On 7th March 2014 the Supreme Court of Appeal delivered judgment in the as yet unreported case of Commissioner for the South African Revenue Service v Mobile Telephone Networks Holdings (Pty) Ltd, (966/2012) [2014] ZASCA 4 (7 March 2014) which dealt with the deductibility of audit fees incurred for a dual or mixed purpose and the apportionment thereof for tax purposes in light of section 11(a) of the Income Tax Act 58 of 1962, as amended (‘the Act’) read with sections 23(f) and 23(g) of the A
Times have certainly changed. Ten years ago a tax query from a SARS assessor would find its way to the desk of the financial director or in-house tax advisor who would send it off to their auditors. The auditors would, in turn, give it to their tax department who would draft a reply to SARS and hope the matter went away. If not, an informal meeting between the financial director and tax advisor at the audit firm would usually settle the dispute ...
In Roshcon (Pty) Ltd v Anchor Auto Body Builders CC (“Roshcon”) the Supreme Court of Appeal (“SCA”), in a unanimous judgment drafted by Wallis JA, has clarified the issues caused by its previous decision in SARS v NWK Limited (“NWK”). Roshcon was not a tax case; it concerned supplier and floorplan agreements relating to the sale of trucks, with a reservation of ownership to a finance house as security until the trucks were fully paid for by the purchaser ...
Each of the Common Monetary Area (CMA) Member States presented their 2014/15 Budgets during February 2014. An overview of the Budgets of Lesotho, Namibia and Swaziland reveals Namibia as the only country proposing fiscal amendments of any significance. A common theme of these Budgets is a concern about the increased uncertainty regarding the future of the South African Customs Union (SACU) and a firm intention to reduce reliance on SACU revenue ...
The Minister of Trade has promulgated Regulation No 04/M-DAG/PER/1/2014 on 11 January 2014 which lists: 1 - 186 refined and processed mining products which are restricted to be exported (Attachment I of the regulation), such as metallic minerals, non-metallic minerals and rocks (including silver, gold and copper which contain certain levels of certain mineral elements) ...
The Internal Revenue Service (the “IRS”) has temporarily suspended the issuance of private letter rulings on master limited partnership (“MLP”) “qualifying income” under Internal Revenue Code Section 7704(d) during the pendency of an internal committee review of existing rulings in that area ...
A payroll tax reduction with potential savings of up to SEK 2,760,000 per annum is available from January 1st 2014 for companies conducting research and development (R&D) on a full or part time basais. According to the new rules, the payroll tax amount for the associated salaries for persons working in R&D can be reduced by 10 per cent which equates to SEK 230,000 per month on a group level (SEK 2,760,000 per annum) ...
On 26 November 2013 the Danish Government and the Government of Greenland handed over their scientific documentation for sovereignty over the continental shelf northeast of Greenland to the Commission on the Limits of the Continental Shelf (CLCS) and thereby submitted a claim for an area of approximately 62,000 square kilometres off the Greenlandic north coast between Greenland and Svalbard (Norway) ...
As of February 2014, Amendments to the Gas Market Act have become applicable in Croatia. The amended Act defines the new role of wholesale supplier of natural gas. Supplier should be company that domestic natural gas producers will sell the gas under regulated price and conditions and who will then resell the natural gas at another regulated distribution price to local suppliers that ultimately supply end users with natural gas ...
As the end of another tax year approaches, now is a good time to consider your financial position and check whether you have taken full advantage of the tax reliefs and exemptions that are available. This note is intended to provide a brief guide to the opportunities that we believe may be worth considering. There are many tax-saving measures available and we detail below a number of steps that can be taken to improve your tax position, without significant effort ...
The recent amendments to the VAT legislation introduced by the Taxation Laws Amendment Act, No 31 of 2013, gives effect to government’s proposal that all foreign businesses supplying e-books, e-music and other digital goods and services in South Africa be required to register as South African value-added tax (“VAT”) vendors ...
The underwriters have priced the deal. The underwriting agreement has been signed. The issuer has returned its focus to running its business and the underwriters have moved on to the next deal. All that is left is for the lawyers to document the terms and to ensure that the underwriters are in a position to move money at closing. Then, a day or two after pricing, the plant unexpectedly blows up ...
A little known provision contained in the EU’s internal energy market directives requiring Commission approval for ‘level playing field measures’ could prove to be a headache for policy makers looking to correct perceived imbalances between incumbent energy players and new entrants ...
For the Portuguese tax authorities to grant the status of the non-habitual tax resident, it is necessary to meet the following conditions: The applicant cannot have been taxed as tax resident in Portugal in any of the five preceding years; The applicant must be considered as a tax resident in Portugal and residence in Portugal for tax purposes may be acquired in any year, among other situations, when the taxable person ...
As was recently announced, the European Commission has yesterday (22 January 2014) published its proposal for the regulation of unconventional fossil fuels and notably shale gas. Whereas both legislative and non-legislative options were on the table, the European Commission has chosen to adopt a non-legally binding “Recommendation” rather than a Directive ...
While helpful, California’s Board of Equalization has not exactly taken the most pro-renewable energy position in their new guidance on the effect of the installation of a solar power system on tax-exempt property. In what appears to be a fairly common acquisition structure, for example, a solar power company installs a solar power system that it retains ownership of, and the nonprofit provides the space for installation and then leases the system from the solar company ...
On December 20, 2013, the Quebec Department of Finance and the Economy issued Information Bulletin 2013-14 (the “Bulletin”), announcing inter alia changes to various tax measures specifically applicable to the natural resources industry ...
This past December 12, the Mexican congress finally approved a constitutional energy reform (the “Energy Reform”). As of today, the required majority of state congresses have also ratified it. What now remains is a declaration from the Permanent Commission of the Mexican congress, which is expected shortly ...
CONTENTS Requirements for ITC and ITR claims: A judgment of the Court of Québec sets the record straightRestrictive covenants transactional context vs ...
THE 1979 STATUTE It is well known that, under the legal regime for the protection of agricultural lands, the acquisition of agriculturally zoned lands with a surface area of four hectares or more by a person not residing in Quebec is subject to the authorization of the Commission de protection des terres agricoles. This is the object of the Act respecting the acquisition of farm land by non-residents (CQLR chapter A-4.1) (the “Act”), which has been in force since December 21, 1979 ...
As the end of 2013 draws near, taxpayers should consider the effect of the new 3.8% surtax on investment income. Beginning January 1, 2013, a 3.8% surtax is placed on certain investment income for individuals, trusts, and estates. The surtax is imposed in addition to all other taxes imposed by the Internal Revenue Code (including the alternative minimum tax). Prior to the end of 2013, individuals, trustees, and executors should consider ways to minimize the 3.8% surtax ...
