SARS issued Interpretation Note 71 on 18 March 2013.
Note provides guidance and clarity on the income tax consequences for
an employee when the employer gives an employee an asset as a long
The Note focuses on the income tax
treatment for an employee when an employer gives the employee an asset
as a long service award. The income tax consequences will be different
if an employer gives an employee a long service award in a form other
than an asset.
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.