A dive into South Africa’s revised assessed losses regulations
A dive into South Africa’s revised assessed losses regulations Navigating the complex world of corporate finance and tax regulations can be challenging for businesses. South Africa has recently undergone significant changes in its tax landscape, including limits on assessed losses and adjustments to corporate income tax rates. To stay informed, adaptable, and compliant, companies […]
IRP5 not uploaded? Expect significant delays
When an employer’s failure to upload an IRP5 brings SARS to a grinding halt. One of my clients has recently retired and like all retirees, they went through the whole rigmarole of completing the numerous forms required by their employer retirement fund so that the fund can calculate their lump sum entitlement and monthly pension. […]
Disclose your defaults before SARS finds them!
A grim warning for South African taxpayers. Long gone are the days when tax fraudsters could run circles around SARS, which has intensified its efforts to crack down on tax evasion by pursuing criminal action against non-compliant taxpayers. One example is when SARS came knocking on the door of a private hospital and its director, […]
How SARS catches tax-dodgers
SARS auditors employ methods that most people wouldn’t have even considered. How does the South African Revenue Service (SARS) catch those who do not contribute their fair share to state coffers? Here are some tests that SARS auditors perform to see if you are being somewhat economical with the truth. Comparing VAT returns to your […]
Never do things just ‘for tax purposes’
A decision based solely on tax considerations is likely to be the wrong one.“I hate tax!” These were the words spoken by a director of one of the clients of the audit firm with whom I served articles. Whilst many would agree with this sentiment towards the tax-man, this particular individual’s zeal in devising schemes […]
Tax compliance lives beyond death
A deceased estate takes on a (tax) life of its own while being wound up I started my first job back in September 1987 at the tender age of 18, and approximately nine months later I received my very first income tax return from the Receiver of Revenue (as SARS was known in those days), […]
Your retirement ‘gift’ to SARS
Definition of retirement In the ‘good old days,’ retirement meant that you had reached a certain stage where you stopped working, had a shindig at which you were presented with your gold watch, went on pension, and spent the rest of your days trying (unsuccessfully) to perfect your golf swing. However, everyday words always seem […]
More time to benefit from the learnership tax incentive
The Learnership Tax Incentive, which was introduced in the Income Tax Act on 1 October 2001, is a programme that supports skills intensity through the tax system. To encourage skills development and job creation, the Learnership Tax Incentive provides employers with an additional tax deduction over and above the normal deduction on remuneration. The additional […]
New legislation for marriages on the way
Being a person’s spouse could have varying tax consequences, particularly where they are married in community of property. Currently, for income tax purposes, you are deemed to be a person’s spouse in the following instances: (a) A person who is in a marriage or customary union recognised in terms of the laws of the Republic; (b) A person who […]
Tax deductions for home offices
Tax practitioners have been inundated with queries from clients on the possible relief offered by the South African Revenue Service (“SARS”) on the possibility of deducting from their taxable income home office expenses due to the shift in working policies by many employers. SARS recently hosted a webinar on the matter (the summary of which […]