Dear Subscriber,

The SARS website has published information on a judgment regarding the definition of "gross income" in section 1 of the Income Tax Act, 1962 - whether ex gratia payment to employee was in respect of services rendered or not. Click here to read the complete report.

Also included in this weeks newsletter is an update on Vat Rulings to provide clarity regarding the interpretation and application of the Vat Act. Click here.

The new advance tax ruling system came into effect on 1 October this year. This system has been hailed as a very exciting development by Michael Honiball, director at KPMG. What are the advantages of this system and what would an application for an advance tax ruling entail? Michael discusses this topic in a complete summary of the interview available on the TAXtalk website: www.taxtalk.co.za

TAXtalk 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).

SUBSCRIBE TO TAXtalk for R50.00 per month or R600.00 annually. You get a quarterly TAXtalk Magazine delivered to your postal address, a weekly Tax Newsletter in your email inbox, 24 hours' access to download TAXtalk information and a complimentary copy of TAXtalk Magazine Issues 2 & 3 upon registration.

Go to http://www.etaxes.co.za/taxtalk_subscribe.asp to subscribe online in less than two minutes.

Until next time
TAXtalk Publisher

Allen Ross

The Commissioner announced that as of August 2006 until May 31 2007 a Small Business Tax Amnesty will be in place. The system is based around voluntary compliance and the purpose is to:

eTaxJobs is a global job portal exclusively for tax professionals, and an online resource for employers and recruitment firms to advertise their vacancies. eTaxjobs operate in the UK, Europe, USA, Canada, Australia, New Zealand, Africa and around the World.

Available tax jobs for this week are:

• French Speaking Tax Planner, Morocco/Gibraltar, North Africa
• Opportunities for Tax Seniors and Managers in International Tax, Luxembourg
• Transfer Pricing Manager, Relocate to Canada !
• VAT Manager, Johannesburg, South Africa
• Transfer Pricing Specialists, Melbourne, Australia

Michael Honniball

The new advance tax ruling system came into effect on 1 October this year. This system has been hailed as a very exciting development by Michael Honniball, director at KPMG. What does this system entail?

Daniel Erasmus

According to statistics released by the Revenue Department of the state of Florida there are approximately 750,000 taxpayers in Florida.

Of these 750,000 taxpayers, approximately 51000 audits have been performed. This translates to approximately 6, 8% of all taxpayers being subjected to audits.

Are you sure of your rights as a taxpayer? Do you know how to deal with the processes of a SARS Audit? Would you like to learn why Transfer Pricing Provisions are constitutionally invalid – and not enforceable? Or, are you ready to find out what amnesties are available to corporate taxpayers – not just small businesses - for undisclosed income in 2006?

And would you like to know what effect the Royalty Judgement has on royalty papers? If you answered yes to any of the above questions, then don’t miss this one-day workshop with Tax Expert, Daniel Erasmus, and discover how you can prevent your business from falling foul of the law.

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?

Ernst & Young Survey

Johannesburg, 5 December 2006: Corporate tax functions throughout the world are making progress in responding to intense levels of scrutiny and pressure caused by regulatory and other changes.

According to Ernst & Young’s Global Tax Risk Survey 2006, Tax Risk: External Change, Internal Challenge, ensuring tax accounts and disclosures in financial statements are correct as well as general tax risk management issues are the two leading measurements of tax department performance.

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.

Fleet Street Publications (Pty) Ltd

Its that time of the year again. By now you probably have started working through the shopping list for Christmas presents. However, be careful with the credit card as the interest rate is still set to go up another notch or two in the early new year.

It has come to my attention that many homeowners associations have not registered for Vat as currently required. It is rumoured that the Vat Act will probably be amended to exclude homeowners associations and I will be making a similar submission to SARS and National Treasury. However, this will not change the past years. My Christmas present to all such homeowner associations is to consider using the tax amnesty (if your association complies with all the qualifying criteria)!

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