To claim or not to claim VAT, that is…
Some vehicles you cannot claim VAT on, some you can and knowing the difference can save you a lot of money. When can you claim input VAT on a vehicle? Most businesses that are registered for VAT will be aware that you generally cannot claim input VAT on the purchase of a ‘motor car’ as […]
The new SARS solar energy tax credit
The tax credit for individuals installing solar panels is here, for a limited time only. The proposed new law regarding the tax credit available to individuals who install solar panels has been announced. The system will be introduced in the form of a tax credit, as opposed to a tax deduction. This is good news, […]
Awareness campaign: Registration of trusts for tax purposes
SARS has embarked on a path to rebuild its organisational capability and restore institutional integrity. In line with SARS’ Vision 2024 and beyond, we highlight the following: Higher Purpose: Enabling the government to build a capable state and foster sustainable economic and social development that serves the wellbeing of all South Africans. Vision 2024: A […]
Disclose your defaults before SARS finds them!
A grim warning for South African taxpayers. Long gone are the days when tax fraudsters could run circles around SARS, which has intensified its efforts to crack down on tax evasion by pursuing criminal action against non-compliant taxpayers. One example is when SARS came knocking on the door of a private hospital and its director, […]
Testamentary trusts still have their place
How you can protect your assets from predators—including SARS. Trusts have received a lot of bad press over the past few years, what with SARS taking a dim view of the use of trusts as a means of avoiding tax. A 2008 case involving a property trust, where the beneficiaries were changed in the hope […]
When SARS requests supporting documents
E-filing doesn’t allow ‘secured’ or password-protected documents to be uploaded—but there is a solution. Following SARS Commissioner Edward Kieswetter’s announcement that he intends to rebuild SARS’ enforcement capabilities as part of his quest to become the scourge of recalcitrant taxpayers, there has been a noticeable increase in requests from SARS for the submission of supporting […]
Home office expenditure
Taxpayers who are salaried employees have limited deductions available to them. However, home office expenditure can be claimed as an income tax deduction, but the onus is on the taxpayer to prove that the expenses are in fact deductible. For employment to constitute a “trade” and to qualify to deduct home office expenditure, the taxpayer […]
What is meant by “connected persons”?
On 28 January 2020, SARS released interpretation note 67 providing guidance on the term “connected persons” in section 1(1) of the Income Tax Act. The interpretation note itself is voluminous but worthy of a short discussion as one may fall within this definition without knowing. The definition allows for the following scenarios to be regarded […]
SARS to intensify action against tax offenders
Despite the fact that SARS has upheld their philosophy of education, service, and thereafter enforcement, they have noticed an increase in taxpayers not submitting their tax returns by the stipulated deadlines, and not settling their outstanding debt with SARS. This is not limited to the current tax year but includes substantial non-compliance across previous tax […]
Assets held as security by SARS when a company is being liquidated
The KwaZulu-Natal High Court previously granted an application brought by Van der Merwe and others (acting as liquidators) requiring the Commissioner for the South African Revenue Service to release certain assets held by him under his control in a customs warehouse. The assets in question were being held by the Commissioner as security for payment […]