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Diesel rebate: fishing permits rented from fishing rights holders

10 March 2014   (0 Comments)
Posted by: Author: SAIT Technical
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Author: SAIT Technical

The answer to this query is based on legislation as at 2014/03/10.

Q: My client has a subsidiary company with a fishing vessel. They rent fishing permits from fishing rights holders. SARS has audited the company in June 2013 and rejected the diesel rebate because the act states that you can only claim a diesel rebate if your fishing permit is issued in the name of the permit holder. 

A: "Eligible purchases are only applicable in respect of fishing vessels -(A) which are owned or chartered by a legal person registered in the Republic in accordance with the laws of the Republic and which has its place of effective management in the Republic, or by a natural person who is ordinarily resident in the Republic;(B) which are registered or licensed in terms of the Merchant Shipping Act, 1951 (Act No. 57 of 1951);(C) that are nominated on a valid commercial fishing permit issued by the Department of Agriculture, Forestry and Fisheries in terms of the Marine Living Resources Act. 1998 (Act No. 18 of 1998);(D) which are used in fishing activities carried on with the aim of making a profit; and (E) if used in an engine for the propulsion of, or operating of any equipment used on board, of such fishing vessels"

It is my understanding that SARS is correct in their application. You may however consider par (C) and investigate as to what a nomination for such a permit may entail for purposes of the Department of Agriculture, Forestry and Fisheries.


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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