ENS Tax In Brief

case law

• TALT v C:SARS (A2023/077887) [2024] ZAGPJHC 827 (27 August 2024)
  
  
  • The taxpayer, an inter vivos discretionary trust, submitted its 2012 tax return declaring its taxable capital gains as nil. However, the South African Revenue Service ("SARS") conducted an audit and issued an additional assessment in terms of which a taxable capital gain and understatement penalty were included.
    
    
  • The taxpayer objected to the additional assessment and the USP, arguing that the assessment was invalid due to the expiry of the prescription period. SARS disallowed the objections.
    
    
  • The taxpayer appealed to the Tax Court, raising the same objections and introducing a new ground of appeal in its rule 32 statement of grounds of appeal in relation to the capital gain, which it believed was impermissibly taxed.
    
    
  • SARS contended that the new ground of appeal was invalid because it was not included in the original objection to the additional assessment. The Tax Court treated this as a preliminary issue and upheld SARS' view that the new ground could not be raised.
    
    
  • The taxpayer appealed to the Full Court and the appeal was upheld. The Full Court agreed that the new ground was not a separate objection, but a further argument related to the same issue (i.e. the capital gain) that had already been disputed.
    
    
  • Therefore, the taxpayer was permitted to raise this new ground of appeal.
    
    
  • Find a link to the judgment here.

SARS publications

• Monthly Tax Digest for August 2024
  
  
  • Find the August monthly digital column here.
    
    
• Government Connect | Government Connect Issue 21
  
  
  • Issue 21 highlights the benefits of eFiling and SARS' self-help services available on mobile devices.
    
    
  • Find more information here.
    
    
• Tax Practitioner Connect | Tax Practitioner Connect Issue 55
  
  
  • Issue 21 highlights the benefits of e-Filing and SARS' self-help services available on mobile devices.
    
    
  • Find more information here.
    
    
• FAQ Issue 4 | Deceased estates
  
  
  • The FAQs document has been compiled on the basis of questions that executors and the public at large have about the tax treatment of deceased estates.
    
    
  • Find a copy of the FAQs Deceased Estates (Issue 4) here.
    
    
• Guide on return for withholding tax on royalties
  
  
  • The Withholding Tax on Royalties Guide including details of the latest version of the Withholding Tax on Royalties' Return ("WTR01") has been published.
    
    
  • This guide provides guidelines regarding the completion of the WTR01, how to make payment on e-Filing and apply for a refund using the Rev16 form.
    
    
  • Find a copy of the guide here.
    
    
• Traders and Travellers Connect Edition 4
  
  
  • The SMME Traders Connect Newsletter edition 4 is now available.
    
    
  • In the October 2023 and March 2024 publications, focus was placed on SARS Customs administered incentives, particularly the Authorised Economic Operator and Customs Deferment.
    
    
  • This was to raise awareness about these incentives so that our SMME traders can learn more about them and use the incentives to benefit their businesses and improve their compliance. This publication continues to zoom in on more incentives that the SMME trader community can benefit from.

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