A NEW STANDARD FOR CRIMINALITY REGARDING TAX MATTERS PROPOSED
In June of 2020, tax practitioners and legal advisors were confronted with proposed new legislation regarding certain actions (or defaults) by taxpayers that would have constituted criminal acts. Currently, the Income Tax Act, Value-Added Tax Act, and the Tax Administration Act criminalises certain behaviours if those offences are committed “wilfully and without just cause”. This test, however, presents somewhat of a contradiction […]
SMART ACCOUNTING: ARE YOU VAT COMPLIANT?
The last several years have seen an increase in “smart accounting systems” that have online capabilities and that can integrate with various other business solutions. These smart accounting systems have revolutionised traditional accounting, and there can be no question that many businesses run a more organised and financially sound operation as a result of the […]
INSURING YOUR TAX OBLIGATIONS
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 […]
MATERIALITY IN THE CASE OF VAT RETURNS
Section 45 of the Value-Added Tax Act makes provision for the payment of interest on delayed VAT refunds. In terms of section 45(1) of the Act, the South African Revenue Service (“SARS”) must, within 21 business days after the date on which the vendor’s return in respect of a tax period is received, refund the vendor. This is provided that […]