Tag: Tax Administration Act (TAA)
Global minimum tax compliance – what SA’s MNEs need to know
President Cyril Ramaphosa recently signed the Global Minimum Tax Act and the Global Minimum Tax Administration Act into law. The new laws implement the OECD Global Anti-Base Erosion (GloBE) rules. These rules aim to prevent tax losses caused by Multinational Enterprises (MNEs) operating in foreign low-tax jurisdictions. Both laws enforce a minimum 15% global tax on MNEs based or operating in South Africa.
Public Officer appointment – key compliance changes
Annual tax law amendments now require a Public Officer appointment immediately upon forming a company. Recent updates to Section 246 of the Tax Administration Act, No. 24 of 2011 (TAA) took effect on 24 December 2024. These changes remove the one-month window for appointing a Public Officer. This amendment creates a critical shift for businesses across South Africa.
Tax compliance and criminality – SARS and IDAC clamp down
South African Revenue Service (SARS) and the Investigating Directorate Against Corruption (IDAC) have joined forces. Their collaboration targets financial crimes, including tax-related offences. This partnership aims to bolster efforts to make tax non-compliance both difficult and costly.
SARS targets tax practitioners for clients’ tax debts
The Supreme Court of Appeal has backed Commissioner Kieswetter and issued a stern warning to all South Africans to refrain from assisting others in evading their tax obligations. Where you are caught, South African Revenue Service (SARS) will go after your personally. This is now settled law in South Africa and directors or companies, tax advisors, lawyers, accountants, or even payroll professionals can find themselves on the hook.
SARS and CIPC compliance crusade aimed at getting South Africa off...
On 27 June 2024, the South African Revenue Service (SARS) announced its enhanced Beneficial Ownership disclosures for the 2024 Filing Season. Not even 24 hours later, the Companies and Intellectual Property Commission (CIPC) issued a media release enforcing beneficial ownership (OB) declaration, to be able to file annual returns. This may simply be a compliance coincidence, but more likely a strategic move to eradicate non-compliance for companies, trusts, and partnerships, on all levels.
Ceasefire of Section 164 in SARS’ war on non-compliance
Dispelling accusations of any revenue collector can feel like the fight of your life, especially where you are factually not on the wrong side of the law! Amongst these collectors, the South African Revenue Service (SARS) stands firm as one of the most strategic movers, turning the fight into an all-out war, the war on non-compliance!
Unpacking onerous adjustments to the apportionment formula
The shortcomings of the Value Added Tax (VAT) apportionment formula set out in 2011, have been addressed in a new formula which applies with effect from all financial years commencing on or after 1 January 2024. We highlight important adjustments to the formula which is laid out new Binding General ruling, BGR 16 (Issue 3).
SARS targets representative taxpayers for company tax debts
With the corporate tax collection deficit announced in September 2023, South African Revenue Service (SARS) is dead set on filling at least this fiscal pothole. How will they do this you may ask; well, amongst other avenues, SARS are exploiting the Tax Administration Act, which provides for instances in which the representative taxpayer, employer, or vendor, will be held personally liable for a company’s tax debt!
The downfall of crafty taxpayers who hide income and rely on...
All taxpayers should arrange their tax affairs to obtain the best advantage and to pay the least amount of tax. This is a right every taxpayer possesses, and well entrenched in South African and international tax law. However, this planning must be done within the constraints of what the law allows.
Draft Tax Law Amendments – what you need to know
On 31 July 2023, National Treasury released their annual draft tax law amendments, for public comment. Although still at the draft stage, there are some pertinent proposed changes for which the supporting systems have already been implemented i.e., the “Beneficial Ownership Registers”.