Tag Archivestax

Case Study: Can the Tax Court Increase Penalties Issued by SARS?

Introduction Once the South African Revenue Services (‘SARS’) issues your business with a penalty relating to your Value Added Tax (‘VAT’) or Corporate Income Tax Returns (‘CIT’), would the Tax Court be able to increase such penalties if they are of the opinion that SARS were too lenient? The recently decided case of Purlish Holdings […]

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So, you owe the taxman?! For how long can you be held liable?

Introduction One of life’s few certainties is the payment of taxes. Bearing that in mind, we should ensure that we never find ourselves in a predicament to have an outstanding account with the taxman in the first place, which of course, is sound advice. In cases of liquidation, we know that the South African Revenue […]

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VAT

When must a Non-Executive Director be VAT registered

On 4 May 2017, SARS made a Binding General Ruling (BGR) that deals with the VAT treatment of the activities conducted by Non-Executive Directors (NEDs) and further clarifies whether those activities fall within the ambit of proviso (iii)(aa) or proviso (iii)(bb) to the definition of “enterprise” in section 1(1) of the Value-Added Tax Act 89 […]

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tax

Withholding tax when dealing with a non-resident seller

Generally speaking, capital gains tax is normally payable on the proceeds of sales of immovable property. However, the enforcement and payment of this have proven problematic, particularly when sales of immovable property concerns non-residents. From the South African Revenue Services’ (“SARS”) perspective; it has been always been extremely problematic to ensure proper and fair compliance […]

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BBBEE

The consequences of donations tax on BBBEE transactions

The South African Revenue Services (SARS) issued a binding private ruling (BPR 253) on 19 October 2016.  A BPR is issued in response to an application and clarifies how the Commissioner would interpret and apply the provisions of the tax laws relating to a specific proposed transaction. In this case, the ruling deals with the […]

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