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Imposing penalties for understatements

26 March 2019 | Tax

In addition to the tax payable, SARS can impose penalties on a taxpayer for an “understatement.” In a standard case, and depending on the taxpayer’s behaviour, penalties can range from 10% for a “substantial understatement” to 150% for “intentional tax evasion”. In Purlish Holdings (Pty) Ltd v CSARS the Supreme Court of Appeal (SCA) had to decide whether the imposition of penalties by SARS was justified.

Looming “expat tax” is ultimately fair

18 March 2019 | Tax

On 1 March 2020 the amended section of the Income Tax Act concerning the foreign employment income exemption comes into effect. This so-called “expat tax” has caused concern among South Africans working abroad who currently pay no tax if they meet certain criteria. But, from next year, only R1 million of this income will be exempt from tax here.

National Treasury Workshop feedback; Expats, brace yourselves, the lean years are coming

11 March 2019 | Tax

If there was any doubt amongst taxpayers, especially South Africans working abroad, National Treasury, on 6 March 2019, categorically confirmed that it is forging ahead with the implementation of the amended section 10(1)(o)(ii) (“the Expat Exemption”).