Dear Subscriber,

An article in the business news section of the business iafrica.com website reads; Mega-rich should beware: Sars is closing in, The SA Revenue Service gave notice on Wednesday that tax evaders' days are numbered, with 500 'top individuals' currently being investigated, adding there's no difference between tax evaders and those who 'stab and engage in heists'. The full story can be found at: http://business.iafrica.com/news/270423.htm

Our readers' forum article in the newsletter discusses company commission and remuneration as it is defined with the Fourth Schedule to the Income Tax Act.

Tax Talk invites you, our subscribers, to write to us with suggestions of tax topics about which you would like more information. We will invite experts to speak on these topics on Tax Issues, broadcast on

Mondays at 20h40 and again at 22h40 on SUMMIT TV (DSTV CHANNEL 55).

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Until next time
Tax Talk Publisher

Michelle Swart - Tax Talk Magazine Issue 3

Franchising effectively encourages entrepreneurship, creates jobs, passes on skills and then ultimately promotes business growth and private ownership. Hospitality investigates the inner workings of this concept.

By the time South Africa started to toy with the idea of franchising, the United States was already well under way with this concept and the success of such business ventures internationally was starting to appear more enticing to South African business owners.

Can you CONFIDENTLY answer the following questions? Call us NOW to Book your place on the Tax MasterClass and ensure your organizations future tax health.

• Where do you think your greatest Tax Risk lies?
• What is your documented tax policy/strategy?
• How good is your tax department's communication with the rest of your organization?
• Do they understand what your organizations REAL TAX RISK is?
• Do you know how Corporate Governance affects Tax Risk Management?
• How do you manage your relationship with your largest business partner, the South African Revenue Service?

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 “The Complete Tax Workshop” a 1-day workshop presented by Daniel Erasmus, to find out how you can prevent your business from falling foul of the law, in any of these areas.

Sanchia Temkin - BusinessDay

THE South African Revenue Service (SARS) is cracking down on companies that have not complied fully with value added tax (VAT) laws, with a focus on the financial services industry.

PricewaterhouseCoopers tax partner Gerard Soverall said earlier this week that VAT had had a significant impact on the financial services sector, specifically in the banking and life insurance industries.

Tax Talk Magazine Issue 3

A company is paying an individual who is working for another company a commission of R1 500.00 for a referral. Should they deduct any tax? If yes, please explain.

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.

Steve Krause - Tax Talk Magazine Issue 3

Are you obliged to pay penalty and interest on an assessment raised by SARS, following an audit were SARS has not raised additional tax?

This question is certainly worth investigating. In terms of section 37 the burden of proof vests with the vendor to confirm that any supply is exempt or chargeable under the zero rate or at the standard rate. Furthermore, the vendor should also be able to confirm that the inputs claimed against these supplies met the requirements of the provisions.

Do you have something to say? Do you have an area of interest or expertise that you believe is something you can contribute for the interest of our readers? Do you want to share your views with like-minded people?

If so, send your submissions by email to (janine@taxtalk.co.za), fax (27 11 476 5004) or post (P.O. Box 1650, Gallo Manor 2052) and be heard!

We will publish the best stories and viewpoints on our website &/or in our weekly newsletter.

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Contact Janine at
janine@taxtalk.co.za
(011) 476 5095