Taxpayers: Know your rights!
Since the introduction of the Tax Administration Act in 2011, which aimed to consolidate most of the administrative matters in tax acts, taxpayers have become ever more aware of their rights in dealing with the South African Revenue Service (SARS). There has also been a significant increase in the number of cases in the Tax […]
How are vouchers being taxed?
On 12 January 2021, the Gauteng High Court delivered judgement in the matter of MTN (Pty) Ltd v CSARS (79960/2019) [2021], in respect of a declaratory order that MTN sought to confirm their interpretation of the VAT treatment of certain airtime vouchers. The VAT Act distinguishes between two types of vouchers – those that can be […]
Ways to grow your business as a sole proprietor
Running a business as a sole proprietor, especially in a highly volatile economy, is a momentous task. You started your business because you believed that, at least to some extent, you could make the world a better place and provide a service/product that would benefit others. Unfortunately, running a business is about more than just […]
VAT on the recovery of employee costs
Companies are often faced with the dilemma where employees are employed in one group entity, but another group entity pays the salaries of those employees. This is often a challenge brought on by practical reasons, amongst others, only managing one payroll system group-wide, instead of a separate payroll system for each company. The payor company […]
Emigrated and selling your house? Beware of withholding taxes
Many South Africans who simultaneously emigrate and cease to be South African tax residents are faced with a situation where the sale of a fixed property has not been finalised by the time they cease to be tax residents. This may result in the unintended consequence of them becoming a non-resident seller of immovable property in South Africa. In terms […]
Tax concerns in the case of subordination accounts
In the current economic climate, it is not uncommon for companies to find themselves going through periods of varying levels of financial distress. These periods of financial distress may be short-term or may be more sustained. As a result, many companies revert to entering into subordination agreements aimed at subordinating their loans in favour of third-party borrowings. A subordination […]
Voluntary disclosure: Positive strides in clearing backlogged cases
Recently there has been a very positive uptick in activity at the Voluntary Disclosure Unit (VDP) of the South African Revenue Service (SARS). While public perception was previously that taxpayer’s matters were not attended to, practitioners have seen a welcome improvement in efficiency, turnaround time, and interaction with the VDP unit. Although SARS aims for a 201-day turnaround time, some recent applications have been settled in as few as 30 days. What […]
Rental Deposits: Preparing for the unforeseen
Rental relationships can put individuals in precarious situations, something that has become all too clear amid the effects of the COVID-19 pandemic. Landlords are, however, aware of the possibility of unforeseen events turning a mutually beneficial arrangement on its head and thus prepare accordingly for these eventualities. This is why rental deposits are a staple of every rental agreement. One of the primary uses of rental deposits […]
When Will You Be Able To Insure Your Tax Position?
In addition to tax liabilities (tax capital amounts), taxpayers are also subject to an array of penalties and interests in respect of late payments, understatements, specific punitive penalties, and compliance-related penalties in terms of various tax Acts, such as the Income Tax Act, and the Value-Added Tax Act. This is often the case when there are uncertain tax positions, where taxpayers had to take […]
Thinking Strategically About Developing a Remote Workforce
Whenever humanity faces a problem as tremendous as a global pandemic, it unequivocally necessitates societal change. In a pandemic, these changes are often tangible as they disrupt the very norms of our daily existence and activities. If necessity really is the mother of invention, we must utilise the time that we have to experiment with these changes in […]