Print Page   |   Report Abuse
News & Press: SARS News & Tax Administration

Interpretation Note 67: connected persons

05 November 2012   (0 Comments)
Posted by: SAIT Technical
Share |

By SARS Legal & Policy

Interpretation Note 67 was published on 1 November 2012.

This Note provides guidance on the interpretation and application of the definition of a "connected person" in section 1 of the Income Tax Act.

The Value-Added Tax Act No. 89 of 1991 contains a definition of the term "connected persons" in section 1(1) of that Act. Apart from the fact that the term is defined in the plural, there are a number of other significant differences between the value-added tax definition and the income tax definition. For example, the value-added tax definition includes the estates of deceased and insolvent persons, a partnership and in specified circumstances a branch or division of a person, while the income tax definition does not. Although the two definitions share some common features, this Note only focuses on the income tax definition and should not be relied on for purposes of interpreting the value-added tax definition.

The Tax Administration Act contains a definition of a "connected person" in section 1 which is cross-referenced to the income tax definition.

Please click here to download Interpretation Note (IN) 67.


WHY REGISTER WITH SAIT?

Section 240A of the Tax Administration Act, 2011 (as amended) requires that all tax practitioners register with a recognized controlling body before 1 July 2013. It is a criminal offense to not register with both a recognized controlling body and SARS.

MINIMUM REQUIREMENTS TO REGISTER

The Act requires that a minimum academic and practical requirments be set to register with a controlling body. Click here for the minimum requirements of SAIT.

Membership Management Software Powered by YourMembership  ::  Legal