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Latest News

Caution needed about the hype around ‘pervasive profit shifting’

pervasive profit shifting

A recent study on the role of large foreign multinational companies in shifting profits from South Africa to ‘tax havens’ has been welcomed, but also criticised. According to the research done on behalf of the Southern African – Towards Inclusive Economic Development (SA-TIED) programme, tax haven-owned firms are 80% less profitable than their non-haven-owned counterparts….

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SA tax penalties on companies

Tax Penalties

On 14 December 2018, the public notice that allows the South African Revenue Service (“SARS”) to impose penalties on companies for not submitting income tax returns was gazette. This is a new addition to the legion of penalties already faced by companies and permits the imposition of a monthly penalty on a company ranging from…

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New e-services regulations: widening invisible VAT net

e-services regulations

In response to the ever-increasing world of e-commerce and cross-border digital trade, South Africa introduced legislation with effect from 1 June 2014 which requires foreign suppliers of e-services to register as value added tax (VAT) vendors. The National Treasury stated at the time that the amendment did not impose a new tax, but merely shifted…

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VAT on commercial and residential accommodation: Lodging, leasing or renting?

Rental Agreements

The Value-Added Tax Act, No 89 of 1991 (VAT Act) contemplates the supply of two types of residential accommodation, ie the supply of commercial accommodation and dwellings. The distinction between commercial accommodation and a dwelling is essential, because the supply of commercial accommodation is subject to VAT at the standard rate, whereas the letting and…

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SARS penalties for outstanding corporate tax returns to kick in soon

The SA Revenue Service (SARS) said on Thursday that it will soon impose administrative non-compliance penalties for outstanding corporate income tax (CIT) returns. Administrative non-compliance penalties will be imposed on companies that fail to submit an income tax return, as required under the Income Tax Act, for years of assessment ending during the 2009 and…

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D-day for individual tax returns looms

Tax return 2018

The last day to file individual tax returns without being penalised is Wednesday October 31 2018. The SA Revenue Service has appealed to SA taxpayers to submit their returns at branches or via eFiling before the cutoff date, or face administrative penalties ranging from R200 to R15 000. Due to a likely last-minute rush which…

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Has Sars disallowed your medical expense claim?

Medical Benefits

Tax practitioners have been caught by surprise after the South African Revenue Service (Sars) disallowed medical expense claims due to failure to submit the correct supporting documents. Wessie van der Westhuizen, partner at Willems & Van der Westhuizen, explains that medical tax certificates usually distinguish between contributions paid during the tax year and “claims not…

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