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Grant received for further study 3 J. Bosman I have read through this section quite a few times and looked through google search but cannot seem to find a definite answer on the following: If a company employees Maggie (Directors daughter-in-law). She earns R 150k per annum. She has three children who are in Grades 1, 4 and 7. Schooling is R 15k per child per annum. The company gives a bursary/scholorship with no repayments, of R 10k for each child per annum, Can the company 1. Deduct the R 30k for the year under scholarships and bursaries, and therefore reduce their tax liability? Can Maggie in effect, have received R 180k, but only have been taxed on R 150k. Would you even need to specify this on her IRP5, or must the company documentation just be in place eg School Invoice?  
by D. Pinn
24 August 2016
Sars absorbing credits on customers accounts 3 L. Vasapolli My view is that they may not raise assessments as they please.That is why you need to familiarize yourself with SARS Dispute Resolution Guide referred to above.You might refer to Paragraph 5.1 page 31 for example,which provides guidance re reasons for adverse assessments.Anyway hope all goes well for you.
by M. White
26 July 2016
Retirement Annuity Arrear Payments 1 C. Sitotombe RA arrears :1800pa is correct.Deduction requirements: When the contributions are made under conditions prescribed in the rules of the fund in terms of which a member who had discontinued his contributions prematurely is entitled to be re-instated as a full member  of the fund and the current contributions to the fund have been paid in full.(up to 2016 year of assessment).S11(n)(i)(bb). Also refer paragraph 8.2.3 entitled Arrear RAF Contributions of SARS Comprehensive Guide to the ITR 12  for Individuals version 10. Suggest you check with Retirement expert.too.
by M. White
15 April 2016
Efiling - Taxpayer Drop Down Selection 0 Y. Mohamed I have recently logged onto efiling and found out that the taxpayer drop down block is no longer available. You have to click on the name and search for a taxpayer. This is such an inconvenience and you now can lose track of your list of clients  Anyone else notice this or is my profile unique? Thanks
by Y. Mohamed
09 February 2016
Grant received for further study 0 J. Bosman Hi All   A client of mine (a medical doctor) has received a grant for an amount of R800 000 from an institution to do his PhD at Wits in a specific field. I think that this falls under exempt income and is the same as a scholarship or bursary. It specifically states that it is a "grant". He is currently in process of resigning his current position and will start full time study within the next two months.   Am I correct in my thinking?
by J. Bosman
27 January 2016
Provisional Tax 2016/01 underestimate 2 C. Sitotombe Thank you for your answer, appreciate it.
by C. Sitotombe
13 October 2015
SBC qualificationI 3 L. Nel Louwrens ,I see what you are saying. For this reason one needs to read what section 12E (4) (d) defines as personal services.The relevant parts of the definition one are set out below.“Personal services” in relation to a company..., means any service in the field of accounting...health...,,if –(i)...; and(ii) that company...does not employ three or more full- time employees(other than any employee who is the holder of a share in the company ...,or is a connected person in relation to a holder of a share in the company...) ,who are on a full-time basis engaged in the business of that company, ... of rendering that service.”Applying the definition to the incorporated practice, in my view means that as a business the company will among other things engage full -time employees such as office staff(includes receptionist) ,to enable it render its services. What do you think?
by M. White
08 August 2015
Donations 3 S. Kieck (Agenbag) Thank you Mr. White. Much appreciated :)
by S. Kieck (Agenbag)
10 July 2015
VAT AUDITS 1 Y. Mohamed Section 45 of the Vat Act provides that SARS has 21 business days not 21 days to make a vat refund, subject for example , to the taxpayer providing relevant information if refund audited, all his Vat returns are up to date (including income tax returns ,Employees Tax returns etc).So provided the taxpayer has met SARS’ requirements (as indicated above) in terms of Vat Act and Tax Administration Acts, the taxpayer is entitled to be paid interest after the 21 business days have elapsed. The important issue is that adequate and complete records are kept to support returns submitted and that a detailed record of a particular taxpayer’s dealings with SARS regarding any audits undertaken is kept and retained. The taxpayer is entitled to have his refund finalised timeously,failing which matter can be escalated to structures within SARS branches, SSMO and Tax Ombud.SAIT has SARS escalation lists on its website and SARS does have information on its website relating to Vat refunds and complaint procedures. Hope the above helps.
by M. White
18 June 2015
DIESEL / BIODIESEL REFUND 1 B. Jansen van Vuuren Try contacting Legal & Policy SARS at : LAPDCommunication@sars.gov.za You can try and contact Ms.Lita Spreeth(not sure if she still is at SARS HO) on 012 4224908. Good Luck.
by M. White
26 May 2015
VAT input claim FORD transit custom2.2tdci 1 d. maartens Short answer : yes .Broader answer assumes it is not a motor car as defined in the Vat Act(it is not a vehicle constructed wholly or mainly for carrying passengers). Secondly provided the goods (the vehicle -Ford Transit) are used by the vendor wholly in course of making taxable supplies the vat incurred qualifies as input tax & may be claimed as a deduction under section 16(3) (a) of the Act. If not used wholly for taxable supply purposes then apportionment would of vat would have to be applied.Default method for apportionment is turnover based method unless vendor has obtained approval from Commissioner to use alternative method.Hope this helps.
by M. White
15 May 2015
Grants from Setas 3 M. Phalane Sorry if I am being a tad dense, but any income received by any organisation that does training (the corporation trains staff per contracts with various SETA), is exempt from VAT? Or is this the training done with the money received from SDL refunds?
by D. Gray (Peacock)
10 March 2015
Declining a tax type request due to outstanding fees 2 T. Coetzee Thank you for your reply, but would you please be so kind and post a link to the web page, I cant find it. Thank you in advance
by T. Coetzee
02 March 2015
Relevant Material Required to Authenticate New eFiling Profile 0 C. Ackermann Relevant Material Required to Authenticate New eFiling Profile. Are other deceased estate practitioners experiencing difficulties in registering deceased taxpayers on eFiling for the first time? I am finding that SARS are declining registrations. Even when visiting SARS offices they seem unable to upload the documents required and linking this to the case number that is on e-filing notwitstanding my request that they do so. I come away with a different case number. How do I explain to SARS that they MUST give me the same case reference number when they upload the documents that I submit.  
by C. Ackermann
02 March 2015
IRP6 forms 0 A. Colling Albeit that SARS advocates it being so easy to obtain an IRP6 form, especially requesting it from Efiling, in reality it is much more involved. I applied for an IRP6 on Monday, via Efiling for an existing client who became a provisional taxpayer at the end of 2014. It is now two days later and still the provisional status (having requested it under Organisation and tax types) still shows: to be verified. I received an email from SARS yesterday warning me to log onto Efiling and attend to a notification pertaining to the taxpayer. However, nothing was posted on Efiling. After 3 telephone calls to the SARS call centre I was eventually informed that SARS requires the client to first come along to a SARS branch to update his banking details!! This despite the 2014 return having been submitted last year AND the taxpayer receiving a refund from SARS in November 2014 into the same bank account. I do wish SAIT could take this up with SARS. Surely the banking details have nothing to do with issuing an IRP6.  I hate to think what would happen if one had to request an IRPS, say on Thursday 26 February 2015. One would definitely miss the deadline!     
by A. Colling
11 February 2015
Credit Push Payments 4 L. Maguire (Raats) Well its a year later and I still have issues with this system. My Absa and Nedbank clients couldn't release their VAT last week as there was nothing to release. Same problem with a Standard client today trying to release PAYE.The Debit Pull system was soooooo much better. I'm now reverting to one-off payments or EFTs - which never get matched up correctly :(     
by K. Hopton (Crawford)
06 October 2014
2014 Returns for Individuals 1 J. McLeod We have had exactly the same situation with supporting documents this year. To date supporting documents have been requested for 76% of 2014 returns submitted. We've also had 4 retired individuals for which SARS requested ONLY  proof of accounting fees paid !
by A. Colling
01 October 2014
ITR12 returns 0 A. Colling Albeit that taxpayers earning below R 250 000 (only one IRP5, with no other deductions) do not have to submit an ITR12, SARS continues to show past returns as outstanding on efiling. In fact this is an ongoing problem and was the case when the amount was R 120 000 as well. SARS will in fact not honour a refund in a particular year should previous years returns show outstanding, despite the taxpayer qualifying under the so-called R 250 000 rule for said prior years. Is it possible for SAIT to take this up with SARS please.
by A. Colling
15 July 2014
VAT on purchases prio VAT REGISTRATION 2 T. Zuma Section 18(4) of the Vat Act provides that an input tax adjustment may be claimed on goods /services applied for taxable purposes which were previously applied for non taxable purposes.The input tax adjustment amount is calculated by applying the tax fraction(14/114) to the lesser of adjusted cost or open market value of the goods. The input tax adjustment which is deductible under S16(3)(f) of the Act may be claimed in the tax period that the application of the goods takes place . Documentary Requirements: refer Table C item E of I/Note 49(issue 2) issued by SARS.Section 18(4) of the Vat Act provides that an input tax adjustment may be claimed on goods /services applied for taxable purposes which were previously applied for non taxable purposes.The input tax adjustment amount is calculated by applying the tax fraction(14/114) to the lesser of adjusted cost or open market value of the goods. The input tax adjustment which is deductible under S16(3)(f) of the Act may be claimed in the tax period that the application of the goods takes place . Documentary Requirements: refer Table C item E of I/Note 49(issue 2) issued by SARS.The input tax should be deducted under the adjustments field of the Vat 201 return.
by M. White
04 July 2014
Singe registration- VAT registration 0 M. Bredell so. I've submitted two VAT applications via the single Registration process on e-filing, and both received a letter under: Risk Validation: Interview and Rejection (Enterprise), requesting relevant material (which is almost all the docs one would submit with a manual registration). So my question is: what is the use of the registration process on e-filing, if we have to go into a SARS branch anyways and presenting the documentation? What triggers these 'Risk Validations'?Martin
by M. Bredell
25 June 2014

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