VDP and SVDP, what does this mean for me?

What is VDP? A VDP (Voluntary Disclosure Programme) is a process by which SARS extends an opportunity to taxpayers to regularise their tax affairs by disclosing any defaults on their income taxes for prior periods of assessment. A successful applicant usually receives a waiver from penalties imposed, and must only settle the outstanding income tax liability and accrued interest on […]

SARS releases new ruling on documentary requirements for VAT purposes

In February 2015 the South Atlantic Jazz Festival (Pty) Ltd successfully appealed a judgment of the Tax Court to the Full Bench of the Western Cape High Court (reported as ABC (Pty) Ltd v CSARS [2015] ZAWCHC 8). That judgment dealt with documentary proof required by the Commissioner for SARS to substantiate input tax claims submitted by taxpayers for VAT […]

Tax implications of international branches

Irrespective of whether a South African company is expanding its business offshore, or whether international businesses set up shop in South Africa, companies trading internationally are often confronted with the complex tax implications for doing so. This article explores the tax implications linked to international branches of a company specifically; it does not consider the scenario where a corporate group […]

Is your Trust ready for the new Section 7C?

President Jacob Zuma has signed The Taxations Laws Amendment Bill (TLAB) into law on 11 January 2017. The TLAB will be implemented effectively from 1 March 2017. A new section, Section 7C, has also been introduced. This section specifically deals with Interest Free or Low Interest Loans to Trusts. SUMMARY OF SECTION 7C: The section applies to any loan, advance […]

MMS Joins Alliott Group to Extend Services to the International Market

Dear Reader, MMS, one of Johannesburg’s Top 10 auditing and consulting firms, has been appointed as the local representative member firm in Johannesburg for the Alliott Group. With over 165 member firms in 70 countries, Alliott Group offers independent, mid-market accounting and law firms the opportunity to extend nationally, regionally and globally with their clients through access to firms of […]

Will SARS allow you to deduct your company/close corporation’s assessed loss?

Under normal circumstances SARS will allow a taxpayer to carry forward the previous tax year’s assessed loss and set it off against the current tax year’s taxable income. However, there are certain circumstances under which SARS will not allow a taxpayer to carry forward the previous year’s assessed loss and the assessed loss will be lost for set off against […]

Misuse of assessed losses

An assessed loss for income tax purposes is a potentially valuable asset:  it represents past losses made by a taxpayer which is able of being carried forward to subsequent tax years against which future taxable profits are able of being set off.  The set-off of historic losses – in the form of an assessed loss – against existing taxable income […]

The general anti-avoidance rules

The Income Tax Act, 58 of 1962 (‘Income Tax Act’) contains various specific anti-avoidance rules aimed at preventing the abuse of certain specific sections in the Income Tax Act. However, over and above these specific anti-abuse provisions, the general anti-avoidance rules (‘the GAAR’) would also find application to cover further potential and unforeseen loopholes, or abuse of beneficial tax regimes, […]

Tax season 2016: Non-provisional taxpayers’ deadline

Many of our clients are not registered for provisional tax, nor are they required to be registered. These non-provisional taxpayers should however take note thereof that their annual income tax returns (for the 2016 year of assessment which ended on 29 February 2016) are due shortly, and not only on 31 January 2017 as is the case for natural person […]