Synopsis January 2021
On 18 December 2020, the Supreme Court of Appeal (āSCAā) handed down its judgment in the matter of Consol Glass (Pty) Ltd v The Commissioner for the South African Revenue Service.
Synopsis
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Synopsis Tax today - February 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:
The High Court in Johannesburg recently handed down judgment in a dispute between MTN Telephone Networks (Pty) Ltd (āMTNā) and SARS (āMTN judgmentā) in respect of the VAT treatment of prepaid vouchers. SARS disputed MTNās entitlement to seek declaratory relief, as it argued that MTN requested the court to advise on which section of the VAT Act should be applied.
At the 13th Extra Ordinary Session of the Assembly of the African Union (āAUā), in December 2020, it was announced that trade in goods under the Africa Continental Free Trade Area (āAfCFTAā) will start from 1 January 2021. It is important to note that Free Trade Agreements, such as the Agreement establishing the AfCFTA, do not possess supra-nationality and the obligations and rights flowing from the Agreement ought to be enacted through domestic measures, so as to give effect to their provisions.
In the recent case of Medtronic International Trading S.A.R.L v The Commissioner for SARS1 (āMedtronic caseā), SARS had refused to consider the Applicantās request for the remission of interest in terms of section 39(7)(a) of the VAT Act following the conclusion of two VDP agreements between SARS and the Applicant. The Applicant sought a review of, inter alia, this decision. The Medtronic case provides welcome clarity for taxpayers who are undertaking the VDP process and who seek to request the remission of interest (in appropriate circumstances) borne out of the VDP process.
Read more on this and other matters in the latest Synopsis below.
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Edition: Tax Synopsis - February 2021
Previous editions
Synopsis November/December 2020
Following its introduction by the Minister of Finance on 28 October 2020, the Taxation Laws Amendment Bill, 2020 (āthe TLABā), 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 taxpayerās 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.
Synopsis May 2020
This month in the matter of Telkom SA SOC Ltd v Commissioner for the South AfricanĀ Revenue Service [2020] ZASCA 19 (25 March 2020), we analyse the second dispute concerning the right of Telkom to deduct commissions paid to selling agents who signed up subscribers.
Synopsis April 2020
We analyse the recent judgement ofĀ Telkom SA SOC Ltd v Commissioner for the South African Revenue ServiceĀ [2020] ZASCA 19 and we continue with our "Tax as an strategic asset" series and consider how good visualisation customised for your particular needs, can provide the intuitive edge you need.
Synopsis March 2020
This month in the āTax as a strategic assetā series we look at considerations for tax functions during the COVID-19 pandemic. We also discuss the significant challenges COVID-19 presents to people and investment funds around the globe as the disruption continues to evolve.
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