Finance Minister Pravin Gordhan will present the his first budget speech to Parliament on 17 February 2010. Everyone is out to predict the outcome..with Treasury tight lip. What is certain is that we will not receive the same swan-song budget as last year from Manuel.

Last year taxpayers were only asked to chip-in R32-billion in extra tax. With Pravin’s forecasted R70-billion deficit in the MTEF – this budget will certainly not bear good news to South African taxpayers.

Matthew Lester is probably the closest with his four Pointers for Pravin:

1. Allow the deficit to increase and let our kids pay it back; or
2. Increase corporate taxes; or
3. Increase the supertax rate for individuals; or
4. Repeal the National Credit Act and pass a new anti-avoidance provision that makes it an offence not to go shopping on credit once a week!

Whatever Pravin present on Wednesday, it will not be an easy storm to weather.

Yours truly,
Stiaan Klue

One of the noteworthy events in the 2010 fiscal calendar is likely to be the enactment of the Tax Administration Act, which at present is still at the stage of a draft Bill awaiting public comment, for which the deadline is the end of February.

It is common knowledge that, in the present economic downturn, SARS is keenly looking at ways of maintaining or increasing its collections. This is one of the purposes behind the proposal to tighten the regulatory control of tax practitioners. Consequently, 2010 may see further developments in this regard.

The annual budget breakfast of the Institute will be held on 18 February at the Sandton Convention Centre, with a video broadcast to Durban International Convention Centre, Cape Town International Convention Centre, King Edward Hotel Port Elizabeth and the President Hotel in Bloemfontein.

This ruling deals with the tax implications for an incapacitated person and a trust that will be created to administer a compensation award granted to the incapacitated person on behalf of and for that benefit of that person and that person’s family.

This ruling deals with the income tax consequences for both the lessor and the lessee in respect of leasehold improvements to be effected by the lessee in pursuance of an obligation under a lease agreement.

Tax practitioners should note the various restrictions when submitting supporting documents to SARS.

India hosted the second meeting of the Steering Group of the Global Forum on Transparency and Exchange of Information on 11 and 12 February 2010. The Steering Group, which guides the work of the Global Forum, considered the core documents required to launch the peer review process. It also examined the progress of the Global Forum in moving forward on the mandate given to it by the G20 in November 2009.

Getting the tax treatment of tradable permits “right” is important not only for achieving environmental objectives, but also for the integrity of tax systems. The OECD has issued a flyer describing the work the Organisation is currently doing on this issue.

Solving the world’s environmental problems could take a significant toll on economic growth if only today’s technologies are available. Innovation – the creation and adoption of new, cleaner technologies and know-how – provides a means to achieve local and global environmental goals at significantly lower costs.