Member Article

Case Law

• The Tax Court of South Africa, Cape Town IT 24819
  • whether insufficiency of funds was not reasonably foreseeable, and therefore constitutes reasonable grounds for non-payment of employees tax, considered.
  • correct interpretation of the number of days for payment of employees tax considered as a point in limine.
  • find a copy of this judgment here.
    
    

Legislation and Draft Legislation

• The 2019 Amendment Acts were promulgated on 15 January 2020
  • find a copy of the final response document on the 2019 Draft Tax Bills here.
    
    
• Taxation Laws Amendment Act, 2019
  • find a copy of the Act here.
  • find a copy of the explanatory memorandum on the Taxation Laws Amendment Bill, 2019 here.
    
    
• Tax Administration Laws Amendment Act, 2019
  • find a copy of the Act here.
    
    
• Rates and Monetary Amounts and Amendment of Revenue Laws Act, 2019
  • find a copy of the Act here.
    
    

Advance Tax Rulings

• Binding general ruling 9 (Issue 4) taxes on income and substantially similar taxes for purposes of South Africa’s tax treaties
  • this ruling identifies the taxes administered by SARS which, in its opinion, constitute taxes on income or substantially similar taxes for purposes of South Africa’s tax treaties.
  • find a copy of this ruling here.
    
    
• Binding private ruling 337 amalgamation transactions involving the assumption of liabilities only
  • section 44 of the Act. o this ruling determines the income tax effect of an amalgamation transaction for consideration involving the assumption of liabilities only.
  • find a copy of this ruling here.
    
    
• Binding private ruling 338 donations of money made to a public benefit organisation at a fundraising event
  • this ruling determines the tax treatment of payments made to the applicant, a public benefit organisation, approved under section 30 of the Act, at a fundraising event.
  • find a copy of this ruling here.
    
    

SARS publications

• Interpretation Note 16 (Issue 3) – Exemption from income tax: Foreign employment income
  • this note discusses the interpretation and application of the foreign employment remuneration exemption in section 10(1)(o)(ii) of the Act.
  • find a copy of the document here.
    
    
• Interpretation Note 67 (Issue 4) – Connected Persons
  • this note provides guidance on the interpretation and application of the definition of “connected person” in section 1(1) of the Act.
  • find a copy of the document here.
    
    

International

• OECD Statement by the OECD/G20 Inclusive Framework on BEPS on the Two-Pillar Approach to Address the Tax Challenges Arising from the Digitalisation of the Economy
  • participants in the Inclusive Framework agreed to pursue the negotiation of new nexus rules and profit allocation rules on the basis of a "Unified Approach" under Pillar One, to ensure that multinational enterprises conducting sustained and significant business in places where they may not have a physical presence can be taxed in such jurisdictions.
  • the Unified Approach agreed by the Inclusive Framework draws heavily on the Unified Approach released by the OECD Secretariat in October 2019.
  • find a copy of the statement here.
    
    
• OECD OECD releases consultation document on the review of Country-byCountry Reporting and invites public input
  • the Inclusive Framework released a consultation document seeking input in respect of BEPS Action 13, and the scope and content of country-by-country reporting in particular.
  • find a copy of the document here.

This email contains confidential information. It may also be legally privileged. Interception of this email is prohibited. The information contained in this email is only for the use of the intended recipient. If you are not the intended recipient, any disclosure, copying and/or distribution of the content of this email, or the taking of any action in reliance thereon, or pursuant thereto, is strictly prohibited. Should you have received this email in error, please notify us immediately by return email. ENSafrica (ENS and its affiliates) shall not be liable if any variation is effected to any document or correspondence emailed unless that variation has been approved in writing by the attorney dealing with the matter.