EMPLOYEES’ TAX (PART II): ARE YOU A LABOUR BROKER FOR TAX PURPOSES?

The deduction of employees’ tax is dependent upon three elements being present. These elements are all defined in the Fourth Schedule to the Income Tax Act[1] and include i) the presence of an employer, ii) an employee and iii) the payment of remuneration. No employees’ tax can be charged if one of these elements is not present. However, due to the misuse of concepts such as “independent contractor” and “service company” to try and circumvent these elements, the Income Tax Act contains specific provisions dealing with “personal service providers” and “labour brokers” in order to combat such possible instances of avoidance of PAYE and to limit the available deductions from income in the determination of taxable income for these entities (very few deductions are available against remuneration).

A labour broker is any natural person[2] who carries on a business whereby he or she provides their clients with other persons (workers) to render a service or perform work for that client. It also includes services rendered in the form of procurement of workers for the client. (The workers are remunerated by the client and not the labour broker.)

Any payments made by a client to a labour broker is subject to employees’ tax at the rates applicable to individuals, unless the labour broker is in possession of a labour broker exemption certificate (IRP30A) for that specific tax year.[3]

In order to qualify for this exemption certificate, the labour broker must carry on an independent trade and must be registered as a provisional taxpayer and as an employer for Pay-As-You-Earn purposes. Furthermore, the labour broker must be up to date with all relevant tax submissions. No certificate will be issued if the labour broker provides the services of another labour broker to any of its clients or if the labour broker is contractually obliged to provide a specified employee of the labour broker to the client. Also, if more than 80% of the gross income of the labour broker for the tax year is received from only one client. However, an exemption to the last-mentioned rule applies in instances where the labour broker employs three or more full-time employees throughout the tax year in the business of the labour broker and these employees are not connected persons in relation to the labour broker.

Labour brokers without an exemption certificate may only deduct the remuneration paid to employees as an expense for income tax purposes.[4]

[1] No. 58 of 1962

[2] A company, close corporation or trust that provides such services is not classified as a labour broker.

[3] Labour brokers must apply for this exemption certificate annually as it is only valid for one tax year.

[4] Section 23(k) of the Income Tax Act. The prohibition does not apply to labour brokers who do have an exemption certificate.

This article is a general information sheet and should not be used or relied on as legal or other professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact your financial adviser for specific and detailed advice. Errors and omissions excepted (E&OE).

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BELASTING OP TOEGEVOEGDE WAARDE EN DIE JAARLIKSE UITSLUITING

Die 2018-belastingseisoen is in volle swang en dit is die moeite werd om na ’n algemene dwaling aangaande die vasstelling van kapitaalwinsbelasting vir individuele belastingbetalers en veral die rol van die “jaarlikse uitsluiting”, te kyk. Deur te verseker dat die jaarlikse uitsluiting akkuraat toegepas word soos bepaal in die Agtste Bylae tot die Inkomstebelastingwet[1], veral waar kapitaalverliese voorkom, sal belastingbetalers gehelp word om hul IT12-belastingopgawes akkuraat te voltooi en, ewe belangrik, om behoorlike belastingbeplanning vir die volgende jaar te doen.

Behalwe vir sekere uitsonderings word daar van belastingbetalers vereis om die wins of verlies te bereken waar ’n bate van die hand gesit word. Dit sluit in die verhandeling van beleggings, eiendomme en selfs belange in privaat maatskappye of beslote korporasies. Hierdie winste of verliese, wat bereken word deur die basiskoste van die opbrengs af te trek, moet saamgevoeg word om die potensiële belastingblootstelling van die verhandeling te bepaal.

Saamgevoegde kapitaalwins of -verlies

Die jaarlikse uitsluiting word toegepas om die saamgevoegde kapitaalwins of -verlies vir ’n jaar te bepaal. Die proses behels twee stappe. Eerstens word alle kapitaalwinste vir die jaar verminder met alle kapitaalverliese vir die jaar. Wesenlik is dit ’n berekening van alle winste en verliese wat in die loop van die jaar gerealiseer het, om by ’n netto totaal uit te kom. Tweedens word die netto bedrag wat vasgestel is, hetsy ’n wins of ’n verlies, verminder met die jaarlikse uitsluiting van R40 000. Die jaarlikse uitsluiting tel in gelyke mate om kapitaalwinste en -verliese te verminder. Belangrik is dat die jaarlikse uitsluiting nie kumulatief is nie, ongebruikte gedeeltes nie oorgedra word na daaropvolgende jare nie en dat dit van toepassing is slegs op winste en verliese van die lopende jaar. As die saamgevoegde wins of verlies dus minder as R40 000 is in die lopende jaar dan het die verhandeling van bates in die betrokke jaar prakties geen invloed op ’n persoon se lopende of toekomstige jare van aanslag nie, hoewel dit steeds ’n vereiste is dat die inligting op die inkomstebelastingopgawe ingevul word.

’n Persoon se aangeslane kapitaalverlies in vorige jare van aanslag word nie, soos algemeen geglo word, verminder deur die jaarlikse uitsluiting nie. Kapitaalverliese van vorige jare word eers in ag geneem nadat die saamgevoegde wins of verlies vasgestel is.

Netto kapitaalwinste of aangeslane verliese

Om by ’n netto kapitaalwins of aangeslane kapitaalverlies uit te kom word enige aangeslane kapitaalverliese van vorige belastingjare afgetrek van saamgevoegde kapitaalwins of bygetel by saamgevoegde kapitaalverliese, afhangende van die geval. As daar ná die aftrekking van vorige verliese steeds ’n netto wins is, word hierdie bedrag ingesluit by ’n individu se belasbare inkomste teen 40%. Dit staan bekend as die belasbare kapitaalwins. As die saamgevoegde verlies van die lopende jaar vermeerder word met die verliese van vorige jare word hierdie aangeslane kapitaalverlies oorgedra sodat dit verreken kan word teen kapitaalwinste in daaropvolgende jare.

Daar word verwag dat, met die inwerkingtreding van die belastingvrye spaarrekeningstelsel, die waarde van die jaarlikse uitsluiting (wat verhoog is van R10 000 vir jare van aanslag voor 2006 tot die huidige R40 000), nie in die toekoms sal verhoog nie.

Gelukkig is die korrekte toepassing van die jaarlikse uitsluiting ingebou in die eFiling-stelsel vir individue. Dit is egter belangrik dat belastingbetalers die korrekte toepassing daarvan verstaan sou die onwaarskynlike gebeur en foute in die eFiling-stelsel voorkom, ten einde hul kapitaalwinste-blootstelling vir toekomstige jare akkuraat te beplan.

[1] 58 van 1962

Hierdie artikel is ’n algemene inligtingsblad en moenie as professionele advies gebruik of vertrou word nie. Geen aanspreeklikheid kan aanvaar word vir enige foute of weglatings, of vir enige verlies of skade wat voortspruit uit vertroue op enige inligting hierin nie. Behoudens foute en weglatings (BFW).

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SARS’ SERVICE CHARTER

On 1 July 2018, the South African Revenue Service (‘SARS’) released a new version of its Service Charter. The release of the Service Charter has been widely welcomed and the timing thereof is optimal, since it coincides with the start of the 2018 tax filing season for individual taxpayers, as well as some senior personnel changes at the Revenue Service.

The Service Charter broadly follows the same layout and order as the sections of the Tax Administration Act[1] and dispute resolution rules and contains service level targets for many legislated administrative matters that directly affect taxpayers. The most notable theme throughout the Service Charter is on SARS’s response time, which has traditionally been a frustration for taxpayers, especially regarding refunds. In terms of the Service Charter, SARS will endeavour to pay refunds (above R100), within seven business days if:

  • All obligations have been met and no other debt is due;
  • SARS administrative control procedures are adhered to; and
  • No inspection, verification or audit is required or has been initiated.

Other welcome proposals are SARS’s endeavour to speedily finalise inspections, audits and verifications as well as providing feedback to taxpayers regarding debt suspension and compromise of tax debts within a reasonable time. If adhered to, this will go a long way in removing the uncertainty and anxiety that often goes along with disputes.

It is however, important to note that as much as the Service Charter is an expression by SARS of expected timelines and the quality of service it wishes to offer taxpayers, the content of the Service Charter does not override legislation and SARS specifically includes this disclaimer. There still appears to be a lack of real substantive rights and recourse mechanisms available to taxpayers. Many of the commitments seem vague and non-committal. The primary dispute resolution options and relief available to taxpayers for disputes with SARS therefore remain the provisions of relevant tax acts, as well as the Office of the Tax Ombud. Although it is recommended that taxpayers familiarise themselves with the contents of the Service Charter, they should be weary if simply relying on the content of the Service Charter and should always ensure that they know what their rights are in terms of legislation.

Taxpayers should also remain hopeful that a taxpayer Bill of Rights is developed over time, as recommended by the Davis Tax Committee in its September 2017 report to the Minister of Finance. In terms of this report, taxpayers should have guaranteed rights that are enforceable and have legal effect, since rights are of no value if they cannot be enforced. Although this appears to be one of the shortcomings of the Service Charter, it could be a preamble to what may ultimately develop into a positive set of rules that promote taxpayer confidence.

[1] 28 of 2011

This article is a general information sheet and should not be used or relied on as legal or other professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact your financial adviser for specific and detailed advice. Errors and omissions excepted (E&OE).

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AFTREKBAARHEID VAN RENTE VIR NIE-HANDELDRYWENDE INDIVIDUE

Die SAID se Praktyknota 31.2 (PN31.2) bepaal dat ’n persoon by magte is om rente wat betaal is af te trek, selfs as die persoon nie ’n geldskieter is of enige ander bedryf beoefen waar die rentekoste aangegaan is in die produksie van ander rente wat verdien is, in die mate dat dit nie die rente-inkomste te bowe gaan nie. Kragtens heersende inkomstebelastingwetgewing word hierdie praktyk (wat belastingbetalers bevoordeel) streng genome nie ondersteun deur die Wet op Inkomstebelasting, 58 van 1962 nie.

Vertroue op hierdie praktyk is onlangs oorweeg in die Wes-Kaap Hoë Hof.[1] Weens die unieke samestelling van die belastingbetaler se dienskontrak as ’n vennoot in ’n regsfirma, is ’n gedeelte van sy winsaandeel weerhou as ’n verpligte rentedraende lening aan die werkgewer om lopende bedryfskapitaal-behoeftes te befonds (direkteurslening). Terwyl periodieke uitkerings van opgeloopte rente op die direkteurslening aan hom betaal is en as belasbare inkomste behandel is, is hy nie toegelaat om terugbetaling van die kapitaal te eis terwyl hy in diens is nie. Terselfdertyd sou die belastingbetaler rente aangaan op ’n lening van die bank wat gebruik is om vaste eiendom te koop (banklening).

Die hof moes oorweeg of daar genoegsame verband is tussen die rente deur die belastingbetaler aangegaan op die banklening en die rente wat hy verdien op die uitstaande balans van die direkteurslening. Anders gestel, of die bankrente beskou kan word as sou dit aangegaan was in die produksie van rente-inkomste op die direkteurslening.

Die belastingbetaler het aangevoer dat dit so was aangesien hy die opbrengs van die direkteurslening sou gebruik het om die banklening te vereffen as dit nie was vir die streng terugbetaingsvoorwaardes nie en terselfdertyd die kapitaal en rente wat aangegaan is op die banklening, verminder het nie. Hy het die gedeelte van die banklening gelykstaande aan die direkteurslening beskou as ’n terugbetaalbare lening waarop ’n belastingvermindering toegestaan behoort te word. Hierdie standpunt is ondersteun deur bewyse van deposito’s in die banklening uit uitkerings van winsaandeel wat ook met mekaar strook.

Die hof het bevind dat selfs as aanvaar word dat die fondse wat tot die krediet van die  direkteurslening staan, ‘kapitaal’  of ‘surplusfondse’ is soos vereis deur PN31.2, enige uitkerings daarop wat hy ontvang, geheel en al na goeddunke van die werkgewer geskied. Gevolglik was hy nie volkome afhanklik van die uitkerings om die banklening in stand te hou nie en die feit dat hy deposito’s in die bankrekening gemaak het uit winsuitkerings, doen nie afbreuk aan hierdie feit nie. Om toegang tot die banklening te verkry moes hy dit in stand hou uit ander bronne as die uitkerings op die direkteurslening. Die doel van die banklening was dus om hom van ’n fasiliteit te voorsien en nie om die direkteurslening in stand te hou nie. Daar kan nie gesê word dat rente betaal op die banklening, rente wat op die direkteurslening verdien word, teweeggebring het nie. Hy sou rente op die direkteurslening ontvang het ongeag die bestaan van die banklening. Die hof het gevolglik die belastingbetaler se pleidooi vir aftrekking van die rente wat verdien is, verwerp.

Die onderskeid wat die hof getref het tussen die twee scenario’s wat in PN31 behandel word, is belangrik. PN31.1 behandel ’n scenario waar rente-koste aangegaan is in die beoefening van ’n bedryf terwyl PN31.2 ’n scenario behandel waar ’n belastingbetaler nie ’n bedryf beoefen nie. Die vereistes van die twee paragrawe behoort afsonderlik oorweeg te word en nie as ’n enkele beginsel behandel te word nie. Dit is derhalwe belangrik dat belastingbetalers wat rente-aftrekkings wil eis en staatmaak op PN31, altwee scenario’s moet oorweeg, veral as hulle nie geldskietery bedryf nie.

[1] L Taxpayer vs The Commissioner for the South African Revenue Service (Case A124/2017, on appeal from the Tax Court).

Hierdie artikel is ’n algemene inligtingsblad en moenie as professionele advies gebruik of vertrou word nie. Geen aanspreeklikheid kan aanvaar word vir enige foute of weglatings, of vir enige verlies of skade wat voortspruit uit vertroue op enige inligting hierin nie. Behoudens foute en weglatings (BFW).

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CYBERCRIME – WHAT YOU NEED TO DO TO PROTECT YOURSELF

Install a personal firewall product

Hackers can infect home computers by connecting to your computer while you’re surfing the internet. The best way to protect your computer from unauthorised connections from the internet is to install a personal firewall. There are several options on the market, some of which are free.

The firewall sits between your computer and the internet and acts as a security guard, restricting what can enter and leave your computer.

At first, the firewall may ask you what you want to allow in or out of your computer. However, it soon learns to make these decisions independently, based on the decisions you make early on. The most important point is never to allow anyone else to connect to your computer.

Regularly use an antivirus product, and keep it updated

The most common way to receive a virus is through an attachment to an email. Attachments may appear to be word documents, spreadsheets or pictures but often contain malicious viruses. If you use email at home, you should use an anti-virus product to protect yourself and never open an attachment that has not come from a trusted source.

With any anti-virus product, it’s important to keep it up to date, so to protect against new viruses that are released. Most commercial products have a mechanism to update themselves automatically. The free products typically need to be updated manually.

The anti-virus product should also be scheduled to scan your computer regularly in order to detect and clean out any viruses.

Do not open unsolicited emails with attachments

These may contain a virus. Also, if you receive an unwanted email saying “reply to unsubscribe”, ignore it. Senders can use this to confirm your email address is valid – and are then likely to send you more emails.

Review your “Sent items” folder

If it contains messages that have been sent without your knowledge, your computer may have a virus or may have been compromised

Update your operating system (Windows, Mac) and browser (Internet Explorer, Firefox, Safari)

Make sure your computer software has all the necessary security updates available from the vendor. It’s best to ensure this is done automatically.

Never email, write down or tell someone your security information or logon details.

Do not save login details or passwords on your computer

Disable, refuse or decline any on-screen prompt on your computer which asks if you wish the computer to remember any of your security information or logon details.

Avoid reusing the same security information

You should create and use different passwords for each service provided.

Don’t leave a computer unattended while logged on to Online Banking
Change your passwords regularly

Avoid familiar names, numbers and places (such as birthdays and phone numbers).

Protect your printed or physical information just as you would protect your valuables.

This includes statements from financial institutions, shops and utility bills. Shred or destroy any personal documents you don’t need to keep.

Always log off from Online Banking

It’s important to always end your session by clicking on the Log off menu item before closing the browser.

Protect your email account from hacking and fraud

To protect your email account from being stolen, you can take some simple steps:

  • Use a strong password
    A dictionary word used for a password can be ‘brute forced’ in seconds. Ideally, make it a phrase (ILikeIceCream) and then add some numbers (19ILikeIceCream76). This would be nearly impossible for the criminals to guess (and easier for you to remember).
  • Don’t trust unsolicited emails and don’t click on the links in unsolicited emails.
    Criminals often send out emails that look like they came from your Bank, SARS or Professional Institutions with links to fake websites where they capture your passwords as you try to log in.
  • If your email provider supports strong or two-factor authentication, make sure you use it. Enable second-factor authentication for as many online accounts as possible. When you enter your username and password, you will get a one-time PIN on your phone to log into your account.
  • If you suspect that your email account has been compromised, change your password immediately (from a known and trusted PC).

This article is a general information sheet and should not be used or relied on as legal or other professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact your financial adviser for specific and detailed advice. Errors and omissions excepted (E&OE).

References:

https://www.investec.com/en_int/security-advice.html

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WHAT SHOULD YOU CONSIDER WHEN INVESTING IN A BUSINESS

You have worked hard for many years, and have finally saved enough funds and mustered the courage to take the big leap that you have been dreaming about for such a long time… you are going to invest in your own business.

You have found the perfect business and is excited about your new journey, when you suddenly realise, however, that you have never been in this situation, and suddenly have no idea what to do next.

The first step

It is important to understand what you wish to gain out of your investment. Some people may solely invest in a business for financial gain, while for others it may be fulfilling a life-long dream, or to chase a very specific passion, such as having the opportunity to jump out of an airplane every single day through your newly acquired skydiving school, for instance.

Although motivation will differ for each person and will likely include a number of factors, it is important to understand what drives your decisions, in order to invest smartly.

Start with the end in mind

Once you understand the why behind your investment decision, it is a good principle to start with the end in mind. Ask yourself where do I want to be in the next three to five years (skydiving every day, the richest person in my street, having loads of free time, etc.) and how you will be able to leverage your business to get you there.

Good questions to ask might include –

  1. Is the business scalable (the ability to multiply a business model);
  2. Is the business labour/time intensive;
  3. Do you have adequate and necessary skills to manage the business;
  4. Are you aware of all the risks that you are assuming through investment;
  5. Is the price that you are willing to pay for the business substantiated and reasonable;
  6. Etc.

Practical considerations

In practical terms, there are a number of ways in which to invest in a business, primarily including acquisition of a going concern, as opposed to equity/members interest in an existing entity. It is also important to understand the advantages/disadvantages of the structure in which you choose to invest. You might decide to invest as a sole proprietor, through a company, a corporate structure or a trust (etc.) for instance.

The above considerations can have a major influence on a variety of factors, including statutory risk, tax consequences, contracting procedures, etc. and if the process is not approached correctly, it can cause many unnecessary headaches in the long-run.

Summary

Investing in a business, is no doubt always a very exciting prospect which, if approached correctly, can have a profoundly positive impact on a person’s life. It can be a precarious process, however, if not negotiated carefully.

It is therefore recommended to find a credible and experienced partner, to help guide you through the process, and even to further strategically aid and assist you post the investment.

This article is a general information sheet and should not be used or relied on as legal or other professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact your financial adviser for specific and detailed advice. Errors and omissions excepted (E&OE).

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REËLS VIR SKULDVERMINDERING: NUWE BELASTINGBETALERSVRIENDELIKE WYSIGINGS WORD VERWAG

Die Suid-Afrikaanse Inkomstebelastingwet bevat ’n aantal reëls wat aanleiding gee tot  knellende  belastinggevolge wanneer ’n belastingbetaler se skuld kwytgeskeld word. Hierdie reëls was in onlangse jare die onderwerp van omvattende wetgewende wysigings.

Tydens die 2018-begrotingsproses het die Nasionale Tesourie aangedui dat hulle bewus was van onbedoelde belastinggevolge wat voortspruit uit hierdie nuwe skuldverligtingsreëls in die Inkomstebelastingwet wat in werking getree het met betrekking tot jare van aanslag wat ’n aanvang neem op of na 1 Januarie 2018. Op 31 Mei 2018 het die Suid-Afrikaanse Instituut vir Geoktrooieerde Rekenmeesters (SAIGR) ’n opsommende verslag gepubliseer met terugvoering uit ’n onlangse werkswinkel van die Nasionale Tesourie wat oorweging geskenk het aan voorstelle vir wysiging van hierdie reëls.

Die voorstel uit hierdie werkswinkel is dat die omvang van die skuldkwytskeldingsreëls gewysig moet word deur ’n wysiging van die definisie van die term ‘toegewing of kompromis’ ten einde te fokus op rasionalisasie-gebeure. ’n Aantal transaksies wat voorheen onderhewig was aan die knellende reëls sal voortaan buite die bestek van die reëls val wanneer daar slegs wysigings aan die terme en voorwaardes van ’n skuld aangebring word.

Een van die mees beduidende wysigings wat voorgestel word is die mate waartoe die omwisseling van skulde tot aandele (skuldkapitalisasie) onderhewig sal wees aan die reëls vir skuldkwytskelding. Tans is die kapitalisasie van alle skulde onderhewig aan die reëls. ’n Nuwe definisie vir ‘rentedraende skuld’ sal ingevoer word om slegs rentedraende skuld wat gekapitaliseer word aan die reëls onderhewig te maak. Hierdie voorstel is kommersieel-vriendelik en verskaf meer opsies vir skuldherstrukturering sonder die vrees dat die proses nadelige belastinggevolge kan meebring. Groepmaatskappye sal ook die voodeel hê dat hulle rentedraende skuld van die reëls uitgesluit sal word; dog, rente daarop mag by kapitalisasie verhaal word.

Dit is veelbetekenend dat wysigings aangebring sal word aan die waardasievereistes van die reëls vir skuldkwytskelding. Daar sal nie meer vereis word dat die waardasie van skuld oorweeg moet word nie maar slegs die waarde van die aandele wat as teenprestasie uitgereik is. Bepaling van die waarde van skuld is tans een van die mees kontensieuse sake in die skuldverminderingstelsel, gegewe dat daar dikwels beperkinge is met die verkryging van ’n objektiewe waardasie van skuld as dit nie in die openbaar verhandel word nie. Hierdie voorstel word verwelkom. Die begrippe “markwaarde” en “sigwaarde”wat gebruik word om vas te stel of enige skuldvoordeel verkry word as gevolg van die kwytskelding van skuld, sal ook opgehelder word.

Die Nasionale Tesourie het ook aangedui dat hulle helderheid sal verskaf oor sekere teenvermydings-aangeleenthede wat verband hou met skuldkwytskelding en verder aangedui dat die skenkingsbelasting-uitsluiting wat tans in swang is, verwyder sal word.

Hoewel terugvoering uit die werkswinkel op ’n hoë vlak is, is die eerste aanduidings dat baie van die onsekerhede en onbedoelde gevolge van die reëls oor skuldkwytskelding aangespreek sal word wanneer die konsep van die Wysigingswet op Belastingwette vroeg in Julie 2018 gepubliseer word. Geen uitnodiging is gerig vir openbare kommentaar op die voorstelle nie, aangesien hieraan aandag geskenk sal word gedurende die 2018-siklus van wetgewende wysiging. Die effektiewe datum van die voorstelle sal 1 Januarie 2018 wees.

Hierdie artikel is ’n algemene inligtingsblad en moenie as professionele advies gebruik of vertrou word nie. Geen aanspreeklikheid kan aanvaar word vir enige foute of weglatings, of vir enige verlies of skade wat voortspruit uit vertroue op enige inligting hierin nie. Behoudens foute en weglatings (BFW).

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CUSTOMS FOR INDIVIDUALS TRAVELLING ABROAD AND RETURNING TO SA

The South African Revenue Service (SARS) recently published a media release to clarify the confusion about the customs requirements for South African travellers returning from abroad regarding their personal effects (such as laptops and other electronic equipment). The confusion stems from various media reports on the inconsistent treatment of returning travellers by customs officials, some having to pay a fine when they could not produce a proof of purchase.

SARS confirms that in terms of current customs legislation, travellers are not required to declare their personal effects when leaving the country and they cannot be penalised for not doing so. The practical difficulty that travellers face, however, if they do not declare their personal effects on departure is that upon return, customs officials may require that they produce proof of local purchase to prove that the goods are not ‘new or used goods acquired whilst abroad’ and which could attract duty implications. Customs officials have discretionary powers of what would constitute sufficient proof. There is, however, an option available to travellers if they want to ensure that the proof they produce is sufficient for the customs official, and which exists in terms of the ‘registration for re-importation’ framework.

Travellers can complete a TC-01 Traveller Card indicating their intent to register goods for re-importation (the TC-01 form is available on the SARS website for download). The form is very user-friendly and only requires minimum information to be completed, including personal and travel details. A customs official captures the details from the TC-01 form on an online traveller declaration system at a port of departure. After digital authentication, the traveller is presented with a copy to retain the proof of registration. This registration can remain valid for a period of up to six months.

The TC-01 form is also a useful guideline on the goods that may be imported duty-free into South Africa, including 2 litres of wine, 1 litre of other alcoholic beverages, 200 cigarettes and up to 50ml of perfume. Importantly, this allowance is available once every 30 days, and only after 48 hours of absence from South Africa.

SARS has also confirmed that customs officials have been provided with the new guidelines, as well as reinforcing its internal procedures. Although it is likely that there could be some practical issues with the traveller card system initially, it is important that travellers are aware of their rights and start using the system. Travellers are encouraged to download and complete the TC-01 form well in advance of travel and confirm the operating times of the customs desk at the airport where they depart from and return to, to ensure a smoother transition through customs on return.

This article is a general information sheet and should not be used or relied on as legal or other professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact your financial adviser for specific and detailed advice. Errors and omissions excepted (E&OE).

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KORPORATIEWE BEHEER – NAAMSVERANDERINGE

Dit staan ʼn maatskappy of beslote korporasie vry om sy naam te verander indien verkies. Vir maatskappye sal die naamsverandering ʼn spesiale besluit tot gevolg hê wat deur die aandeelhouers van die maatskappy goedgekeur moet word en in die geval van ʼn beslote korporasie moet die lede van die beslote korporasie die naamsverandering goedgekeur.

Voor die naam van die maatskappy of beslote korporasie verander kan word, moet voorgestelde name aan die “Companies and Intellectual Property Commission” (“CIPC”) voorgelê word vir goedkeuring. Daar kan vier opsies van moontlike name verskaf word aan CIPC in volgorde van keuse. Wanneer CIPC tevrede is met ʼn voorgestelde naam, sal hulle dit vir die gebruik van die maatskappy of beslote korporasie reserveer vir ʼn tydperk van 6 maande. Die reservering kan ná 6 maande vir ʼn verdere tydperk van 1 maand verleng word, maar kan daarna nie verder verleng word nie en sal verval, waarna ʼn aansoek weer ingedien sal moet word.

Die voorgestelde name van maatskappye en beslote korporasies moet aan verskeie vereistes voldoen soos uiteengesit in Artikel 11 van die Maatskappywet van 2008 (“die Wet”). Hieronder volg ʼn lys van enkele van hierdie vereistes –

  • die naam mag woorde in enige taal insluit;
  • die naam mag nie dieselfde of verwarrend soortgelyk wees aan –
  • die naam van ʼn ander maatskappy, geregistreerde buitelandse maatskappy, beslote korporasie of koöperasie nie, tensy die maatskappy/beslote korporasie deel uitmaak van ʼn groep wat soortgelyke name gebruik;
  • ʼn naam geregistreer vir die gebruik van ʼn persoon as ʼn besigheidsnaam ingevolge die Wet op Besigheidsname, Wet no. 27 van 1960, nie;
  • ʼn geregistreerde handelsmerk wat aan ʼn ander persoon behoort, of ʼn handelsmerk ten opsigte van ʼn aansoek vir registrasie as ʼn handelsmerk in die Republiek ingedien is nie, of ʼn welbekende handelsmerk soos in Artikel 35 van die Wet op Handelsmerke, Wet no. 194 van 1993, beoog nie;
  • ʼn handelsmerk, woord of uitdrukking waarvan die gebruik ingevolge die Wet op Handelswaremerke, Wet no. 17 van 1941, beperk of beskerm word nie;
  • die naam mag nie valslik impliseer of voorgee, of sodanig wees dat dit ʼn persoon redelikerwys sal mislei om verkeerdelik te glo dat die maatskappy/beslote korporasie –
  • deel is van of geassosieer word met ʼn ander persoon of entiteit nie;
  • ʼn staatsorgaan of ʼn hof is, of deur die staat, ʼn staatsorgaan of ʼn hof bedryf, geborg, gesteun of onderskryf word nie;
  • besit, bestuur of bedryf word deur ʼn persoon of persone wat ʼn bepaalde opvoedkundige benaming het nie;
  • besit, bedryf, geborg, gesteun of onderskryf word deur, of die ondersteuning geniet van enige internasionale organisasie, buitelandse staat, staatshoof, regeringshoof, regering of administrasie van ʼn departement van so ʼn regering of administrasie nie;
  • die naam mag nie ʼn woord, uitdrukking of simbool insluit wat, in isolasie of in samehang met die res van die naam redelikerwys geag kan word as oorlogspropaganda, aanhitsing tot onmiddellike geweld of voorspraak vir haat gebaseer op ras, etnisiteit, geslag of geloof, of aanhitsing om skade te veroorsaak uit te maak nie.

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Hierdie artikel is ’n algemene inligtingsblad en moenie as professionele advies gebruik of vertrou word nie. Geen aanspreeklikheid kan aanvaar word vir enige foute of weglatings, of vir enige verlies of skade wat voortspruit uit vertroue op enige inligting hierin nie. Behoudens foute en weglatings (BFW).

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TAX DEDUCTIONS AGAINST SALARY EARNINGS

Our clients who earn only a salary will know that very few tax deductions are available against salary income for income tax purposes and whereby they may reduce the taxable income derived ultimately from such remunerations. Section 23(m) of the Income Tax Act[1] provides that none of the deductions ordinarily available to taxpayers in terms of section 11 are allowed against salary income, other than for a limited few. We set out these deductions which are available below:

  1. Contributions made by taxpayers to a pension fund, provident fund or retirement annuity fund may be deducted against salary income in accordance with the provisions of section 11F;
  2. To the extent that an individual incurs legal fees, wear and tear-related costs or bad or doubtful debts as part of his/her employment, such expenditure will be deductible.[2] (Although it is possible that a wear and tear-related allowance may be available against a laptop or textbooks acquired as example, it is in our experience practically highly unlikely for legal fees, bad debts and doubtful debts to arise from an employment trade);
  3. Where amounts received, either as a restraint of trade payment or as ordinary remuneration for employment services rendered, are refunded by the employee, those amounts refunded may be legitimately claimed as an income tax deduction;[3] and
  4. Expenses incurred towards rent of, cost of repairs[4] of or expenses in connection with any dwelling, house or domestic premises, those costs may be claimed as deductions, to the extent that it is incurred as part of the individual’s employment and on condition that it does not offend the provisions of section 23(b) which deal with “home office” expenses.

Other than for the above, very few other deductions are available for individual taxpayers earning only a salary. Outside the ambit of section 11, the only other deductions which we typically encounter are medical aid contributions incurred, amounts claimed against travel allowances received or donations made to qualifying public benefit organisations. Of late, investments in section 12J “venture capital companies” may also be claimed as income tax deductions against salary income.

The above limitations only apply to salaried income received from employment though. Where an individual is also engaged in another trade (such as the renting out of an apartment), the above limitations do not apply to that separate trade. In such case, section 23(m) will not make the deductions in section 11 unavailable, although this is only as relates to the separate (rental) trade.

[1] No. 58 of 1962.

[2] Sections 11(a), (c), (i) and (j) respectively.

[3] Sections 11(nA) and (nB) respectively.

[4] In terms of section 11(d).

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This article is a general information sheet and should not be used or relied on as legal or other professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact your financial adviser for specific and detailed advice. Errors and omissions excepted (E&OE).

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