Monthly Update – Compliance and Legislation October 2020

Study unit 1 -IFRS – Standards & Accounting Issues

• IFRS Monthly news summaries
• IFRS for SME’s review (comment date 27 October 2020)
• Aligning IFRS 9, IFRS 15 and IFRS 16 into IFRS for SME’s

Study unit 2 – IRBA – Guidance & Standards & Other

• SAAEPS 1 Sustainability Assurance Engagements: Rational Purpose, Appropriateness of Underlying Subject Matter and Suitability of Criteria
• Staff Alert 4 – Considerations with respect to Fraud
• IAASB releases COVID-19 Related Guidance for Auditor Reporting
• ISA 540 (Revised) Implementation: Illustrative Examples for Auditing Simple and Complex Accounting Estimates
• EAAB: Concession in respect of late Audit Report submissions
• SAICA updates its Frequently Asked Questions: The impact of COVID-19 on audit considerations
• SAICA issues updated FAQs on Assurance Engagements on Legal Practitioners’ Trust Accounts
• Impact of the withdrawal of the CIPC non-binding opinion on sections 90 and 92 of the Companies Act
• IRBA lifts the suspension on the submission of second Reportable Irregularities reports
• IRBA draws attention to the Key Audit Matters (KAMs) in auditor’s reports as it relates to COVID-19
• Maintaining audit quality while auditing remotely
• IAASB issues Staff Audit Practice Alert: Subsequent Events

Study unit 3 – CIPC – Notices and Practice Notes issued

Notice 24 of 2020 – Business Rescue Filing
Notice 25 of 2020 – Patents & Designs, Copyright and Trade Mark Division National Lockdown Level 4
Notice 26 of 2020 – Essential Services Certificate issued by CIPC
Notice 27 of 2020 – Printing granted and published content
Notice 28 of 2020 – Phasing out of deposit system

Study unit 4 – Covid-19 Updates

Amendments to IFRS 16 Leases (COVID-19 implications)
Implications of COVID-19 on financial instruments
IAS20 Government Grants and COVID-19
SARS:The COVID-19 Notices page has been updated to include –
Notice 487 in Government Gazette 43266 relating to essential financial services
Updated Regulations (R480 in Government Gazette 43258)
ITAC VAT Rebate Item 412.11 Updated list of critical medical supplies
Updated Table 3 – Rates which interest-free or low interest loans are subject to income tax
Businesses that are incapable of making payment due to the COVID-19 disaster, may apply to defer tax payments without incurring penalties by emailing SARS
SARS has published detailed Questions & Answers for the COVID-19 tax relief for PAYE – See FAQs on Tax Relief Measures
Challenges presented by COVID-19 – impact on our work arrangements as well as tax revenue collections
National Treasury and SARS – Published for public comment:
Revised Draft Disaster Management Tax Relief Bill, 2020
Revised Draft Disaster Management Tax Relief Administration Bill, 2020
Revised Draft Explanatory Memorandum on the Disaster Management Tax Relief Bill, 2020
Draft Rule amendment under Customs and Excise Act 1964
IRBA – IESBA – Staff Q&A: COVID-19 Ethics & Independence Considerations – still ongoing

Study unit 5 – Labour Law

Extension of the deadline for submission of 2019 Return of Earnings

Study unit 6 – SARS – Binding Rulings (Private/Class/General) issued:

Binding Private Ruling (BPR) 343 – Donations tax implications of subscribing for shares at a discount

Study unit 7 – SARS – Notices and other publications issued:

Updated Table of interest rates: Table 3 – Rates at which interest-free or low interest loans are subject to income tax
Draft rule amendment under sections 39 and 120 – Rule 39.01 – telephonic clearing instructions (Due date for public comment: 15 June 2020)
Effective date of amendment to section 76C
Rule amendment R583 under sections 107, 110 and 120 – Providing for the insertion of rules relating to requirements in respect of tobacco leaf dealers and growers, as well as the installation of product counters on cigarette production lines in customs and excise manufacturing warehouses – DAR194:
Form DA 185 – Application form – Registration and licensing of Customs and Excise Clients
Form DA 185.4A17 – Registration Client Type 4A17 – Tobacco leaf dealer
Jurisdictions contemplated in Article 2(2)(ii)(b) of the regulations specifying the Country-by-Country Reporting Standard for Multinational Enterprises (MNEs)
Proposal to introduce export taxes on scrap metal (Due date for public comment: 29 May 2020)
Discussion paper – Reviewing the tax treatment of excessive debt financing, interest deductions and other financial payments (Due date for public comment extended to 30 September 2020)
Publication details for tariff amendment notice R543, as published in Government Gazette 43336, are now available
VAT Refunds Relief, VAT vendors currently registered to file VAT returns on a bi-monthly may now file VAT returns on a monthly basis, thereby allowing the earlier unlocking of refunds
The tariff amendment notice, scheduled for publication in the Government Gazette, relates to the amendment to –
Part 1 of Schedule No. 2, by the insertion of items in order to implement anti-dumping duties on PET originating in or imported from China
Publication details for tariff amendment notices R528, R529, R530, R531 and R532 as published in Government Gazette 43317, are now available
From the 2020 year of assessment, SARS is performing tax calculations on the IRP5/IT3(a) certificates.
Enhanced tax type transfer functionality
The new eBooking system for appointments at Branch Offices
eFiling password enhancements
Double taxation agreements
Updates on the small business web page
ITAC VAT Rebate Item 412.11 list of CRITICAL MEDICAL SUPPLIES (version 3) to include a revised classification of plastic face shields from 3926-20-20 to 3926-90-43
Status overview of all DTAs and Protocols
An updated SARS VAT 412.11 Mapping of ESSENTIAL GOODS has been published
Third Party Data Annual Submissions is now open from 15 April to 31 May 2020. Banks, medical schemes, fund administrators etc. are required to send returns to SARS
SARS released trade statistics for March 2020 recording a trade surplus of R24.25 billion attributable to exports of R118.45 billion and imports of R94.20 billion

Study unit 8 – SARS – Tax Court cases

Calitz v CSARS and Others (10927/2017 [2017] ZAGPJHC 209 (21 June 2017), practice of state attorney not to comply with the rules of court in respect of the time periods for filing of answering affidavits to be discouraged.
CSARS v Public Protector and Others (84074/19) [2020] ZAGPPHC 33; [2020] 2 All SA 427 (GP) (23 March 2020), Whether on a proper interpretation of the relevant and Constitutional and or legislative provisions, SARS’s refusal to provide the relevant information is unlawful
Fowler (Respondent) v Commissioner for Her Majesty’s Revenue and Customs (Appellant) [2020] UKSC 22 (20 May 2020), for information as it relates to a SA-UK tax treaty
Langholm Farms (Pty) Ltd v CSARS (1657/2017) [2018] ZAECGTHC (28 August 2018), whether carting of empty crates from exporter to applicant qualify as a primary production activity
IT 24462 (28 August 2018), whether appellant entitled to loss based on the interpretation of section 24(10); whether appellant should be subject to understatement penalties in respect of the exchange loss incorrectly claimed
ABC (Pty) Ltd v CSARS (TAdm 13950) [2020] ZATC 1 (24 February 2020) – Whether the Appellant’s application for a postponement should be entertained

Study unit 9 – SARS – High Court cases

Toneleria Nacional RSA (Pty) Ltd v CSARS (1042/2018) [2020] ZAWCHC 29 (30 April 2020)
SIP Project Managers (Pty) Ltd v CSARS (11521/2020) [2020] ZAGPPHC (29 April 2020)

Study unit 9 – Regulator News – National Treasury

Media Statement: Government’s response to the rating action by S&P Global Ratings (S&P)
Media statement: 2nd Revised 2020 Draft Disaster Management Tax Relief Bill
Media Statement: Publication of the 2nd revised COVID-19 Draft Tax Bill and extension of time for public comments on specific 2020 tax proposals
Draft Disaster Management Tax Relief Bill – 19 May 2020
Draft Explanatory Memorandum on the Revised Draft Disaster Management Tax Relief Bill – 19 May 2020
Notices – Expanding access to living annuities – 19 May 2020
2020 Special Adjustment Budget Guidelines

Study unit 10 – Regulator News – OECD

Early restoration planning by tax administrations key to support individual and business taxpayers towards economic recovery from COVID-19 pandemic
Czech Republic and Korea deposit their instrument of ratification for the Multilateral BEPS Convention
Public consultation meeting on the 2020 Review of Country-by-Country Reporting (BEPS Action 13)
Release of Revenue Statistics in Latin America and the Caribbean 2020
Webinar: Watch the OECD Tax Talks replay
Tax and fiscal policies central to governments’ responses to Covid-19 crisis
Updated database on tax policy measures in response to Covid-19

Study unit 11 – Regulator News – Masters Offices

Protocol to be adopted by the Chief Masters Office updated due to COVID-19

Study unit 12 – Regulator News – FSCA publications & press releases

New Conduct Standards published
Proposed implementation dates of specific regulatory frameworks
Draft Conduct Standard and directive for Exchanges
Impact of COVID-19 on compliance with The Financial Markets Act

Study unit 13 – Media Articles

ESMA urges transparency on Covid-19 financial effects
Bank urges Regulators to ease digital trade

REQUIREMENTS

There are no preconditions for this course.
Moderate level.
Recorded webinar made available on a specified date.

PRESENTER

Lettie Janse van Vuuren

Lettie is a Chartered Accountant, Registered Auditor, as well as an Assessor and Moderator. As a professional trainer and webinar host, she is able to hold the attention of an audience with her relaxed and humorous presentation style.  She has a unique ability to communicate with delegates at their respective levels of knowledge and experience.  Over the last 20 years, she has trained thousands of partners, managers, trainee accountants and other professionals.

She is responsible for researching, compiling and presenting the SAIBA Quick Update Subscription package.

ADDITIONAL MATERIAL