Tag: Income Tax Act (ITA)

As the SARS collection process becomes more technologically advanced, tax practitioners must advise clients to avoid tax evasion and remain compliant. SARS will soon become so efficient at detecting tax evasion and recovering hidden revenues, it will no longer be worth it to lie on returns.

Although the official statistics for South Africa’s divorce rate during COVID-19 are yet be released, globally, the pandemic sent divorce rates soaring by up to 30% or more during 2020. According to DIY Legal, South Africa ranks in 83rd place out of 154 countries for divorce. 

As 28 February 2021 looms near on the horizon, so too does the deadline for the second provisional tax submissions for 2021. This February will be the most important tax submission to date for expatriates earning above the R1.25 million threshold as they will now be exposed to a previously non-existent tax liability in South Africa.

December has arrived, and with Christmas around the corner, many employers are left in a pickle when deciding on gestures of good faith and appreciation for their employees.

Parliament has been warned of the risk of billions of Rands of capital investment leaving the country unless local investment incentives like those under Section 12J of the Income Tax Act are permitted to continue. Our presentation was made during the Select Committee of Finance’s public hearings on the TLAB, TALAB and Rates Bills.

National Treasury and SARS published their responses on the Draft Taxation Laws Amendment Bill (TLAB), which included potential relief for South African expatriates who were unable to leave South Africa owing to the COVID-19 lockdown.

It is an inevitable consequence when operating in a distress economy, such as we find ourselves in South Africa these days, that shareholders will find themselves disposing of companies for less than they paid for them, whether the companies were formed or purchased by those shareholders.

If you’re ever feeling a little hard-done-by thanks to SARS, know this: Government has done an outstanding job of encouraging investment and stimulating job creation (COVID-19 aside) by introducing some really forward-thinking tax incentives.

Talk about bad timing. The Constitutional Court on 21 July 2020, after some 250 days of deliberation, decided that the way in which many franchise operators have been claiming their tax expenses does not rank for tax relief. SARS must be extremely pleased with the win, only the 4th ever tax related judgement delivered by the Constitutional Court since its inception.

South African small, medium and micro-enterprises (SMMEs) are struggling with weak economic growth, load shedding and crime. The regulatory burden also continues to hamper the growth of these businesses and their employment creation abilities.