Practice Note 31 in the spotlight

Posted on 28 of March, 2017 by in Tax

The deductibility of interest for income tax purposes recently came under scrutiny in Mr X vs SARS,[1] and specifically the application of SARS’ Practice Note 31. As a general rule, expenditure would be deductible for income tax purposes if it meets all of the requirements in section 11(a) of the Income Tax Act, 58 of […]

Apportionment of VAT input claims

Posted on 20 of March, 2017 by in VAT

Generally speaking, the VAT portion of expenditure incurred by a VAT vendor in carrying on its enterprise may be claimed back from SARS when the VAT vendor submits is VAT returns on a periodical basis. Typically, these input tax claims are set off against the output tax liability that the VAT vendor may have. However, […]

PAYE and directors’ (and members’) remuneration from 1 March 2017

Posted on 10 of March, 2017 by in Tax

Many would have noted reports in the national media that the Taxation Laws Amendment Act, 16 of 2016, was signed into law by President Zuma on 11 January 2017. One of the many changes that the Act brings into effect is the repeal of paragraph 11C of the Fourth Schedule to the Income Tax Act, […]

Crunching the numbers: Budget 2017

Posted on 8 of March, 2017 by in Tax

It is an astounding exercise to go through the numbers behind the annual national budget presented recently and to start to understand what it is that the various tax changes are aimed at achieving. On 22 February 2017, Finance Minister Pravin Gordhan presented South Africa’s biggest budget yet, providing for budgeted Government expenditure over the […]