In terms of section 234 of the Tax Administration Act (2011), certain acts or omissions constitute a criminal offence which will be, upon conviction, subject to a fine or imprisonment not exceeding two years. Where a criminal offence has been committed, who will be held responsible where the taxpayer is a company?
SARS recently issued Interpretation Note No. 47 (Issue 4) – Wear-and-tear or Depreciation Allowance (“SARS IN47”). SARS IN47 provides guidance on the application and interpretation of the provisions of section 11(e) of the Income Tax Act, and applies to assets brought into use on / after 24 March 2020.
Financial emigration is incorrectly perceived as a solution to trigger a change in a person’s South African tax residency status to that of a non-resident. However, financial emigration may not necessarily produce the desired outcome.
The Disaster Management Tax Relief Bill No. 11 (2020) proposed amendments to the provisions of the Employment Tax Incentive Act No. 26 (2013), entitling qualifying employers to claim additional ETI amounts for the period 1 April 2020 – 31 July 2020. The last opportunity to claim any additional ETI amounts is in the August 2020 EMP201.
Corporates have been required to implement a number of measures in response to the COVID-19 lockdown regulations. Some corporates continue to allow their employees to work from home on a full-time or ad hoc basis, in order to ensure proper social distancing at the workplace. Employees working from home, may need to incur additional expenditure to enable them to continue with their work duties. What are the tax implications for employees that are required or allowed to work from home?
On 23 April 2020, National Treasury released a media statement with respect to further tax measures introduced to combat the COVID-19 pandemic. On 1 May 2020, National Treasury also released the Draft COVID-19 Tax Bills that have been updated to reflect the relief measures requiring legislative amendments. One of the measures announced by National Treasury, was to allow larger businesses to apply to SARS on a case-by-case basis to defer tax payments without incurring penalties, where such businesses can show that they are incapable of making tax payments due to the COVID-19 pandemic. Larger businesses are those businesses with a gross income of more than R100 million (previously R50 million). Following this announcement, SARS has now provided guidance on the process to be followed and the requirements that should be met to apply for the waiving of penalties for tax debt.
On 1 April 2020, National Treasury released the COVID-19 Draft Tax Bills, including the Draft Explanatory Memorandum. The objective of these Bills is to attempt to manage the severe impact of the COVID-19 measures that have been implemented, by granting certain tax concessions. No tax concessions were proposed with respect to the deferral of payment of value-added tax. While tax concessions regarding the deferral of payment of PAYE and provisional tax were proposed, these concessions focus on small or medium sized businesses (i.e. businesses with an annual turnover equal to or less than R50 million). For more information on these concessions, please refer to the Draft Explanatory Memorandum. What are the practical implications of the COVID-19 tax measures for large businesses (i.e. businesses with turnover exceeding R50 million)?
Last week, SARS announced the implementation of measures to ensure the safety of all of its employees and clients. It is expected that these measures will be tightened as a result of President Cyril Ramaphosa’s announcement of a nationwide lockdown in light of the COVID-19 pandemic. Want to know more about the SARS measures and the measures announced by President Ramaphosa?
There is a direct interface between the CIPC and SARS. While convenient, this can result in non-compliance from a tax perspective.
Of late, it is our experience that there is an increase in the severity of understatement penalties imposed by SARS. How can taxpayers safeguard against the imposition of severe penalties?