A monthly journal, published by PwC South Africa, that gives informed commentary on current developments in the tax arena, both locally and internationally.
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.
In this edition:
We look at employers and employees’ tax obligations subsequent to the recent case of ABC (Pty) Ltd v The Commissioner for the South African Revenue Service case no 24819. the case highlighted the importance of employers ensuring that employees’ tax (PAYE) is paid within a week that the amount of PAYE is deducted or withheld from an employee’s salary or wage.
We discuss the current policy underpinning the anti-dividend stripping rules and whether it is in line with commercial reality.
The ‘Tax as a strategic asset’ series focuses on the tax function as a value-added business partner. The second article in the series deals with data science in tax and how to upskill, digitalise and adapt to provide an appropriate tax narrative.
Read more on this and other matters in the latest Synopsis below.
Edition: Tax synopsis - February 2020
In recent years a degree of tension has developed in the taxation of companies relating to the valuation of inventories. Companies are obliged to conform with the requirements of IFRS in reporting the value of inventories at the lower of cost or net realisable value.
We analyse the court case of BMW South Africa (Pty) Ltd v CSARS. International groups frequently apply tax equalisation principles to protect employees on assignment in a foreign territory from an unwelcome reduction in their anticipated take-home pay because of differential tax treatment of the remuneration they derive between the host jurisdiction and the jurisdiction of residence.
We look at key issues taxpayers need to consider if they are being audited by SARS. We discuss the proposed amendment in the draft Tax Administration Laws Amendment Bill, 2019, that the legislation be amended concerning the application of reduced rates of withholding taxes on royalty, interest and dividend payments where such reductions are permitted in terms of a double tax agreement (‘DTA’).
National Treasury published the Draft Taxation Laws Amendment Bill for public comment. We discuss the proposed amendments to our ‘controlled foreign company’ (‘CFC’) rules which seek to reduce the high tax exemption (‘HTE’) threshold and to strengthen the anti-diversionary rules.
We analyse the recent Western Cape High Court decision in the matter of Mark Roy Lifman and others v Commissioner for the South African Revenue Service and others (Case No 22820/2016).
With the recent promulgation of the Carbon Tax Act, 2019 (No. 15 of 2019), we discuss key considerations surrounding the practicalities and difficulties around the implementation of carbon tax.
We discuss a recent Western Cape Tax Court decision which considers when the consideration given for a gift card is taxable. In addition we publish the 4 th article in the Tax Director Series.
We discuss a Tax Court decision which considers the application of the section 24C allowance in the context of loyalty programmes, as well as a Supreme Court of Appeal decision which considers the definition of "mining" and "mining operations" in section 1 of the Income Tax Act. We also publish the 3rd article in the Tax Director Series.
This synopsis examines the implications of the decision of the Dutch Supreme Court on the "most favoured nation " clause in the treaty between South Africa and the Netherlands. Locally, we look at a case where the SCA pronounces on the powers of the Tax Court in regard to the imposition of penalties.
The section 24C future expenditure allowance and the contractual link. Do services provided at the expense of an employer equate to a taxable fringe benefit? Article 1 in our new Tax Director series: Align tax with the business strategy.
