Tag: Mazars South Africa
Cryptocurrency exchange control regulations
Cryptocurrency traders in South Africa are focused on understanding the tax implications of their transactions. These transactions are relative to the Income Tax Act. This has been challenging, as SARS has only stated that "the normal rules apply." They have not provided authoritative guidance on cryptocurrency-related transactions or when profits are considered capital or income.
No wealth tax, but trustees beware
Despite speculations that government has revived plans to introduce a wealth tax, the focus of the South African Revenue Service (SARS) has instead shifted to compliance of wealthy taxpayers with complex financial structures as well as trusts.
Compliance in the auditing profession is key post COVID-19
The impact of COVID-19 spanned many facets of the business world. The policies and controls that prevent an auditing firm from taking on the ‘wrong’ clients or kind of work fall under our Quality and Risk Management (QRM) function, and the pandemic was able to teach us many valuable lessons about compliance in this regard.
SA leads with proof of reserves for crypto industry
Last month, two reputable South African virtual asset service providers in South Africa made history by issuing first-of-its-kind proof of reserve reports, a move that will assist to combat fraud, protect crypto holders and industry stakeholders, and help cultivate credibility for the local cryptocurrency market.
SARS should give crypto investors more carrot and less stick
It has been more than three years since SARS’s media statement on cryptocurrencies. In this statement, SARS said that it would apply 'normal income tax rules' to cryptocurrencies when assessing whether a gain is revenue or capital in nature, and that crypto assets are not seen as currency for income tax purposes.
Regulating cryptocurrencies necessary for mass adoption
The infamous case of South Africa’s Mirror Trading International (MTI) has been crowned as the world’s largest cryptocurrency Ponzi scam. A total of around $589 million was lost, affecting hundreds and thousands of investors, according Chainanalysis’ 2020 Crypto Crime Report.
Cryptocurrency traders should prepare for stricter taxes
With the South African Bitcoin/ZAR weekly trading volume, to name just one, currently standing close to R30 million, there are various manners in which the South African Revenue Service (SARS) can track the gains made by South African taxpayers who trade cryptocurrencies.
Taxpayer’s right to be notified is a matter of administrative justice
The High Court in Pretoria recently ruled that taxpayers have a right to be notified before SARS appoints an agent to collect ‘outstanding tax debt’. This is a victory for both taxpayer rights and the wider cause of administrative justice.
Supplementary Budget Speech: what was not said
Sometimes the focus should not be on what was said, but rather on what was left unsaid. The Supplementary Budget tabled by Minister Tito Mboweni on 24 June 2020, centred around the potentially disastrous trajectory of South Africa’s fiscal affairs.
Treasury’s Special Budget is up against significant challenges
On Wednesday, 24 June, Minister Mboweni will table a Special Adjustment Budget. This is an extraordinary event, precipitated by the effect of the COVID-19 outbreak that has caused so many deaths and ravaged great parts of the economy.