Dear Subscriber,

In terms of the FICA, advisers who act as intermediaries between their clients and the South African Revenue Service (SARS) are required to report suspicious transactions arising from information disclosed to them by their client.

A SARS press release on exemption for advisers in the Small Business Tax Amnesty states that; effectively the exemption provisions will remove the probability of prosecution for tax advisers, accountants and tax practitioners who assist or advise a client to apply for the Small Business Tax Amnesty.

Exemption in terms of The Financial Intelligence Centre Act, 2001, to accommodate the small business tax amnesty reads that; this person will not be required to report a suspicious transaction in respect of the information disclosed to him or her by the client. The exemption applies irrespective of whether the client actually applies for amnesty or not.

Last week on Tax Issues, The funding of Black Economic Empowerment (BEE) transactions was discussed. This week we continue with part 2 of this discussion.

Dr Emil Brincker, director at Edward Nathan discussed the tax implications of such transactions, the two funding options were again stated, i.e. going to a bank for funding (the less popular option due to the cost involved) and the fresh issuing of shares (the more popular

option). A complete summary of the interview is available on the Tax Talk website.

Tax Talk invites you, our subscribers, to write to us with suggestions of tax topics about which you would like more information. We willinvite 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

Daniel Erasmus - Daniel Erasmus Tax Consulting

A Small Business Tax Amnesty has recently been announced in respect of the voluntary disclosure of any failure to comply with certain Acts administered by the Commissioner.

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Tax Talk

The funding of Black Economic Empowerment (BEE) transactions was discussed on Tax Issues last week. This week, Dr Emil Brincker, director at Edward Nathan discussed the tax implications of such transactions on Tax Issues, broadcast on Summit TV on Monday night.

As a matter of introduction, the two funding options were again stated, i.e. going to a bank for funding (the less popular option due to the cost involved) and the fresh issuing of shares (the more popular option).

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?

Sanchia Temkin - Business Day

SA’s corporate tax regime may be scaring off foreign investment. According to recent research carried out by the Economist Intelligence Unit and New York’s Columbia University, SA is expected to receive only $6bn a year from investment between 2006-10.

This amounts to only 2% annually of expected gross domestic profit (GDP). SA slips to 56th position worldwide, behind African countries such as Algeria and Angola, where future foreign direct investment is expected to average 4,5% and 4,2% of GDP respectively.

Tax Risk Management 2006

Tax planning strategies include: generating profits in low tax jurisdictions or in tax loss company; extract profits from high tax jurisdiction; place expenses and debt in high tax jurisdiction; defer tax payment dates; use fiscal and other incentives; maximize benefits of DTA’s; ....

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 - Tax Talk

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!

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