Synopsis August 2021
In the first article we look at Diesel rebates and “own primary production in mining”, while in our second article we look at the matter of LDC Taxpayer v The Commissioner for SARS.
Synopsis
In this edition:
Welcome to the September edition of Synopsis.
In our first article we look at the tragedy of VAT apportionment. The SCA judgment in the case of Mukuru Africa (Pty) Ltd vs The Commissioner for SARS confirms that an alternative method of apportionment can only be approved by the Commissioner from the year of assessment within which the taxpayer applied to SARS for approval of such method, and not retrospectively.
In our second article we look at late payment of PAYE penalties, when a payment is considered late and what are reasonable grounds to remit.
On 23 August 2021, a full bench of the Western Cape High Court delivered its judgement in the matter of PERI Formwork Scaffolding Engineering (Pty) Ltd v Commissioner for the South African Revenue Service (A67/2020) [2021] ZAWCHC 165, wherein the Court provided certainty to employers on counting the seven-day period within which an employer must pay PAYE to SARS and the reasonable grounds that would justify the remittance of a late-payment penalty and interest.
Finally we look at SARS’ new procedure for breaking South African tax residency. Up until very recently, the primary method of informing SARS that a taxpayer had broken South African tax residency was by marking the date of cessation on the relevant annual tax return (a taxpayer or their representative could set up a meeting at a SARS branch to inform SARS). SARS has now introduced a new declaration form which can be used to inform them that a taxpayer has broken South African tax residency.
Read more on this and other matters in the latest Synopsis below.
Register to download the latest Tax Synopsis
Edition: Tax Synopsis - September 2021
Previous editions
Synopsis July 2021
Through analysis of and comment on new laws and judicial decisions of interest, Synopsis helps executives to identify developments and trends in tax law and revenue practice that may affect their business.
Synopsis June 2021
Section 6quat of the Income Tax Act, 1962 (‘the Act’) sets out rules for determining the amount of foreign tax credits available to South African residents.
Synopsis May 2021
Another matter dealing with the interpretation of the provisions of section 24C of the Income Tax Act was recently considered in the Constitutional Court, which delivered judgment in the matter of Clicks Retailers (Pty) Ltd v CSARS [2021] ZACC 11.
Synopsis April 2021
We look at taking SARS’ decisions on review in the matter of Absa Bank Limited and United Towers (Pty) Ltd v CSARS.
Synopsis March 2021
In our last article we look at taxpayers’ right to interest on delayed VAT refunds and whether SARS’ current practice constitute non-compliance with its legal obligation.
Synopsis February 2021
The High Court in Johannesburg recently handed down judgment in a dispute between MTN Telephone Networks (Pty) Ltd (‘MTN’) and SARS (‘MTN judgment’) in respect of the VAT treatment of prepaid vouchers.
Synopsis January 2021
On 18 December 2020, the Supreme Court of Appeal (‘SCA’) handed down its judgment in the matter of Consol Glass (Pty) Ltd v The Commissioner for the South African Revenue Service.
Synopsis November/December 2020
Following its introduction by the Minister of Finance on 28 October 2020, the Taxation Laws Amendment Bill, 2020 (‘the TLAB’), was passed by the National Assembly on 17 November. One of the significant amendments proposed by the TLAB is to section 46 of the Income Tax Act, which deals with the tax treatment of unbundling transactions. We analyse the reasons for these proposed amendments and the potential impact thereof.
Synopsis October 2020
We assess the audit process and the taxpayer’s perspective in analysing the recent case of Carte Blanche Marketing CC and Others v Commissioner for the South African Revenue Service.
Follow us
