Monthly Tax Update – February 2020

 Study Unit 1 – Tax News Flash

SARS recovers over R2 billion in taxes
Criminal charges to be dropped in SARS “Rogue unit” case
SARS Re-imagined – Tax dodgers take note

Study Unit 2 – General Developments

National Legislation:
Final Response Document on the 2019 Draft Tax Bills – 21 January 2020
Explanatory Memorandum on the Taxation Laws Amendment Bill, 2019

Study Unit 3 – Tax Publications

• Draft Binding General Ruling on unbundling of unlisted company: Impact of non-qualifying shareholders;
• Interpretation Note 16 (Issue 3) – Exemption from income tax: Foreign employment income – 31 January 2020.
• Interpretation Note 67 (Issue 4) – Connected person – 28 January 2020.
• Updated Table 3 of interest rates: Rates at which interest-free or low interest loans are subject to income tax.s

Study Unit 4 – Binding General Ruling

Binding General Ruling (Income Tax) 9 (Issue 4)
Taxes on income and substantially similar taxes for Purposes of South Africa’s Tax Treaties – 30 January 2020
Background, Outcome: Taxes on Income and Taxes that are not taxes on Income or Similar Taxes

Study Unit 5 – Binding Private Rulings

• Binding Private Ruling (BPR) 334 – 21 Nov 2019
  Waiver of loan claims by the settlor of a trust.
  Section 7 C, Section 64(1)(a), Paragraph 56(1)
  Background, conditions & assumptions and the Ruling.
• Binding Private Ruling 336 – 6 Dec 2020
  Distribution of shares during Liquidation and the different tax implications.
  Section 47(1) of the IT Act.
  Background, conditions & assumptions and the Ruling.
• Binding Private Ruling 337 – 9 January 2020
  Amalgamation Transactions involving the Assumption of Liabilities only.
  Section 44(1) of the IT Act, Section 44(2) and 44(3).
  Background, arguments for SARS and for the Taxpayer and Judgement.
• Binding Private Ruling 338 – 17 Jan 2019
  Section 18A Donations of money made to a public benefit organisation at a fundraising event.
  Section 18A; Section 30(5)
  Background, conditions & assumptions and the Ruling.

Study Unit 6 – Caselaw – Brits and Others v CSARS

BRITS AND OTHERS V CSARS | CASE NUMBER: 2017/44380
SARS’ to adhere to requirements of administrative justice during tax audit.
Background, arguments for SARS and for the Taxpayer and Judgement.

Study Unit 7 – Regulation Amendments

Regulation 37 Amendment
Government Gazette 42961
Amendment of Regulations under items (A) and (C) of definition of “Determined Value”in paragraph 7(1) of Seventh Schedule to Income Tax Act,1962.
New Regulation (37) 2 – 17 January 2020.

Study Unit 8 – SARS Dispute Resolutions & Judgments 2019-2013

Overview of SARS Dispute Resolutions & Judgments 2019-2013