October 7, 2020

Tax deductions against salary earnings

Our clients who earn only a salary will know that very few tax deductions are available against salary income for income tax purposes and whereby they […]
October 7, 2020

Bursaries and scholarships: The tax rules are changing

Over the past several years, many employers and employees have made use of the beneficial tax treatment of bursary and scholarship schemes, as provided for in […]
October 7, 2020

SARS verifications, audits – When, why and what to do

Being selected for an audit and being selected for verification are two different processes. Verification: Once you have submitted your return, it could be selected for […]
October 7, 2020

Under what circumstances can a private company and/or close corporation be deregistered?

During the registration of a company or close corporation that entity acquires a legal personality. This legal personality comes to an end when the directors and/or […]
August 27, 2020

What to expect this tax season as an individual taxpayer

The tax season is swiftly approaching. For many people, it’s a time of the year that they dread. When it comes down to it, tax can […]
August 27, 2020

Beware of scams during filing season

In late August 2020, a large credit bureau in South Africa was the target of a data breach where millions of private individual and company data records were compromised. This data leakage, coupled with the tax filing season, makes for the perfect opportunity […]
August 27, 2020

Becoming a chartered accountant

The process of becoming a chartered accountant can be a gruelling and challenging part of your life, just ask any chartered accountant out there. Becoming a […]
August 27, 2020

When should financial statements be audited, reviewed or compiled?

The Companies Act of South Africa (the Act) requires all companies to prepare financial statements within 6 months after the end of its financial year. A […]
August 4, 2020

Tax relief measures for small business from the effects of COVID-19

The last few months have been extremely tough for small business owners as a result of the global COVID-19 pandemic, and various lockdown measures that have created a challenging trading […]
August 4, 2020

Preparing a rapid-response to fake news

In the digital age, information is everywhere. At the click of a button a message can travel across oceans in the time it takes to blink. […]
August 4, 2020

The give and take of share transfers

Many business transactions are concluded in terms of section 42 of the Income Tax Act. The section essentially allows a transfer of an asset by a person to a company, in […]
August 4, 2020

Doubling down on income taxes

The purpose of double tax agreements (“DTA” or “treaty”) between the tax administrations of two countries is to enable the administrations to eliminate double taxation, where […]
July 6, 2020

Farming operations in South Africa and the tax implications thereof

Farming in South Africa is like second nature to most South Africans, but the tax implications on farming operations seem to raise some questions when determining a […]
July 6, 2020

Do You Know The Different VAT Supplies?

There are a few instances where VAT is not charged at the standard rate of 15%. In the following newsletter, we distinguished between the different supplies that attract […]
July 6, 2020

Taxation of Foreign Employment Income

South Africa has a residence-based tax system, which means residents are taxed on their worldwide income, regardless of where that income was earned. South African tax residents living overseas and earning remuneration in respect of services rendered outside of South Africa […]
July 6, 2020

Does your home office qualify you for a tax deduction?

As the old adage goes, change is as good as a holiday. But the way that the novel coronavirus has shaken up the world we live […]
June 8, 2020

Can a third party collect my taxes?

In SIP Project Managers (Pty) Ltd v CSARS (29 April 2020), the Gauteng Division of the High Court ruled against SARS on the appointment of a third-party (Standard […]
June 8, 2020

Tax statutes: It’s all about context

In Commissioner for SARS v United Manganese of Kalahari (UMK) (25 March 2020) the interpretation of tax statues in conjunction with other statutes was considered. UMK conducts mining […]
June 8, 2020

Taxpayers’ details remain protected

In the case of the Commissioner for SARS vs Public Protector (23 March 2020) in the Gauteng High Court, the matter of the confidentiality of taxpayer information came […]
June 8, 2020

Understanding liquidations and tax deductions

In CSARS v Pieters and others, the Supreme Court of Appeal (SCA) was tasked with deciding whether liquidators were required to withhold employees’ tax from payments made […]
May 5, 2020

The effects of COVID-19 – Economically speaking

As we all know, the COVID-19 pandemic has taken the globe by storm. As of the 14th of April, the total cases of COVID-19 is 1,925,877 […]
May 5, 2020

Fringe benefits and retirement funds

Binding Class Rulings (BCR) are issued in response to applications by a specific class of taxpayers (usually persons that will have the same tax consequences apply to them from a transaction) and clarifies how the Commissioner for […]
May 5, 2020

Transferring assets from persons to companies

Many business transactions are concluded in terms of section 42 of the Income Tax Act. This section essentially allows a transfer of an asset by a […]
May 5, 2020

VAT concerns for international service providers

On 3 April 2020, the Supreme Court of Appeal delivered a judgement against Diageo South Africa (Pty) Ltd (“Diageo SA”) in a value-added tax (“VAT”) matter […]
April 20, 2020

Managing your startup capital

Becoming an entrepreneur is not as easy as waking up with an idea and having money thrown at you to turn it into a reality. Most […]
April 20, 2020

You should get a financial advisor

It’s not to say you spend finances irresponsibly, but having a reputable financial advisor comes in handy. Depending on your financial needs, your advisor may be […]
April 19, 2020

Capital Gains Tax on Death

Section 9HA of the Income Tax Act deals with deemed disposals by a deceased person. This section of the Act often causes some confusion, especially where […]
April 19, 2020

Practical Considerations in Claiming SARS COVID-19 Relief

While South Africa is currently in a state of lockdown during which a significant number of businesses have had to cease operations, some relief from a […]
March 10, 2020

Section 7C – a practical explanation

What is section 7C? This section of the Income Tax Act is an anti-avoidance measure aimed at transactions between connected persons and trusts, where a trust […]
March 10, 2020

Save for your golden years

Saving for retirement can prove to be a very complex task, however, this does not have to be the case. Many people are not making the […]
March 10, 2020

Additional tax considerations

The distinction between amounts received of a capital nature as opposed to a revenue (or income) nature is essential for income tax purposes. Non-capital amounts received, […]
March 10, 2020

What you should consider when investing in a business

Investing in a business is a daunting decision. Whether you are investing in a new or established enterprise, there will always be risk involved. The best […]
February 14, 2020

For how long can your taxes haunt you?

In terms of section 99 of the Tax Administration Act, 28 of 2011, an assessment may not be made three years after the date of an […]
February 14, 2020

Intra-group transactions and the subsequent sale of assets

The South African Revenue Service (“SARS”) issued a private binding ruling (BPR329) on 27 September 2019 on the tax implications of intra-group transactions and the subsequent […]
February 14, 2020

How are assets distributed during liquidation?

The South African Revenue Service (“SARS”) issued Binding Private Ruling 336 on 6 December 2019. In terms of this ruling, a listed resident company (“the Company”) […]
February 14, 2020

How to manage your tax debt

With the tax filing season for individuals now closed, taxpayers may find themselves with tax debt that is due. This may be due to administrative penalties […]
January 21, 2020

Belastingbeplanning: Minder ja, maar nie niks nie

Belastingbeplanning is noodsaaklik om te verseker dat jou welverdiende Rande, binne alle wette en regulasies van die Suid-Afrikaanse Inkomstediens en die Inkomstebelastingwet, te rek vir die nabye […]
January 21, 2020

Employee trust: Distributions

Binding Private Ruling 330 (“BPR330”) was issued on 3 October 2019 and relates to the tax implications arising from distributions of dividends and other amounts from […]
January 21, 2020

Korporatiewe beheer – ’n refleksie

Die einde van 2019 het aangebreek. Ons het dit dus goedgedink om ʼn kort opsomming vir u te gee van die belangrike onderwerpe wat gedurende die jaar aangeraak is.  CIPC jaarlikse opgawes  In terme van Artikel […]
January 21, 2020

Employee share ownership plan – Part 1

Binding Class Ruling 069 was issued on 23 October 2019 and relates to the tax implications that arise in respect of proposed employee share schemes (“the […]
November 1, 2019

Farming operations in South Africa and the tax implications thereof

Farming in South Africa is like second nature to most South Africans, but the tax implications on farming operations seem to raise some questions when determining […]
November 1, 2019

Valuation of trading stock for tax purposes

On 27 September 2019, just over a year since delivering judgement in another matter with very similar facts, the Supreme Court of Appeal in CSARS v […]
November 1, 2019

Hoe is Korporatiewe Beheer geraak in 2019?

Die einde van 2019 het aangebreek. Ons het dit dus goedgedink om ʼn kort opsomming vir u te gee van die belangrike onderwerpe wat gedurende die […]
November 1, 2019

Die belangrikheid van belastingbeplanning

Belastingbeplanning is noodsaaklik om te verseker dat jou welverdiende Rande, binne alle wette en regulasies van die Suid-Afrikaanse Inkomstediens en die Inkomstebelastingwet, te rek vir die […]
September 27, 2019

Save for your golden years

Saving for retirement can prove to be a very complex task, however, this does not have to be the case. Many people are not making the […]
September 27, 2019

Share incentives – The finer details

Companies, particularly listed companies, offer employees so-called share options (also referred to as share incentive schemes or employee share ownership plans (ESOPs)) as a form of […]
September 27, 2019

The different VAT supplies

There are a few instances where VAT is not charged at the standard rate of 15%. In the following article, we distinguished between the different supplies […]
September 27, 2019

The new generation’s cash

1.1 Background to Bitcoin Bitcoin, Ether and Litecoin. These are some of the most prominent cryptocurrencies on the market today. Bitcoin is by far the best-known […]
September 3, 2019

Perskom Moorreesburg

Perskom Moorreesburg het besluit om vir ons sosiale funksie vanjaar ‘n “Around the World” safari ete te hou. Ons het 4 kollegas gevra om hulle huise […]
August 27, 2019

Requesting Income Tax numbers from job seekers

Dear Employer It has come to our attention that job seekers are being asked for their Income Tax Reference Numbers in order to be considered for […]
August 27, 2019

Section 18A Audit Certificates – Part I

The South African Revenue Service (“SARS”) issued Interpretation Note 112 on 21 June 2019 to provide guidance on the interpretation and application of the audit certificate […]
August 27, 2019

SARS dispute: What are the reasons?

Generally, disputes with the South African Revenue Service (SARS) are the result of an assessment which has been issued by SARS to a taxpayer. An assessment […]
August 27, 2019

Emotional Intelligence in the workplace

The term “emotional intelligence” was coined in 1990 by scholars, however, business leaders soon adopted this concept and term and made it their own. Emotional intelligence […]
August 1, 2019

Your payroll administration questions answered

As payroll administrators ourselves, we encounter a few frequently asked questions that employers, business owners or those responsible for payroll administration within organisations struggle with.  Below […]
August 1, 2019

Alles wat jy moet weet oor skenkingsbelasting

Is jou kennis genoegsaam oor skenkingsbelasting? Dink jy dalk daaraan om ń familielid finansieel by te staan, of om ń kind te help met ń deposito […]
August 1, 2019

The 2019 Tax Season is here

The 2019 tax season officially started on 1 July 2019. Different filing periods apply, depending on the way a taxpayer chooses to submit their return: Taxpayers […]
August 1, 2019

Watse belasting voordele hou spaarfondse vir belastingbetalers in?

Die drie spaarfondse wat voordeel inhou vir ‘n individu met aftrede, is ‘n pensioenfonds, uittree-annuïteitsfonds, en ‘n voorsorgfonds. Vanaf 1 Maart 2016 geld die volgende: Bydraes […]
July 10, 2019

Tax season 2019: Improvements made to eFiling

SARS recently released two media statements, in which it notes several improvements made to eFiling for the 2019 tax season, including the issue of customised notices […]
July 10, 2019

Capital gain: Calculating your foreign currency

With the fast approaching 2019 tax season, taxpayers who have realised a capital gain in a foreign currency should take note of the special rules that […]
July 10, 2019

Tax neutral transfers between retirement funds

The 2019 tax legislation amendment cycle commenced on 25 June, when National Treasury issued the initial batch of the Draft Taxation Laws Amendment Bill which covers […]
July 9, 2019

2019 Tax legislative amendment

The 2019 tax legislation amendment cycle commenced on 25 June, when National Treasury issued the initial batch of the Draft Taxation Laws Amendment Bill which covers […]
May 21, 2019

IFRS vs IFRS for SMEs

The majority of financial statements in South Africa are arguably compiled by implementing the International Financial Reporting Standards for Small and Medium-sized Entities (IFRS for SMEs) […]
May 21, 2019

South African Reserve Bank procedures

The South African Reserve Bank (“SARB”) is the central bank of the Republic of South Africa and the primary purpose is to achieve and maintain price […]
May 21, 2019

Rendering of transport services by employers – more observations

Employers may provide employees with a transport service from their homes to the place of their employment. Such transport services constitute a taxable benefit in the […]
May 21, 2019

Rendering of transport services by employers

Paragraph 2(e) of the Seventh Schedule to the Income Tax Act[1] deems an employer to grant a taxable benefit to an employee if any service has, […]
May 3, 2019

Value-added remarks on value-added tax (VAT)

VAT is an integral part of our economic society and is something that influences everyone, especially businesses in South Africa.  In this article, we will discuss […]
May 3, 2019

EMP501-rekonsiliasies

Die aanvangsdatum van die 2019-seisoen vir indiening van die jaarlikse EMP501-rekonsiliasies is deur die Suid-Afrikaanse Inkomstediens (SAID) uitgestel vanaf 1 April na 17 April 2019. Die […]
May 3, 2019

The audit process

To get a better understanding of the audit process, we can take a look at the definition of an audit. Audit – “an official inspection of […]
May 3, 2019

VAT regulations dealing with the supply of electronic services

VAT Regulations dealing with the supply of electronic services Since 2015, foreign suppliers of electronic services (such as audio-visual content, e-books etc.) in South Africa are […]
April 23, 2019

Depreciation vs wear & tear

Deterioration, obsolescence and wear and tear are among the reasons why assets decrease in value. By realising a deduction on depreciation for tax purposes, your company […]
April 23, 2019

Jou lewende hawe voer Jan Taks

Die gesegde lui, daar is net twee dinge in die lewe wat seker is: die dood en belasting. Die twee loop dikwels hand-aan-hand en beide is […]
April 23, 2019

Taxpayers’ right to have disputes resolved

In a recent Tax Court decision[1], the Tax Court confirmed that taxpayers have a right to have their disputes resolved in a court of law as […]
April 23, 2019

SARS scams

Education and awareness around identity theft, phishing and other frauds have become part of life globally. If nothing else, scamsters are innovative and keep trying new […]
March 19, 2019

New filing requirements for insolvent taxpayers

The South African Revenue Service (“SARS”) has recently set out new procedures relating to the process around the filing of income tax returns relating to insolvency. […]
March 19, 2019

Budget proposals 2019

Finance Minister Tito Mboweni delivered his maiden National Budget address on 20 February 2019, with the focus for the coming fiscal year on strengthening tax administration […]
March 19, 2019

Thinking of selling an asset?

What happens when you sell an asset? When you sell or dispose of an asset, you either realise a profit or a loss from the exchange. […]
March 19, 2019

The timing of business financing

Sufficient cash flows to enable a business to function at optimal levels during a financial cycle is paramount. Whether you have a seasonal business, are anticipating […]
January 31, 2019

Admin penalties for outstanding Corporate Income Tax returns

In general, all registered companies must submit Corporate Income Tax (“CIT”) returns within 12 months of the end of the company’s financial year-end. This is applicable […]
January 31, 2019

Ring-fencing of assessed losses of certain trades – Part 2

Section 20A of the Income Tax Act[1]ring-fences losses incurred by natural persons from certain trades under specific circumstances. If applicable, the natural person will not be […]
January 31, 2019

Non-resident sellers of immovable property

Section 35A of the Income Tax Act[1] came into effect on 1 September 2007 and sets out the capital gains tax consequences of the sale of […]
January 31, 2019

Form requirements for objections

Dispute resolution with the South African Revenue Service (SARS) generally has a two-pronged approach. Firstly, taxpayers must present their case on the merits – this will […]
January 15, 2019

Wenke om geregistreerde besonderhede op datum te hou

Voordat u jaarlikse opgawe voltooi word, is dit belangrik om seker te maak dat kontak-, adres-, bank- en openbare offisiersbesonderhede van die entiteit (hetsy vir ’n […]
January 15, 2019

Helpful tax resources

South African taxes are inherently complex and often involve interpretation, consulting and in exceptional cases, a fair amount of educated guessing on exactly what the legislature […]
January 15, 2019

2018: A year in tax

As 2018 has come to an end, we reflect on some of the significant highlights (and lowlights) of the 2018 tax year. Davis Tax Committee concludes […]
January 15, 2019

Ring-fencing of assessed losses of certain trades – part 1

Persons are generally allowed to set off any losses incurred in respect of one trade against the income derived from another trade, thereby reducing their overall […]
November 16, 2018

Wenke om geregistreerde besonderhede op datum te hou

Voordat u jaarlikse opgawe voltooi word, is dit belangrik om seker te maak dat kontak-, adres-, bank- en openbare offisiersbesonderhede van die entiteit (hetsy vir ’n […]
November 16, 2018

SARS interest on provisional tax

As with various other business transactions, taxes in their various forms also attract interest, either payable by the taxpayer to SARS, or due to the taxpayer […]
November 16, 2018

S129 notice to the consumer and “delivery”

There are many reasons why a consumer may default in his payments to a credit provider. Notwithstanding these reasons, the credit provider must follow certain procedures […]
November 16, 2018

Additional changes to income tax returns for trusts

The South African Revenue Service (“SARS”) implemented several changes to the income tax returns for trusts (the ITR12T) on 17 September 2018. These changes are in […]
October 11, 2018

When to make use of the Small Claims Court

The Small Claims Court provides a prompt and inexpensive way to resolve minor disputes. It is meant for the ordinary man and woman on the street […]
October 11, 2018

Valuation of preference shares

In income tax, the question of valuation of shares often causes a great deal of uncertainty, especially where shares are not traded on a recognised exchange. […]
October 11, 2018

Registration of a trust as a taxpayer

The frustration experienced by taxpayers and the complexity of registering a trust as a taxpayer with the South African Revenue Service (SARS), has been widely publicised […]
October 11, 2018

Changes to bad debt allowance

Most South African businesses are at some point in time exposed to credit risk in the form of bad debts. Although taxpayers would undoubtedly prefer to […]
September 19, 2018

Validity of voetstoots clauses under the Consumer Protection Act

Consumers often opt to purchase second-hand goods in order to save money or because of the mere fact that they stumbled upon a bargain. Second-hand goods, […]
September 19, 2018

Bad debts and VAT

While there is currently a focus on the income tax considerations of bad and doubtful debts (given that National Treasury has proposed changes to section 11(j) […]
September 19, 2018

When should financial statements be audited, reviewed or compiled?

The Companies Act of South Africa (the Act) requires all companies to prepare financial statements within 6 months after the end of its financial year. A […]
September 19, 2018

Mandatory Rotation of Auditors

Over the past few years the audit industry has been under significant scrutiny where the independence of auditors has been questioned. In response to this and […]
August 17, 2018

SARS verifications, audits – when, why and what to do

Being selected for an audit and being selected for verification are two different processes. Verification: Once you have submitted your return, it could be selected for verification. A […]
August 17, 2018

When can business expenses be deducted for an individual if additional income is earned over salary?

Tax legislation allows a taxpayer to claim certain expenses which were incurred during a year of assessment against the income received. Nevertheless, the nature of expenses […]