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Prescription of self-assessed taxes arising from low-interest loans
The Tax Administration Act (TAA) makes provision for prescription of tax assessments. This provides taxpayers with finality in relation to assessments after a period of time. The SCA considered in CSARS v Char-Trade whether an assessment had prescribed by the time...
Understatement penalties – Part 2: Evaluating advice obtained
The previous article on the topic of understatement penalties (USP) concluded that taxpayers need to carefully consider the quality of and critically assess the soundness of advice obtained if they wish to rely on it as a basis to have reasonable grounds for a tax...
Tax implications of ceded dividend rights
ividend income is subject to tax treatment, which if viewed only from the perspective of the recipient thereof, is more favourable than most other income. It is exempt from normal tax. Dividends paid by one South African company to another are furthermore exempt from...
Understatement penalties – Part 1: Effect of advice obtained
Most additional assessments raised by SARS following an audit into the affairs of a taxpayer include the imposition of an understatement penalty (USP) in terms of the Tax Administration Act (TAA). The USP is determined as the shortfall amount multiplied by a...
Tax Administration: Follow the rules strictly
The Tax Administration Act (the TAA) was introduced to, amongst others, provide clarity on that administrative procedures to be followed by taxpayers in resolving matters relating to the administration of their tax affairs. A key piece of regulation in this regard is...
A tax perspective on the valuation of shares
The recent case of CSARS v The Executors of Estate Late Sidney Ellerine (142/2017) [2018] ZASCA 39 (28 March 2018) dealt with the valuation of preference shares held by a person at the time of death. This article provides an overview of the case and a perspective on...
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