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News & Press: Transfer Pricing & International Tax

Gordhan: Top firms side-stepping tax

22 May 2013   (0 Comments)
Posted by: Author: Fin 24 (SAPA)
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Source: Fin 24 (SAPA)

Cape Town - Too many big companies are shifting their profit centres to parts of the world where they can avoid paying tax, Finance Minister Pravin Gordhan said on Tuesday.

He told Parliament's standing committee on finance he had encountered a growing optimism around the world when it came to South Africa and the continent as a whole.

"That optimism is about new resource disoveries. It's about the revenue from those resources being used in a responsible way," Gordhan said.

The "resource boom" was leading to a new fiscal base for many countries to work from.

Multi-national companies were asking Africa to build fiscal capacity.

"At the same time these very businesses are the ones that participate in... tax avoidance, which undermines the fiscus as well."


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.


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.

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