Throughout the world revenue administrations are grappling with falling revenues from income tax, consumer taxes and trade taxes.

Acting Commissioner Mr. Oupa Magashula, this week said that during tough economic times there is an added temptation for taxpayers to delay or evade their tax obligations which puts pressure on the revenue gap that exists in any tax system.

Mr. Magashula stressed that tax morality is the cornerstone of any nation’s developmental agenda and is a fundamental responsibility of each and every participant in an economy, adding that SARS remain encouraged that the vast majority of individuals, businesses and traders continue to be compliant and contribute positively to the development of our country.

We support the Commissioner’s view that tax evasion is a crime with victims – honest taxpayers who pay their fair share of tax.

During this filing season, tax practitioners and taxpayers should be mindful of our nation’s broader developmental agenda and ensure that we all pay our fair share of tax!

Yours truly,
Stiaan Klue
Chief Executive

It often occurs that an employee is given a lump sum or is paid a monthly salary which must be refunded if an employee does not continue to work for his employer. When such payments are made, they are generally taxable in full. However ...

Companies who failed to submit their PAYE reconciliation for the 28 February 2009 year end resulted in SARS raising a general penalty on the PAYE account. Taxpayers may not receive notifications of this and therefore penalties and interest are accruing without their knowledge.

The prescribed rate of interest is the rate of interest payable by or to taxpayers to or by SARS. The term "prescribed rate" is defined as follows in s 1 of the Income Tax Act ...

The global economic crisis and recent tax evasion scandals have spurred calls for fairness and transparency of the tax system. Removing practices that facilitate tax evasion is part of a broader drive to clean up one of the more controversial sides of a globalised economy.

Using taxation to fund the government's national health plan was "only a possibility", the department of health said on Monday.

The Kimberley Tax Court (see ITC 1835, reported in Vol 71 Part 3 of the South African Tax Cases Reports) recently had to consider whether a debt owed to a deceased estate had been discharged for no consideration and hence subject to capital gains tax on the value of such claim in terms of para 12(5) of the Eighth Schedule to the Income Tax Act 58 of 1962.

Electricity generated by solar panels on the shoulders of freeways and hikes in fuel tax should fund new infrastructure, Joe Mahoney, a professor at the University of Washington, said yesterday.

Electricity generated by solar panels on the shoulders of freeways and hikes in fuel tax should fund new infrastructure, Joe Mahoney, a professor at the University of Washington, said yesterday.

This case dealt with the question whether a High Court has the right to consider the validity of a Bill - before the proposed legislation has come into operation - were reported in the material under review. This case dealt with the particular aspect of the principle of separation of powers between the Minister of Finance and Parliament.

The infamous relationship between Schabir Shaik and Jacob Zuma has added yet another 32 pages to the South African Law Reports. The Supreme Court of Appeal’s decision, which was handed down on 12 January 2009, in which Nicholson J’s decision (reported under the citation of Zuma v National Director of Public Prosecutions [2009] 1 All SA 54 (N) was appealed against by the National Prosecuting Authority, has now been reported: See National Director of Public Prosecutions v Zuma 2009 (2) SA 279 (SCA).

In Mose NO v Minister of Education, Western Cape and Others 2009 (2) SA 408 (C) the applicant’s son, one LM, was initially suspended from school and, was expelled after a disciplinary hearing. The problem stemmed from the learner’s history of selling dagga (the drug, cannabis) to fellow learners and on one occasion, smoking and selling the drug in a public park next to the school while he was in school uniform.

Tax practitioners can report operational and system issues by completing the Tax Practitioners' Issues List. The Institute represent practitioners on the SARS National Stakeholders meetings where operational and system issues are discussed.

SAIT is proud to announce the development of a mobi site for members to view latest news, register for events and do online payments. The main purpose of the facility is to allow members to read latest tax news and register for CPD events on mobile phones.

Following protracted discussions with National Treasury and SARS, stakeholders (SAIT, SAICA, LSSA, SAIPA and the Banking Association) proposed an alternative to the current provisional tax regime to National Treasury on 10 July. It should be noted that the proposal is subject to Ministerial approval.

Tax practitioners can report operational and system issues by completing the Tax Practitioners' Issues List. The Institute represent practitioners on the SARS National Stakeholders meetings where operational and system issues are discussed.

This ruling deals with the tax implications for a resident relating to a single premium whole-of-life insurance policy issued by a registered offshore long-term insurer, more specifically, whether an amount will be regarded as having been received by or accrued to or in favour of a policyholder during the existence of the policy and whether the termination of the policy, either as a result of surrender or maturity, will result in a disposal in the hands of the policyholder for capital gains tax purposes.

SARS released new guides to assist taxpayers and practitioners with the 2009 filing season.

2009 filing season commenced on 1 July 2009 with many taxpayers filing electronically. SARS has published an issues list on the Practitioners’ portal regarding Filing Season 2009.

SARS Acting Commissioner, Mr Oupa Magashula, on 6 July issued an open letter to tax practitioners on the 2009 filing season. Mr Magashula acknowledged tax practitioner's role in growing eFiling users to more than two million returns in only two years.

SARS issued a newsletter to tax practitioners on 6 July, notifying tax practitioners that IRP 6 returns for taxpayers not registered for eFiling were issued on 19 and 21 June 2009.

The G8 leaders this week welcomed the progress made in promoting tax information exchange and transparency across the globe, which is helping to widen the acceptance of internationally agreed standards on the exchange of tax information and increase the number of bilateral agreements signed by several jurisdictions.

The computation of non linear impulse response functions suggests that the system’s history, as well as the sign and magnitude of shocks, affect the current account’s responses to exogenous changes in income, government consumption and investment.

Brazil, like other natural resource exporting countries, has benefited from a sharp increase in commodity prices over the last few years.

Luxembourg has signed a protocol to its double taxation convention with Norway, bringing to 12 the number of agreements it has on exchange of information for tax purposes and thus crossing the threshold for being considered to have substantially implemented the internationally agreed standard in this area.