New regulations on compulsory submission of beneficial ownership on all trusts
As part of South Africa’s efforts to combat the country’s grey-listing status, The General Laws (Anti Money Laundering and Combating Terrorism Funding) Amendment Act that was passed in December 2022, has been fast tracked and became effective as from 1 April 2023. These amendments introduced a new definition of a ‘beneficial owner’ into the Trust […]
Is blockchain the future for transactions?
Unless you’re an avid fan of cryptocurrency and trading in Bitcoin or Ethereum, you’ll be forgiven for not having a clue about what blockchain is or does. However, chances are that you’ve come across the word more and more frequently in the past five years. As with many things that gain prominence throughout the years, a point eventually arrives where not speaking about […]
Setting your business up for expansion
When businesses expand, they often look beyond national borders. With such an expansion, there are several added advantages for establishing a holding company, which then owns the various group operating companies in different jurisdictions. Various aspects contribute to considering an ideal holding company location, and a brief discussion is outlined below. Political stability Political instability […]
SARS helping businesses lessen the tax load
The last few months have been extremely tough for small business owners as a result of the global COVID-19 pandemic, and various lockdown measures that have created a challenging trading environment. The South African Revenue Service (“SARS”) has identified this hardship, and as a result, the National Treasury recently tabled the Disaster Management Tax Relief Administration Bill, which would assist micro, small and […]
Clearing loan accounts through dividends
In terms of the Tax Administration Act, the South African Revenue Service (“SARS”) can issue, in response to an application, Binding Private Rulings (“BPR”) and clarifies how the Commissioner would interpret and apply the provisions of the tax laws relating to a specific proposed transaction. BPR 346 determines the income tax and dividends tax consequences of the redemption of intra-group loans […]
The de-merging of companies amid unbundling
Introduction In terms of the Tax Administration Act, the South African Revenue Service (“SARS”) can issue Binding Class Rulings (“BCR”) in response to an application by a class or group of persons and clarifies how the Commissioner would interpret and apply the provisions of the tax laws relating to a specific proposed transaction. BCR70 deals with the tax consequences of recipients of listed shares […]
Working from home can work for you
As the old adage goes, change is as good as a holiday. But the way that the novel coronavirus has shaken up the world we live in, has, to the contrary, been extremely disruptive and stress-inducing. For many people, the disruption has come in the form of shifting from the traditional office space to working […]
Extending Export Regulations
Interpretation Note 30 (“IN 30”) by the South African Revenue Service (“SARS”) explains the requirements that need to be adhered to and prescribes the documentary proof, acceptable to the Commissioner, that must be obtained and retained by a vendor in order to levy value-added tax (“VAT”) at zero rate on a supply of movable goods, […]
Surviving the disaster of job loss
As COVID-19 has ravaged the economy and stripped it bare of tens of thousands of jobs, there is a real threat to the livelihoods of many ordinary working South Africans. As happens during a time of economic recession, some businesses are unable to pay full salaries, have to scale down and have to let workers […]
Rescission of judgments by SARS: Barnard Labuschagne Inc v SARS
The judgment deals with an application for rescission of a judgment by Barnard Labuschagne (Applicant), where SARS took judgment under the provisions of chapter 11 of the Tax Administration Act (TAA). SARS filed a certified statement in terms of Section 172 of the TAA with the Registrar of the Court, setting out an amount of […]