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President Jacob Zuma Signs Bills Into Law

The following Bills were promulgated and signed on 11 January 2017 by President Jacob Zuma:

  • The Taxation Laws Amendment Act;
  • The Tax Administration Laws Amendment Act, 2016;
  • The Rates and Monetary Amounts and Amendment of Revenue Laws (Administration) Act, 2016; and
  • The Rates and Monetary Amounts and Amendment of Revenue Laws Act, 2016.

Several changes have been made to various sections which are now applicable.

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SARS Interpretation Note 92

SARS has released their Interpretation Note 92 (documentary proof prescribed by the Commissioner).

For access to the entire note, please click here

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Supreme Court of Appeal – XO AFRICA SAFARIS CC v C:SARS (395/15) [2016] ZASCA 160

XO AFRICA SAFARIS CC v C:SARS (395/15) [2016] ZASCA 160: Supreme Court of Appeal case dealing with whether the supply of services are to be standard rated or zero rated in terms of section 11(2)(l) of the VAT Act, following services being supplied to a non-resident of South Africa but being supplied directly to other persons who were present in South Africa at the time that the services were rendered.”

For access to the entire case, please click here.

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Supreme Court of Appeal: CSARS V Morula Platinum Mines

A Supreme Court of appeal case was ruled between CSARS and Morula Platinum Mines which determines whether certain mined ore should be included in trading stock or be classified as mining operations in terms of the deductibility of the costs thereof.

For access to the entire case, please click here.

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Guide: SVDP Version 1.2

A draft guide on the special voluntary disclosure program was issued and deals with the time frame as well as the relief offered to taxpayers on international un-declared assets.

For access to the entire guide, please click here.

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Donations Tax and Capital Gains Tax Consequences of the Part Waiver of a Loan and Reduction of the Interest Rate

Binding Private Ruling 252 was issued and determines the donations tax and capital gains tax consequences of the waiver of part of a loan to an employee share trust and the reduction of the interest rate on the remaining balance of the loan to 0%.

For access to the entire ruling, please click here.

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Recent Ruling of Masango v RAF

The recent ruling of Masango v RAF deals with the Contingency Fee Act and how to charge VAT on fees for services rendered.

For access to the entire ruling, please click here.

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Tax Court Case No: IT 13164

The recent Tax Court case 13164 gives clarity on the applicability of section 103(2) of the Income Tax Act to assessed losses carried forward.

For access to the entire case, please click here.

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Launch of Special Voluntary Disclosure Programme (SVDP)

National Treasury released the following media statement on the special VDP for offshore assets.

For access to the entire media statement, please click here.

SARS have also updated the guide for special VDP, please click here to access the guide.

Interestingly, the last version of the bill that proposed to include to the special VDP required a 50% inclusion of the highest market value of the offshore assets prior to 2015. Both the SARS guide and the National Treasury Media release refers to a 40% inclusion rate. In addition, the current version of the bill that seeks to introduce the special VDP into law states that the window period for applications will be 1 October 2016 to 31 March 2017, while the SARS guide indicates that the window period will be 1 October 2016 to 31 June 2017.

While the functionality for the special VDP is available  on e-filing, the law is not yet in place to back it up. These are uncertain times and taxpayers would be well advised to proceed with caution.

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Draft Taxation Laws Amendment Bill, 2016: (second batch) Revisions and Additions for Public Comment

Notable revisions include:

  • Changes to section 7C (trusts and loan accounts) to remove the deemed interest imputation for loans to trust and replacing same with a deemed donation provision and removing the R100 000 annual donations tax exclusion prohibition.
  • Extension of the Employment Tax Incentive to 28 February 2019;
  • Dividends on restricted equity instrument will no longer all be deemed remuneration. The proviso to the income tax exemption for dividends will however still apply in limited circumstances.

For access to the entire revision, please click here.