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 […]
Scammers posing as SARS officials are on the rise
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 for taxpayers’ information to be abused, subjecting taxpayers to potential financial loss. Scammers thrive on the inherent vulnerability of taxpayers during the tax season and know how to capitalise on the taxpayers’ struggles in dealing with […]
Is SARS wriggling out of its obligations
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 […]
What you need to know about tax and work travel allowance in South Africa during Covid-19
Covid-19 has far-reaching effects for the South African taxpayer and, unbeknown to many, may be silently increasing their tax liability for the 2021 year of assessment. There is a causal link between travel allowances (and the same applies to company vehicles) received by employees in the current tax year, and for which business travel was […]
Here’s what happens if South African expats deregister to avoid tax
Expats who follow shady advice to deregister as taxpayers with the South African Revenue Service (SARS) will suffer in the long run, says Jonty Leon, legal manager at Tax Consulting SA. This follows reports that some tax advisors are directing their expatriate clients to deregister with SARS to avoid paying tax on their non-exempt foreign […]
The cost of defending a tax audit shouldn’t be a low blow!
WHAT IS TAX RISK INSURANCE? Tax risk insurance is simply the most effective protection for you and your business If you are ever selected for an audit by SARS. When you are covered by a tax risk insurance policy, your tax audit problem becomes ours, immediately. Critically for you, the cost of employing top tax […]
SARS eases burden on taxpayers, but there’s a catch
The tax season is swiftly approaching. For many people, it is a time of the year that they dread. When it comes down to it, tax can become a complicated mess that involves a lot of math and calculations that just does not come naturally to most. For those of us who do not have […]
Tax consequences of loan accounts cleared with dividend payments
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 interpret and apply the provisions of the tax laws relating to a specific proposed transaction. BPR 346 determines the income tax and dividends tax consequences […]
SARS’ power to appoint a bank as a collecting agent
In SIP Project Managers (Pty) Ltd v CSARS (29 April 2020), the Gauteng Division of the High Court ruled against SARS on the appointment of a third-party (Standard Bank, in this case) to collect tax debts from taxpayers’ accounts. The matter was an application for declaratory relief against SARS for such an appointment to be set aside […]
Mum’s the word on taxpayer details
In the case of the Commissioner for SARS vs Public Protector (23 March 2020) in the Gauteng High Court, the matter of the confidentiality of taxpayer information came up for consideration. This matter has a protracted history stemming from around November 2018. The Public Protector’s office had been actively seeking the (then) president’s tax records for an […]