SARS Binding Private Ruling 280

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Date: 4 October 2017

Act: Income Tax Act 58 of 1962

Summary: This ruling determines the income tax consequences for the debtors and creditors that form part of the same group of companies, following the forgiving of a loan and subsequent liquidation of the debtors.

This binding private ruling is valid for a period of five years from the date of this ruling.

For access to the entire ruling please click here

SARS Binding Private Ruling 279

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Date: 14 September 2017

Act: Income Tax Act 58 of 1962

Summary: This ruling determines that the participation exemption from capital gains tax (CGT) is available in relation to the disposal of assets by a controlled foreign company (CFC) since the parties are not connected persons at the time of the proposed transaction, albeit that such a relationship is created by the transaction.

This binding private ruling is valid for a period of five years from the date of this ruling.

For access to the entire ruling please click here

SARS Interpretation Note 92

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SARS has released their Interpretation Note 92 (documentary proof prescribed by the Commissioner).

For access to the entire note, please click here

 

Launch of Special Voluntary Disclosure Programme (SVDP)

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National Treasury released the following media statement on the special VDP for offshore assets.

For access to the entire media statement, please click here.

SARS have also updated the guide for special VDP, please click here to access the guide.

Interestingly, the last version of the bill that proposed to include to the special VDP required a 50% inclusion of the highest market value of the offshore assets prior to 2015. Both the SARS guide and the National Treasury Media release refers to a 40% inclusion rate. In addition, the current version of the bill that seeks to introduce the special VDP into law states that the window period for applications will be 1 October 2016 to 31 March 2017, while the SARS guide indicates that the window period will be 1 October 2016 to 31 June 2017.

While the functionality for the special VDP is available  on e-filing, the law is not yet in place to back it up. These are uncertain times and taxpayers would be well advised to proceed with caution.

Draft Taxation Laws Amendment Bill, 2016: (second batch) Revisions and Additions for Public Comment

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Notable revisions include:

  • Changes to section 7C (trusts and loan accounts) to remove the deemed interest imputation for loans to trust and replacing same with a deemed donation provision and removing the R100 000 annual donations tax exclusion prohibition.
  • Extension of the Employment Tax Incentive to 28 February 2019;
  • Dividends on restricted equity instrument will no longer all be deemed remuneration. The proviso to the income tax exemption for dividends will however still apply in limited circumstances.

For access to the entire revision, please click here.