Dear Subscriber,

There is going to be MASS misapplication by many of the principles that emerge from this new SCA judgment on the taxability of interest-free loans - CSARS v Brummeria Renaissance.

A copy of the judgment has been made available to you on the TAXtalk website in the article titled: Important Supreme Court Appeal Judgment on Interest Free Loans

TAXtalk interviewed tax attorney Daniel Erasmus for his views on the judgment and he said that firstly the facts are very specific where an interest-free loan was exchanged specifically for a life right. The legal team of the taxpayer FAILED to argue key arguments, and could not, because their paper work before the court on technical grounds WAS NOT in order.

They did not argue the basis of valuing the amount, or that the amount may be of a capital nature, which would often be the case in company loans, subject to careful analysis. There are many other criticisms such as practice generally prevailing etc...

Front Foot is presenting a breakfast on Wednesday 10 October 2007 at the Hilton Hotel, Sandton, where a proper analysis of this case will take place by leading tax practitioners and tax academics.

Three of South Africa's leading tax practitioners will analyse and unpack the significance of the new CSARS v Brummeria Renaissance SCA judgment on interest-free loans, to show how both the public and SARS can avoid confusion and misapplication of this in practice. This event will be hosted in the interests of stamping out MASS confusion in a very technical situation.

For detailed information on this event please click here. For enquiries contact Ryan Dube via email or on telephone number 011-880-4808.

A recent TAXtalk readership survey revealed that 89% of our readers file the magazine for future reference, proof that TAXtalk is a valuable resource to reference for both current and historic issues. Being informed about vital tax updates and the latest developments at SARS is of critical importance to anyone working within the tax field. Subscribing to TAXtalk magazine guarantees that you stay on the cutting edge.



Tax Issues
This week Johan Troskie, director at Deneys Reitz, will be discussing retirement lump sum benefits, on Tax Issues, 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
Executive Editor & Head of TAXtalk

Daniel Erasmus

With reference to the Business Day article ‘Use of interest-free loans is taxable, appeal court rules’ by Sanchia Temkin, and a copy of the full judgment, together with our initial comments below, we have provided our take on the appeal courts ruling on the taxability of interest-free loans.

Thiru Pillay - Director - Business Risk Services - Ernst & Young

With local and international investors increasingly demanding more transparency and ‘no surprises’, the role of the financial director is coming under tremendous scrutiny. From what was once considered an overhead and treated as such, the financial director is now increasingly being seen as a key organisational asset to drive business competitiveness and effectiveness.

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:

• Indirect Taxes Manager, Parker Hannifin, Lausanne, Switzerland
• Transfer Pricing Advisor, Shell, London, UK
• Tax Compliance Advisor, Shell, The Hague, Holland
• Senior Tax Manager (International), Abu Dhabi, UAE
• Venture Capital Tax Manager, In-House, London, UK

Tony Barrett, Head of Wealth Management - BJM Private Client Services

A WEALTH structuring challenge is looming as Capital Gains Tax (CGT) and other costs take toll of ‘the new millennium millions’ currently accruing to high performing executives and entrepreneurs.

TAXtalk

The ability for a Revenue Service Authority to break the rules and take privileged information from a Taxpayer is clamped down!

The powers of the IRS and other Revenue Service Authorities around the world are extensive in the process of auditing the self-assessment tax laws imposed on taxpayers, to ensure that these taxpayers are compliant.

Advocate Peter OHalloran

The Promotion of Administrative Justice Act 3 of 2000 (PAJA) came into effect in November 2000. The PAJA is the direct result of sub-section 3 of Section 33 of the Constitution of South Africa dealing with just administrative action. In instances of a dispute arising between a taxpayer and the authorities, the person must also consider his or her position under PAJA, over and above any statutory provisions that are relevant to the dispute.

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.

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Submit your article to: janine@taxtalk.co.za or post it to: (P.O Box 1650 Gallo Manor 2052)