Tag: SARS
A new era of tax residency – why the old approach...
South Africans planning to relocate abroad or formalise their non-resident taxpayer status face a significantly changed regulatory environment. Over the past few years, the process of ceasing tax residency has shifted from a largely bank-driven exercise to a compliance-focused process under the South African Revenue Service (SARS).
Power and politics – no protection from SARS?
The vision of “A Smart Modern South African Revenue Service (SARS) with unquestionable integrity admired by all” is a profound set of words shared by Dr Johnstone Makhubu, SARS Commissioner, at the 13th Annual Tax Indaba. Beyond words, SARS’ actions have more than echoed this sentiment. They have made it clear to the world that political power, fame and money cannot keep non-compliant taxpayers off SARS’ radar.
Diesel refunds – more than just a registration exercise
Businesses claiming diesel refunds may be inclined to view the South African Revenue Service’s (SARS) new diesel refund registration system as little more than an administrative change. However, the reforms signal a far more fundamental shift.
Trust tax compliance – IT3(t) data becomes a critical priority
On 8 September 2026, the South African Revenue Service (SARS) published its 2026 Trust Income Tax Season updates. The updates introduce third-party reporting data to pre-populate information on trusts’ tax returns. This stands out as one of the most significant developments for trust tax compliance.
Tax deductibility – SCA rules on financing fees
On 7 September 2026, the Supreme Court of Appeal (SCA) handed down a significant judgment against the South African Revenue Service (SARS). The judgment confirmed that certain financing fees qualify for tax deductions under section 24J of the Income Tax Act, 58 of 1962.
SARS’s digital border bureaucracy – progress or pointless compliance?
The South African administrative state has acquired yet another hammer - digital traveller technology. Government departments appear now to assume that because something can be digitised, it should be digitised. Worse still, because information can be collected, it ought to be collected. SARS's compulsory new online “Traveller Declaration” system exemplifies this increasingly pervasive mindset.
Insurance deductions – court clarifies tax treatment.
On 26 June 2026, the Western Cape High Court, in Commissioner for the South African Revenue Service (SARS) vs Meiring Citrus (Pty) Ltd, upheld SARS's appeal. The court held that a R10 million self-insurance deduction was not allowable. What began with a R10 million tax deduction claimed in Meiring Citrus' 2017 year of assessment ultimately resulted in years of verifications.
A SARS audit doesn’t have to be a crisis
Running a business means managing risk every day. Whether it's protecting assets, managing cash flow or ensuring regulatory compliance, business leaders understand the importance of planning for the unexpected. However, one risk often receives far less attention. It is the possibility of a tax audit.
Recycled gold VAT ruling – resetting after refining?
On 23 June 2026, the Constitutional Court delivered a unanimous judgment in Lueven Metals (Pty) Ltd vs Commissioner for the South African Revenue Service (SARS). The court confirmed that the zero-rating of gold under section 11(1)(f) of the Value Added Tax Act No. 89 of 1991 (VAT Act) does not apply to second-hand or recycled gold that has already undergone prior manufacturing.
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).
