ConCourt judgment widens High Court’s jurisdiction in tax cases
The Court replaces the restrictive ‘exceptional circumstances’ test with a flexible ‘good cause’ standard, creating new forum-choice opportunities.
#TaxAdministrationAct
SARS launches expedited tax-debt compromise process
SARS will negotiate compromises only where liability is undisputed and both parties agree the taxpayer cannot pay in full.
Tax Ombud’s 10 top refunds total R167m
Requiring SARS to provide written reasons when it rejects the OTO’s recommendations has resulted in an increase in the resolution of complaints.
What ‘capital’ could be in a CIS capital distribution
A proposed amendment to the Income Tax Act will tax unit trust investors on capital distributions before disposals, without any base cost offset.
Draft Bill hides a ‘stealth tax’ in your unit trust investments
Proposed amendments could undermine the tax-efficient compounding that makes a collective investment scheme an attractive investment vehicle.
Draft amendments narrow taxpayers’ ‘bona fide inadvertent error’ defence
The proposal restricts the ‘bona fide inadvertent error’ defence under the understatement penalty regime to cases where the tax shortfall is a ‘substantial understatement’.
SCA upholds pre-commencement tax debts in business rescue
The Supreme Court of Appeal confirms that re-quantifying a tax debt post-rescue commencement doesn’t create a new, preferential liability – cementing SARS’s place as a concurrent creditor under an approved rescue plan.
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.
SARS’s tax collection powers strengthened – will enforcement get tougher?
Taxpayers may struggle to challenge SARS’s authority to repatriate foreign assets after a High Court ruling upheld its powers, potentially paving the way for more assertive tax enforcement.
Farmer wins court battle over R10m insurance deduction
The Tax Court rules against SARS in a dispute over a contingency insurance deduction, reaffirming the legitimacy of the policy and its role in protecting income-generating activities.
Tax Ombud flags SARS delays in meeting resolution deadlines
The Tax Ombud’s 2023/24 report highlights delays in SARS meeting resolution deadlines, an increase in complaints, and a concerning rise in eFiling profile hijacking.
Retirement savings not immune to SARS tax collection orders, court rules
SARS can appoint third parties to deduct tax debts directly from retirement funds, overriding the protections under the Pension Funds Act.
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.
Constitutional Court clarifies CGT in multi-tier trust arrangements
The court’s interpretation and application of the conduit principle has implications for structures involving layers of multiple discretionary trusts.
Two strikes and you’re out: SARS clarifies tax practitioner registration
An Interpretation Note provides clear guidelines on when a practitioner can be prohibited from registering or deregistered due to non-compliance.
Constitutional Court to rule on remission of interest post-VDP agreement
The decision could set a precedent for taxpayers seeking relief from interest after reaching a Voluntary Disclosure Programme agreement with SARS.
