New Tax Dispute Resolution Rules: Good news for many taxpayers
On Friday 10 March 2023, the Minister of Finance approved new dispute resolution rules under section 103 of the Tax Administration Act, 2011 (“Rules”). The new Rules repeal the Rules promulgated on 11 July 2014 and come into effect immediately. These Rules prescribe the procedures for lodging objections and appeals against assessment or decision, procedures for alternative dispute resolution, conduct and hearing of appeals, application on notice before tax court and transitional rules.
The good news!
The big change that came about with the new Rules is that taxpayers are now permitted 80 business days from the date of assessment or decision to lodge an objection, as opposed to the 30 business days period under the old Rules. Taxpayers have, in the past, raised concerns that the period permitted to deliver an objection is not sufficient, which makes it impossible
for the taxpayers to formulate their objection considering the length of time the South African Revenue Service (“SARS”) enjoys to complete an audit. The new Rules also came with transitional measures and provide measures for specific requests in respect of procedural matters taken or instituted under the old Rules but not yet completed before the new Rules came into force.
How does the transition of new Rules work? Download the latest PDF copy below to find out.
Customs & Excise and VAT requirements for goods imported for consumption in South Africa.
Customs and Excise legislation requires that in order to import any goods into South Africa one has to register as an “Importer of Record”. There are two categories of import registration in this regard, an entity with physical presents in South Africa and an entity in a foreign country intending to import and trade in the country. The foreign importer into South Africa must nominate a local registered agent with customs.
More insights on our latest PDF Newsletter below.
The Effect of the “Associated Enterprise” Amendment on South African Transfer Pricing Documentation
The effect is that the amendment has broadened the scope of section 31 of the Act as it requires the taxpayer to also consider transactions entered into with cross-border companies that have a significant influence on the taxpayer's pricing. Taxpayers should also ensure that the arm’s principle is considered when setting the price for transactions conducted with associated enterprises.
In preparing the transfer pricing documentation for years of assessment commencing on or after 1 January 2023, taxpayers must also document transactions entered into with any company that has a significant influence on the pricing of the transaction through its participation in management, control or capital.
Employment Tax Incentive (ETI) vs s12H learnership allowance
The ETI is an incentive aimed at encouraging employers to hire young and less experienced work seekers and it came into effect on 1 January 2014. The ETI effectively reduces the overall employer cost of hiring young people by allowing the employer to reduce the amount of Pay-As-You-Earn (PAYE) liability while leaving the wage received by the employee unaffected. The employer can claim the incentive for up to a period of 24 qualifying months for all qualifying employees.
However, the employer must be a qualifying employer and employ qualifying employees in order to claim the ETI. An employer is a qualified employer if the employer is? Download your copy.