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 in, has, to the contrary, been extremely disruptive and stress-inducing. For many people, the disruption has come in the form of shifting from the traditional office space to working […]
Exchange gains and losses: Telkom loses court battle
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 fluctuations. Key to the debate was the interpretation of statutes and specifically whether section 24I of the Income Tax Act (which regulates foreign exchange gains and losses) is a self-standing […]
Administrative review of SARS decisions: A Court finding
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 a review application brought by the Applicant in the matter, Medtronic International (“Medtronic”), on the refusal by the South African Revenue Service’s (“SARS”) refusal to reduce certain interests and […]
A single supply of services: Which VAT rate applies?
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 relating to the supply of advertising and promotion (“A&P”) services to various non-South African brand owners in the group. Diageo SA entered into an agreement with the foreign brand […]
Transferring assets from persons to companies
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 person to a company, in exchange for equity shares in that company, allowing for a tax neutral transaction. The South African Revenue Service has recently issued Binding Private Ruling […]
When is Capital Gains Tax not incurred?
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 there are heirs or legatees other than the surviving spouse. In terms of the provision, a deceased person is treated as having disposed of his or her assets at the date of death, for an amount received or accrued equal to […]
Practical considerations in claiming SARS COVID-19 relief
While South Africa is currently in a state of lockdown during which a significant number of businesses have had to cease operations, some relief from a tax perspective has been announced by the government. Tax-compliant businesses with a turnover of less than R50 million will be allowed to defer (importantly, not have waived) 20% of their pay-as-you-earn liabilities over […]
Am I still contractually bound during the pandemic?
The novel Coronavirus, also known as COVID-19, has caused major disruptions worldwide since its outbreak in December 2019 in Wuhan, China. The virus has also recently spread to South Africa and our government has reacted swiftly by introducing a state of emergency and promulgating certain regulations. Restrictions initially only limited the number of people who […]
What happens when my employer goes bankrupt?
In the light of the grave impact that the Coronavirus (COVID-19) has on the global economy and the brutal reality that businesses and companies might not survive this pandemic that the world is confronted with, it may be wise to know your rights if your employment becomes at risk. What happens when the company or […]
Covid-19 SMME SA funding assistance
We are here to help you apply for disaster relief funding. Our firm is ready to assist with all the following applications. Give us a call today so we can give you a quote. There are a range of support measures available that our firm can help you get access to: 1. Funding through the […]