Davey’s Locker
PRACTICE NOTE (PN) 31 of 1994 TO BE POSSIBLY WITHDRAWN
Editor’s Note: In this first newsletter for 2023 we consider the following: Practice Note (PN) 31 of 1994 to be possibly withdrawn Corporate assessed loss limitations time-aligned to corporate tax rate reduction Foreign Pension trust (FPT) continued: Donations tax and...
C: SARS v THE THISTLE TRUST – THE SCA CONFIRMS THAT CAPITAL GAINS CANNOT FLOW THROUGH MULTIPLE DISCRETIONARY TRUSTS
Editors Note: In this seventh newsletter for 2022 we consider the following: C.SARS v The Thistle Trust Judgement – CGT downside for multiple trust structures First Tax Ombud’s Term of Office Expires SARS BCR 080 Revisited: Foreign Pension Trust and Estate Duty SARS...
FOREIGN PENSION TRUST – SARS ADVANCE TAX RULING
Editors Note: In this sixth newsletter for 2022 we consider the following: Foreign Pension Trust – SARS Advance Tax Ruling (ATR) Two-Pot Retirement System & Tax The Model v SARS – 211/2021 (judgment 20 June 2022), ZASCA Post Facto Public Domain Information and...
DISTRIBUTIONS BY RSA TRUSTS TO NON-RESIDENT TRUSTS NOT PERMITTED
In this fourth newsletter for 2022 we consider the following: Distributions to Non-Resident Trusts not permitted; Game Farming, Cash Heists and Tax; Interpretation Note 58 (Issue 3): The Brummeria case and the right to use loan capital interest free, revisited and...
Multiple Annuities and PAYE
In this fourth newsletter for 2022 we consider the following: Multiple Annuities and PAYE; Change of Tax Residence – Procedural Tax Timing Issues and Section 9H; Withdrawing Retirement Benefits as a Non-Resident – The Three-Year Rule; Home Bond Interest Deduction...
DRAFT COMPENDIUM OF TAXPAYERS RIGHTS
The office of the Tax Ombud (OTO) has published in 2022, a draft Compendium of Taxpayers’ Rights, Entitlements and Obligations vis-à-vis SARS. This is not a legally enforceable Bill of Rights but a compilation of principles contained in the Constitution, Tax...
BUDGET SPEECH 2022/23 TAX YEAR
1. INDIVIDUALS The maximum marginal rate for natural persons remains at 45% and is reached when taxable income exceeds R1 731 600 (previously R1 656 601). The minimum rate of tax remains at 18% on taxable income not exceeding R226 000 (previously R216 200). The...
TAXPAYER SECRECY – RECENT HIGH COURT JUDGMENT AND SARS MEDIA STATEMENT
The Pretoria High Court held that having regard to the nature of the case and the legal and constitutional questions involved, that this was an appropriate case in which a substitution of the decision of SARS to refuse access to information should be made. SARS was...
Passing of Costa Divaris – End of a tax era
I note with sadness the passing of Costa Divaris which marks the end of a tax era. Costa was a doyen of the tax world being a co-author of various tax publications including the original standard authority on tax, Silke on South African Income Tax. Costa’s monthly tax...
Transfer pricing: loans to offshore trusts revisited
SARS establishes a high-net-worth unit The Minister of Finance announced in his Budget Speech 2021 that: SARS will establish a dedicated unit to improve compliance of individuals with wealth and complex financial arrangements. This would naturally, in my view, include...
Annuitization – Provident fund vested lump-sum retirement benefits and tax
The compulsory annuitization of benefits from a provident fund, despite a laboured birth since 2016, becomes a reality on 1 March 2021. See 212 tsh 2020. In essence, the harmonization of tax treatment of all retirement funds, whether pension, retirement annuity or...
SARS in Action
Common reporting standards (CRS) SARS is receiving information and now acting on the CRS automatic exchange of information with eighty-seven foreign jurisdictions concerning RSA taxpayers with offshore investments. Special voluntary disclosure program (SVDP) In...