Dear Subscriber,

SARS has taken a new direction with regard to PAYE audits, and more specifically when it comes to medical aid contributions. This week on Tax Issues we discussed the specific focus on medical aid contributions, the strange phenomenon where SARS was hosting educational sessions which companies and taxpayers were invited to attend and the tax on non-relevant medical costs.

The conclusion of this discussion was that taxpayers and companies should seek advice when compiling information for PAYE audits, as there were many pitfalls they needed to be aware of. A complete summary of the interview is available on the Tax Talk website: www.taxtalk.co.za

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

Sanchia Temkin - BusinessDay

NEW exemptions for tax advisers, accountants and tax practitioners under the Financial Intelligence Act were gazetted at the weekend to exempt them from prosecution so that they could assist small businesses to apply for amnesty under the small business tax amnesty.

South African Revenue Service (SARS) spokesman Adrian Lackay said at the weekend that the receiver was confident the exemption would positively influence the response to the small business tax amnesty, which came into effect on August 1.

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.

Tax Risk Management 2006

SARS have definitely got their act together. Not only are they forming specialised tax assessment units, they have also restructured their corporate tax centre at the Large Business Centre situated at the new Megawatt Park Offices. It is understood that this new Large Business Centre will divide assessment teams into different work units, each with specialised skills in potential areas of perceived tax risk to SARS.

Tax Risk Management 2006

Tax planning is an area that has been impacted by increased sensitivity from Listed Exchange Bodies, traditionally tax authorities, investors/investor analysts and shareholders.

In response Tax Teams must have appropriate tax risk management {TRM} policies and procedures in place (Tax Strategy).

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.

Juliet Koeman

Small business plays a vital role in stimulating growth in the economy, fostering job creation and creating wealth. There are however, many small businesses that are not fully tax compliant and even though many of them would like to become compliant, to do so would mean risking tax payments and penalties.

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