In May 2007 SARS embarked on a journey to transform the income tax process from a complex, paper-based and labour-intensive process to a simplified, automated and electronic one. The motivation behind this endeavour was two-fold: Firstly, to reduce the costs to both SARS and taxpayers of meeting income tax obligations and secondly, to enhance the ability of SARS to effectively ensure the compliance of taxpayers.

SARS this week announced proposed amendments to the PAYE reconciliation process for the next two years and invited all stakeholders to comment on the proposals. Click here to read more.

It is clear that the modernisation initiatives are significant, but definitely welcomed! As stakeholders, it is important to participate in the modernisation process and now is the time to submit your comment and suggestions to SARS.

Yours truly,
Stiaan Klue
Chief Executive

Retirement fund lump sum benefit calculations

It has been pointed out that the benefit of the proposed new R300 000 tax free amount for retirement fund lump sum withdrawal benefits will not be applicable in respect of previous lump sum withdrawals made prior to the new legislation.

Shareholders need to brace themselves to pay tax on dividends when the new dividends tax becomes effective. At this stage it is anticipated to happen in the second half of 2010.

The South African Revenue Service has been hit by a massive scam, costing it at least R51m. VAT refunds due to some prominent companies, including Sun Microsystems (South Africa), were diverted to the accounts of phony duplicate companies.

A businessman was sentenced to 10 years behind bars for 235 counts of fraud involving a R250 000 tax claim, the National Prosecuting Authority in the Western Cape said last week.

The Federal Court of Australia recently held that the interest paid by a Bank on moneys borrowed as a result of a merger with another bank, was of a capital nature and therefore not deductible.

From January 2010 accredited employers will be able to train employees on SAIT internships for the various membership levels.

The next National SARS stakeholders meeting is 6 August.

Tax practitioners are requested to report operational and system issues by completing the Tax Practitioners' Issues List.

On 21 July SARS released a comprehensive guide on the ITR12 return for the year 2009 year of assessment.

Issue 1:

The following message appears: "The tax calculation you have requested will be available on your eFiling profile within 24 hours" - This means that the tax calculation...

Introduction

In May 2007 SARS embarked on a journey to transform the income tax process from a complex, paper-based and labour-intensive process to a simplified, automated and electronic one.

The deadline to complete the survey into the VAT “lost” by businesses has been extended to Friday 14 August 2009.

The largest and wealthiest taxpayers have a significant impact on government revenues and revenue bodies devote considerable time and resource to managing their tax compliance and taxpayer service issues.

His Excellency, Mr Bobby McDonagh, Ambassador of Ireland to the United Kingdom signed in London today, 22 July 2009, Tax Information Exchange Agreements between Ireland and Anguilla and Ireland and the Turks and Caicos Islands.

The Australian Revenue has introduced new measures to help small businesses that are struggling to manage their tax payment obligations in the current economic climate.