Synopsis - Issue for the month of July 2015
In cases where South Africa has concluded an agreement with another country for the avoidance of double taxation, a critical issue is the circumstances under which the business profits of a person who is a resident of that country may be taxed in the Republic. The right to tax is linked to whether the activities of that person give rise to a permanent establishment (PE). Where a permanent establishment is found to have been created, South Africa may tax the income attributable to that permanent establishment.
In this issue:
- Permanent establishment – a South African perspective
- Supreme Court of Appeal unconvinced by van der Merwe story
- SARS Watch