Tax Time Issue 7 - 3 August 2009

3 August 2009 - ISSUE NO. 7

Estate Planning

18, 19, 20, 21, 24, 25, 26, 27 & 28 August 2009

National Tax Conference

8 September 2009 (2 day event)

New Companies Act and
Close Corporations

25, 26, 27 & 28 August 2009
15, 16, 17, 18 & 22 September 2009

New IFRS for SME's

26 August 2009

more ...

SAIT Legislation Compendium

Compiled by: SAIT
Edited: Juta's Statutes Editors

Silke on Tax Administration

Authors: S Klue (Managing Author),
JA Arendse, RC Williams

Trusts: Law and Practice

Walter Geach with Jeremy Yeats (consulting editor)

Capital Gains Tax - A Practitioner's Manual

RC Williams

Congratulations to the new SARS Commissioner

On Thursday Parliament announced that Mr. Oupa Magashula was appointed as the new SARS Commissioner. In terms of the South African Revenue Service Act, the President appoints the Commissioner of SARS and holds office for an agreed term not exceeding 5 years, which is renewable.

The appointment is certainly widely welcomed by the business community and the President is commended for appointing Mr. Magashula as our new Tax Man. To some he may be unknown, but those who know him refers to him as a person with integrity who is approachable, understanding, friendly and most importantly, has an open-door policy towards staff and stakeholders.

Oupa, you most certainly are the Tax Man for our people - we wish you all the best with your new appointment and challenges!

Yours truly,
Stiaan Klue
Chief Executive

Labour brokers: who should be paying the tax?

Caroline Rogers & Hanneke Farrand (Edward Nathan Sonnenbergs Inc)

In terms of paragraph 2(1) of the Fourth Schedule ("the Fourth Schedule") to the Income Tax Act 58 of 1962 ("the Act"), every employer, who is a resident, and every representative employer in the case of any employer who is not a resident, who pays or is liable to pay an employee remuneration shall deduct or withhold the amount of employees’ tax due in terms of the relevant provisions of the Act, and must pay this amount to the Commissioner for the South African Revenue Service ("SARS") within seven days after the end of the month during which the amount was deducted or withheld.

Importance of the date contained on a notice of assessment

Dr. Beric Croome (Edward Nathan Sonnenbergs)

Taxpayers will receive an assessment from the Commissioner: South African Revenue Service ("SARS") once SARS has processed the tax return submitted by the taxpayer .

Has anything changed since Estate Frith?

Carel Cornelissen and John Frith (De Rebus)

The case of C:SARS v Estate Frith 63 SATC 77 should have caused a froth when the ‘step-by-step’ method of calculating estate duty in terms of s 4A of the Estate Duty Act 45 of 1955 (the Act) was challenged.

KNA INSURANCE AND INVESTMENT BROKERS (PTY) LTD (IN LIQUIDATION) v SARS

R Stretch & J Silke (Taxgram - LexisNexis)

In KNA Insurance and Investment Brokers (Pty) Ltd (In Liquidation) v South African Revenue Service and the Commissioner for SARS the North Gauteng High Court had to consider whether SARS was liable to pay interest in terms of s 89quat of the Income Tax Act 58 of 1962 while the taxpayer had contended that by making the payment in question it had paid provisional tax in terms of para 23A of the Fourth Schedule to the Act and in terms of s 89quat(4) thereof it was entitled to interest at the prescribed rate on the difference between the credit amount and its normal tax.

Mobi website: live

Membership Department

The SAIT mobi website is now live.

Appointment of a new Commissioner for SARS

SARS

On Thursday, 30 July, Parliament announced the appointment of Mr. Oupa Magashula as the new SARS Commissioner.

Binding Private Ruling No. 039

SARS ATR Division

This ruling deals with the practical consequences that arise when a company distributes shares held in another company in an unbundling transaction and the number of shares to be distributed to the shareholders end up being fractions of shares.

VAT News 34 - August 2009

SARS: Legal & Policy

SARS released VAT News 34 on 29 July...

Interpretation Note: No. 47 Section 11(e) of the Income Tax Act, 1962

SARS: Legal & Policy

On 28 July SARS released new interpretation note no.47.

Interpretation Note: No. 48 - Section 24 of the Income Tax Act, 1962

SARS: Legal & Policy

On 28 July SARS released the new interpretation note on instalment credit agreements and debtors’ allowance.

OECD Conference “Transfer Pricing and Treaties in a Changing World”

OECD

On 21 and 22 September 2009 some of the world’s leading specialists will share their expertise on cutting-edge transfer pricing and treaty developments that affect governments and multinational enterprises in a changing world.

The South African Institute of Tax Practitioners (SAIT)

PO Box 73, Featherbrooke, 1746
Tel: +2711 662 2837
E-mail: info@thesait.org.za