Archive | September, 2014

S.Africa: Proposed changes to secondary transfer pricing adjustment

DLA Cliffe Dekker Hofmeyr Heinrich Louw South Africa September 12 2014 National Treasury and the South African Revenue Service (SARS) recently released the draft Taxation Laws Amendment Bill 2014 (Bill). One of the key proposals in the Bill is to change the secondary transfer pricing adjustment mechanism from a deemed loan to a deemed dividend. […]

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Posted in Africa, South Africa, Transfer Pricing

OECD: First recommendations for combating international tax avoidance by multinational enterprises on Tuesday 16 September 2014

http://www.oecd.org/tax/oecd-to-release-first-recommendations-for-combating-international-tax-avoidance-by-multinational-enterprises-on-tuesday-16-september-2014.htm OECD to release first recommendations for combating international tax avoidance by multinational enterprises on Tuesday 16 September 2014 08/09/2014  – The OECD will release its first recommendations for a co-ordinated international approach to combat tax avoidance by multinational enterprises under the OECD/G20 Base Erosion and Profit Shifting (BEPS) Project on Tuesday 16 September 2014. […]

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Posted in Africa

S.AFRICA: Expenditure relating to deferred accruals

Expenditure relating to deferred accruals DLA Cliffe Dekker Hofmeyr Heinrich Louw South Africa September 5 2014 Background The taxpayer operated a mine. Firstly, it would extract mineral ore from the earth, and secondly, by smelting and other processes, it would extract a concentrate (containing the minerals) from the ore. The taxpayer sold the concentrate to […]

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Posted in Africa, South Africa

S.AFRICA: Section 14 of the Prescription Act, No 56 of 1972 – a life line

DLA Cliffe Dekker Hofmeyr Jackwell Feris South Africa September 10 2014 Section 14 of the Prescription Act, No 56 of 1972 – a life line In a recent unreported judgment of the South Gauteng High Court in Anglo American Properties Limited v City of Johannesburg Metropolitan Municipality; Case No.35043/12, Mokopo AJ reminded attorneys and their devastated […]

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Posted in FP News

S.AFRICA: Recent tax case – Fringe benefits planning ‘faux pas’ on a company car & other benefits – or not?

S.AFRICA: Recent tax case – Fringe benefits planning ‘faux pas’ on a company car & other benefits – or not?     In a Gauteng Tax Court judgment, the judge found the only taxpayer witness (who designed the salary sacrifice scheme) not to be credible. In essence a notional account in the taxpayer company was created […]

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Posted in Africa, FP News, South Africa

S.AFRICA: Documentation in tax disputes highlighted in the New dispute resolution rules

Article by Stephen Levetan and Taryn Solomon ENSafrica The new rules promulgated under section 103 of the Tax Administration Act No. 28 of 2011, which prescribe the procedures to be followed in tax disputes, took effect on 11 July 2014. These rules replaced the rules previously promulgated under section 107A of the Income Tax Act in their entirety, and […]

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Posted in Africa, South Africa

S.AFRICA: Collection & exchange of tax related information by tax authorities

Article by Mathabo Magolego ENSafrica Tax authorities across the globe are working aggressively to collect taxes which they believe are collectable in their respective jurisdictions. States are entering into bilateral and multilateral agreements aimed at assisting each other in the collection of information and taxes. South Africa has actively taken part and in some respects been a regional leader in issues relating […]

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Posted in Africa, FP News, South Africa

S.AFRICA: Huang & Mpisi Trading 74 (Pty) Ltd – Search & Seizure Warrants under Tax Administration Act, 2011

Here is the full judgment: SA Tax Court search seizure review less intrusive Huang and Others Including Mpisi Trading 74 Pty Ltd 13 August 2014 I’m sure there is a chance it will go to the SCA with these legal expenses incurred. Take aways – from this judgment, SARS does not have a very high […]

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Posted in Africa, FP News, South Africa

ANGOLA: New Transfer Pricing Rules in Angola: What Do They Mean?

Within tax reform currently underway in Angola, a new transfer pricing regime was recently introduced. The following article explains further. New Transfer Pricing Rules in Angola: What Do They Mean? Susana Pinto KPMG Susana Pinto is a member of the KPMG’s transfer pricing team and Director of the Angolan practice. The introduction of this new […]

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Posted in Africa, Transfer Pricing

INDIA: Taxability of overseas share sale – India influences African Tax Administrations

Since the 2012 Union Budget specified that shares of a foreign company would be deemed to be situated in India if it derives its value “substantially” from assets located in India, there has been uncertainty over what this really means. A recent case clarifies the matter. Delhi High Court clarifies taxability of overseas share sale […]

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Posted in Africa, Transfer Pricing