Below, please find issue 45 of ENSafrica's tax in brief, a snapshot of the latest tax developments in South Africa.

Case law

  • Tax Court, Johannesburg | ABC (Pty) Ltd v C:SARS (case number 13950)
    • Legal principles regarding an application for postponement, restated.
    • Whether the Tax Court, if the taxpayer fails to argue its appeal, may hear argument from the South African Revenue Service ("SARS") regarding an order replacing the assessment under appeal with a revised assessment, considered.
    • Interaction of the Tax Court Rules with the powers of the Tax Court in terms of sections 107 and 129 of the Tax Administration Act, 2011, considered.
    • Find a copy of this judgment here.

Legislation and draft legislation

  • Revised Draft Disaster Management Tax Relief Bills
    • Following the media statement by National Treasury on 24 April 2020, revised bills have been published for public comment.
    • Find a copy of the Revised Draft Disaster Management Tax Relief Bill, 2020 here.
    • Find a copy of the Draft Explanatory Memorandum on the Revised Draft Disaster Management Tax Relief Bill, 2020 here.
    • Find a copy of the Revised Draft Disaster Management Tax Relief Administration Bill here.
    • Find a copy of the draft rule amendments under the Customs and Excise Act, 1964 here.
    • Comments are due by 15 May 2020.

Advance tax rulings

  • binding private ruling 341 | distribution of a bank account as dividend in specie
    • This ruling determines whether the disposal of the co-applicant's only asset, a bank account, to the applicant as a dividend in specie in anticipation of the co-applicant's winding-up, will constitute a liquidation distribution.
    • The ruling relates to section 47 of the Income Tax Act, 1962 (the "Act") and paragraph 43A of the Eighth Schedule.
    • Find a copy of the ruling here.
  • binding private ruling 342 | donation by a resident to a foreign trust of property received from another foreign trust
    • This ruling determines the application of the attribution rules to an award by a non-resident discretionary trust to a resident beneficiary and the subsequent donation by the resident of the award to another non-resident trust.
    • The ruling relates to the "gross income" definition in section 1 of the Act, section 25B(2A) and 25B(2B), section 26A, section 56(1)(g)(ii) and paragraph 80 of the Eighth Schedule.
    • Find a copy of the ruling here.

SARS publications

  • Interest rate table 3 - rates at which interest-free or low interest loans are subject to income tax
    • Interest rate table 3 - updated to reflect the "official rate of interest" as 5.25% with effect from 1 May 2020.
    • Find a copy of the document here.
  • Comprehensive Guide to Capital Gains Tax (Issue 8)
    • The guide has been updated to reflect amendments introduced by the Taxation Laws Amendment Act, 2020.
    • Find a copy of the document here.

International

  • OECD | Public comments received on the draft Model Rules for Reporting for Platform Operators with respect to Sellers in the Sharing and Gig Economy
    • During February 2020, the OECD issued a set of draft rules which could be adopted by interested jurisdiction on a uniform basis to collect information on transactions and income realised by platform sellers. Public comment has now been received and published.
    • Find a copy of the draft Model Rules here.
    • Find a copy of the comments received (in a zip file) here.
  • OECD | COVID-19 tax policy tracker
    • The OECD maintains a database of the tax policy responses of governments around the world to the COVID-19 pandemic.
    • Find a copy of the database (excel spreadsheet) here.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.