Dear Subscriber,

I have done it! I have completed my tax returns and sent it off to SARS, I have met the deadline. I feel good about that. Being a compliant taxpayer does give one a sense of accomplishment, especially when you know that you are doing your bit to contribute positively towards the economy.

This makes me reflect on an article we published, in Issue 7 of TAXtalk, on an address by Dr John Barker on good governance. I am of the opinion that good governance and compliance go hand in hand.

Despite the fact that the article was an address made to an international community, we as South Africans can learn some good facts from this talk.

Some of the discussion points he touches on; governments that promote a democratic accountability, seeking to promote conditions conducive to human development and economic advancement, building on foundations for durable human security and support. Together with non-compliance, these are the kind of factors that hold back development in growing countries.

Dr John Barker makes a strong statement when he says that Africa is not poor; it is a wealthy continent. Africa's development lies in the hands of ordinary citizens creating wealth in the private sector. It will not be governments, donors, distant capitals or development experts who will develop Africa.

With our communication systems and our ability to share information and to transact business, as compliant citizens, I believe we can make this a very wealthy country.

If you would like to read the full article on Reflections of good governance, by Dr John Barker, it is available in electronic format on the TAXtalk website.

Have a great week!


Tax Issues
Tune in to Tax Issues, broadcast on Summit TV (DSTV channel 292) at 20h40 & 22h40 on Wednesday evenings and at 7h30 on Thursday mornings to catch up on the latest interview. PLEASE NOTE: Tax Issues has changed channels, it is now being broadcast on DSTV channel 292 since 01 October 2007.

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Till next week.
Janine Connor
Executive Editor & Head of TAXtalk

TAXtalk Magazine Article

The Johannesburg Stock Exchange (JSE) has achieved record highs over the past few years and this has had an effect on investors investment strategy. Add Capital Gains Tax (CGT) to the mix and the issue becomes complicated.

Sanchia Temkin - Business Day

South African tax residents working abroad will benefit from tax amendments relating to deferred payment schemes. Proposed amendments to the Income Tax Act would deal with the anomalies relating to deferred compensation and better define what amounts were to be exempt, Samantha Grobler, a senior manager of international assignments at PricewaterhouseCoopers, said at the weekend.

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:

Erika Petersen, a partner in the Tax Department - Shepstone & Wylie attorneys

Gross-income came under scrutiny again, this time to the detriment of the tax-payer, in a recent judgement where property developers used interest-free loans to build retirement dwellings for clients.

Michael Hartmann, tax partner in Germany - PricewaterhouseCoopers

Like most international tax advisors, Michael Hartmann, PricewaterhouseCoopers tax partner in Germany, welcomes the abolition of Secondary Tax on Companies in SA. “STC was not a typical tax concept and as German investors did not receive a credit for it, the tax increased their cost of doing business in SA. The move to a withholding tax on dividends is far more acceptable in the international tax arena.”

Interview with Ernst Mazansky, director of tax at Werkmans Attorneys - Summit TV

The payment of provisional tax is causing many problems for corporate South Africa as SARS is expecting companies to pay more provisional tax in future. This issue was discussed by Ernst Mazansky, director of tax at Werkmans on Tax Issues, broadcast on Summit TV.

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)