When is tax planning “too clever”? A new court case sheds some light
By Suzanne Smit If you’ve ever wondered whether it is legal to arrange your affairs to pay less tax, the tax court has just given us new insight and it’s more nuanced than a simple “yes” or “no”. Company AF (Pty) Ltd v the Commissioner of SARS (“the case”) has taken another look at our General Anti-Avoidance […]
“I didn’t know” is no longer enough
South Africa’s highest court has ruled that investors can be taxed on avoidance schemes they knew nothing about. The Constitutional Court’s judgment in Absa Bank Ltd and Another v C:SARS is significant in our tax landscape and every investor should consider the ruling. What was it about? Absa Bank invested R1.9 billion in a Macquarie-designed structure between […]
Is your trust tax compliant? What SARS knows about your trust and what it will cost you
By Suzanne Smit SARS has for some time been drawing the net tighter around trusts and it is now hauling it in. Following a Government Gazette notice published on 27 March 2026, SARS has introduced fully automated administrative penalties for trusts that have failed to submit their income tax returns. This is not a future […]
Budget 2.0
19 February 2025 will forever be a date to remember in SA – this is when the Government of National Unity (GNU) flexed its muscles and, for the first time in our history, the Budget Speech was postponed. In doing so an unprecedented 2% VAT hike was averted and much-needed public and political participation ensued. […]
Budget Speech 2024: The unspoken words are louder
2024’s Budget Speech was as predictable as the sun rising in the east. No bracket creep, no increases, no risks taken in an election year. Despite the current economic climate, no stimuli was introduced to attract foreign investment which could lead to a broadened tax base. Quite worryingly, the piggy bank was broken open and […]
Are friendly offshore jurisdictions really that friendly?
In an environment where taxpayers are not confident in their “return on investment” domestically and where something like the National Health Insurance financing system instills more worry than comfort, those who can afford to, are looking to hedge their bets elsewhere. . Portugal, amongst others, has been a popular jurisdiction for South Africa’s as a […]
Are you a trustee? Urgent attention required
Amendments to the Trust Property Control Act and new reporting requirements introduced by SARS to enhance transparency, reporting and compliance and to comply with recommendations from the Financial Action Task Force (FATF) to eventually get South Africa off the grey list, mean an onerous and huge burden on trustees. Firstly, trustees have to collect, […]
The Budget Speech 2023 – The statistics speak for themselves
The Budget Speech 2023 was almost like looking at a photo after applying a good Photoshop filter – it was better than expected. In an era where we are desensitized on a daily basis on topics from loadshedding to everything else, even the markets did not flinch as a nod of appreciation. On the […]
Do you have children living overseas? 3 important pointers to consider
Domestic tax laws and fiduciary laws differ between countries. For example, some countries recognise trusts and others only recognise foundations. What you have planned for and reality may be vastly different because of the application of such laws. In a dynamic and increasing complex tax and fiduciary landscape, it is important to consider the […]
Latest update on Tax Transparency
Suzanne Smit, Chartered Tax Adviser from Fidelis Vox recently participated as a panellist in the annual Tax Indaba which is organized by the South African Institute of Taxation. What was evident from an offshore tax planning perspective, is that tax transparency remains front and centre on SARS’ agenda. The recently established SARS High […]