When SARS Says ‘No’, They Must Tell You Why
Taxpayers have the right to obtain reasons for decisions by SARS. When I was about three years old, my mother admonished me not to play with matches, and like the precocious brat I was, I demanded to know “why”. Many a parent, faced with similar demands from their offspring, would be tempted to exert parental […]
Expenses must be intended to produce taxable income
Expenses must be intended to produce taxable income To successfully deduct an expense, there must be a link to earning taxable income. Section 11(a) of the Income Tax Act, the so-called ‘general deduction formula’, seems to have produced more court cases than virtually any other Section of the Act. And each time, the courts tell […]
Mastering record keeping: How to meet SARS’s electronic documentation standards
Mastering record keeping: How to meet SARS’s electronic documentation standards Too often, taxpayers seem to forget that the most important aspect of dealing with SARS is to ensure that they can discharge their burden of proof. As a taxpayer, it is on you to provide SARS with the relevant material that, on a balance of […]
Trust SARS and the Master
Trust SARS and the Master It should never be said that our government does not have a fine sense of timing. Three days before Christmas, when most of us were wondering if we applied the appropriate factor sunscreen, our government promulgated the amendments to the Trust Property Control Act (further “TPCA”). On 31 March 2023 […]
Flying towards a tax saving: Double Tax Agreement, or financial emigration?
Flying towards a tax saving: Double Tax Agreement, or financial emigration? Having visited over 12 international locations in 2022, and engaging with South African expatriates, we can attest to a recent report issued by the United Nations, which found that around 900 000 South Africans are already living and working overseas and indeed, this may […]
Non-dependent medical expenses
Non-dependent medical expenses Can you claim medical expenses for someone not a member of your medical scheme? You can, but there are many boxes to tick. Medical scheme membership is normally offered to individuals and their immediate dependents, who would usually be their spouses and children under 18 (unless they are in full-time education, in […]
Testamentary trusts still have their place
Testamentary trusts still have their place How you can protect your assets from predators—including SARS. Trusts have received a lot of bad press over the past few years, what with SARS taking a dim view of the use of trusts as a means of avoiding tax. A 2008 case involving a property trust, where […]
Beware the ‘Ides of SARS’ – Telephonic audits are on the rise
Beware the ‘Ides of SARS’ – Telephonic audits are on the rise “A soothsayer bids you beware the ides of March”. These famous Shakespearean words forewarning the misfortune of Roman emperor Julius Caesar (which Caesar ultimately ignored and led to his demise) may not be as archaic as appears at first sight—especially in the […]
Is your disclosure “voluntary”?
Is your disclosure “voluntary”? In December 2021, the Supreme Court of Appeal (SCA) handed down a judgment dismissing an appeal against a decision of the Tax Court. The issue before the SCA was whether the South African Revenue Services (SARS) was correct in rejecting Purveyors South Africa Mine Services (Pty) Ltd’s (Purveyors) Voluntary Disclosure […]
Will you be receiving a VAT invoice this year?
All value-added tax (VAT) vendors that have gone through a VAT verification from the South African Revenue Service know how frustrating the delays on input VAT refunds can be when supporting documents do not meet the requirements for a valid tax invoice. Below, we revisit some of the necessary key elements to ensure proper compliance in this regard. The […]