case law

  • Tax Court of South Africa, Cape Town | CM v CSARS (TAdm 0035/2019)
    • the Applicant sought default judgment against SARS in terms of Rule 56 of the Tax Court Rules to reduce her tax liability to nil, where she alleged that SARS was in default of its obligation to file a Rule 31 statement (i.e. a statement of grounds of assessment and opposing appeal).
    • whether an application in terms of Rule 56 has to be issued by the registrar and assigned a case number before same can properly be served on the other side, considered.
    • requirement that the Applicant's Rule 56 application be preceded by a valid objection and a valid notice of appeal, discussed.
    • whether the Applicant, following receipt from SARS of a letter withdrawing condonation of the late filing of her objection in terms of section 9 of the Tax Administration Act, 2011 ("TAA"), could pursue an appeal without establishing the validity of the objection, considered.
    • when an objection becomes invalid following a notice of invalid objection from SARS (on the basis that condonation for late filing of the objection was withdrawn), considered.
    • the role of explanatory memoranda and parliamentary material in the interpretation of statutes, considered.
    • SARS officials' statutory powers to extend the period for objecting to an assessment, considered.
    • Applicant ordered to pay SARS' costs on attorney and own client scale where her application was insupportable and an abuse of process.
    • find a copy of this judgment here.
  • Tax Court of South Africa, Gauteng | Mr Z v CSARS (IT 4412)
    • appeal against SARS' decision to disallow additional medical tax credits relating to treatment for mercury poisoning which allegedly caused his disability (multiple sclerosis and peripheral polyneuropathy).
    • the onus on the Appellant, in terms of section 102(1)(b) of the TAA, to prove that the additional medical expenses (definitions of "disability" and "qualifying medical expenses" in terms of section 6B(1) of the Income Tax Act, 1962) are deductible by not presenting affirmative evidence that his disability was caused by mercury poisoning, considered.
    • Appellant ordered to pay SARS' costs, in terms of section 130(1)(b) and (c) of the TAA, on the basis that the lack of evidence was the reason he did not succeed in front of the Tax Board and that he should have anticipated the same evidentiary burden in front of the Tax Court.
    • find a copy of this judgment here.

legislation and draft legislation

  • Rates and Monetary Amounts and Amendment of Revenue Laws Bill [B17 2019]
    • this Bill was introduced in the National Assembly by the Minister of Finance on 30 October 2019
    • find a copy of Bill here.
  • Taxation Laws Amendment Bill [B18 2019]
    • this Bill was introduced in the National Assembly by the Minister of Finance on 30 October 2019
    • find a copy of the Bill here.
  • Taxation Administration Laws Amendment Bill [B19 2019]
    • this Bill was introduced in the National Assembly by the Minister of Finance on 30 October 2019.
    • find a copy of the explanatory summary of the Bill here and a copy of the Bill here.

advance tax rulings

  • binding private ruling 331 | de-grouping charge
    • section 45(4)(b) of the Income Tax Act, 58 of 1962 ("Act").
    • this ruling determines the applicability of the de-grouping charge.
    • find a copy of the ruling here.
  • binding private ruling 332 | unbundling and subsequent issue of listed shares by non-resident subsidiary of resident holding company
    • "sections 1(1) – definition of "dividend"; and 46 of the Act".
    • "paragraph 11 of the Eighth Schedule to the Act".
    • sections 1 – definition of "security" and "transfer"; and 8(1)(a)(iv) of the Securities Transfer Act, 2007.
    • this ruling determines the income tax and securities transfer tax consequences of the transaction steps to achieve the primary listing of the offshore assets, held in a subsidiary company of a multi-national group on a foreign stock exchange, with a secondary listing on the JSE.
    • find a copy of the ruling here.

SARS publications

  • no SARS publications noted.

exchange control

  • no new exchange control circulars noted

customs and excise

  • no new customs and excise news noted.


  • OECD | OECD releases further guidance for tax administrations and MNE Groups on Country-byCountry reporting
    • the OECD/G20 Inclusive Framework on BEPS has released additional interpretative guidance to give greater certainty to tax administrations and MNE Groups on the implementation and operation of Country-by-Country (CbC) Reporting (BEPS Action 13).
    • the new guidance includes questions and answers on, amongst other topics, the treatment of dividends received, the operation of local filing, the use of rounded amounts in Table 1 of an MNE Group's CbC report and the information that must be provided with respect to the sources of data used.
    • in addition, a summary of common errors made by MNE Groups in preparing CbC reports has also been posted on the OECD website. The release of this summary will help MNE Groups in avoiding these errors and tax administrations in detecting them where they occur.
  • Jordan | Global Forum on Tax Transparency and Exchange of Information for Tax Purposes ("Global Forum") and the Inclusive Framework on BEPS ("Inclusive Framework")
    • Jordan joined the international fight against tax evasion by becoming a member of the Global Forum as well as the Inclusive Framework.
    • find a copy of the media release here, a list of the members of the Global Forum here, and a list of the members of the Inclusive Framework here.
  • Latvia and Bosnia and Herzegovina | Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting ("MLI")
    • Latvia deposited its instrument of ratification for the MLI and Bosnia and Herzegovina signed the MLI.
    • find a list of the signatories and parties to the MLI here.
  • ECD | guidance on the spontaneous exchange of information by no or only nominal tax jurisdictions
    • as part of the BEPS Action 5 (harmful tax practices), jurisdictions may only maintain preferential regimes if certain "substantial activities" requirements are met, which requirements must, since November 2018, also apply to jurisdictions with zero or only nominal tax rates. No or only nominal tax jurisdictions are also required to spontaneously exchange information on the activities of certain residents with the jurisdiction where the parent or beneficial owner is resident. To ensure that these spontaneous exchanges are coordinated and efficient, the OECD published guidance on the practical modalities regarding the exchange of information requirements.
    • find a copy of the guidance 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.