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2024 Legal and Policy

Legal and Policy - 18 April 2024

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SARS

  • 11 April 2024 – Achieving our Vision 2024 of a smart, modern SARS with unquestionable integrity that is trusted and admired is of paramount importance. Pivotal to the delivery of our vision are our digital platforms and technology infrastructure.

To provide clarity and certainty, make it easy for taxpayers and traders to comply with their obligations and building public trust and confidence, our technology assets must demonstrate the highest levels of availability, robustness and security.

In accordance with our Vision and Strategic Objectives, which include modernising our systems to provide Digital and Streamlined online services, we are hard at work ensuring that our digital platforms and technology infrastructure are available, robust and secure, by performing regular upgrades, enhancements and maintenance.

Considering the above, SARS Digital platform upgrades are scheduled for Saturday, 13 April 2024 from 20h00 to 23h30.

During this time, you may experience intermittent service interruption on our Tax and Customs Digital Platforms.

  • 11 April 2024 – The facility codes used in Box 30 on the Customs Clearance Declaration (CCD) have been updated to change the name of Airline Cargo Resources under facility code A3 in O.R. Tambo Internation Airport and Airline Cargo Resources (Menzies Aviation) under facility code C1 in Cape Town to Menzies Aviation (South Africa) (Cargo) (Pty) Ltd.

SC-CF-19-A02 – Facility Code List – External Annexure

  • 12 April 2024 – Due to a water interruption the Durban branch office remains closed today, Friday 12 April 2024. We apologise for any inconvenience that is experienced by taxpayers and traders because of the closure of the office. Note that virtual appointments will continue.
  • 12 April 2024 – Customs and Excise Act, 1964: Rule amendment notice R4715, as published in Government Gazette 50458 of 12 April 2024, to amend rules under sections 4 and 120, to insert rules for the publication of tariff determinations (DAR257)
  • 12 April 2024 – Tax Court Judgments: The following tax court decisions were published:
  • SARSTC IT 45979 (IT) [2024] ZATC JHB (20 March 2024) – Deduction
  • SARSTC IT 45997 (IT) [2024] ZATC (27 February 2024) – Condonation for late delivery of discovery in terms of rule 36(6)
  • SARSTC VAT 22498 (VAT) [2024] ZATC CPT (16 January 2024) – Jurisdiction of Tax Court to hear tax appeal
  • SARSTC VAT 22425 (VAT) [2024] ZATC JHB (16 January 2024) – Discovery of documentation and further particulars
  • SARSTC IT 124852 (IT) [2024] ZATC JHB (4 January 2024) – Jurisdiction

Summaries are available on the Tax Court Judgments page

  • 12 April 2024 – Value-Added Tax Act, 1991

Value-Added Tax Act 89 of 1991 — whether a supply free of charge may constitute a taxable supply

Value-Added Tax Act 89 of 1991 – section 16(3)(c) – whether the supply of an insurance contract to borrowers who pay interest and fees made exclusively in the course or furtherance of an exempt activity – whether the amount in section 16(3)(c) may be apportioned where the insurance contract is supplied only partly in the course or furtherance of an enterprise – significance of taxpayer’s failure to plead apportionment.

  • 15 April 2024 – Due to a water interruption the Durban branch office remains closed today, Monday 15 April 2024. We apologise for any inconvenience that is experienced by taxpayers and traders because of the closure of the office. Note that virtual appointments will continue.
  • 15 April 2024 – The South Africa Revenue Service (SARS) wishes to comment briefly on the decision of the Constitutional Court issued on 12 April 2024 in the matter between Capitec Bank Limited v SARS.

As always, SARS welcomes the clarity and certainty provided by courts, since this is in line with our strategic intent of voluntary compliance.

SARS wishes to emphasise that this judgment is unique and specific to the circumstances surrounding this taxpayer and the particular transaction involved. It is important to note that originally Capitec sought to deduct the full amount of R 71 million as an input claim, however the court noted “That is a battle that it has lost”.

As SARS was substantially successful in the Supreme Court of Appeal, which ought to have awarded a modest, 8% to 10% apportionment, legal costs was granted in favour of SARS. The Constitutional Court found, however, that Capitec’s initiation and service fees generated a surplus that covered other lending costs, and that an apportionment was appropriate. The Constitutional Court recognised, nevertheless, that the VAT Act makes “no explicit provision for apportionment in this situation” and therefore ordered SARS to consider an apportionment methodology. SARS’ success in the Supreme Court of Appeal remained substantially unchanged, legal costs in the SCA was granted in favour of SARS.

SARS and Capitec are now required to engage in order to determine an appropriate apportionment methodology.

For further please contact SARSMedia@sars.gov.za

  • 16 April 2024 – The Durban branch office is open. We apologise for any inconvenience that was experienced by taxpayers and traders during the closure of the office.

16 April 2024 – There is a new scam doing the rounds talking of a letter of demand . Please do not open the link and delete the email immediately. An example of this scam was published on our Scams & Phishing webpage.

SAFLII

National Treasury

Office of the Tax Ombud

AuthorSAICA
DivisionTax
Keywords
Legal and Policy - 18 April 2024
Categories
Legal and Policy
Date18 April 2024