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What do Apple, Google and Starbucks have in common?

03 June 2013   (0 Comments)
Posted by: Author: Ingé Lamprecht
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Author: Ingé Lamprecht (MoneywebTax)

What do Apple, Google and Starbucks have in common?

The US? Right. Adored by many South Africans? Right again.

Moreover, these companies have all recently been under fire for not "paying their fair share" of taxes, especially in the UK. Yet they have all emphasised that they are following the tax laws to the letter.

The issue here is base erosion and profit shifting (BEPS). The OECD Centre for Tax Policy and Administration's website explains that this "refers to tax planning strategies that exploit loopholes in tax rules to make profits disappear for tax purposes or to shift profits to locations where there is little or no real activity but where they are lightly taxed, resulting in little or no overall corporate tax being paid."

The centre stresses that while BEPS is legal in most cases, it is relevant because it distorts competition, may lead to an inefficient distribution of resources and raises questions about fairness.

To read the full article, please follow the link here.


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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