Post

Understatement penalties

In a recent case before the Johannesburg Tax Court (IT 14247), the court was faced with the question of what constitutes a prejudice to SARS or the fiscus. Understanding this is important because SARS can only raise an understatement penalty (USP) if there was a prejudice to SARS or the fiscus. SARS can also only...

Post

Why are proposed tax changes important?

In the recent seminal judgment of the Pretoria High Court[1], hereinafter referred to as “the Pienaar Brothers Case”, the court reaffirms the importance of taking notice of not only changes in tax law but also proposed changes to tax law and the need to plan accordingly. Failing to do so may have devastating consequences for...

Post

A message from the SCA: Tax law is unfair, deal with it!

In the case of New Adventure Shelf 122 v Commissioner: SARS (310/2016) [2017] ZASCA 29 (28 March 2017), the Supreme Court of Appeal had to deal with the question of whether South African tax law allows for the carry back of capital losses arising from cancellation of an agreement where that agreement was concluded in...