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
Latest edition:
Synopsis Tax today - May 2021
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:
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. The findings in the Constitutional Court have advanced the interpretation of the law, but the burden of proof remains with the taxpayer to show that the contract that requires the taxpayer to incur expenditure in the future is the contract under which the income has been derived or is so inextricably linked to the income-earning contract that it satisfies the legal requirement of ‘sameness’.
In our second article we look at an interesting aspect which taxpayers should take note of being the impact of the change from IAS 39 to IFRS 9, particularly in the aftermath of Covid-19, in terms of which taxpayers have modified and restructured their debt/financial liabilities, resulting in a modification loss or gain. This article sets out how modification losses or gains should be treated for accounting and tax purposes as well as measures which could be taken, to the extent that taxpayers discover that they may not have disclosed the correct information to SARS.
Read more on this and other matters in the latest Synopsis below.
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Edition: Tax Synopsis - May 2021
Previous editions
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.
Synopsis September 2020
We assess the extent of the VAT relief provided by Government to businesses that assist in dealing with the Covid-19 pandemic.
Synopsis August 2020
The Tax Court in Johannesburg recently handed down judgment in a dispute between a vendor and SARS (Case Number VAT 1712) in which SARS, after making a substantial refund including interest.
Synopsis July 2020
We discuss the settlement of a tax dispute, available to taxpayers in respect of which an assessment has been issued by SARS and which the taxpayer has disputed under Chapter 9 of the Tax Administration Act.
Synopsis June 2020
We look at reimagining the supply of financial services from a VAT perspective, as we analyse the recent judgement in the matter of ABC (Pty) Ltd v CSARS (VAT 1626) [2020] SARSTC. This judgment provides guidance on the principle of direct attribution and the interpretation of financial services.
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