ENSafrica Tax In Brief - Issue 42

case law

• The Tax Court of South Africa, Cape Town | IT 24819
  • whether insufficiency of funds was not reasonably foreseeable, and therefore constitutes reasonable grounds for non-payment of employees tax, considered.
  • correct interpretation of the number of days for payment of employees tax considered as a point in limine.
  • find a copy of this judgment here.

legislation and draft legislation

• The 2019 Amendment Acts were promulgated on 15 January 2020
  • find a copy of the final response document on the 2019 Draft Tax Bills here.
• Taxation Laws Amendment Act, 2019
  • find a copy of the Act here.
  • find a copy of the explanatory memorandum on the Taxation Laws Amendment Bill, 2019 here.
• Tax Administration Laws Amendment Act, 2019
  • find a copy of the Act here.
• Rates and Monetary Amounts and Amendment of Revenue Laws Act, 2019
  • find a copy of the Act here.

advance tax rulings

• binding general ruling 9 (Issue 4) | taxes on income and substantially similar taxes for purposes of South Africa's tax treaties
  • this ruling identifies the taxes administered by SARS which, in its opinion, constitute taxes on income or substantially similar taxes for purposes of South Africa's tax treaties.
  • find a copy of this ruling here.
• binding private ruling 337 | amalgamation transactions involving the assumption of liabilities only
  • section 44 of the Act.
  • this ruling determines the income tax effect of an amalgamation transaction for consideration involving the assumption of liabilities only.
  • find a copy of this ruling here.
• binding private ruling 338 | donations of money made to a public benefit organisation at a fundraising event
  • this ruling determines the tax treatment of payments made to the applicant, a public benefit organisation, approved under section 30 of the Act, at a fundraising event.
  • find a copy of this ruling here.

SARS publications

• Interpretation Note 16 (Issue 3) – Exemption from income tax: Foreign employment income
  • this note discusses the interpretation and application of the foreign employment remuneration exemption in section 10(1)(o)(ii) of the Act.
  • find a copy of the document here.
• Interpretation Note 67 (Issue 4) – Connected Persons
  • this note provides guidance on the interpretation and application of the definition of "connected person" in section 1(1) of the Act.
  • find a copy of the document here.

international

• OECD | Statement by the OECD/G20 Inclusive Framework on BEPS on the TwoPillar Approach to Address the Tax Challenges Arising from the Digitalisation of the Economy
  • participants in the Inclusive Framework agreed to pursue the negotiation of new nexus rules and profit allocation rules on the basis of a "Unified Approach" under Pillar One, to ensure that multinational enterprises conducting sustained and significant business in places where they may not have a physical presence can be taxed in such jurisdictions.
  • the Unified Approach agreed by the Inclusive Framework draws heavily on the Unified Approach released by the OECD Secretariat in October 2019.
  • find a copy of the statement here.
• OECD | OECD releases consultation document on the review of Country-byCountry Reporting and invites public input
  • the Inclusive Framework released a consultation document seeking input in respect of BEPS Action 13, and the scope and content of country-by-country reporting in particular.
  • find a copy of the document here.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.