Home
/
Resources
/
Tax
/
Legal and Policy
/
2024 Legal and Policy

Legal and Policy - 24 October 2024

Overview

Legal and Policy - 24 October 2024

Description

SARS

  • 17 October 2024 – SARS invites you to a webinar on 23 October 2024 that will cover various contentious tax areas, including the application of General Anti-avoidance Rules (GAAR) and substance-over-form principles.

The webinar will:

  • Highlight aspects of the GAAR and substance-over-form doctrines and explain the relationship between the two.
  • Distinguish between tax evasion and tax avoidance.
  • Share insights on Model Mandatory Disclosure Rules for Common Reporting Standard Avoidance Arrangements and Opaque Offshore Structures.
  • Create awareness on BEPS ACTION 12 and Reportable Arrangements.

Webinar Details

The session will give you an opportunity to have your questions answered. The webinar will be recorded and published on the SARS TV YouTube channel afterwards

In this edition we talk about compulsory training for individuals who want to register as tax practitioners. The programme has been updated to ensure that it meets the growing needs of tax practitioners. In this edition we also remind you of the changes pertaining to the Employer Interim Reconciliation process which closes on 31 October. Companies registered for Company Income Tax (CIT) may no longer need to pay CIT if they have ceased trading, undergone liquidation or dissolution, or has no taxable income or assets in South Africa. Read more about the deregistration process. Take note of the Income Tax Return filing dates to ensure that you are compliant and submit your returns on time.

  • 18 October 2024 – The Commissioner for the South African Revenue Service (SARS) Mr. Edward Kieswetter has welcomed the decision of the Gauteng North High Court Division that held Mr. Ngwane Roux Shabangu accountable for his failure to pay SARS the outstanding taxes owed by him and his linked entities. Mr. Shabangu has various business interests in the construction and property industry.

After lengthy and protracted efforts by SARS to collect on the outstanding tax debt since 2019 and to prevent any realisable assets from being dissipated which would further frustrate the collection of the full amount of tax that is due and payable, SARS applied for Preservation Order in terms of Section 163 of the Tax Administration Act, Act no 28 of 2011. The preservation order was sought against Majestic Silver 275 (Pty) Ltd, which is the main property holding company used by Mr. Shabangu as well as Mr. Shabangu himself and his family members in their capacities as members of The Roux Shabangu Family Trust.

In what seemed to be a dilatory tactic to prevent the granting of the final Preservation Order, Majestic Silver 275 (Pty) Ltd applied to go into voluntary business rescue which would in effect, place a general moratorium on all legal proceedings against the company from the commencement of the business rescue proceedings.

SARS opposed this business rescue attempt and in February 2023, obtained a provisional Preservation Order which uplifted the moratorium provided for in terms of section 133 of the Companies Act 71 of 2008 in favour of SARS and appointed a Curator Bonis to effectively take control of the interests of Majestic Silver 275 (Pty) Ltd, Mr. Shabangu and his family members as Trustees of the Roux Shabangu Family Trust.

In April 2024 SARS obtained a final Preservation order against Majestic Silver 275 (Pty) Ltd and the other Respondents. The business rescue proceedings of Majestic Silver 275 (Pty) Ltd were set aside and terminated.

A decision was also made to institute liquidation applications against Mr. Shabangu’s companies and to institute sequestration applications against Mr. Shabangu and The Roux Shabangu Family Trust of which he is a Trustee of, in terms of Section 177 of the Tax Administration Act, Act no 28 of 2011.

In September 2024, the Liquidation and Sequestration applications were argued in the Gauteng North High Court. The Court, after due deliberation, granted a final Liquidation against one company and three provisional orders against the other company, Mr. Shabangu and his family members as Trustees of the Roux Shabangu Family Trust.

SARS Commissioner Mr. Edward Kieswetter said that “the results of the above applications serve as examples of SARS’ resolve to pierce through the corporate veil in its efforts to fulfil its legislative mandate to collect all money due to the country’s fiscus. Significantly, the sequestration order granted against the Trust is of particular importance as it highlights SARS ongoing efforts to enforce tax compliancy against discretionary Trusts which have been commonly utilised as a vehicle to evade taxes. SARS will not waiver from its path to pursue all without fear, favour or prejudice. I hope this application will deter all who intend to follow this route”

For further information, please contact SARS at SARSMedia@sars.gov.za.

  • 21 October 2024 – The state provides state warehouses for the safekeeping of goods. These are managed by Customs. The purpose of this list of unentered goods is to notify the importer, exporter and any other person that has interest in the goods that the goods have been taken up into the State warehouse and if they remain unentered they will be disposed in accordance with the provisions of the Customs & Excise Act.

See the latest Customs Weekly List of Unentered Goods here.

  • 22 October 2024 – The Kariega branch is closed today due to power and flooding issues. Virtual appointments will still be honoured. Our apologies for the inconvenience.
  • 22 October 2024 – Income Tax Act, 1962
  • 23 October 2024 – The Kariega branch is still closed due to power and flooding issues. Virtual appointments will be honoured. Our apologies for the inconvenience.4
  • TALT v CSARS (A2023/077887) [2024] ZAGPJHC 827 (27 August 2024)
    • Appeal from the Tax Court – whether the taxpayer impermissibly raised new grounds of objection to additional assessment
  • Turners Shipping (Pty) Ltd v CSARS (2022/059481) [2024] ZAGPPHC 709 (23 July 2024)
    • Whether on the conspectus of the facts of this case, the respondent has any legal basis at all to hold the applicant
      liable for the export value of the goods, in lieu of forfeiture
  • Naraidu v The State (894/2023) [2024] ZASCA 139 (16 October 2024)
    • Criminal law – Tax practitioner – claim for a refund under the Value-Added Tax Act 89 of 1991 (the VAT Act) – fraud – intent to defraud – knowledge of the fictious claim – statutory charges under s 59(1) of the VAT Act and s 269(6) of the Tax Administration Act 28 of 2011 – validity of the statutory charges.
  • Tholo Energy Services CC v CSARS (378/2023) [2024] ZASCA 120 (6 August 2024)
    • Statutory construction – Customs and Excise Act 91 of 1964 (the Act) – s 47(9)(e) appeal against tariff determination – refund claim for fuel and Road Accident Fund levy by licensed distributor of fuel – fuel not obtained from stocks of licensee of customs and excise manufacturing warehouse envisaged in s 64F(1)(b) of the Act – exported without permit – not manufactured in Republic – not wholly and directly removed to country in customs union – not delivered by licensed remover of goods – determination correct – appeal dismissed.
  • Publication of Explanatory Summary of the Tax Administration Laws Amendment Bill, 2024
  • Publication of Explanatory Summary of the Global Minimum Tax Administration Bill, 2024

The Minister intends introducing these Bills in the National Assembly in the near future.

  • 24 October 2024 – Achieving our Vision 2024 of a smart, modern SARS with unquestionable integrity that is trusted and admired is of paramount importance. Pivotal to the delivery of our vision are our digital platforms and technology infrastructure. To provide clarity and certainty, make it easy for taxpayers and traders to comply with their obligations and building public trust and confidence, our technology assets must demonstrate the highest levels of availability, robustness and security.

In accordance with our Vision and Strategic Objectives, which include modernising our systems to provide Digital and Streamlined online services, we are hard at work ensuring that our digital platforms and technology infrastructure are available, robust and secure, by performing regular upgrades, enhancements and maintenance.

Considering the above, SARS Digital platform maintenance are scheduled for Friday, 25 October 2024 from 18:00 to 22:30.

During this time, you may experience intermittent service interruption.

NATIONAL TREASURY

OECD

SARB

AuthorLegal and Policy
DivisionTax
Categories
Legal and Policy
Date24 October 2024