2019 Year-end Tax Update

Overview

The year-end update is one of the most important updates for tax practitioners and taxpayers. In this year’s update, Nico Theron from Unicus Tax Specialists SA will cover a selection of important court judgments, rulings (in particular, Binding General Rulings) issued by SARS during the year, regulations and notices issued, as well as some of the important proposed amendments to tax legislation in this year’s round of amendments.

Course Content

In particular, Nico will cover the following topics.

Case law

• 14426 (13 December 2018): Whether the Appellant was entitled to an employment tax incentive deduction
• XYZ CC v CSARS (ITC13868): Application in terms of rule 56(1)(b) of the Rules of the Tax Court for default judgment against the taxpayer in terms of section 129(2) of the TAA
• Purlish Holdings v CSARS (76/18) [2019] ZASCA 04 (26 February 2019): Underestimation penalties
• A Company v C:SARS IT 24510 [2019] ZATC 1 (17 April 2019): Gross income, gift cards and the Consumer Protection Act
• Rampersadh and another v CSARS (5493/2017) [2018] ZAKZPHC 36 (27 August 2018): Section 93 reduced assessments requests
• ABC (Pty) Ltd v CSARS 014287 (12 June 2019): Most favored nation clause in a DTA
• BMW SA (Pty) Ltd v CSARS [2019] ZASCA 107: Fringe benefits
• Gold Kid Trading CC v CSARS (31842/2016; 40732/2017) [2018] ZAGPJHC 679 (21 October 2018): PAJA applications versus Tax Court and exhausting internal remedies first
• CSARS v Atlas Copco South Africa (Pty) Ltd (834/2018) [2019] ZASCA 124 (27 September 2019): Valuation of trading stock at year-end

Rulings

• Binding General Ruling 50: No-value provision in respect of the rendering of transport services by an employer
• Binding General Ruling 49: Supply and importation of sanitary towels (15 March 2019)
• Binding General Ruling 51: Cancellation of registration of a foreign electronic services supplier
• Draft Binding General Ruling: Determination of the threshold for applying the higher rate of donations tax
• Binding Private Ruling 323: Debt reduction by means of set-off

Draft amendment Bills

• Draft Taxation laws Amendment Bill

  • Proposed amendments to the Income Tax Act:
    • Section 7B: Extending the scope of variable remuneration in 7B
    • Section 24BA and 40CA: Anti-avoidance rules associated with value shifting
    • Section 12J: Venture capital company investment limit
    • Section 24O: Interest deductions for shares acquired
    • Section 31: Broadening the scope of transfer pricing
    • Paragraph 43A and section 22B: Dividend stripping rules extended to cater for dilutions as opposed to disposals
    
    Proposed amendments to the VAT Act:
    • Section 8(25): Going concern issues associated with corporate roll-over provisions and fixed property
    • Section 72: Arrangements to overcome difficulties, anomalies and incongruities
    
    Proposed amendments to the Employment Tax Incentive Act
    • Section 4: Bringing ETI in line with the National Minimum Wage Act
  
  
• Draft Tax Administration law Amendment Bill
  • Proposed amendments to the Income Tax Act:
    • Sections 50E, 49E, 64G: Alleviate admin burden for certain recurring royalties, interest and dividends paid to non-residents
    • Paragraph 20 of the 4th schedule: Provisional tax returns on date of death and underestimation penalties
    
    Proposed amendments to the Tax Administration Act:
    • Section 11: Notice to institute proceedings in the High Court – period extended
    • Section 256: Legislating a minimum amount that can be outstanding before a TCC will be rejected

Notices and regulations

• Notice published in terms of section 210(2): Penalties for corporates for failure to submit a return
• Regulation R.429, published in Government Gazette 42316: Prescribing electronic services

Presenter

Nico Theron

Unicus Tax Specialists SA

MTP(SA), BCom Law (cum laude), BCom Honours Taxation, MCom Taxation (SA and International Tax)

Nico is the founder of Unicus Tax Specialists SA, a niche tax advisory services firm that specialises in corporate tax and VAT, more specifically in the context of advance tax rulings, tax dispute resolution and voluntary disclosure program applications.

CPD

Practical Workshop:

This event and successful completion of the online assessment will secure 4 hours verifiable output Tax CPD points.

Webinar:

This event and successful completion of the online assessment will secure 4 hours verifiable output Tax CPD points.

Event Investment

50% Discount for all 2019 CPD subscribers on the packages to attend the Seminar. (Not yet a subscriber? Please click here for more information).

Option 1 - Workshop

Non-member: R1595.00

Printed notes: R50.00

Important: Printed copies of notes is optional and will cost additional R50 per set and must be ordered. Electronic notes will be emailed to all registered delegates 2 days prior to the event. Should you require a printed copy on the day of the workshop kindly select the printed workshop notes when registering for the event.

Option 2 - Dedicated Webinar Broadcast

This webinar is free to all CPD subscribers on the subscription packages. (Not yet a subscriber? Please click here for more information).

This dedicated CPD webinar will be presented on 26 November 2019 from 9.00am – 1.00pm

Non-member: R575.00

Company Price: R950.00

Payments & Cancellations

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