Dear Subscriber,

Minister of Finance Trevor Manuel will deliver the budget speech in Parliament on 21 February, as announced on the website of the National Treasury. This week TAXtalk has added an interesting article on the background of the minister. Click here to read more.

Don't forget that the Minister of Finance has published draft regulations for public comment that prescribe the circumstances under which the South African Revenue Service (SARS) may waive additional taxes, penalties and interest for qualifying small businesses. Comments can be made until 9 February. Click here to read more about application for the waiver. Businesses can apply for amnesty up to the end of May 2007. Come 1 June, this once-off chance for small businesses to come clean without fear of heavy penalties will have come and gone.

In an article written for Business Report by Tonny Mafu, he discusses

a survey on how poor plans raise the tax risk for South African firms. He states that, until recently, local firms had generally not viewed tax in the same way as other business risks. Click here to read this interesting article on the risky business of tax.

It is sometimes unavoidable for a taxpayer to approach the High Court for relief in tax matters. Albert Lamey, director at Rooth & Wessels Attorneys discussed the ins and outs of such an application on Tax Issues, broadcast on Summit TV on Monday night. Click here for a summary of the full interview. Tax Issues is 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 and get the TAXtalk Magazine delivered to your postal address, a weekly tax newsletter in your email inbox and 24 hours' access to download TAXtalk information and eBooks.

Go here to subscribe online in less than two minutes.

Until next week.
TAXtalk Editor

SUBSCRIBE to TAXtalk before the small business tax amnesty deadline on 31 May 2007 and receive a FREE TAXtalk Magazine subscription pack and be entered into a prize draw for 5 complimentary seminar seats, to The International Tax Institute's Small Business Tax Amnesty Seminar worth R650.00

Go here to subscribe online in less than two minutes.

Source: National Treasury

Mr Manuel was born on 31 January 1956, grew up in Kensington, Cape Town and matriculated from Harold Cressy High School. He completed a National Diploma in Civil and Structural Engineering at the Peninsula Technikon and studied law during his many periods of detention.

Mr Manuel entered public life in 1981, being elected soon thereafter as Regional Secretary and a National Executive Member of the United Democratic Front (UDF), a broad anti-apartheid coalition.

Sanchia Temkin - Professional Services Editor

CHANGES to the law on VAT provide that rulings issued by the South African Revenue Service (SARS) before January 1 this year must be confirmed by the receiver to have a binding effect on future transactions.

The aim of the new ruling system is to provide consistency, clarity and certainty in the tax laws.

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:

• Senior Tax (Structuring) Professional, Babcock & Brown, London, UK
• Head of Transfer Pricing, FTSE 100, London, UK
• Interim International Tax Manager, FTSE 50, London, UK
• VAT Adviser, Geneva, Switzerland
• Corporate Tax Opportunities, Diageo, Dublin

TAXtalk Magazine Issue 4

Can interest ever be capped?

There is a rule which originates from Roman-Dutch law, the Latin term being the in duplum rule, which provides that interest could never exceed the capital amount owing.

Andra Glyn-Jones, Associate, Tax, Deloitte. - TAXtalk Magazine Issue 4

In his Budget Speech in February 2006, the Minister of Finance announced that South Africa would be looking at introducing place of supply rules taking into account the views of the OECD which had recently been published.

The present law has no place of supply rules and therefore some difficulties arise when considering whether or not to register a non-resident for VAT.

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.

The Minister of Finance, Trevor Manuel, announced that as of August 2006 until May 31 2007 a Small Business Tax Amnesty will be in place. The International Tax Institute (ITI) will be unpacking the effects of the Small Business Tax Amnesty. Important aspects that will be covered at this ½ day event are:

• Who does tax amnesty apply to?
• Instances where amnesty will not apply
• General requirements
• Which taxes does amnesty apply to?
• How to apply for amnesty
• What is the effect of a successful amnesty application?

Tax Issues Interview with Albert Lamey, director at Rooth & Wessels Attorneys

It is sometimes unavoidable for a taxpayer to approach the High Court for relief in tax matters. Albert Lamey, director at Rooth & Wessels Attorneys discussed the ins and outs of such an application on Tax Issues, broadcast on Summit TV on Monday night.

Albert started off by saying that an application to the High Court pertaining to tax is quite a contentious issue. Both the Income Tax Act and the VAT Act state that relief can be sought from the Tax Court. It is only in unusual circumstances that the High Court is approached.

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.

Sanchia Temkin - Professional Services Editor

INCREASED complexity of tax legislation coupled with pressure from the South African Revenue Service (SARS) has tax departments of South African companies spending most of their time on routine compliance activities, according to research by Ernst & Young.

The research was conducted between May and July last year among 474 companies in 14 countries, including emerging markets such as SA, Brazil and China.

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.

Let TAXtalk be your mouthpiece.
With our media exposure it will be worth
your while to advertise with us.

Download Advertising
Options Now
[PDF Format - 1.0Mb]

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