For CFO’s and Financial Directors on tax interpretation:

1.      The new Interpretation Note 47 offers guidance on claiming the so-called wear & tear allowance in s11(e) of the Income Tax Act. Click here 

2.    Interpretation Note 48 provides guidance on the application and determination of the debtors allowance granted under section 24(2) of the Income Tax Act. Click here

3.  PWC's Synopsis for this month includes the following:

Smoke and mirrors or genuine commercial venture?
Legal disputes - be careful what you wish for!
Tax paid on fictitious income - Taxpayer’s right to interest on SARS refund?
Changing from being a share investor to being a share dealer
Tax experts’ views on tax avoidance and evasion and South Africa’s new GAAR

Click here to read

 

In the PWC August Synopsis, special emphasis are being placed on "Fringe benefits tax".

In a judgment handed down in the High Court in the Western Cape this month (Vacation Exchanges International (Pty) Ltd v Commissioner for the South African Revenue Services – judgment given on 7 August 2009), the Court provided clarity on who must pay the tax when the taxable value of a fringe benefit is adjusted by SARS on the basis that it has been incorrectly calculated by an employer.

Please click here to download the PWC Synopsis for August

 

With the recession and financial difficulties being experienced in many sectors of the economy, it is certain that the budget chase will be a lot tougher for the South African Revenue Service (SARS). SARS has embarked on a number of amendments to its internal processes and systems - the reconciliation process and the introduction of the new penalty system for non-compliance, e.g. late filing of EMP201 monthly returns, being two of them. 
Download the Tax Alert document, as constructed by PriceWaterhouseCoopers here