Pieterse TRM Erasmus INC win another tax matter against SARS

ATL-Editor 10 October 2019

Pieterse TRM Erasmus Inc won another matter yesterday with SARSThe South African Revenue Service (SARS) is the official tax authority responsible for the administration and enforcement of tax laws in South Africa. It plays a crucial role in managing the country’s fiscal policy by collecting revenue, administering customs, and ensuring compliance with tax legislation. Established under the South African Revenue Service Act, No. 34 of 1997, SARS functions independently... conceding defeat after the filing of a Rule 32 court response.

SARSThe South African Revenue Service (SARS) is the official tax authority responsible for the administration and enforcement of tax laws in South Africa. It plays a crucial role in managing the country’s fiscal policy by collecting revenue, administering customs, and ensuring compliance with tax legislation. Established under the South African Revenue Service Act, No. 34 of 1997, SARS functions independently... realised that their procedural steps were fatally flawed.

They had provided very scant reasons ( a few words – “insufficient evidence”) on assessment.

However, they also effectively conceded the merits of the matter as well involving the deduction of interest on borrowings where the taxpayer was not a money-lender.

The team partially relied on an old practice note that is still operative.

The principles applied in this tax matter emanate from the Certificate in Tax DisputeTax Disputes arise when there is a disagreement between taxpayers and tax authorities regarding the interpretation or application of tax laws. These disputes may concern various issues such as the accuracy of a tax return, the eligibility for tax deductions or credits, the correct amount of tax liability, or transfer pricing adjustments. Tax disputes can lead to lengthy legal proceedings... Resolution course taught by Schalk Pieterse with Prof. Dr. Daniel N Erasmus – a must for any tax advisorA Tax Advisor is a professional who provides specialised advice to individuals, businesses, and organisations on various tax-related matters. They play a crucial role in guiding clients through complex tax laws and ensuring compliance with the latest regulations while identifying opportunities for tax efficiency. Tax Advisors must stay updated on legislative changes and understand the impact of international tax treaties,... remotely involved in tax disputesTax Disputes arise when there is a disagreement between taxpayers and tax authorities regarding the interpretation or application of tax laws. These disputes may concern various issues such as the accuracy of a tax return, the eligibility for tax deductions or credits, the correct amount of tax liability, or transfer pricing adjustments. Tax disputes can lead to lengthy legal proceedings....

https://www.iitf.net/

The course also covers what will now be a focal point of SARSThe South African Revenue Service (SARS) is the official tax authority responsible for the administration and enforcement of tax laws in South Africa. It plays a crucial role in managing the country’s fiscal policy by collecting revenue, administering customs, and ensuring compliance with tax legislation. Established under the South African Revenue Service Act, No. 34 of 1997, SARS functions independently... after Commissioner Kieswetter’s recent announcement – an agreement with the prosecuting authority to up convicting so-called tax fraudsters. You may think that doesn’t apply to you, but see a recent posting on this website:

Financial fraud concerns that will impact tax fraud against corporates

Posted on October 10, 2019.

There is a growing concern that accounting practices are bordering on rubber-stamping what could be classified as fraudulent activities.

“Fraud” is widely defined as: “a person or thing intended to deceive others, typically by unjustifiably claiming or being credited with accomplishments or qualities.” AND “wrongful … deception intended to result in financial or personal gain…”[which also covers criminal deception – where intent to deceive can be proved].

That is wide.

So if financial statements can be proven to be fraudulent, that opens the door to tax fraud and jail sentences, as tax returnsA Tax Return is a formal statement filed by an individual or entity that details income, expenses, and other pertinent tax information to a tax authority. Its primary purpose is to assess tax liability, determine refunds owed, or highlight outstanding taxes due. Tax returns may include information about earnings, capital gains, allowable deductions, and credits, depending on the tax regulations... are based on financial statements. If you as officers of the taxpayers are “blind” to the “potentially fraudulent rubber-stamping by auditors” that could place you in a very precarious position, criminally. No officer of a company wants to face that. Blame it on your auditors, but if you are complacent you could be a co-conspirator – also GUILTY. So it is no longer a defence that you hide behind your auditors.

Please read the attached articles – http://iitfconnect.com/?p=2115

Categories: FP News

ATL-Editor

S.Africa: Summary of the Davis Tax Committee’s BEPS Sub-committee General Report released December 2014

Summary of the Davis Tax Committee’s BEPSBEPS stands for "Base Erosion and Profit Shifting". BEPS refers to tax avoidance strategies used by multinational enterprises (MNEs) to exploit gaps and mismatches in the international tax system. By shifting profits from high-tax jurisdictions to low- or no-tax locations, MNEs reduce their overall tax burden, even if little to no economic activity occurs in the low-tax jurisdictions. These practices erode... Sub-committee General Report released December 2014 by Peter Dachs of ENS Introduction This note provides a summary of

ATL-Editor 26 February 2015

0 Comments

Understanding Double Tax Treaties: A Comprehensive Guide

*For clarity, the term Double Tax TreatyA Double Taxation AgreementA Double Taxation Agreement (DTA), also known as a Double Taxation Treaty (or a Tax Treaty), is an international tax treaty between two or more countries that aims to prevent individuals or businesses from being taxed twice on the same income. With globalisation and the increase in cross-border economic activities, DTAs have become essential tools for promoting trade, investment, and... (DTAA Double Taxation Agreement (DTA), also known as a Double Taxation Treaty (or a Tax Treaty), is an international tax treaty between two or more countries that aims to prevent individuals or businesses from being taxed twice on the same income. With globalisation and the increase in cross-border economic activities, DTAs have become essential tools for promoting trade, investment, and...), also known as a Double TaxationDouble Taxation occurs when the same income or financial transaction is taxed twice, typically in different jurisdictions. It can arise in two primary contexts: economic double taxation, where the same income is taxed twice in the hands of different taxpayers, and juridical double taxation, where the same taxpayer is taxed on the same income in more than one country. Double... Treaty (or a Tax TreatyA Double Taxation Agreement (DTA), also known as a Double Taxation Treaty (or a Tax Treaty), is an international tax treaty between two or more countries that aims to prevent individuals or businesses from being taxed twice on the same income. With globalisation and the increase in cross-border economic activities, DTAs have become essential tools for promoting trade, investment, and...), is an international

ATL-Editor 28 August 2024

Emerging Transfer Pricing Trends in Africa: Insights from Dr. Daniel Erasmus at the 13th Annual Africa TP Summit

In this insightful address at the 13th Annual Africa Transfer PricingTransfer pricing is a fundamental concept in international taxation that defines the pricing methods and rules applied to transactions between related entities within a multinational enterprise (MNE). In the context of tax regulations, it governs how prices for goods, services, or intangibles (such as intellectual property) are set when these items are exchanged between different branches, subsidiaries, or affiliates of... Summit, Dr. Daniel N Erasmus explores the most pressing trends in transfer pricingTransfer pricing is a fundamental concept in international taxation that defines the pricing methods and rules applied to transactions between related entities within a multinational enterprise (MNE). In the context of tax regulations, it governs how prices for goods, services, or intangibles (such as intellectual property) are set when these items are exchanged between different branches, subsidiaries, or affiliates of... across Africa and developing regions.

ATL-Editor 10 October 2024

Zimbabwe: Recent Zimbabwe Court cases

Recent Zimbabwe Court cases Comments provided by TaxMatrix (Pvt) Ltd – http://taxmatrix.co.zw/wp-content/uploads/2016/01/December-2015-MTU.pdf Care International- An employee causes a loss to the entity but loss also aggravated

ATL-Editor 16 January 2016

0 Comments

Financial fraud concerns that will impact tax fraud against corporates

There is a growing concern that accounting practices are bordering on rubber-stamping what could be classified as fraudulent activities. “Fraud” is widely defined as: “a

ATL-Editor 10 October 2019

Financial fraud concerns that will impact tax fraud against corporates

Related Articles