The new SARS solar energy tax credit
The tax credit for individuals installing solar panels is here, for a limited time only. The proposed new law regarding the tax credit available to individuals who install solar panels has been announced. The system will be introduced in the form of a tax credit, as opposed to a tax deduction. This is good news, […]
SARS verifications, audits – When, why and what to do
Being selected for an audit and being selected for verification are two different processes. Verification: Once you have submitted your return, it could be selected for verification. A verification involves a comparison of the information per your return against the financial records and other supporting documents to ensure that the information completed on the return is correct. […]
Arbitrary practices by SARS when issuing assessments
The Tax Administration Act provides for the audit and verification of taxpayers’ tax returns for all taxes administered by the Commissioner for the South African Revenue Service (SARS). In many instances, such requests for information are general, boiler-plate letters received by taxpayers, not indicating specifically what additional information SARS requires in the circumstances and which supporting […]
Do you fall within the “Connected Persons” definition?
On 28 January 2020, SARS released interpretation note 67 providing guidance on the term “connected persons” in section 1(1) of the Income Tax Act. The interpretation note itself is voluminous but worthy of a short discussion as one may fall within this definition without knowing. The definition allows for the following scenarios to be regarded […]
Diesel usage clarification
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 may, therefore, apply for registration with the Diesel Refund Scheme, provided the enterprise is registered for VAT. In terms of section 75(1C)(a)(iii) of the Customs and Excise Act 91 of […]
Your payroll administration questions answered
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 we have a detailed answer for you on these burning questions you are facing. We hope that you find them insightful. Question: At what stage is an employer required […]
SARS changes to employer statement of account
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 their own accounts by way of a number of functions and tools. SARS states that the aim of these changes is to allow employers to ensure that all their […]
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 a few do’s and don’ts regarding VAT. Valid tax invoices In South Africa’s current tax system, vendors that are registered for VAT are allowed a deduction for the tax […]
Transitional rules for interest payable by SARS
The South African income tax system is not cash-based. This means that a person can effectively be taxed on amounts that they have not yet received in cash, but that merely accrued to them within a year of assessment. Cash is also not a requirement to trigger tax – any “amount” that a person receives […]