With only 4 days to the filing season deadline for electronic submission of returns, SARS has received 3 million income tax returns. This is nearly 700 000 more returns compared with the same period last year. The increase is significant and practitioners are commended for the effort.

In order to assist taxpayers, SARS will from Monday, 16 November 2009, extend its hours of operation at all branch offices to assist taxpayers trying to meet the 20 November deadline for the electronic submission of tax returns. SARS branch offices will be open from 07:00 am to 06:00 pm daily from Monday, 16 November 2009, until Friday 20 November 2009, allowing an extra 3 hours per day during which taxpayers can receive free assistance. The SARS contact centre will also extend its operating hours on weekdays to 08:00pm until Friday 20 November 2009.

However, provisional taxpayers can submit their Income Tax returns until 28 February 2010, provided they meet the following three conditions:

• They must file using eFiling (or e@syFile)
• They must be compliant taxpayers (i.e. no outstanding returns)
• They must make payment within 7 days of the date of the assessment.

Happy filing!
Stiaan Klue
Chief Executive

Companies need to get to grips with the proposed new dividends tax without delay. The new dividend tax system contains many hidden administrative problems, not the least of which is the placing of the burden of collection and administration of the tax upon the company declaring the dividend and its regulated intermediaries, says Ernie Lai King, head of Deneys Reitz Tax Services. “Accounting, reporting and internal control systems need to change and companies need to consult with their information technology and accounting departments sooner rather than later.”

Under our increasingly dense tax system there are now no fewer than three different rates of tax payable by trusts in the year of assessment ending on 28 February 2010. The Taxation Laws Amendment Act 17 of 2009 provides different rates of tax for ordinary trusts, so-called special trusts and approved public benefit organisations that are trusts.

In part I of this article, the information that should be contained in a tax fixed asset register was examined. The information required for capital gains tax purposes is detailed in this article. The disposal of a fixed asset by a taxpayer is a trigger for a possible capital gains tax liability to arise. A taxpayer’s capital gain (or capital loss) is the difference between the proceeds received or accrued to the taxpayer for the disposal and the base cost of the asset.

Grundlingh, an attorney, was a resident of South Africa. He was admitted to practise as an attorney in both South Africa and Lesotho. He was a partner in the firm known as Webbers in Bloemfontein, and was also a partner in the separate Lesotho-based partnership, known as Webber Newdigate, which had a fixed place of business in Lesotho.

In Daniels v Campbell NO and Others 2004 (7) BCLR 735 (CC) the Constitutional Court made an order declaring that the word “spouse” as used in the Intestate Succession Act 81 of 1987 includes the surviving partner to a monogamous Muslim marriage, and the word “survivor” as used in the Maintenance of Surviving Spouses Act 27 of 1990 includes the surviving partner to a monogamous Muslim marriage. It made clear that the effect of the declaration was to cover the situation of a person who was a party to a Muslim marriage that was monogamous.

The Institute received various complaints from members regarding the eFiling system upgrade during the first two weekends of November. SAIT, together with SAICA and SAIPA, initiated a meeting with SARS to obtain clarity about the need for the upgrade towards the end of filing season.

The Institute attended the SARS National Stakeholders meeting on 12 November where tax practitioners' operational issues were discussed. Specifically, the following agenda items were discussed...

SAIT this year published the SAIT legislation compendium. This user-friendly resource is an up-to-date collection of tax legislation and supplementary material specifically selected for tax practitioners, students, accountants and tax attorneys. Incorporating all the latest legislation, including binding rulings to 15 November 2009, this publication reflects the most up to date tax reference in South Africa.

Notice is hereby given under section 76M of the Income Tax Act, No. 58 of 1962 of the modification of Interpretation Note No. 47 dated 28 July 2009. This Interpretation Note is replaced by Interpretation Note No. 47 (Issue 2) dated 11 November 2009.

SARS released the comprehensive guide to ITR12 on 9 November. The guide has been provided as a supplement to the completion guide distributed with the annual income tax returns. The purpose of this guide is to give detail of the various sections of the Income Tax Act that will be applied during the assessment process of the ITR12 income tax returns.

Liechtenstein has signed two additional Tax Information Exchange Agreements with Belgium and the Netherlands 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.

On Friday 13 November Singapore has signed a protocol with France that brings the two countries’ bilateral tax treaty into line with the OECD standard on transparency and exchange of information for tax purposes. This being the 12th agreement that it has signed in accordance with the OECD standard, Singapore moves into the category of jurisdictions deemed to have substantially implemented the standard.