RSM South Africa

Tax insights

Proposed Amendments to the Doubtful Debt Provisions

2 November 2018
There has been a significant change from previous wording, with the old section 11(j) being repealed and replaced by an entirely new section. While the rate of allowance was not defined in Section 11(j), based on SARS practice, 25% of the provision for bad debts was granted as an allowance.

SARS clamps down on non-compliant corporates

18 October 2018
In terms of the Tax Administration Act No.28 of 2011 (“TAA Act”), with specific reference to Sections 210 and 211, SARS can impose a fixed amount penalty where a taxpayer is non-compliant due to a failure to comply with an obligation imposed in terms of a tax act.

Tax incentives for saving the planet

31 July 2018
Global warming has become a topical issue across the world. The dying of marine life in the sea and dramatic temperature changes across the globe cannot go unnoticed. A lot has to be done to protect Mother Earth. Tax incentives are welcomed by companies as this will boost their after tax profits while at the same time help to save the environment.

Tax refunds - What you need to know

23 July 2018
Most taxpayers are not aware of the requirements for a tax refund to be facilitated and SARS very often will delay paying out the refund.

Tax deadline dates - Simplifying your obligations

2 July 2018
We all know that keeping track of your personal tax filing obligations can be difficult to track at times. To add to the complexity, it does not help that you could potentially be required to address filing obligations for 3 different tax years in one calendar year. We set out below the due dates for all tax return filings in a tax year:

Tax Implications on foreign exchange differences

25 May 2018
International trading has become more and more customary for both individuals and companies, with imports and exports, as well as foreign investment becoming easier as the world becomes smaller with the help of internet, e-commerce, and so forth. This has led to more taxpayers having foreign currency assets and/or liabilities.

Conversion of debt into equity

23 April 2018
South African Revenue Services (“SARS”) in their Tax Laws Amendment Bill of 19 July 2017, supported by the Explanatory Memorandum thereto, acknowledged that a common mechanism used in practice by taxpayers to enable a debtor to settle a debt is for that debt to be converted into equity.

SARS announces prosecution of taxpayers with outstanding returns

20 April 2018
The South African Revenue Service (“SARS”) issued a media release on 16 April 2018 where they advised that they have started, together with the National Prosecuting Authority (“NPA”), to prosecute non-compliant taxpayers who have failed to submit their returns. Taxpayers who are found guilty will have a criminal record.

The effect of land expropriation without compensation on your business

13 April 2018
Land expropriation without compensation is a controversial topic in South Africa. Proponents of this topic mention the following benefits, amongst others: 

Changes to travel reimbursements from 1 March 2018

15 March 2018
Employers are able to compensate their employees, for costs incurred in respect of business travel, in a number of ways. One of the generally accepted methods of compensation is to reimburse the employee based on mileage travelled.

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