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The Office of the Tax Ombud (“OTO”) notes that a systemic issue is a matter that can be regarded as the underlying cause of a complaint that impacts or may impact many taxpayers. These issues can arise due to the manner in which SARS systems function, the manner in which SARS drafts and implements policies or procedures, or the manner in which it applies or disregards legislation.
It is no secret that revenue authorities take a keen interest in the unexplained wealth of individuals. In some instances, for example, where wealth is prominently displayed on social media, it may be relatively easy for the South African Revenue Service (“SARS”) to gather information regarding unexplained wealth – as appears to be the case in CSARS v Hamiltonn Holdings (Pty) Ltd and Others (Case No. 2020/35696) where the High Court noted as follows
In the recent case of Rennies Travel v CSARS (20/2021) [2022] ZASCA 83 (6 June 2022), the Supreme Court of Appeal (“SCA”) was required to consider whether a certain commission derived by Rennies Travel, an entity conducting a travel agency enterprise, was subject to VAT at the standard rate or, alternatively, at a zero rate.
The South African Revenue Services (SARS) has published a notification around the mechanisms they use to verify and audit corporate income tax submissions.When a taxpayer submits an annual tax return, that submission is either accepted and assessed or provisionally assessed and selected for audit.
Some businesses take out keyperson insurance policies on the life of an employee (the keyperson) whose services contribute substantially to the success of the business, and whose death or disability will result in a loss for the business. The policy is owned and paid by the business.
The Minister of Finance announced in the 2022 budget speech that there will be a limitation on the utilisation of assessed losses that were carried forward from previous years. The amendment will be effective for companies with years of assessment ending on or after 31 March 2023.
![Commissioner for the South African Revenue Service v Medtronic International Trading S.A.R.L [2023] ZASCA 20 (“Medtronic case”)](/media/ghygoekr/pkf-article-thumb.jpg?width=408&height=297&v=1da0d5cd5a391f0)
