Latest News

September 30, 2020

AN URGE TO REPATRIATE FOREIGN DIVIDENDS

In 2001, South Africa, like many other countries, introduced capital gains tax aimed at levying capital gains tax on the gain made from the disposal of […]
September 30, 2020

THE UNFORTUNATE TIMING OF BGR55 FOR DEVELOPERS

In terms of the Tax Administration Act, the South African Revenue Service (“SARS”) can issue Binding General Rulings (“BGR”) on matters of general interest or importance and clarifies the […]
September 30, 2020

MATERIALITY IN THE CASE OF VAT RETURNS

Section 45 of the Value-Added Tax Act makes provision for the payment of interest on delayed VAT refunds. In terms of section 45(1) of the Act, the South African […]
September 30, 2020

FAIR BURSARIES: THE KEY TO TAX EXEMPTION

Over the past several years, many employers and employees have made use of the beneficial tax treatment of bursary and scholarship schemes, as provided for in […]
September 7, 2020

BEWARE OF SCAMS DURING FILING SEASON

In late August 2020, a large credit bureau in South Africa was the target of a data breach where millions of private individual and company data records were compromised. This data leakage, coupled with the tax filing season, makes for the perfect opportunity […]
September 7, 2020

TAX DISPUTES: SUSPENSION OF PAYMENT

With the 2020 tax filing season in full swing, many taxpayers are likely to engage in dispute proceedings as their income tax assessments are issued by SARS. This will particularly be the case […]
September 7, 2020

DISPUTE SEASON – KNOW TO WHAT YOU ARE OBJECTING

With the 2020 tax filing season in full swing, many taxpayers will likely engage in dispute proceedings as SARS issues their income tax assessments. This will particularly be […]
September 7, 2020

HOW TO REDUCE THE RISK OF EMPLOYEE BURNOUT FROM A MANAGEMENT PERSPECTIVE

There’s a wonderful thing about the way that our minds and bodies function to keep us healthy. Throughout our nervous systems, our bodies are constantly processing information and […]
August 13, 2020

TAX OBLIGATIONS WHILE INCARCERATED

Decisions of South Africa’s courts are an essential source of law. The courts uphold and enforce the Constitution and develop common law that is consistent with […]
August 13, 2020

CLEARING LOAN ACCOUNTS THROUGH DIVIDENDS

In terms of the Tax Administration Act, the South African Revenue Service (“SARS”) can issue, in response to an application, Binding Private Rulings (“BPR”) and clarifies how the Commissioner would […]
August 13, 2020

SARS HELPING BUSINESSES LESSEN THE TAX LOAD

The last few months have been extremely tough for small business owners as a result of the global COVID-19 pandemic, and various lockdown measures that have created a challenging trading […]
August 13, 2020

HOW TO GET OVER THE TAX HEADACHE THIS YEAR

The tax season is swiftly approaching. For many people, it’s a time of the year that they dread. When it comes down to it, tax can […]
July 8, 2020

DOES YOUR HOME OFFICE QUALIFY YOU FOR A TAX DEDUCTION?

As the old adage goes, change is as good as a holiday. But the way that the novel coronavirus has shaken up the world we live […]
July 8, 2020

EXPORT REGULATIONS BINDING GENERAL RULING

Interpretation Note 30 (“IN 30”) by the South African Revenue Service (“SARS”) explains the requirements that need to be adhered to and prescribes the documentary proof, […]
July 8, 2020

CHOOSING THE BEST BASE OF OPERATIONS

When businesses expand, they often look beyond national borders. With such an expansion, there are several added advantages for establishing a holding company, which then owns […]
July 8, 2020

DOUBLING DOWN ON INCOME TAXES

The purpose of double tax agreements (“DTA” or “treaty”) between the tax administrations of two countries is to enable the administrations to eliminate double taxation, where […]
June 2, 2020

CONFIDENTIALITY OF TAXPAYER INFORMATION: THE COURT DECIDES

Decisions of South Africa’s courts are an essential source of law. The courts uphold and enforce the Constitution and develop common law that is consistent with […]
June 2, 2020

UNDERSTANDING LIQUIDATIONS AND TAX DEDUCTIONS

Decisions of South Africa’s courts are an essential source of law. The courts uphold and enforce the Constitution and develop common law that is consistent with […]
June 2, 2020

ARE TAX STATUTES UP FOR INTERPRETATION?

Decisions of South Africa’s courts are an essential source of law. The courts uphold and enforce the Constitution and develop common law that is consistent with […]
June 2, 2020

SARS’ POWER TO APPOINT A BANK AS A COLLECTING AGENT

Decisions of South Africa’s courts are an essential source of law. The courts uphold and enforce the Constitution and develop common law that is consistent with […]
April 30, 2020

TELKOM’S INSENSIBLE GAINS AND LOSSES

The Supreme Court of Appeal (“SCA”) delivered judgement on 25 March 2020 in a matter that primarily deals with gains or losses caused by foreign exchange […]
April 30, 2020

REVIEWING THE RECORD OF REVIEW

In a judgment delivered on 17 February 2020, the Gauteng High Court dealt with a matter regarding a “record of review”, and its relevance relating to […]
April 30, 2020

VAT CONCERNS FOR INTERNATIONAL SERVICE PROVIDERS

On 3 April 2020, the Supreme Court of Appeal delivered a judgement against Diageo South Africa (Pty) Ltd (“Diageo SA”) in a value-added tax (“VAT”) matter […]
April 30, 2020

TAX LAW FOR EMPLOYER-PROVIDED TRANSPORT SERVICES

Many business transactions are concluded in terms of section 42 of the Income Tax Act. This section essentially allows a transfer of an asset by a […]
April 22, 2020

CAPITAL GAINS TAX ON DEATH

Section 9HA of the Income Tax Act deals with deemed disposals by a deceased person. This section of the Act often causes some confusion, especially where […]
April 22, 2020

TAX RELIEF AMID COVID-19

On 21st April 2020 President Ramaphosa announced additional measures to assist employers to provide financial stability to their employees. One of these measures includes a 35% […]
April 22, 2020

RE-ALLOCATION OF SURPLUS RETIREMENT FUND ASSETS

Binding Class Rulings (BCR) are issued in response to applications by a specific class of taxpayers (usually persons that will have the same tax consequences apply […]
April 22, 2020

THE GIVE AND TAKE OF SHARE TRANSFERS

Many business transactions are concluded in terms of section 42 of the Income Tax Act. The section essentially allows a transfer of an asset by a […]
March 6, 2020

HOW WILL EXPAT TAX AFFECT YOU?

One of the most important announcements made by Finance Minister Tito Mboweni in his 2020 Budget Speech is the tax exemption threshold on “expat tax” that is being raised to R1.25 million as of 1 […]
February 26, 2020

GET ORGANISED BY PUTTING THESE ESSENTIAL DOCUMENTS IN PLACE

If you can believe it, we are already at the end of January. With all the beginning-of-year struggles and excitement, there is something to keep in […]
February 26, 2020

TAX RETURNS UNDER OATH

In terms of section 99 of the Tax Administration Act, 28 of 2011, an assessment may not be made three years after the date of an […]
February 26, 2020

MANAGEMENT OF TAX DEBT

With the tax filing season for individuals now closed, taxpayers may find themselves with tax debt that is due. This may be due to administrative penalties […]
February 26, 2020

LIQUIDATION DISTRIBUTION

The South African Revenue Service (“SARS”) issued Binding Private Ruling 336 on 6 December 2019. In terms of this ruling, a listed resident company (“the Company”) […]
January 31, 2020

DIESEL REFUND SCHEME MISINTERPRETATIONS

Farming is a qualifying activity under the Diesel Refund Scheme. Most farming enterprises will qualify to be registered for the Diesel Refund Scheme. The person carrying on the farming enterprise […]
January 31, 2020

AMALGAMATIONS: WHAT IS ALLOWED?

Corporate transactions are a way of everyday life. Asset acquisitions, company acquisitions, mergers, and asset for share transactions are far the more common than one may […]
January 31, 2020

FUTURE EXPENDITURE ON CONTRACTS

Section 24C of the Income Tax Act[1] (hereinafter referred to as “the Act”) allows a deduction, from income, received by or accrued to a taxpayer in terms […]
January 31, 2020

2020 TAX YEAR RECAP

As the 2020 tax year draws to a close, we reflect on some of the significant highlights (and lowlights) during the year. Significant judgments Our courts […]
January 15, 2020

THE WORKINGS OF A SHARE INCENTIVE SCHEMES

Binding Class Ruling 069 was issued on 23 October 2019 and relates to the tax implications that arise in respect of proposed employee share schemes (“the […]
January 15, 2020

DEDUCTIBLE OR NOT DEDUCTIBLE?

On 15 November 2019, the Cape Town Tax Court handed down judgement in ITC24614. It is yet another judgement concerned with the distinction between expenses of […]
January 15, 2020

PITFALLS OF VCC STRUCTURES

Recently, much emphasis has been placed on the ever-growing Venture Capital Company (“VCC”) regime, particularly on the tax benefits for investors, in terms of which they […]
January 15, 2020

IS YOUR HEAD UP IN THE CLOUDS?

Accounting has moved from pen and paper to the cloud, monthly payments can be done through online banking apps, and big purchases like houses and other […]
October 8, 2019

TRANSFER DUTY: VALUATION CONSIDERATIONS

Section 2(1) of the Transfer Duty Act[1] imposes transfer duty on the value of any property acquired by any person by way of a transaction, or […]
October 8, 2019

CAPITAL GAINS TAX – WHEN DOES IT COME INTO PLAY?

The distinction between amounts received of a capital nature as opposed to a revenue (or income) nature is essential for income tax purposes. Non-capital amounts received, […]
October 8, 2019

RESEARCH IS AT THE HEART OF REWARDS

Investing in a business is a daunting decision. Whether you are investing in a new or established enterprise, there will always be risk involved. The best […]
October 8, 2019

HOW TO QUALIFY AS A PUBLIC BENEFIT ORGANISATION

Non-profit organisations can apply for approval as a “public benefit organisation” (“PBO”) in terms of section 30(3) of the Income Tax Act[1] in order to qualify […]
September 25, 2019

DEDUCTION FOR HOME OFFICE EXPENDITURE

More and more employers are allowing salaried employees to work from home to avoid wasting productive hours while commuting. Such employees may claim a home office […]
September 25, 2019

SHARE INCENTIVES – THE FINER DETAILS

Companies, particularly listed companies, offer employees so-called share options (also referred to as share incentive schemes or employee share ownership plans (ESOPs)) as a form of […]
September 25, 2019

THE DIFFERENT VAT SUPPLIES

There are a few instances where VAT is not charged at the standard rate of 15%. In the following newsletter, we distinguish between the different supplies […]
September 25, 2019

WHAT ARE BITCOINS?

Bitcoin, Ether and Litecoin. These are some of the most prominent cryptocurrencies on the market today. Bitcoin is by far the best-known cryptocurrency due to the […]
August 12, 2019

AUDIT CERTIFICATES: WHAT YOU NEED TO KNOW?

The South African Revenue Service (“SARS”) issued Interpretation Note 112 on 21 June 2019 to provide guidance on the interpretation and application of the audit certificate […]
August 12, 2019

WHAT YOU WANT TO KNOW ABOUT PAYROLL ADMINISTRATION

As payroll administrators ourselves, we encounter a few frequently asked questions that employers, business owners or those responsible for payroll administration within organisations struggle with. Below […]
August 12, 2019

2019 TAX LEGISLATIVE AMENDMENT

The 2019 tax legislation amendment cycle commenced on 25 June, when National Treasury issued the initial batch of the Draft Taxation Laws Amendment Bill which covers […]
August 12, 2019

SOUTH AFRICAN RESERVE BANK PROCEDURES

The South African Reserve Bank (“SARB”) is the central bank of the Republic of South Africa and the primary purpose is to achieve and maintain price […]
June 27, 2019

SARS ON MANAGING PAYROLL TAXES

The South African Revenue Service (“SARS”) has recently made changes with regards to the management of payroll taxes in order for employers to more effectively manage […]
June 27, 2019

TAX ON THE SALE OF SHARES

The distinction between amounts of a capital nature as opposed to a revenue (or income) nature is essential, and over the years, few other topics have […]
June 27, 2019

SECTION 7C: WHAT IS IT ALL ABOUT?

Section 7C of the Income Tax Act, No 58 of 1962 (the Act), was enacted effective 1 March 2017 and serves as an anti-avoidance measure aimed […]
June 27, 2019

SOUTH AFRICAN RESERVE BANK PROCEDURES

The South African Reserve Bank (“SARB”) is the central bank of the Republic of South Africa and the primary purpose is to achieve and maintain price […]
May 23, 2019

RENDERING OF TRANSPORT SERVICES BY EMPLOYERS

Paragraph 2(e) of the Seventh Schedule to the Income Tax Act[1] deems an employer to grant a taxable benefit to an employee if any service has, […]
May 22, 2019

Value-added Remarks on Value-added Tax (VAT)

VAT is an integral part of our economic society and is something that influences everyone, especially businesses in South Africa.  In this article, we will discuss […]
May 22, 2019

IFRS vs IFRS for SMEs

The majority of financial statements in South Africa are arguably compiled by implementing the International Financial Reporting Standards for Small and Medium-sized Entities (IFRS for SMEs) […]
May 22, 2019

VAT Regulations dealing with the supply of electronic services

Since 2015, foreign suppliers of electronic services (such as audio-visual content, e-books etc.) in South Africa are deemed to operate an enterprise for VAT locally. Although […]
April 17, 2019

DEPRECIATION VS WEAR & TEAR

Deterioration, obsolescence and wear and tear are among the reasons why assets decrease in value. By realising a deduction on depreciation for tax purposes, your company […]
April 17, 2019

SARS SCAMS

Education and awareness around identity theft, phishing and other frauds have become part of life globally. If nothing else, scamsters are innovative and keep trying new […]
April 17, 2019

TAXPAYERS’ RIGHT TO HAVE DISPUTES RESOLVED

In a recent Tax Court decision[1], the Tax Court confirmed that taxpayers have a right to have their disputes resolved in a court of law as […]
April 16, 2019

RING-FENCING OF ASSESSED LOSSES OF CERTAIN TRADES – PART I

Persons are generally allowed to set off any losses incurred in respect of one trade against the income derived from another trade, thereby reducing their overall […]
February 19, 2019

WHEN TO MAKE USE OF THE SMALL CLAIMS COURT

This article discusses claims making use of the Small Claims Court. It specifies what the benefits are of approaching the Small Claims Court and who would […]
February 19, 2019

FORM REQUIREMENTS FOR OBJECTIONS

Dispute resolution with the South African Revenue Service (SARS) generally has a two-pronged approach. Firstly, taxpayers must present their case on the merits – this will […]
February 19, 2019

S129 NOTICE TO THE CONSUMER AND “DELIVERY”

A consumer who enters into a valid credit agreement with a credit provider, is obliged to pay in respect of the terms of the credit agreement. […]
February 19, 2019

NON-RESIDENT SELLERS OF IMMOVABLE PROPERTY

Section 35A of the Income Tax Act[1] came into effect on 1 September 2007 and sets out the capital gains tax consequences of the sale of […]
February 14, 2019

Merger announcement

The Executive Teams of 1.2.3. Consulting, Brincon, Wolfe-Coote and Xstream Accounting are delighted to announce the merger of our firms. The merger is an exciting growth […]
January 23, 2019

THE PUBLIC AUDIT AMENDMENT ACT: GROUNDBREAKING FOR SOUTH AFRICA IF PROPERLY IMPLEMENTED

Introduction On 21 November 2018, the 2017/2018 consolidated national and provincial audit outcomes report was released, which indicated a discouraging fourth consecutive year of regressive compliance […]
January 23, 2019

CIT RETURNS AND PENALTIES

In general, all registered companies must submit corporate income tax (“CIT”) returns within 12 months of the end of the company’s financial year-end. This is applicable […]
January 23, 2019

SIMULATION

In addition to specific anti-avoidance provisions and the general anti-avoidance provisions (GAAR) in the Income Tax Act,[1] the South African Revenue Service can apply another established […]
January 23, 2019

HELPFUL TAX RESOURCES

South African taxes are inherently complex and often involve interpretation, consulting and in exceptional cases, a fair amount of educated guessing on exactly what the legislature […]
January 17, 2019

Avoid Interest and Penalties, submit your Provisional Tax Return

The February financial year-end is in sight and natural persons registered for provisional tax and all companies whose year-end falls in February 2019, must pay the […]
November 26, 2018

MANAGEMENT’S RESPONSIBILITY

Throughout the audit of a set of financial statements, the phrase “management/director’s responsibility” appears. It is included in the engagement letter, the financial statements and the […]
November 23, 2018

SARS INTEREST ON PROVISIONAL TAX

As with various other business transactions, taxes in their various forms also attract interest, either payable by the taxpayer to SARS, or due to the taxpayer […]
November 23, 2018

ADDITIONAL CHANGES TO INCOME TAX RETURNS FOR TRUSTS

The South African Revenue Service (“SARS”) implemented several changes to the income tax returns for trusts (the ITR12T) on 17 September 2018. These changes are in […]
November 23, 2018

BAD DEBTS AND VAT

While there is currently a focus on the income tax considerations of bad and doubtful debts (given that National Treasury has proposed changes to section 11(j) […]
October 24, 2018

RATING FORMULA FOR FARMING INCOME

The Income Tax Act[1] provides for a natural person who derives income from farming operations to elect (within three months after a year of assessment) to […]
October 24, 2018

CORRECTION OF TAX INVOICES

Since it is illegal to issue more than one tax invoice per taxable supply, and another tax invoice may not be issued to alter any consideration […]
October 24, 2018

TAX ON RETIREMENT LUMP SUMS

Determining the tax consequences in respect of any lump sum benefits from retirement funds can be complex and various legislative changes have been incorporated over the […]
October 24, 2018

SPECIAL TRUSTS

The Income Tax Act[1] includes specific provisions for “special trusts”. These trusts are taxed on the same sliding scale applicable to natural persons, which could be […]
October 16, 2018

TAX DEADLINES – 31 OCTOBER 2018

Non-Provisional Individuals: For all non-provisional taxpayers, filing season for the period 1 March 2017 – 28 February 2018, closes on 31 October 2018. Tips for filing […]
October 3, 2018

BELINDA MCKENNA CFP®

PROFILE: Belinda has over 15 years’ experience in Human Resources and Employee Benefits. She is passionate about making a difference in people’s lives and being an […]
September 19, 2018

THE PREPARATION OF FINANCIAL STATEMENTS

The Companies Act of South Africa (the Act) requires all companies to prepare financial statements within 6 months after the end of its financial year. A […]
September 19, 2018

CHANGES TO BAD DEBT ALLOWANCE

Most South African businesses are at some point in time exposed to credit risk in the form of bad debts. Although taxpayers would undoubtedly prefer to […]
September 19, 2018

VALUATION OF PREFERENCE SHARES

In income tax, the question of valuation of shares often causes a great deal of uncertainty, especially where shares are not traded on a recognised exchange. […]
September 19, 2018

CAPITAL GAINS TAX AND THE ANNUAL EXCLUSION

With the 2018 tax-filing season for individuals in full swing, it is worthwhile looking at a common misconception regarding the determination of capital gains tax for […]
September 17, 2018

BEE, Y.E.S. INITIATIVE

Say Y.E.S To empowering South African youth On the 28th August 2018 The Department of Trade and Industry (DTI) finalised and gazetted the Youth Employment Service (Y.E.S.) […]
August 23, 2018

TAX ALLOWANCES AGAINST ASSETS USED FOR PURPOSES OF TRADE

The Income Tax Act[1] allows for various income tax allowances to be claimed in respect of moveable assets used for purposes of a taxpayer’s trade. Most […]
August 23, 2018

DEBT REDUCTION RULES: NEW TAXPAYER FRIENDLY AMENDMENTS EXPECTED

The South African Income Tax Act contains a number of rules which give rise to onerous tax consequences where a taxpayer’s debts owing is forgiven. These […]
August 23, 2018

THE TAX COURT REVIEWS THE DEDUCTIBILITY OF GENERAL BUSINESS EXPENSES

The recent Cape Town Tax Court judgment of S G Taxpayer v The Commissioner for the South African Revenue Service,[1] delivered on 9 May 2018, re-affirmed […]
August 23, 2018

BUYING OUT SHAREHOLDERS

We are often approached by clients to advise on the most tax efficient manner in which a shareholder can sell an investment in a private company. […]
July 24, 2018

WHAT SHOULD YOU CONSIDER WHEN INVESTING IN A BUSINESS

You have worked hard for many years, and have finally saved enough funds and mustered the courage to take the big leap that you have been […]
July 24, 2018

EMPLOYEES’ TAX (PART I): PERSONAL SERVICE PROVIDERS

For there to be an obligation for PAYE to be withheld is typically dependent on three elements being present. These elements are all defined in the […]
July 24, 2018

CUSTOMS FOR INDIVIDUALS TRAVELLING ABROAD AND RETURNING TO SOUTH AFRICA

The South African Revenue Service (SARS) recently published a media release to clarify the confusion about the customs requirements for South African travellers returning from abroad […]
July 24, 2018

DEDUCTIBILITY OF INTEREST FOR NON-TRADING INDIVIDUALS

SARS Practice Note 31.2 (PN31.2) provides for a person to be able to deduct interest paid, even where that person is not a moneylender or doesn’t […]
June 27, 2018

IFRS 15 – REVENUE FROM CONTRACTS WITH CUSTOMERS

IFRS 15 recently became effective for financial periods beginning on or after 1 January 2018. IFRS 15 is only applicable to entities that have implemented International […]

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