In this month’s issue, we look at taxpayers' rights in case of a SARS assessment.  Understanding your right as a taxpayer is critically important in ensuring that you do not pay any more and/or no less tax than is required by the law. In this issue, we deal with the right of the taxpayer to request and be provided with reasons for an assessment.

We further look into the Supreme Court of Appeal (SCA) judgement that was handed down in the matter between Levi South Africa (Levi SA) and the South African Revenue Service (SARS).

We further look it into the following:

We further look into the Supreme Court of Appeal (SCA) judgement that was handed down in the matter between Levi South Africa (Levi SA) and the South African Revenue Service (SARS). The SCA had to decide on three issues:

    1. Whether Southern African Development Community (SADC) origin certificates issued by SADC producers are valid, even though the payment for the imported goods is made to a third-party located outside of SADC.
    2. Whether the commission paid by the buyer (importer) amounts to buying commission and therefore should be excluded from the price actually paid or payable for the imported goods; and
    3. Whether the royalties paid by the importer were due by the buyer ‘directly or indirectly, as a condition of sale of the goods for export to the Republic’.
  • In International Tax, we look at the "Most Favoured Nation” (MFN) clause in terms of what it means to countries that South Africa has entered into double tax agreements with.

  • A guide and general binding ruling in terms of section 72 of the Value-Added Tax has been issued by SARS. These provide guidance in terms of what the new application should comprise and also has a long list of rejection reasons for this application. We see now that there is a non-refundable fee that is applicable to this Section 72 application. Each time an application is rejected, another fee has to be paid.

  • We further take a look at the advance pricing arrangements (APA), what it is and the processes to follow.

  • SARS’ Interpretation Note 14 provides guidance on allowances, advances and reimbursements provided by employers to employees. On 30 March 2021 SARS published an updated Interpretation Note 14. We investigate the update and advise you what you should look out for.

  • It's that time of the year again, SARS e-filling opens 1 July 2021. Taxpayers will be auto-assessed.

     

     

     

Taxpayers right

Request for reason of an assessment

LEVI SA vs SARS

Certificate of origin, buying commission, royalties

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