Vukosi Fungeni

Archive for the ‘Tax compliance and advisory’ Category

2013 tax filing season opens

In Tax compliance and advisory on July 5, 2013 at 12:03


On an annual basis SARS issues a notice in terms of the Tax Administration Act to inform the public which taxpayers should file tax returns, how they should do so and by when the returns must be submitted. For the 2013 year of assessment, the notice is similar to that issued for previous years, but with a few important changes:

Non-resident companies, trusts and other juristic persons now only have to file a return where they carry on a trade through a permanent establishment in South Africa. Previously, non-resident companies were obliged to file returns where they had gross income from a South African source. This resulted in absurdities where, for example, a non-resident receiving exempt dividends or interest was obliged to file a return in South Africa.

Natural persons who receive allowances or advances (e.g. travel and subsistence allowance) now only have to file a tax return if they also exceed the tax thresholds.

The various monetary thresholds for the 2013 year of assessment have been amended from the 2012 year of assessment as follows:

• The single-source remuneration threshold for natural persons has been increased to R250 000 (2012: R120 000);

• The capital gains and losses threshold for natural persons is increased to R30 000 (2012: R20 000);

• The tax thresholds exclusions are increased to:

o Under 65 years: R63 556 (2012: R59 750)

o Over 65 years: R99 056 (2012: R93 150)

o Over 75 years: R110 889 (2012: R104 261)

The time periods for filing returns remain similar to those for 2012, namely:

• Companies must, for financial years ending during 2013, file within 12 months after the end of such financial year;

• All other persons must file:

o on or before 27 September 2013 if submitting manually;

o on or before 22 November 2013 if submitting through eFiling;

o on or before 31 January 2014 if the taxpayer is a provisional taxpayer and submits through eFiling;

o within 6 months of the date to which the accounts are drawn where accounts drawn to a date after 28 February 2013 are accepted by the Commissioner in terms of section 66(13A) .

The notice also provides that companies may now only file their 2013 returns through eFiling. Previously, companies were able to file their returns through any of the available channels. All other taxpayers may file through eFiling or manually by posting the return or delivering it to a SARS office.

Taxpayers are advised to make sure that they conform to the new requirements where applicable and note the relevant submission dates.

Some thought leadership on tax compliance….

In Tax compliance and advisory on July 4, 2012 at 21:56

Large entities often receive accolades for setting “IFRS disclosure” benchmarks, which includes equally revealing information on Tax. The surveys are often conducted by reputable Accounting firms in conjunction with the Johannesburg Stock Exchange (JSE). I am beginning to wonder if such surveys affected the current “risk profiling and rating scoring” at SARS’ Large Business Center? … even more so I am wondering if such could be implemented for individual tax payers, with incentives to get a stooped up interest rate for “audited refunds due to tax payers”

Maybe in a long time from today,

The heading is “thoughts for leaders anyway”

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SARS Tax season is now on!!

In Tax compliance and advisory on July 4, 2012 at 20:54

I’ve been receiving numerous calls from clients, friends, family and that once every now and then “acquaintance”.  The question they often ask is:  “hey can I claim for this…. err what about that, I need a refund from that Zuma fella he is squandering taxpayers sweat anyway”

……. “The Lack of knowledge or misconception of relevant laws thereof is not sufficient justification for submitting flawed tax returns and wont prevent you from going into jail”.

The Tax Administration Act was promulgated earlier today. If you have read the draft (s) of the Bill, you will be aware that there are some extraordinary powers which have been conferred upon the Commissioner’s representatives to be fairly Read the rest of this entry »