Overview:

The much anticipated 2018 Budget Speech which was delivered yesterday has confirmed significant changes to the tax system. 

The Annual Budget and Tax Update Seminar will inform attendees on the recently-promulgated and imminent tax amendments, and will unpack these in a comprehensible manner. This seminar is a significant, must-attend event on the calendar of tax practitioners, accountants and bookkeepers everywhere. 

Because the impact of these tax amendments requires careful consideration, attending a seminar that covers these amendments is compulsory for SAIT registered practitioners.

Course Content

The 2018 National Budget Rates

• Changes in normal tax rates and rebates, specifically the medical rebates (effective 1 March 2018)
• The 25% tax rate for estates and donations in excess of R30 million
• Changes in the rate of VAT and related matters (zero-rating of basic foodstuffs, the fuel levies and ad valorem – motor vehicles, smart phones, etc.)

Income Tax Act

• Increase of the ‘official rate of interest’
• Changes to the amendments relating to share buy-backs, dividend stripping and debt benefits introduced last year (some of these affected legitimate transactions and arrangements, which will be addressed)
• Clarifying the treatment of doubtful debts
• Fixing the overlap in the treatment of a dividend in sections 1 and 31
• Deduction of fruitless and wasteful expenses
• Deduction of interest and the tax treatment of excessive debt financing
• Trusts
• The extension of the CFC rules to foreign companies held through foreign trusts and foundations
• Interest paid to non-resident beneficiaries of trusts

VAT Act

• Cryptocurrency transactions, including changes to the Income Tax Act
• Face value of debt transferred
• National housing plan
• Correction of invoices – on cancellation and going concern supplies
• Electronic services

Tax Administration Act

• Notification of commencement of audit
• Deregistration of non-compliant tax practitioners
• Monitoring of business transactions
• Dividends tax returns by persons in receipt of exempt dividends

The Taxation Laws Amendment Act and Tax Administration Laws Amendment Act

• Section 7C – applying the new legislation, calculation of the donation and loans to companies as well as inter-company loans
• Retirement reform – transfers to funds and the section 11F deduction
• Employees tax considerations – bursaries, uniforms and the reimbursement of travel on business costs
• Specific issues relating to debt benefits (the new legislation)
• VAT, leasehold improvements and section 18B
• Tax administration and the issuing of assessments after completion of reviews and audits

Recent Selected Court Judgments and New SARS Rulings and Interpretations