Treasury provides clarity. Some will make you weep others will be cause for celebration. The Draft Taxation Laws Amendment Bill, 2010 has been released for public comment. The Bill proposes various effective dates for the amendments contained therein.

Proposed new tax laws are set to tighten the noose on the abuse of car and travel allowances that have cost the government billions of rand in lost revenue.

By Stiaan Klue. National Treasury, last week, released the provisional financing figures which showed that tax collections for the first eight months of the 2009/10 fiscal year, were R26 billion lower than the same period in the previous year. The South African fiscal gap could widen further after the finance ministry figures indicated that government expenditure had increased, while tax collections were much lower compared to last year.

By Christo Theron (Grant Thornton)
According to a leading global audit firm, businesses only realise the importance of effectively managing their zero-rated supplies once challenged by revenue authorities, or when penalties imposed erode hard-earned profits.

A zero-rated supply is a category of taxable goods or services where VAT is charged at a rate of zero percent. Vendors making supplies zero-rated are entitled to full input tax credits on costs incurred to make such supplies.

By Professor R C Williams
A new section 22B introduced by the Taxation Laws Amendment Act 17 of 2009 put in place an important new anti-avoidance measure linked to the proposed new dividends tax.

By Ruan Jooste (Finweek)

Death and taxes may be inevitable but they shouldn’t be related. In South Africa the extent of individual taxes and related hidden costs is putting immense pressure on individuals and might just kill them – financially, that is. Currently, 25% of individual taxpayers pay 75% of all personal income tax, which contributes close to 30% of total revenue to the fiscus.

By Professor R C Williams
An important amendment to the Income Tax Act that was effected by the Taxation Laws Amendment Act 17 of 2009 was the relaxation of one of the previously troublesome criteria for qualification as a “small business corporation”.

By Professor R C Williams
The learnership allowance provided for in section 12H of the Income Tax Act is intended to provide employers with a tax incentive for job creation and skills development.

A SEPARATE tax is to be imposed on taxpayers to fund the development of broadcasting and the cash-strapped South African Broadcasting Corporation (SABC), it is proposed in the draft Public Service Broadcasting Bill.

Tax collections are going to come up far short of the 2009-10 budget of R700-billion. But who is going to have to carry the can?