COVID-19:  HOME OFFICES AND TAX DEDUCTIONS
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COVID-19: HOME OFFICES AND TAX DEDUCTIONS

The media is rife with comments regarding the economic impact of the outbreak of the COVID-19 virus (the so-called “Coronavirus”) in South Africa. Many people have been asked, or is required, to work from home in order to curb the spread of the virus. Is there at least some form of tax break associated with...

‘TIS THE SEASON FOR SARS AUDIT FINDINGS
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‘TIS THE SEASON FOR SARS AUDIT FINDINGS

January marks not only the beginning of the new year but also, in our experience, sees an increase in audit findings issued by SARS. The reason for this, we can only speculate, is that March is the fiscus’ year end, fiscal targets must be reached and targets are more likely to be reached when additional...

TAX CLEARANCE CERTIFICATES: LAW CHANGES
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TAX CLEARANCE CERTIFICATES: LAW CHANGES

Law Changes The importance of a tax clearance certificate for most businesses cannot be overstated. It often happens though that SARS raises an assessment giving rise to an unexpected tax liability that affects the business’ tax standing. This, in turn, almost always adversely affects the business. Simply paying the extra tax assessed to ensure the...

TRANSFER DUTY EXEMPTION AND CORPORATE TRANSACTIONS: ASSET FOR SHARE AND UNBUNDLING TRANSACTIONS
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TRANSFER DUTY EXEMPTION AND CORPORATE TRANSACTIONS: ASSET FOR SHARE AND UNBUNDLING TRANSACTIONS

The Income Tax Act, No. 58 of 1962 (“the ITA”), contains certain provisions colloquially referred to as “the corporate roll over provisions”. In short, these provisions allow certain transactions to take place without triggering immediate adverse income tax (including capital gains tax), VAT, Transfer Duty or Securities Transfer Tax consequences. The taxes that would have...

THE EMPLOYEE’S BAD DEBT DEDUCTION
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THE EMPLOYEE’S BAD DEBT DEDUCTION

Many businesses are struggling to make ends meet. Unfortunately, in these circumstances, employers may be unable to pay salaries but nevertheless still issue IRP5 certificates indicating the salary to which the employee became entitled (despite the fact that it may not have been actually paid). This is often not well received by the employee when...

TAX TIPS – SECTION 24C
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TAX TIPS – SECTION 24C

Upfront payments are common in many industries but especially in construction and manufacturing. These upfront payments often defray costs that will be incurred over more than one tax year. The trouble from a tax perspective is that the full upfront payment is taxable with deductions to be incurred in following years not being deductible. That...