Dear Subscriber,

The holiday season is creeping up on us slowly, the hot weather is an indication that we are almost there. I was reading the Practical VAT Handbook newsletter and Dee Bezuidenhout, the editor-in-chief, wrote about what foreign tourists coming to our shores need to know about VAT refunds.

According to Dee, whether or not you´re in the tourism industry, your business will likely be touched in some way by our foreign visitors this holiday season.

When a non-resident buys goods and takes delivery of them in South Africa, you must apply VAT at the standard rate.

When that buyer exports these goods, a zero-rating is effected by the refunds made.

For a foreign visitor to successfully claim a VAT refund, he must be a qualifying purchaser. To be recognised as such, he must prove that he is: Dee states that, to ensure the Vat refund process is finalised as speedily as possible, a foreign visitor to South Africa must follow these three steps:

With the silly season knocking on our front doors, Dee's advice will certainly come in handy.

Remember that the SCA Interest free loan judgment notes are available on the TAXtalk Website for online purchase if you would still like a copy.


Tax Issues
Dividends and the distribution of liquidation dividends have always had positive connotations attached to them. This issue was discussed by Kyle Mandy, director at Werksmans Tax, on Tax Issues, broadcast on Summit TV (DSTV channel 292) at 20h40 & 22h40 on Wednesday evenings and at 7h30 on Thursday mornings.

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

Brett Scott - Chief Investment Officer - The Perfect-Portfolio

Looking at the performance of the JSE over the last few years, an outsider would think that business is firing on all cylinders and although it generally was the case up to a few months ago, the environment, certainly for some companies or industries, became much harder. The way many of these companies are currently being steered through a changing and more difficult macro environment is by bringing the management quality in a number of SA companies to the fore.

Alan Seccombe, a tax specialist - PricewaterhouseCoopers

Alan Seccombe, a tax specialist at PricewaterhouseCoopers, says that SARS shows no mercy to taxpayers who lodge false or intentionally misleading tax returns. If it comes to light that a taxpayer has not, in his tax return, made full disclosure of all income, the Income Tax Act empowers SARS to issue an additional assessment in respect of the undisclosed income, and to impose additional tax (often called penalty tax) on that income. In the result, the taxpayer can end up having to pay triple tax on the undisclosed income. Non-disclosure of income is also a criminal offence, punishable by a fine or imprisonment.

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:

Marisa Berndsen - The Good News

When I met up with Martine Schaffer, managing director of the Homecoming Revolution, earlier this week she was full of energy. Surprisingly so, considering the month she has had. The team has just returned from its second Careers Expo in London. They were joined by 35 of South Africa and the world´s top companies looking to attract UK-based South Africans with important skills back home.

Interview with Kyle Mandy, director at Werksmans - Summit TV

Dividends and the distribution of liquidation dividends have always had positive connotations attached to them. This issue was discussed by Kyle Mandy, director at Werksmans Tax, on Tax Issues, broadcast on Summit TV.

This exclusive Seminar will include presentations from respected tax experts from around the country and abroad and include discussion on:

• Formal introduction of SAIT as a professional Institute in South Africa.
• Feedback from local tax practitioners on the draft Bill.
• Update on the developments surrounding the draft ‘Regulating of Tax Practitioners Bill’.
• Presentation by Taxation Institute of Australia on international best practice for regulating tax practitioners.
• Potential impact of the new legislation on accountants and tax professionals.
• Info session on the new SARS e-filing.
• Tax update presented by Professors Jackie Arendse and Lynette Olivier.
• Presentation on ‘7 Habitual Tax Mistakes’ made by companies.

TAXtalk Magazine Article

An amendmen in the Value-Added Tax (VAT) Act provides for VAT rulings issued before 1 January 2007 to be confirmed by SARS. This year VAT has been around for 16 years and in this time taxpayers obtained many VAT rulings from SARS. Up to now, SARS would not withdraw a ruling retrospectively, but could withdraw the ruling going forward.

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)