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November 9, 2021

LEARNING FROM SPUR GROUP IN THE STRUCTURE OF EMPLOYEE SHARE SCHEMES

In October 2021, the Supreme Court of Appeal (SCA) handed down judgment upholding the Commissioner for the South African Revenue Service’s appeal against an earlier decision […]
November 9, 2021

WHO QUALIFIES FOR A SPECIAL TRUST AND HOW IS IT TAXED?

Unlike “conventional trusts” that are taxed at a flat tax rate, a special trust is taxed on the same sliding scale applicable to natural persons. The […]
November 9, 2021

YOUR BUSINESS CAN GROW & FLOURISH BY GOING GREEN

As the risks of climate change become more intense and prevalent in today’s world, businesses are feeling the pressure to adapt and rethink their business models, […]
October 8, 2021

ANOMALIES IN FRINGE BENEFITS REGARDING RETIREMENT FUNDS ADDRESSED

With effect from 1 March 2016, and in terms of paragraph 2(l) of the Seventh Schedule to the Income Tax Act, all employer contributions to a retirement fund on […]
October 8, 2021

CAN SARS CORRECT MY ASSESSMENT?

A taxpayer who is aggrieved by an assessment or decision of SARS against that taxpayer has the right to dispute that assessment or decision. If an […]
October 8, 2021

HOW TO FUTURE-PROOF YOUR BUSINESS BEFORE THE NEXT CRISIS

While the possibility of a global pandemic was always at the back of our minds, its emergence still managed to catch us off-guard and wreaked havoc […]
September 7, 2021

TRAIN YOUR STAFF TO PROTECT AGAINST CYBERATTACKS

Since the POPI Act was introduced, many businesses have taken the time and effort to implement a POPI strategy that complies with the Act’s basic requirements. But for […]
September 7, 2021

BALANCING YOUR BUSINESS’S LOSSES AND TAXES

In line with the 2020 Budget Announcement, Government proposes to broaden the corporate income tax base by restricting the offset of the balance of assessed losses […]
September 7, 2021

CAN MY EMPLOYEES RESIGN WITHOUT NOTICE?

Employees often consider to immediately terminate their employment relationship due to a new opportunity arising or to avoid responsibility when faced with disciplinary procedures. Employment relationships are governed by an […]
August 19, 2021

HOME OFFICE EXPENSES: DO I QUALIFY?

Tax practitioners have been inundated with queries from clients on the possible relief offered by the South African Revenue Service (“SARS”) on the possibility of deducting […]
August 19, 2021

GROSS VS NET PROFIT: WHY NUMBERS ARE DECEIVING

In the world of business, your earnings can make a large difference between getting investors to invest in your business and being completely overlooked. Many business […]
August 19, 2021

HOW DOES THE POPI ACT AFFECT CREDIT BUREAUS?

When it comes to the protection of personal information, there are two acts that govern businesses and those working with such information. The Protection of Privacy […]
June 7, 2021

HOW THE VAT ACT AFFECTS EMPLOYEE COST RECOVERIES

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 […]
June 7, 2021

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 […]
June 7, 2021

TRADING STOCK, CAPITAL ASSETS AND TAX CONSIDERATIONS

The Income Tax Act contains various provisions in terms of which transactions can occur between specified parties without adverse tax consequences being incurred in respect of those […]
June 4, 2021

WHO SHOULD I ASSIGN AS INFORMATION OFFICER TO COMPLY WITH POPI?

When, in the early 1990s, the personal computer was becoming popular in South Africa, people were slowly but surely starting to migrate physical activity to a […]
June 4, 2021

IS A VOUCHER STILL THE PERFECT GIFT?

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 […]
June 4, 2021

THE TAX LEGISLATIVE AMENDMENT CYCLE

With the Budget Address by Finance Minister Tito Mboweni having passed, it is useful to consider how the proposed tax amendments raised during the Budget Speech […]
May 7, 2021

TEST YOUR KNOWLEDGE ON CYBERSECURITY

How well are you equipped for handling cyber threats to your business? Take the quiz below to test your knowledge on cybersecurity. You just received an […]
May 7, 2021

WHY THE POPI ACT MATTERS

The right to privacy is enshrined in Section 14 of South Africa’s Constitution and we understand it to be a vital human right. It states: “Everyone has […]
May 7, 2021

BE WARY OF ZERO OR LOW-INTEREST LOANS

The in duplum rule originated from the South African common law and has been applied through South African case law for over 100 years. The rule aims to protect […]
May 7, 2021

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 […]
April 7, 2021

IT’S HUNTING SEASON! ARE YOU READY?

As the traditional winter hunting season approaches and South African borders are (somewhat) more open after the stricter COVID-19 lockdown, it is important revisit the Value-Added Tax (VAT) impact […]
April 7, 2021

SELF-INVOICING FOR VAT PURPOSES

As a result of the specific nature of goods, it is common practice that certain recipients of goods and services “self-invoice” when they receive goods or […]
April 7, 2021

TAX ODDITIES AND VAT FRUSTRATIONS

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 […]
April 7, 2021

REFUND OF SIGNING PAYMENTS TO AN EMPLOYER

It often happens that a person may receive remuneration and other similar amounts (for services rendered or to be rendered, or by virtue of employment or […]
March 15, 2021

BUDGET 2021: CORPORATE TAX AMENDMENTS

Finance Minister Tito Mboweni delivered his third annual budget address on 24 February 2021. The corporate tax rate reduction from 28% to 27% for years of assessment commencing on or after […]
March 15, 2021

AUDITING YOUR TAX COMPLIANCE PROFILE

Taxpayers who make use of the South African Revenue Service’s (SARS) electronic filing system (or as it is generally known, eFiling) will know that, in addition to containing a history […]
March 15, 2021

BUDGET 2021: INDIVIDUALS AND SAVINGS

Finance Minister Tito Mboweni delivered his third annual budget address on 24 February 2021. Below we highlight some of the significant proposals, which will likely be contained in the Draft […]
March 15, 2021

MAYDAY, MAYDAY! ARE YOU EQUIPPED FOR A WORKPLACE EMERGENCY?

It is a thing of human psychology to be aware of the potential danger in our surroundings, which makes it very easy for us to keep […]
February 10, 2021

USUFRUCTS AND THE TAX CONSEQUENCES THEREOF

A usufruct is a limited real right in property. The usufruct construct takes the form of a common-law personal servitude, which, as a limited real right, […]
February 10, 2021

MANAGERIAL ACCOUNTING: HOW CAN MANAGERS USE ACCOUNTING INFORMATION TO MAKE BETTER DECISIONS?

As a manager of an organisation, there is a great responsibility for decision making. The question lies in how a manager can utilise accounting information to […]
February 10, 2021

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 […]
February 10, 2021

LOCKDOWN TIPS: SIMPLE STEPS TO TAKE CONTROL OF YOUR FINANCES

The COVID-19 pandemic has spread across the globe and left economic destruction in its path. Now, more than ever, it is of utmost importance to take […]
December 15, 2020

THE POPIA IS IN EFFECT: WHAT THIS MEANS FOR YOU

Data is everywhere. In fact, because of the nifty autosave setting on the word processer used for writing this sentence, new information is being added to […]
December 15, 2020

WHAT ARE THE TAX CONSEQUENCES FOR WAIVED DEBT?

Many natural persons or trust shareholders in companies are confronted with the unintended tax consequences of owing an amount on a loan account to the company in which they […]
December 15, 2020

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 […]
December 15, 2020

WILL REMOTE WORK EVEN REMOTELY WORK IN THE LONG RUN?

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 […]
November 9, 2020

THE WHO, WHERE, WHY, WHAT, HOW, AND WHEN OF THE POPI ACT

Since the POPI Act came into effect on the 1st of July 2020, many businesses have had to rethink the way that they use and store information […]
November 9, 2020

EMIGRATING WHILE RETAINING YOUR PROPERTY?

The exodus of South Africans to foreign jurisdictions has been well publicised, and due to this, much has been written about the so-called “exit tax” that applies when one ceases […]
November 9, 2020

5 PROFESSIONAL NETWORKING TIPS DURING THE CORONAVIRUS PANDEMIC

The importance of networking – especially during COVID-19 – should not be overlooked. While many business owners have been struggling to stay afloat in the economic downturn that has resulted […]
November 9, 2020

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 […]
September 30, 2020

AN URGE TO REPATRIATE FOREIGN DIVIDENDS

In 2001, South Africa, like many other countries, introduced capital gains tax aimed at levying capital gains tax on the gain made from the disposal of […]
September 30, 2020

THE UNFORTUNATE TIMING OF BGR55 FOR DEVELOPERS

In terms of the Tax Administration Act, the South African Revenue Service (“SARS”) can issue Binding General Rulings (“BGR”) on matters of general interest or importance and clarifies the […]
September 30, 2020

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 […]
September 30, 2020

FAIR BURSARIES: THE KEY TO TAX EXEMPTION

Over the past several years, many employers and employees have made use of the beneficial tax treatment of bursary and scholarship schemes, as provided for in […]
September 7, 2020

BEWARE OF SCAMS DURING FILING SEASON

In late August 2020, a large credit bureau in South Africa was the target of a data breach where millions of private individual and company data records were compromised. This data leakage, coupled with the tax filing season, makes for the perfect opportunity […]
September 7, 2020

TAX DISPUTES: SUSPENSION OF PAYMENT

With the 2020 tax filing season in full swing, many taxpayers are likely to engage in dispute proceedings as their income tax assessments are issued by SARS. This will particularly be the case […]
September 7, 2020

DISPUTE SEASON – KNOW TO WHAT YOU ARE OBJECTING

With the 2020 tax filing season in full swing, many taxpayers will likely engage in dispute proceedings as SARS issues their income tax assessments. This will particularly be […]
September 7, 2020

HOW TO REDUCE THE RISK OF EMPLOYEE BURNOUT FROM A MANAGEMENT PERSPECTIVE

There’s a wonderful thing about the way that our minds and bodies function to keep us healthy. Throughout our nervous systems, our bodies are constantly processing information and […]
August 13, 2020

TAX OBLIGATIONS WHILE INCARCERATED

Decisions of South Africa’s courts are an essential source of law. The courts uphold and enforce the Constitution and develop common law that is consistent with […]
August 13, 2020

CLEARING LOAN ACCOUNTS THROUGH DIVIDENDS

In terms of the Tax Administration Act, the South African Revenue Service (“SARS”) can issue, in response to an application, Binding Private Rulings (“BPR”) and clarifies how the Commissioner would […]
August 13, 2020

SARS HELPING BUSINESSES LESSEN THE TAX LOAD

The last few months have been extremely tough for small business owners as a result of the global COVID-19 pandemic, and various lockdown measures that have created a challenging trading […]
August 13, 2020

HOW TO GET OVER THE TAX HEADACHE THIS YEAR

The tax season is swiftly approaching. For many people, it’s a time of the year that they dread. When it comes down to it, tax can […]
July 8, 2020

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 […]
July 8, 2020

EXPORT REGULATIONS BINDING GENERAL RULING

Interpretation Note 30 (“IN 30”) by the South African Revenue Service (“SARS”) explains the requirements that need to be adhered to and prescribes the documentary proof, […]
July 8, 2020

CHOOSING THE BEST BASE OF OPERATIONS

When businesses expand, they often look beyond national borders. With such an expansion, there are several added advantages for establishing a holding company, which then owns […]
July 8, 2020

DOUBLING DOWN ON INCOME TAXES

The purpose of double tax agreements (“DTA” or “treaty”) between the tax administrations of two countries is to enable the administrations to eliminate double taxation, where […]
June 2, 2020

CONFIDENTIALITY OF TAXPAYER INFORMATION: THE COURT DECIDES

Decisions of South Africa’s courts are an essential source of law. The courts uphold and enforce the Constitution and develop common law that is consistent with […]
June 2, 2020

UNDERSTANDING LIQUIDATIONS AND TAX DEDUCTIONS

Decisions of South Africa’s courts are an essential source of law. The courts uphold and enforce the Constitution and develop common law that is consistent with […]
June 2, 2020

ARE TAX STATUTES UP FOR INTERPRETATION?

Decisions of South Africa’s courts are an essential source of law. The courts uphold and enforce the Constitution and develop common law that is consistent with […]
June 2, 2020

SARS’ POWER TO APPOINT A BANK AS A COLLECTING AGENT

Decisions of South Africa’s courts are an essential source of law. The courts uphold and enforce the Constitution and develop common law that is consistent with […]
April 30, 2020

TELKOM’S INSENSIBLE GAINS AND LOSSES

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 […]
April 30, 2020

REVIEWING THE RECORD OF REVIEW

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 […]
April 30, 2020

VAT CONCERNS FOR INTERNATIONAL SERVICE PROVIDERS

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 […]
April 30, 2020

TAX LAW FOR EMPLOYER-PROVIDED TRANSPORT SERVICES

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 […]
April 22, 2020

CAPITAL GAINS TAX ON DEATH

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 […]
April 22, 2020

TAX RELIEF AMID COVID-19

On 21st April 2020 President Ramaphosa announced additional measures to assist employers to provide financial stability to their employees. One of these measures includes a 35% […]
April 22, 2020

RE-ALLOCATION OF SURPLUS RETIREMENT FUND ASSETS

Binding Class Rulings (BCR) are issued in response to applications by a specific class of taxpayers (usually persons that will have the same tax consequences apply […]
April 22, 2020

THE GIVE AND TAKE OF SHARE TRANSFERS

Many business transactions are concluded in terms of section 42 of the Income Tax Act. The section essentially allows a transfer of an asset by a […]
March 6, 2020

HOW WILL EXPAT TAX AFFECT YOU?

One of the most important announcements made by Finance Minister Tito Mboweni in his 2020 Budget Speech is the tax exemption threshold on “expat tax” that is being raised to R1.25 million as of 1 […]
February 26, 2020

GET ORGANISED BY PUTTING THESE ESSENTIAL DOCUMENTS IN PLACE

If you can believe it, we are already at the end of January. With all the beginning-of-year struggles and excitement, there is something to keep in […]
February 26, 2020

TAX RETURNS UNDER OATH

In terms of section 99 of the Tax Administration Act, 28 of 2011, an assessment may not be made three years after the date of an […]
February 26, 2020

MANAGEMENT OF TAX DEBT

With the tax filing season for individuals now closed, taxpayers may find themselves with tax debt that is due. This may be due to administrative penalties […]
February 26, 2020

LIQUIDATION DISTRIBUTION

The South African Revenue Service (“SARS”) issued Binding Private Ruling 336 on 6 December 2019. In terms of this ruling, a listed resident company (“the Company”) […]
January 31, 2020

DIESEL REFUND SCHEME MISINTERPRETATIONS

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 […]
January 31, 2020

AMALGAMATIONS: WHAT IS ALLOWED?

Corporate transactions are a way of everyday life. Asset acquisitions, company acquisitions, mergers, and asset for share transactions are far the more common than one may […]
January 31, 2020

FUTURE EXPENDITURE ON CONTRACTS

Section 24C of the Income Tax Act[1] (hereinafter referred to as “the Act”) allows a deduction, from income, received by or accrued to a taxpayer in terms […]
January 31, 2020

2020 TAX YEAR RECAP

As the 2020 tax year draws to a close, we reflect on some of the significant highlights (and lowlights) during the year. Significant judgments Our courts […]
January 15, 2020

THE WORKINGS OF A SHARE INCENTIVE SCHEMES

Binding Class Ruling 069 was issued on 23 October 2019 and relates to the tax implications that arise in respect of proposed employee share schemes (“the […]
January 15, 2020

DEDUCTIBLE OR NOT DEDUCTIBLE?

On 15 November 2019, the Cape Town Tax Court handed down judgement in ITC24614. It is yet another judgement concerned with the distinction between expenses of […]
January 15, 2020

PITFALLS OF VCC STRUCTURES

Recently, much emphasis has been placed on the ever-growing Venture Capital Company (“VCC”) regime, particularly on the tax benefits for investors, in terms of which they […]
January 15, 2020

IS YOUR HEAD UP IN THE CLOUDS?

Accounting has moved from pen and paper to the cloud, monthly payments can be done through online banking apps, and big purchases like houses and other […]
October 8, 2019

TRANSFER DUTY: VALUATION CONSIDERATIONS

Section 2(1) of the Transfer Duty Act[1] imposes transfer duty on the value of any property acquired by any person by way of a transaction, or […]
October 8, 2019

CAPITAL GAINS TAX – WHEN DOES IT COME INTO PLAY?

The distinction between amounts received of a capital nature as opposed to a revenue (or income) nature is essential for income tax purposes. Non-capital amounts received, […]
October 8, 2019

RESEARCH IS AT THE HEART OF REWARDS

Investing in a business is a daunting decision. Whether you are investing in a new or established enterprise, there will always be risk involved. The best […]
October 8, 2019

HOW TO QUALIFY AS A PUBLIC BENEFIT ORGANISATION

Non-profit organisations can apply for approval as a “public benefit organisation” (“PBO”) in terms of section 30(3) of the Income Tax Act[1] in order to qualify […]
September 25, 2019

DEDUCTION FOR HOME OFFICE EXPENDITURE

More and more employers are allowing salaried employees to work from home to avoid wasting productive hours while commuting. Such employees may claim a home office […]
September 25, 2019

SHARE INCENTIVES – THE FINER DETAILS

Companies, particularly listed companies, offer employees so-called share options (also referred to as share incentive schemes or employee share ownership plans (ESOPs)) as a form of […]
September 25, 2019

THE DIFFERENT VAT SUPPLIES

There are a few instances where VAT is not charged at the standard rate of 15%. In the following newsletter, we distinguish between the different supplies […]
September 25, 2019

WHAT ARE BITCOINS?

Bitcoin, Ether and Litecoin. These are some of the most prominent cryptocurrencies on the market today. Bitcoin is by far the best-known cryptocurrency due to the […]
August 12, 2019

AUDIT CERTIFICATES: WHAT YOU NEED TO KNOW?

The South African Revenue Service (“SARS”) issued Interpretation Note 112 on 21 June 2019 to provide guidance on the interpretation and application of the audit certificate […]
August 12, 2019

WHAT YOU WANT TO KNOW ABOUT PAYROLL ADMINISTRATION

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 […]
August 12, 2019

2019 TAX LEGISLATIVE AMENDMENT

The 2019 tax legislation amendment cycle commenced on 25 June, when National Treasury issued the initial batch of the Draft Taxation Laws Amendment Bill which covers […]
August 12, 2019

SOUTH AFRICAN RESERVE BANK PROCEDURES

The South African Reserve Bank (“SARB”) is the central bank of the Republic of South Africa and the primary purpose is to achieve and maintain price […]
June 27, 2019

SARS ON MANAGING PAYROLL TAXES

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 […]
June 27, 2019

TAX ON THE SALE OF SHARES

The distinction between amounts of a capital nature as opposed to a revenue (or income) nature is essential, and over the years, few other topics have […]
June 27, 2019

SECTION 7C: WHAT IS IT ALL ABOUT?

Section 7C of the Income Tax Act, No 58 of 1962 (the Act), was enacted effective 1 March 2017 and serves as an anti-avoidance measure aimed […]
June 27, 2019

SOUTH AFRICAN RESERVE BANK PROCEDURES

The South African Reserve Bank (“SARB”) is the central bank of the Republic of South Africa and the primary purpose is to achieve and maintain price […]

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