Dear Subscriber,

Below is an extract from The Minister of Finance's Budget Speech 2005:

Voluntary disclosure dispensation

"One of the barriers to taxpayers coming forward voluntarily to correct their failures to meet their tax obligations is the fear of SARS and the tax burden that they will be assuming. In order to lower this barrier, it is proposed that a voluntary disclosure dispensation be made available to taxpayers who have failed to meet any of their tax obligations, for example, through non-registration, non-disclosure of income or deductions of fictitious expenditure. This dispensation will allow for the waiving of penalties or additional tax provided that the taxpayer wishing to participate in the dispensation approaches SARS voluntarily before an investigation of his or her affairs has commenced."

Since then, there have been significant changes in Finance Minister, Trevor Manuel's proposal since his Budget Speech.

Yesterday's Star Newspaper and Business Report featured a variety of articles creating awareness around the small business tax amnesty announcements. Articles included; "Manuel gives tax dodgers an opportunity to be forgiven", "Extension of tax amnesty welcomed" and "Manuel makes concessions on tax amnesty". We refer you to the interesting links on the Tax Talk website to get the full articles.

It seems as if structured finance deals are coming under increasing threat through the proposed amendments to Section 103 of the Income Tax Act. This week, we refer you to the article "Is it the end of the road for structured finance deals?" in which this matter is discussed.

Do you quake in your boots when SARS announces that it's going to

do a tax audit of your business? You are not alone. Join Tax Issues on Summit TV on Monday, 19 June 2006 when Daniel talks to tax lawyer, Pierre du Toit about the perceptions in the market when it comes to tax audits. Are they something to fear?

Tax Issues is on every Monday at 20h40 and again at 22h40 on SUMMIT TV (DSTV CHANNEL 55.)

If you are not yet subscribed and you would like a copy of the Tax Talk Magazine to keep you informed, email us your postage details and we will be happy to provide you with a complimentary copy of Issue 2 so that you can see first hand the resourceful information that is being published.

Please email: neo@taxtalk.co.za for a copy.

Until next time ...

Daniel Erasmus

Daniel Erasmus, host of the programme Tax Issues, broadcast on Summit TV on Monday night, discussed the implications of the amended Section 103 of the Income Tax Act on structured finance deals with Ernst Mazansky of Werksmans firm of attorneys.

Sanchia Temkin - Business Day

ALTHOUGH tourism businesses are in a position to reap the benefits of the World Cup in 2010, they face a host of complex tax issues that apply to this industry specifically, says Moray Wilson, a tax manager at Deloitte.

In the light of increasing sophistication and capacity on the part of the tax authorities to enforce the law, newcomers and established players in the tourism sector would have to ensure that their tax affairs are in order, particularly with regard to value added tax (VAT), said Wilson.

Come and find out how to comply with the latest tax legislation that will impact on your business at the local and international levels.

Some of the 7 Key Issues to be addressed include:
Taking a look at the most recent developments in anti-avoidance legislation
Analysing the implications of Capital Gains Tax (CGT)
Scrutinising transfer pricing

How do you deal with the processes of a SARS audit? Why are Transfer Pricing provisions constitutionally invalid and not enforceable? What amnesty is available in 2006 to corporate taxpayers for undisclosed income (not just for small businesses) and what is the effect of the Royalty Judgment on royalty payers?

Don't miss this 1-day workshop presented by Daniel Erasmus, to find out how you can prevent your business from falling foul to the law, in any of these areas.

David Grawitzky - IAPA Johannesburg Chartered Accountants

A tax amnesty for small business has been announced.

· Amnesty applies to any natural persons, industry professionals, trusts, close corporations and unlisted companies were individuals hold all the shares.
· The amnesty applies to income tax, employees tax, VAT, STC, UIF and skill development levies.

Tax Bulletin published by The Practical Tax Handbook - Fleet Street Publications (Pty) Ltd

Did you know that when SARS auditors target your business for a compliance audit, one of the first places they'll look for an almost guaranteed mistake is your payroll? Many businesses dont even realise that VAT can be payable on fringe benefits and other items on the payroll, and this leads to lucrative returns for SARS audit teams. In this VAT Bulletin we take a closer look at one of the most common VAT items on your payroll: The right to use a company car.

From personal individual tax to significant company tax changes - the subject is a hotly debated issue throughout South Africa's corporate environment. Tax Issues - every Monday at 20h40pm and again at 22h40pm - demystifies some of the latest developments and issues being discussed in the corridors of power. Tax Issues will cover; The impact of pending new tax laws on individuals and companies, The capital gains tax debate, New SARS initiatives to collect tax Changes to tax benefits, The VAT vs personal tax debate.

Daniel Erasmus

Do you quake in your boots when SARS announces that it’s going to do a tax audit of your business? You are not alone. Join Daniel Erasmus on Summit TV every Monday night at 20h40 to gain insight into the world of tax. On Monday, 19 June 2006 Daniel talks to tax lawyer Pierre du Toit about the perceptions in the market when it comes to tax audits. Are they something to fear? ...

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Contact Janine at
janine@taxtalk.co.za
(011) 476 5048