President Ramaphoza announced a number of tax relief measures amid the Covid-19 disaster.
SARS recognise that tax professionals are central to support taxpayers and small businesses during the period of national disaster and announced that SARS will be issuing extensive communication on the implementation of the tax measures through its strategic stakeholders.
This free Webinar is part of a series of Technical Alerts and Webinars that the Tax Faculty, SAIT and SA Accounting Academy will facilitate to keep you updated, including important changes in the SARS systems and processes.
Webinar 6, of this webinar series, will deal with the unintended consequences to the large corporate.
We will inter alia discuss the following:
The implications of the care and maintenance phase for the mining company. Of main concern is the fact that certain costs that would otherwise have been tax deductible, are deemed to be capital expenditure during any period of non-production.
Availability of Section 11(e) and other allowances during periods on non-production.
The valuation of stock at year-end. This may be relevant where excessive stock levels are present due to decreased demand.
Tax treatment of increased funding required due to decreased activities. The funding may be obtained from connected parties and non-connected parties and may take the form of equity, loans or hybrid instruments.
The tax treatment of retrenchments, reorganisations, mothballing of plants and related activities related to reduced activities.
A recap of the treatment of bad and doubtful debts from a VAT and income tax perspective. Link between IFRS 9 and section 11(j) and 11(jA) for the large corporate.