Claiming Foreign Tax Credits
Back in the day when I was still running my tax practice full-time, I was called upon by a client to assist with the tax and accounting treatment of taxes withheld by a foreign country from income earned in that country—in this particular case, Botswana. The client’s query centred on the following two issues: Claiming […]
Long-term goals, or short-term gains?
More than a million applications have already been lodged with the South African Revenue Service (SARS) to pull funds out of their savings. Given that this amounts to R21.4 billion, that’s a frightening amount of money for a country that doesn’t have a savings culture. What with more people withdrawing cash under the Two Pot […]
Five expensive payroll errors
These common PAYE errors could cost you dearly with SARS. With SARS continually seeking to increase its revenues however it can, organisations with misconceptions about how certain payroll elements should be taxed may unknowingly be exposing themselves financially. We often come across the following top five payroll errors that organisations need to question and correct […]
Expenses must be intended to produce taxable income
To successfully deduct an expense, there must be a link to earning taxable income. Section 11(a) of the Income Tax Act, the so-called ‘general deduction formula’, seems to have produced more court cases than virtually any other Section of the Act. And each time, the courts tell us the same thing: In order for you […]
Mastering Record Keeping: How to Meet SARS’s Electronic Documentation Standards
Too often, taxpayers seem to forget that the most important aspect of dealing with SARS is to ensure that they can discharge their burden of proof. As a taxpayer, it is on you to provide SARS with the relevant material that, on a balance of probabilities, supports your position. Taxpayers are required to retain relevant […]
Beware of tax-related scams
Over the past five years, the SAFPS has seen a steady increase in the number of tax-related scams. Improved efficiency To improve efficiency when it comes to processing tax returns, and to encourage individuals and businesses to file their tax returns timeously, SARS launched its eFiling service in 2000. This allows taxpayers to file their […]
Securing your business’s future: FICA compliance in South Africa made simple
To thrive in South Africa’s ever-changing economic landscape, it is crucial to have a thorough understanding of your regulatory responsibilities, including compliance with the Financial Intelligence Centre Act (FICA). Recognised not just as an additional requirement to your current protocols, but rather as a fundamental component in upholding your business’s integrity, FICA ensures transparency and […]
Testamentary trusts still have their place
How you can protect your assets from predators—including SARS TRUSTS HAVE received a lot of bad press over the past few years, what with SARS taking a dim view of the use of trusts as a means of avoiding tax. A 2008 case involving a property trust, where the beneficiaries were changed in the hope […]
The new SARS solar energy tax credit
The tax credit for individuals installing solar panels is here, for a limited time only. The proposed new law regarding the tax credit available to individuals who install solar panels has been announced. The system will be introduced in the form of a tax credit, as opposed to a tax deduction. This is good news, […]
Tax certificate uploads: How to avoid SARS issues
Check, check, and check again … The SARS e-filing system has come a long way from its humble beginnings, and it is clear that the tax office is moving ever-closer to a situation whereby the majority of taxpayers will no longer be required to submit a return each year—employers, investment funds, and medical schemes will […]