range from 10% for a 'substantial understatement' to 150% for 'intentional tax evasion'.
