ABC (Pty) Ltd v Commissioner for the SA Revenue Service (0038/2015) [2016] ZATC 2 (4 March 2016)

BACKGROUND In May 2014, the South African Revenue Service (“SARS”) audited a taxpayer (the appellant) and assessments were raised against the taxpayer in or during December 2014. The taxpayer lodged an objection against these assessments on 5 June 2015, despite the fact that the taxpayer was obliged to lodge said objection within 30 (Thirty) business
Read more
No Comments

How to get the most out of Charitable Donations

This article explains the different types of legal entities that charitable donations can be made to and the tax consequences of those donations. The aim of this article is to educate donors in order that they can organize their tax affairs in the most tax efficient manner possible within the parameters of our law. What
Read more
No Comments

Case Note: Kriel v Terblanche 2002 (6) SA 132 (NCD) (15)

Summary The Applicant wanted to donate his farm to his grandchildren, but in order to avoid the tax implications thereof, he established a trust to which the farm was transferred.  The agreement for the purchase of the farm was signed by one of the trustees prior to either of them being authorised to act as
Read more
No Comments

The VAT Implications for the Supply of Services to Foreigners within South Africa

This article discusses the issue of whether services that are rendered to foreigners within South Africa are zero rated for VAT in terms of the Value Added Tax Act 89 of 1991 (the “VAT Act”). XO Africa Safaris CC (“XO Africa”) was a registered VAT vendor who assembled tour packages to foreign tour operators who
Read more
No Comments

Case Note: CSARS v Capstone 556 (Pty) Ltd (20844/2014) [2016] ZASCA 2 (9 February 2016)

Summary Capstone (“the Respondent”) acquired shares as a result of restructuring a JSE listed company, namely Profurn Limited (“Profurn”). During 2001, Profurn found itself in serious financial difficulty and so a “rescue plan” was formulated to rescue Profurn. The rescue plan was complicated and involved high risks that required approximately 5 years to implement. At
Read more
No Comments

Summary: The Taxation Laws Amendment Act No. 25 of 2015

Summary The Taxation Laws Amendment Act (“TLAA”) was promulgated on 8 January 2016 and will give effect to inter alia the following: • The capping and harmonisation of retirement fund contributions for tax purposes. • Closing the loophole on excessive contributions to retirement funds in order to avoid estate duty. The capping and harmonisation of
Read more
No Comments