Dear Subscriber,

Why must we pay tax? You have probably asked yourself this question every time you open your pay slip.

According to SARS without the revenue from tax, the government cannot do its job. The state needs your tax rands to fund social and economic programmes, and to provide public goods and services, such as schools, universities, hospitals, clinics and roads, as well as defense and security. Every year, the Minister of Finance presents the Budget, which outlines the total government expenditure for the following financial year and the ways in which this expenditure will be financed.

It is stated on the SARS website that they are conscious of the importance of fulfilling their mandate to increase the revenue available to the government to rebuild the country and create an economic order in which all South Africans are prosperous. To do this, they are working hard to turn an entrenched culture of non-compliance into one of voluntary compliance, increasing the tax base while reducing the cost of collection.

Improved service-delivery and more effective enforcement of tax legislation are two pillars of SARS´s compliance strategy. The majority of the state´s income is derived from income tax (personal and company tax), although nearly a third of total revenue from national government taxes comes from indirect taxes, primarily VAT.

The ultimate goal of SARS is to reduce the tax gap, which is the difference between tax collected and tax due and that is the reason why we are paying taxes.

Tax Issues
Many business people fail to consider the complexities of paying VAT when it comes to selling immovable property. This issue was discussed by Jenny Faber of EFGS Attorneys on Tax Issues. Click here for the full interview.

Tax Issues is broadcast on Summit TV (DSTV channel 55) at 20h40 & 22h40 on Wednesday evenings and at 7h30 on Thursday mornings.

Subscribe online in less than two minutes.

Till next week.
Janine Connor
Head of TAXtalk

Interview with Jenny Faber of EFGS Attorneys - Summit TV

There are VAT implications when it comes to the sale of immovable property. This issue was discussed by Jenny Faber of EFGS Attorneys.

Deborah Tickle – Director International Corporate Tax, KPMG - Personal Finance

Calculating the capital gains tax from the sale of your home becomes more complicated if you use part of your residence for business purposes. We asked SARS to guide us through this.

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:

• VAT Advisor, Vodafone, Newbury, UK
• Transfer Pricing Senior Manager, FS, London, UK
• Tax Manager, Group & Front Office Advisory, London, UK
• US (Expatriate) Tax Professional, Saudi Arabia
• Senior Tax Manager, Multinational, Switzerland

SA Good News

Mzamo Xala disavows the term ""Black Diamond"" conferred on members of South Africa`s booming black middle class who now hold nearly a third of the country`s buying power.

Daniel Erasmus, Specialist Tax Attorney

In the case of Minister of Home Affairs vs National Institute for Crime Prevention and the Reintegration of Offenders (NICRO) and others, 2005(3) SA 280(CC) Chaskalson CJ said the following with reference to section 1 of the Constitution:

One of the fundamental principles of equity investing is that in the long run, companies share prices are driven by profit growth.

TAXtalk invites you to write an article in which you share your views and expertise on tax. Your article can be published in the newsletter for 7000 readers to view, on our website for over 100 000 viewers to see and in the TAXtalk magazine(with your photo) for more than 16 000 readers to read. Make an impression, submit your article NOW.

Article Requirements:
1 Page Article : 900 words  1½ Page Article : 1350 words  2 Page Article : 1800 words
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Submit your article to: janine@taxtalk.co.za or post it to: (P.O Box 1650 Gallo Manor 2052)