Newsletters and Case Studies

VAT FRAUD

  SARS release 17 August 2017: 95 years for VAT fraudsters: Three men, accused of fraudulently claiming Value Added Tax refunds to the value of approximately R300 million, were sentenced in the Gauteng South High Court on Wednesday, 16 August 2017  to a total of 95 years imprisonment—25 years for Fraud, 25 years for Uttering, 25 years for Forgery and 20 years for Money Laundering. The sentences will run concurrently. This means that each of the accused will spend 25 years in prison. The VAT fraud, as well as other criminal activity, took place under the pretext that electronic equipment was being imported from the United States of America and then exported again. This practice was used in 18 different companies, where the accused were directors, to elicit approximately R300 million in VAT refunds from the South African Revenue Service (SARS). The accused, Mr Anton Meyer, Mr Garth Coetser and Mr Clifford...
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WYSIGINGS VAN BELASTING OP TRUSTS

Artikel 7 (C) VAN DIE INKOMSTEBELASTINGWET, 58 van 1962 – inwerking treding  vanaf  1 Maart 2017 Op 11 Januarie 2017 het die President die wysigings wetsontwerp onderteken, wat beteken dat hierdie artikel in werking sal tree op enige lenings vanaf 1 Maart 2017. In terme van hierdie nuwe bepaling word lae-rente (of rente vrye) lenings aan trusts geteiken. Hierdie artikel is van toepassing waar ‘n natuurlike persoon (of ‘n maatskappy wat ‘n ‘verbonde persoon’ met betrekking tot daardie natuurlike persoon is) (hierna trust uitlener) kragtens paragraaf (d) (iv) van die definisie van verbonde persone, maak ‘n lae-rente of rente vrye lening aan ‘n trust waarvan daardie natuurlike persoon ‘n ‘verbonde persoon” is. Hierdie artikel bepaal dat die verskil tussen die “amptelike rente koers, tans teen 8%, en die bedrag van die rente wat werklik gehef is op die lening aan die trust geag word ‘n voortdurende skenking deur die trust te wees. Die...
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AMENDMENTS TO TAXATION OF TRUSTS

Article 7 (C) OF THE INCOME TAX ACT, 58 of 1962 - effective from 1 March 2017 As from 1 March 2017, in terms of this new provision, low-interest (or interest-free) loans are targeted to trusts. This article applies where a natural person (or a company that is a "connected person" with respect to that natural person) (hereinafter trust creditor) under paragraph (d) (iv) of the definition of connected persons, make a low-interest or interest-free loan to a trust whose natural person is a "connected person". This article states that the difference between the "official interest rate, currently at 8%, and the amount of interest actually charged on the loan to the trust is deemed to be a continuous donation to the trust. As a result, the lender is taxed on a deemed donation that he makes to the trust which will be calculated as follows. Should the natural person's loan amount to...
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