Dear Subscriber,

I am happy to welcome you to our first TAXtalk Newsletter for 2007. I love the sense of renewal that comes with the New Year. It's an opportunity to start over, tidy up our act, and extend our reach a little bit higher.

TAXtalk is now an official partner of eBucks !!

eBucks is South Africa's leading multi-partner rewards programme. It is a FirstRand Group business to consumer e-commerce initiative and is one of South Africa's most aspirational rewards programmes.

We have created a fantastic opportunity for our readers who are members of the eBucks loyalty rewards progamme. You can now purchase your subscription to TAXtalk using your eBucks, just visit the eBucks shop at www.ebucks.co.za.

By now you should have received Issue 4 of the TAXtalk Magazine. It has valuable input and informative articles from the likes of Ernest Mazansky, director at Werkmans Tax, providing some observations on the new general anti-avoidance rule (GAAR). Greg Tarrant, KPMG Tax, discusses the tax deductability of BEE costs, the saga of VAT continues, as discussed by Andra Glyn-Jones, associate Tax at Deloitte, and Sean Kruger, national director of tax services at Ernst & Young deals with transfer pricing.

This Issue has also been dedicated to discussion on the Tax Amnesty for Small Businesses, where we unpack the issue for you and answer all of your questions. Businesses can apply for amnesty up to the end of May 2007. "Come 1 June 2007, businesses that have not complied will face pretty heavy penalties," said Manuel. There are no plans for any further tax amnesties.. This one is a once-off chance for small businesses to come clean without fear of heavy penalties.

TAXtalk invites you 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, which will continue to be broadcast on Mondays at 20h40 and again at 22h40 on SUMMIT TV (DSTV CHANNEL 55).

The best decision you can make this year is to SUBSCRIBE TO TAXtalk for R50.00 per month or R600.00 annually. You get the 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 and 3 upon registration.

The TAXtalk team has been working vigorously to bring you additional benefits that will add value to your subscription. Why not kick off 2007 by subscribing online to TAXtalk in less than two minutes at:
www.etaxes.co.za/taxtalk_subscribe.asp

Until next week.
The Editor

Tax Issues Interview with Pierre du Toit, Tax Lawyer at KPMG

The new anti-avoidance legislation contained in section 103 of the Income Tax Act has been passed. In a two-part series, Tax Issues looks at the implications of this legislation with Pierre du Toit, tax lawyer at KPMG.

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:

• Transfer Pricing Manager, Investment Bank, Zurich
• Tax Manager, Swiss Re, Zurich, Switzerland
• Transfer Pricing Director, Investment Bank, New York
• Tax Accountant (VAT), The Walt Disney Company, The Netherlands
• Latin American Tax Manager, Argentina
• Interim Project Manager, Carribbean

TAXtalk

There are an estimated three million small businesses in South Africa, including businesses of an informal nature. Add to this figure South Africa’s estimated 130 000 taxis of which about 117 000 have legal transport permits and the impact of these sectors on the South Africa’s economy becomes a serious force to be reckoned with.

TAXtalk Magazine Issue 4

What is the purpose for SARS imposing penalties and interest?

Penalties are imposed in order to penalize taxpayer’s who have failed to comply with legislation and/or procedure. You may therefore be penalized for submitting a tax return late, for not paying income tax timeously, or for structuring a transaction to avoid tax. These are a few examples and each one has a corresponding penalty.

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.

Tax Issues Interview with Rob Strech, Tax Director at Ernst & Young

Capital Gains Tax (CGT) and the valuations of assets have become quite a headache for some taxpayers. Rob Stretch, tax director at Ernst & Young discussed this matter on Tax Issues, broadcast on Summit TV on Monday night.

The first significant date that came up was 1 October 2001. On this date CGT was introduced. Taxpayers had up to 30 September 2003 to value their assets for CGT purposes. This date was extended to 30 September 2004.

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

If you import services into South Africa, you may be wondering who exactly should levy the Vat. You, as the South African resident/business or enterprise will levy the Vat if you:
  * acquire the services of a non-resident
  * use those services for exempt or non taxable supplies.

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