Executive Tax Powers Under Fire: The Court Ruling That Could Rewrite South Africa’s Tax Playbook
This recent VAT ruling is a warning shot at how tax rates are set for South Africans. The Court ruled that section 7(4) of the VAT Act is unconstitutional, but what about the rest? From income tax to dividends tax, the same mechanism is hiding in plain sight, leaving accountants and their clients exposed to uncertainty. The real story: this could change how every Budget announcement is interpreted going forward.
Mixed Up? Here’s What to Do When Your Business Has Both Vatable and Exempt Income
Think you’ve nailed your VAT strategy? Think again. From exempt supplies to mixed-income traps, recent court battles involving African Bank and Capitec show just how costly VAT missteps can be. In this article we look at exempt and vatable supplies, when you need to register for VAT, and what to do if your business earns both types of income. Get your VAT method right and save money and trouble with SARS!
‘Reckless Conduct’ versus ‘Intentional Wrongdoing’ - The Accountability of Tax Practitioners
Tax practitioners must uphold the integrity of the tax system, but what happens when ethical lines are crossed? The recent case of Naraidu v The State shows just how severe the consequences can be. Involving fictitious VAT claims and a tax practitioner caught in the middle, the case takes us from a conviction of fraud to an acquittal on appeal. Was it reckless action or intentional wrongdoing? We highlight the key lessons every tax professional should learn from this dramatic courtroom saga.