case law

  • Supreme Court of Appeal: Purlish Holdings (Pty) Ltd v CSARS

    • appeal against the decision of the tax court concerning SARS' entitlement to payment of understatement penalties in accordance with section 222(1) of the Tax Administration Act, 2011 (the "TAA").
    • whether SARS had proven that it was entitled to impose "understatement" penalties in terms of section 222 of the TAA, considered.
    • dual elements of the definition of "understatement" in section 221 of the TAA, being conduct in terms of paragraphs (a) to (e) as well as prejudice to
    • evidence of prejudice to SARS, considered.
    • competence of the court a quo, in terms of section 129(3) of the TAA read with Rule 34 of the Tax Court Rules, to increase understatement penalties levied by SARS where that issue was not properly raised for adjudication, considered.
    • find a copy of this judgment here.

legislation and draft legislation

  • Tax Administration Act, 2011

    • the draft revised notice lists reportable and excluded arrangements in terms of sections 35(2) and 36(4).
    • in particular, it is proposed that certain arrangements involving distributions by a closure rehabilitation company or trust referred to in section 37A of the Income Tax Act, 1962, prior to approval of a final closure plan, will qualify as reportable arrangements.
    • due date for comments is 8 March 2019.
    • find a copy of the draft revised note here.
  • draft Rates and Monetary Amounts and Amendment of Revenue Laws Bill, 2019

    • National Treasury published the draft Rates and Monetary Amounts and Amendment of Revenue Laws Bill, 2019 as announced in the National
    • find a copy of the draft bill here.
  • determination of the daily amount in respect of meals and incidental costs for the purposes of section 8(1) of the Income Tax Act, 1962 | notice 268 in Government Gazette 42258

    • the amounts in the notice apply in respect of the year of assessment commencing 1 March 2019.
    • find a copy of the notice here.

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