News

Repo Rate Reduced on Back of Favourable Data

A good start to the new year when the Reserve bank announced a surprise reduction of 25 basis points to the repo rate. Good news for those with borrowings and the forecast is that we should get another cut in the 4th quarter 2020.

N Nolands Team

Budget Speech 26th February 2020

South Africa will be holding its breath at 14h00 Wednesday 26th February 2020 as Minister Mboweni presents his Budget for the 2021 financial year. There literally can only be bad news as the whole country is going to be affected by whatever reforms will be announced, but without these reforms South Africa will undoubtedly fail, so we need to make short to medium term sacrifices. There will be increased taxes, what shape or form is anyone’s guess. But this needs to be accompanied with a reduced Government wage bill and holes plugged in our leaking State-Owned Entities.

N Nolands Team

Stabilising Public Finances

Large fiscal deficits incurred over the years, although providing short-term support to the economy, have not resulted in commensurate long-term economic growth. This has led to sharp increases in the government’s debt-to-GDP ratio, which currently stands at 60.8 per cent, and is expected to rise to 71.3 per cent in 2022/23. The growing proportion of limited public resources spent on interest payments are crowding out spending on social and economic investment.

N Nolands Team

Medium Term Budget Policy Statement 2019

The 2019 MTBPS has been presented by Minister Tito Mboweni. His opening statement was a reference to the Aloe Ferox plant he brought to Parliament when presenting the February 2019 budget.

N Nolands Team

Special Trust

Unlike conventional trusts, which are taxed at a flat rate of tax, a special trust is taxed on the same sliding scale applicable to natural persons. For tax purposes the following types of special trusts are recognised:

N Nolands Team

Tax Season 2019

This year taxpayers who meet ALL the following criteria need NOT submit a tax return:

N Nolands Team

Carbon Tax – How does it affect your business?

With the imminent introduction of Carbon Tax, it is important to know how this will affect your business. While your business may not be directly affected by the tax, your suppliers may well have to pass on additional costs incurred as a result of it. So, let’s explore who and what will be subject to the tax.

N Nolands Team

SARS Browser Compatibility Guidelines

A number of clients often have difficulty accessing SARS documents on the eFiling system. This is mainly due to incompatible browsers. The SARS eFiling website is optimally viewed in Internet Explorer (IE) versions 8+ browsers.

N Nolands Team

Update on Implementation of Carbon Tax

The carbon tax will be implemented on 1 June 2019. It gives effect to the polluter-pays principle, prices greenhouse gas emissions and aims to ensure that businesses and households take these costs into account in their production, consumption and investment decisions. The tax will assist in reducing emissions and ensuring South Africa meets its commitments under the 2015 Paris Climate Agreement. It will be reviewed after three years.

N Nolands Team

Employment Tax Incentive

The employment tax incentive was introduced on 1 January 2014 to share the cost of hiring young, inexperienced workers between employers and government. The incentive was reviewed and extended in 2016 and 2018. The most recent review found that the incentive’s positive benefits are more pronounced in small firms.

N Nolands Team

The Tax Administrative Act - The Administrative Umpire for unreasonable delays by SARS

THE TAX ADMINISTRATION ACT THE ADMINISTRATIVE UMPIRE FOR UNREASONABLE DELAYS BY SARS SOMETIMES IT JUST DOESN'T SEEM FAIR. PUNITIVE MEASURES AGAINST TAXPAYERS ARE SWIFT AND STRESSFUL. WHAT MANY TAXPAYERS DON'T KNOW, IS THAT THE TAX ADMINISTRATION ACT TAA HAS THE ROLE OF ADMINISTRATIVE UMPIRE, ENSURING THAT SARS, TOO, PLAYS FAIR. SARS NEEDS TO BE EFFICIENT, ECONOMIC AND EFFECTIVE; ACT IMPARTIALLY, FAIRLY, EQUITABLY AND WITHOUT BIAS. AND NO, SARS MAY NOT BE SLOW FOOTED CAUSING UNREASONABLE DELAYS The South African Revenue Service SARS , as part of a move to boost its revenue collection, is reportedly looking to nail 300 000 companies with penalties for failure to submit corporate income tax returns It is therefore important to know your rights and how to deal with unreasonable delays, and in this article, I give an overview of the rules, the penalties and the route to justice when SARS are totally out of line. STATUTORY RULES GO BOTH WAYS The Tax Administration Act TAA is vocal about the…

N Nolands Team

Estate Plan Review

The beginning of a new year is as good a time as any to review your estate plan. More specifically, it is important to make sure all your affairs are in order from an administrative point of view. As part of your estate plan it is important that you make sure that inter alia the following documents are easily available:

N Nolands Team

Corporate Income Tax Returns

In a move to start tightening up on compliance, SARS has issued a notice stating that administrative penalties will be imposed on companies that receive a final demand to submit a return. In terms of Section 210 of the Tax Administration Act of 2011, non-compliance with regards to non-submission of required CIT returns may be subjected to a penalty, as follows:

N Nolands Team

Medium Term Budget Policy Statement (MTBPS) Tax Proposals

It is not the norm for budget proposals to be mooted in the MTBPS but given the fallout from the increase in vat from 14% to 15%, concessions have been made on some basic commodities. So, with effect from 1 April 2019 the following items will be zero rated:

N Nolands Team

Department of Trade and Industry (DTI) Incentives and Grants

The DTI provides financial support to qualifying companies in various sectors of the economy. Financial support is offered for various economic activities, including manufacturing, business competitiveness, export development and market access, as well as foreign direct investment.

N Nolands Team

Davis Tax Committee recommendations on a Wealth Tax

Since 1994 South African fiscal policy has placed little emphasis on wealth taxes, save for recent increases in the rates of transfer duty and estate duty. Given the disturbing levels of wealth inequality in South Africa, a taxation system that would ignore such disparities of wealth will lack the important requirement of legitimacy in the tax system.

N Nolands Team

SARS's Stance on The Tax Treatment of Cryptocurrencies

Increased attentiveness and speculation regarding the future of cryptocurrencies has prompted calls for the South African Revenue Service (SARS) to provide direction as to how cryptocurrencies should be treated for tax purposes. However, there is an existing tax framework that can guide SARS and affected taxpayers on the tax implications of cryptocurrencies, making a separate Interpretation Note unnecessary for now.

N Nolands Team