A MESSAGE FROM THE SCA:  TAX LAW IS UNFAIR, DEAL WITH IT!

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 a prior year and assessed to tax but cancelled in a subsequent year. The court deals swiftly with the question and hands down a judgment in favor of SARS but not without leaving taxpayers with a very clear and unambiguous message at par 28: “In...

MORE TAX: VAT ON FUEL

MORE TAX: VAT ON FUEL

The declining economy has seen an increase in costs of pretty much everything and consumers are finding it hard to come by. There is, unfortunately, more bad news for consumers around the corner. Whilst at least not another reshuffle, the former Minister of Finance proposed in the 2017 National Budget to add VAT to the rising cost of fuel, in addition to the rising fuel levy, which, from 5 April 2017 is 30 cents per liter.  The proposal is intended to take effect in 2018/2019 fiscal year. Currently the price of fuel, as paid for by you and me, does...

GOING CONCERN SALES AND THE SELLER’S RISK

GOING CONCERN SALES AND THE SELLER’S RISK

The legislation governing the zero rate for going concern sales are set out in section 11(1)(e) of the Value-Added Tax Act, No. 89 of 1991 (“the VAT Act”). In addition, SARS in their Interpretation Note 31, prescribes the documents that seller must be in possession of to place reliance on the zero rate for the sale of a going concern. All too often we have seen sale agreements where assets are ostensibly sold as a going concern and parties incorrectly rely on the zero rate or do not have the required supporting documents. The question then always is, what are...