SARS issued Binding General Ruling (BGR) 17 on 27 March 2013.
BGR sets out the application of section 50(3) regarding the
cancellation of the registration of a separate enterprise, branch or
division of the main enterprise (hereinafter collectively referred to as
the branch enterprise) and whether such cancellation constitutes a
deemed supply in terms of section 8(2).
cancellation of the registration of the branch enterprise, as
contemplated in section 50(2), will as a result of section 50(3) not
constitute a deemed supply as contemplated in section 8(2). On
cancellation of the registration of the branch enterprise, the activites
of the branch enterprise will be deemed to be carried on by the main
This BGR is effective from 1 April 2013 and is valid for an indefinite period.
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.