case law

  • The High Court of South Africa, Gauteng Division, Pretoria | Medtronic International v CSARS
    • application brought to review and set aside the decision of the Commissioner for the South African Revenue Service (" Commissioner" and " SARS") not to remit interest in terms of section 39(7) of the Value Added Tax Act, 1991.
    • scope of the record of proceedings in terms of Rule 53(1)(b) of the Uniform Rules of Court ("Uniform Rules"), considered.
    • basis for determining whether information is relevant to the record of proceedings, considered.
    • find a copy of this judgment here.
  • The High Court of South Africa, Eastern Cape Division, Port Elizabeth | Alfdav Construction CC v CSARS
    • application brought in terms of Rule 42 of the Uniform Rules, to amend a judgment to reflect that no penalties or interest would be payable in respect of certain value-added tax assessments, which had been reviewed and set aside.
    • whether such amendment is possible when penalties and interest have not been raised in the main application, considered.
    • find a copy of this judgment here.
  • The High Court of South Africa, Gauteng Division, Pretoria | Canyon Resources (Pty) Ltd v CSARS
    • appeal lodged against the Commissioner's decision to disallow diesel refund claims in respect of mining activities carried on by the applicant's contractor.
    • whether the contractor carried on such activities under a "wet" or "dry" contract, considered.
    • whether or not diesel was used in "post-recovery processes", considered.
    • sufficiency of records for determining use of diesel, considered.
    • role of expert evidence considered.
    • find a copy of this judgment here.

legislation and draft legislation

  • Draft 2020 Rates and Monetary Amounts and Amendment of Revenue Laws Bill released
    • comments are due by 30 March 2020.
    • find a copy of the Bill here.
  • Discussion Paper – Reviewing the tax treatment of excessive debt financing, interest deductions and other financial payments
    • currently, the deduction of interest payments by South African members of multinational enterprises can be limited by the following rules – transfer pricing (which incorporates an arm's length non-excessive debt element), interest limitation, and exchange control.
    • this document sets out a review of this legislative framework and policy proposals for the simplification of the legislation to enhance certainty.
    • comments are due by 17 April 2020.
    • find a copy of the document here.

advance tax rulings

  • binding private ruling 339 | transfer of listed shares to a collective investment scheme in exchange for participatory interests
    • this ruling determines the income tax and securities transfer tax implications of a transfer of listed shares to a collective investment scheme ("CIS") in exchange for participatory interests in that CIS, in terms of section 42 of the Income Tax Act, 1962 (the "Act").
    • find a copy of this ruling here.
  • binding private ruling 340 | share buy-back at nominal value
    • this ruling determines the income tax and donations tax consequences of a share buy-back at nominal value pursuant to a proposed cancellation agreement.
    • find a copy of this ruling here.
  • draft binding general ruling | unbundling of unlisted company: impact of nonqualifying shareholder
    • this draft ruling provides clarity on what constitutes an unbundling transaction under section 46(1) of the Act when an unbundling company having non-qualifying shareholders unbundles shares in an unlisted unbundled company.
    • comments are due by 31 March 2020.
    • find a copy of this ruling here.

SARS publications

  • Interpretation Note 113 – Apportionment of surplus and minimum benefit requirements: Pension Funds Second Amendment Act
    • this note provides clarity on the tax treatment of the actuarial surplus allocations or distributions made to members, former members, existing pensioners and employers by funds under the provisions of sections 15B, 15C, 15D or 15E of the Pension Funds Act.
    • find a copy of the document here.
  • Interpretation Note 44 (Issue 3) – Public benefit organisations: Capital gains tax
    • this note provides guidance on the application and interpretation of paragraph 63A of the Eighth Schedule to the Act, which deals with the disregarding of a capital gain or capital loss on the disposal of an asset by a public benefit organisation.
    • find a copy of the document here.
  • Draft Interpretation Note - Doubtful Debts
    • this note discusses the interpretation and application of section 11(j) of the Act.
    • find a copy of the document here.
    • find a draft document on the online application process in terms of section 11(j)(i) here.
    • find a draft of the Excel-based Loss Allowance Models here.

international

  • OECD | Public comments received on the 2020 review of Country-by-Country Reporting
    • the Inclusive Framework released a consultation document seeking input in respect of BEPS Action 13, and the scope and content of country-by-country reporting in particular.
    • find a copy of the public comments received here.

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