SARS issued a Draft Interpretation Note on the deductibility of expenditure and losses arising from embezzlement or theft of money for public comment which can be found here.
The Note provides guidance on:
•the deductibility of expenditure and losses incurred in a taxpayer’s trade as a result of the embezzlement or theft of money, including expenditure incurred on legal and forensic services to investigate such losses; and
•the taxation of stolen money in the hands of the thief.
SAIT will be making a submission to SARS. Kindly provide your comments by email to firstname.lastname@example.org by no later than 28 May 2013.
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.