ARTICLE
12 December 2019

Tax In Brief - Issue 41

E
ENS

Contributor

ENS is an independent law firm with over 200 years of experience. The firm has over 600 practitioners in 14 offices on the continent, in Ghana, Mauritius, Namibia, Rwanda, South Africa, Tanzania and Uganda.
appeal against decision of Tax Court, in respect of which the Commissioner for the South African Revenue Service was directed to partially allow a claim
South Africa Tax

case law

  • Supreme Court of Appeal | C: SARS v Clicks Retailers (Pty) Ltd
    • appeal against decision of Tax Court, in respect of which the Commissioner for the South African Revenue Service was directed to partially allow a claim by taxpayer in terms of section 24C of the Income Tax Act, 58 of 1962 ("Act").
    • whether cost of sales in honouring vouchers, issued to clients in terms of a loyalty programme and expected to be redeemed in the following year, constituted expenditure for purposes of section 24C of the Act, considered.
    • whether expenditure incurred in honouring vouchers held by clients arose in terms of the same contract in respect of which sales income accrued to the taxpayer, considered.
    • find a copy of the judgment here.
  • High Court of the South Africa| C: SARS v Spur Group (Pty) Ltd
    • whether a contribution to a trust qualifies as expenditure incurred in the production of income in terms of section 11(a) of the Income Tax Act, 58 pf 1962, considered.
    • whether there is a sufficiently close connection between the taxpayer's contribution to a trust in respect of its employee share incentive scheme and its production of income, considered.
    • find a copy of the judgment here.
  • Supreme Court of Appeal | C: SARS v Langholm Farms (Pty) Ltd
    • whether the court appropriately exercised its discretion in circumstances where SARS had not issued a final assessment.
    • interpretation of section 75(1C)(a)(iii) of the Customs and Excise Act 91 of 1964, considered.
    • interpretive principles to be applied where clear language of a provision produces an "unpalatable" outcome, considered and confirmed.
    • exercise of the court's discretion in terms of section 21 of the Superior Courts Act 10 of 2013, considered.
    • find a copy of the judgment here.

legislation and draft legislation

  • amendments were made, on 20 November 2019, to the Taxation Laws Amendment Bill [B18—2019] as tabled by the Minister of Finance in the National Assembly on 30 October 2019
    • find a copy of the amended Bill here.
  • Carbon Tax Act, 2019: Regulations | Government Gazette 42873
    • Carbon Tax Act regulations were published in Government Gazette 42873.
    • find a copy of the regulations here.
  • Carbon Tax Act, 2019: Draft Regulations |Trade Exposure Allowance
    • proposed regulations in terms of section 10 of the Carbon Tax Act, 2019
    • find a copy of the regulations here
  • Carbon Tax Act, 2019: Draft Regulations | GHG Emissions Intensity Benchmarks
    • proposed regulations in terms of section 19(a) of the Carbon Tax Act, 2019
    • find a copy of the regulations here.

advance tax rulings

  • binding private ruling 335 | STT exemption for foreign governments
    • section 8(1)(k) of the Securities Transfer Tax Act 25 of 2007 ("STT Act").
    • this ruling determines whether the securities transfer tax ("STT") exemption for any sphere of a foreign government is available in situations where a foreign central bank acts as investment manager for a sovereign wealth fund.
    • find a copy of this ruling here.
  • binding private ruling 336 |liquidation distribution
    • section 1(1), paragraph (k) of the definition of "gross income" in terms of the Income Tax Act, 58 of 1962 ("Act")
    • sections 10(1)(k), 47(1), 47(5), 64G(2)(b) of the Act
    • paragraphs 11(2)(b)(i), 12(A)(6)(e), 43A, and 77 of the Eighth Schedule to the Act
    • section 8(1)(a)(v) of the STT Act
    • this ruling determines the income tax and STT consequences of a liquidation distribution.
    • find a copy of the ruling here.

SARS publications

  • no new publications noted

exchange control

  • no new exchange control circulars noted

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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.

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