Below, please find issue 112 of ENS' tax in brief, a snapshot of the latest tax developments in South Africa.

case law

  • Supreme Court of Appeal ("SCA") | Lueven Metals (Pty) Ltd v Commissioner for the South African Revenue Service (Case no 728/2022) [2023] ZASCA 144 (8 November 2023)
    • This is an appeal against a judgment of the Gauteng Division of the High Court, Pretoria (per Davis J), dismissing an application for declaratory relief pertaining to section 11(1)(f) of the Value-Added Tax Act, No. 89 of 1991 (the "VAT Act").
    • The SCA had to determine whether granting declaratory relief was appropriate in the matter.
    • The SCA held that the high court ought to have exercised its discretion against the hearing of the application on the basis that:
      • A declaratory order is not appropriate if there are other specific statutory remedies available;
      • The appellant did not afford SARS the opportunity to reconsider or alter the proposed assessments in light of its response to SARS' letter of audit findings, as it gave notice in terms of section 11(4) of the Tax Administration Act, No. 28 of 2011 ("TAA") of its intention to institute proceedings before the high court on the same day that it responded to the letter of audit findings and some three weeks thereafter proceeded to do so;
      • The appellant ignored the emphasis placed by the TAA on alternative dispute resolution and in disregarding the need to exhaust all its internal remedies, the high court became the appellants first port of call;
  • The SCA therefore dismissed the appeal.
  • Find a copy of the judgment here.

customs and excise

  • Customs and Excise Act, 91 of 1964 ("Customs and Excise Act") | Registration, Licensing and Designation
    • The facility codes used in Box 30 on the Customs Clearance Declaration (CCD) have been updated to include the details of the new approved container depot in Durban, AO – EXXELO South Africa (Pty) Ltd.
    • Find more information here.

legislation and draft legislation

  • The following bills and explanatory memoranda have been published:
    • Rates and Monetary Amounts and Amendment of Revenue Laws Bill (B35- 2023) ("RMA B35")
      • Find a copy of the RMA B35 here.
    • Taxation Laws Amendment Bill (B36-2023) ("TLAB B36")
      • Find a copy of the TLAB B36 here.
    • Tax Administration Laws Amendment Bill (B37-2023) ("TALAB B37")
      • Find a copy of the TALAB B37 here.
    • Memorandum on the Objects of the Tax Administration Laws Amendment Bill, 2023 ("TALAB EM")
      • Find a copy of the TALAB EM here.

SARS publications

  • Tax compliance status ("TCS") enhancements
    • The TCS process relating to the approval of international transfer ("AIT") applications has been adjusted to address feedback from stakeholders.
  • Below is a summary of the key revisions:
    • TCS Application Form (TCR01)
      • All the fields under the "Foreign Assets and Liabilities Details" container have been made optional based on the date the TCS applicant ceased to be a South African tax resident.
      • The "Net Worth" field under the "Assets and Liabilities Details" container has been amended to "Net Amount (At cost)".
      • The "Trust No." and "Passport No. of Main Trustee/Representative Taxpayer of the Trust" under the "Local and Foreign Trust Details" container, and the "Local and Foreign Loan to a Trust Details" container have been made optional when "Foreign Trust" is selected.
      • The "Trust No." under the "Distribution from Trust Additional Details" container has been made optional when the "Foreign Trust" is selected.
      • The "Share code" field and "Number of shares sold" field under the "Sale of Shares and Other Securities Details" container have been disabled when the "Listed Shares" is selected.

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