Op 16 April 2018 het die Suid-Afrikaanse Inkomstediens (SAID) ʼn nuwe inisiatief aangekondig waar daar voorts saam met die Nasionale Vervolgingsgesag (NVG) gefokus gaan word om belastingbetalers wat versuim om hul opgawes in te dien, te vervolg.

The minister of Finance announced in his budget speech of 21 February 2018 that the standard rate of VAT will increase from the current 14% to 15% with effect from 1 April 2018. As a transaction-based tax, the tentacles of VAT reach into virtually every area and system in a business.

The curtains have come down on section 18B of the Value-Added Tax Act, No. 89 of 1991 (VAT Act). If you are a property developer or have property developers as clients you need to be aware that section 18B of the VAT Act ceased to apply from 1 January 2018.

Provisional tax estimates, payments, deadlines, penalties and interest may be somewhat confusing for the tax-paying public. This article attempts to explain these concepts in layman terms.

Bitcoin is a type of digital currency in which encryption techniques are used to regulate the generation of units of currency and verify the transfer of funds, operating independently of a central bank. Our article addresses the questions on how to treat Bitcoin in terms of the income Tax Act and VAT.

Do payments on loan account constitute payment for purposes of the VAT Act? This question was recently considered by the Tax Court. We thus refer to applicable case law.

The IT14SD is a supplementary declaration in which a company must reconcile Income Tax, Value-Added Tax (VAT), Pay-As-You-Earn (PAYE) and Customs declarations. In essence, it is meant to reconcile companies’ and CC’s accounting reporting to their tax reporting. SARS can request a detailed explanation for a reconciliation difference.

When a company gives a vehicle to their staff to share, SARS refers to that vehicle as a “pool car” or a “pool vehicle”. There are specific requirements in terms of paragraphs 2(b) and 7 of the Seventh Schedule to the Income Tax Act that needs to be met to ensure that no individual employee is liable for the taxable benefit.

Where a company vehicle is provided by an employer to an employee, the employee must be taxed on a monthly basis on the use of the company vehicle, as it is deemed to be a fringe benefit for private purpose. This article explains the payroll tax consequences for an employee when a company vehicle is provided by the employer for private travel purposes.

Payroll tax implications relating to the acquisition of a company car by an employee, as well as travel allowances, can be a tricky business. Great care should be taken by employers to correctly account for these items, when they process payrolls.