Tag: Tax Administration Act (TAA)

It has been widely reported that SARS has committed to probing the tax affairs, and information disclosed by High-Net-Worth Individuals (HNWI) on their tax returns, in order to determine their compliance with the respective tax legislation, with the establishment of the High Wealth Individual Taxpayer Segment (HWI).

The days where SARS shuts its eyes to taxpayers’ offshore holdings are thing of the past. SARS is finally utilising the Automatic Exchange of Information regime to pin down taxpayers who have not disclosed their offshore interests and numerous taxpayers have already received some alarming notices to this effect.

The hotly debated amendment to Section 10(1)(o)(ii) or 'Expatriate Exemption' took effect from 1 March 2020, with the questions on many expatriates’ minds often being 'how will SARS find me? What does the SARS audit of an expatriate look like and what questions should I expect?'

Transfer pricing audits can be onerous, but taxpayers can achieve a more successful outcome by providing all information requested, anticipating areas of concern, and engaging openly with the South African Revenue Services (SARS).

While a tax judgment may have all the effects of a judgment, it is not a judgment in the ordinary sense, but rather an enforcement mechanism for the recovery of tax. If a person has an outstanding tax debt, SARS may, after giving at least 10 business days’ notice, file with the court’s registrar a certified statement setting out the amount of tax payable.The effect of such filing is that it must be treated as a civil judgment lawfully given in favour of SARS for a liquid debt for the amount specified in the statement.

It seems the SARS Commissioner had an epiphany – make an example of delinquent taxpayers so others will fall in line. Apparently, following SARS’ media briefing on 30 July 2020, this is a deterrence tactic SARS will use in the coming filing season.

Speak to any individual taxpayer and tax practitioner these days and no doubt ‘auto assessments’ will feature in the conversation. Whilst many agree that the auto assessment process is a good idea and there is appreciation of SARS’ intention to simplify tax compliance, there are mixed feelings regarding the implementation and practicality thereof.

The Commissioner of the South African Revenue Services (SARS), Edward Kieswetter, briefed the media and stakeholders on 30 July 2020 to provide an update in terms of SARS’ plans in respect of the 2020 Filing Season. The theme for this year’s filing season is #YourTaxMatters.

An interview with Jean-Louis Nel, Tax Attorney, Tax Consulting SA, and Dr Ivor Blumenthal, CEO, ArkKonsult, discussing how the Pretoria High Court granted a small business owner an urgent basis for relief against SARS who depleted his bank account without following due process.

Earlier this month, the Pretoria High Court granted a small business owner an urgent basis for relief against the South African Revenue Service (SARS) who depleted his bank account without following due process. The court ordered SARS to set aside the third appointment of Absa who collected R1.3 million on behalf of SARS from the taxpayer’s bank account in terms of Section 179 of the Tax Administration Act (TAA).