Tag: Tax Administration Act (TAA)

The Constitutional Court judgement in Greyvensteyn vs Commissioner for SARS and Others has been welcomed by South African Revenue Service (SARS)! Serving to reaffirm the constitutionality of SARS holding individuals personally liable for company debts, the Greyvensteyn judgement emphasises this point. It also supports SARS pursuing recovery from those persons. The judgement highlights the importance of tax revenue collection

Burying your head in the sand will not protect you from a tax debt owed to South African Revenue Service (SARS). The imminent threat to your bank balance will not simply "blow over". You will likely resurface to find SARS has attached your savings, leaving you with no legal recourse for recovery.

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.

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.

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.

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.

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.

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!

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).

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!