Tag: Tax Consulting SA
VAT input claims – a costly legal lesson
A recent Supreme Court of Appeal (SCA) ruling should deliver a stark warning to businesses claiming input Value Added Tax (VAT) deductions without a watertight legal foundation. In Aveng Mining Shafts & Underground v CSARS (1192/2023) [2025] ZASCA 20, the SCA sided with South African Revenue Service (SARS) and disallowed almost R17.5 million in VAT input claims.
Budget Speech 2025 – cuts, compromises and curveballs
The shocks, surprises and shortfalls in the initial budget on 19 February 2025 made way for a reworked National Budget. This new budget is marked by cuts, compromises and curveballs. Although Finance Minister Enoch Godongwana’s first budget attempt was unexpectedly stopped three weeks ago, a higher VAT rate is still on the table.
Cutting your tax debt without cutting corners
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.
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.
Trust tax compliance – avoiding SARS penalties
After years of threatening non-compliant trusts with penalties for late tax return submissions, South African Revenue Service's (SARS) leniency seems to be ending.
SARS compliance and enforcement
The South African Revenue Service (SARS) continues to face challenges in collecting receivables and addressing disputes with taxpayers. The SARS Annual Report for 2023/24 highlights intensified efforts in tax debt collection and dispute resolution. SARS is implementing new strategies and refining processes to tackle challenges in enforcing tax compliance.
SARS PAYE compliance – employers must get it right
The South African Revenue Service (SARS) has signalled a stronger focus on Pay-As-You-Earn (PAYE) compliance. Furthermore, SARS PAYE compliance focus is highlighted in its 2023/24 Annual Report. SARS's renewed attention includes a rigorous auditing strategy targeting employers. The aim is to ensure PAYE is accurately held and remitted.
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.
VAT foreign subsidiary anomaly
National Treasury is set to address a critical anomaly in the Value-Added Tax Act, No. 89 of 1991 (VAT Act). This anomaly has significant implications for multinational companies with foreign subsidiaries.
Employment tax incentive amendments
In a significant move to strengthen the integrity of the Employment Tax Incentive (ETI) scheme, the government has proposed amendments to Sections 1(1) and 5(3) of the Employment Tax Incentive Act, No. 26 of 2013. The ETI, introduced in 2013, aims to encourage employers to hire young job seekers by reducing the cost of employment through a government-supported cost-sharing mechanism.
