Tax Court faults SARS in R158m VAT case over legal insurance fund
SARS’s stance on input VAT was overturned after the court found the fund to be the principal in an insurance agreement – not merely an agent.
Author: Amanda Visser
Experts warn reversing VAT increase may be impractical
Once implemented on 1 May, undoing the VAT hike could prove nearly impossible. Even if Parliament later votes against the Rates and Monetary Amounts Bill, the logistics of refunding the collected VAT present formidable challenges.
Proposal to tweak ‘bona fide inadvertent error’ in favour of SARS
The move will limit taxpayer defences that rely solely on claiming an unintentional mistake.
Higher VAT will impact business operations and consumer spending
The Minister of Finance cites an average 19% VAT among peers to argue that South Africa’s 15% rate is low, but isolated comparisons miss key factors such as exemptions, corporate rates, and overall business costs.
Taxed out: why South Africa’s spending problem can’t be ignored
Experts slam the idea of a VAT increase, pointing to a record tax burden and bloated expenditure. From uncollected billions to inefficient governance, the real fix lies in reining in waste, not squeezing taxpayers.
Tax collections miss forecasts – will taxpayers bear the burden?
A dip in corporate and VAT revenues has left a R10bn hole in expected tax collections. As the Budget approaches, Treasury faces a difficult balancing act.
Industry raises red flags over tax treatment of collective investment schemes
Treasury’s proposed tax changes for investment funds may lead to trading distortions and reduced revenue, say industry experts.
Be aware of the difficulties when dealing with tax debt in business rescue
Can a creditor lose their right to enforce post-commencement debt? A High Court case sheds light on the fine print of business rescue rules and SARS’s role in enforcing tax obligations.
Increased focus on voluntary reporting for tax transparency
PwC’s ninth tax transparency review shows a growing trend among South African corporates to produce stand-alone tax reports, signalling a commitment to accountability and sustainable business practices.
Criminal liability for small businesses that fail to register for VAT
Exceeding the R1m threshold without registering could have serious consequences for businesses. SARS is stepping up enforcement, with a wave of cases landing in the Specialised Commercial Crimes Court.
Concerns about proposed tax policy framework for alcohol industry
The proposed minimum unit price for alcohol could make drinking less affordable and curb harmful consumption, but critics argue it may unintentionally fuel the already substantial illicit alcohol market.
Corporate taxpayers sceptical of SARS’s service delivery gains
Half of corporate taxpayers in PwC’s latest survey express dissatisfaction with SARS’s service improvements. Only 3% report a positive shift, while audit delays and penalty disputes remain a major pain point.
Amendment to ADR process may resolve tax disputes faster
Taxpayers may soon have a faster, cost-effective way to resolve disputes with SARS through alternative dispute resolution at the objection phase.
‘Instructive remarks’ from the Constitutional Court on understatement penalties
Expert legal interpretations, even if contrary to SARS’s stance, may not automatically result in understatement penalties.
SAIPA chief executive is not taking his dismissal lying down
Shahied Daniels has accused the accountancy organisation’s board of irregularities and says he intends to challenge his dismissal.
Precedent-setting case highlights legal hurdles in transfer pricing disputes
The tax dispute between ABD and SARS highlights the complexity of IP royalty pricing and the importance of expert testimony in transfer pricing audits.
Civil society frustrated by corruption-fighting information falling through the cracks
The Organisation Undoing Tax Abuse highlights the need for a centralised platform for sharing information to empower South Africa’s criminal justice system.
