ENSafrica provides a snapshot of the latest tax developments in South Africa.
Supreme Court of Appeal: CSARS v South African Breweries
the correct classification of flavoured alcohol beverages, as contemplated in part 1 of schedule 1 to the Customs and Excise Act (the “CEA”), for the purposes of the excise duty that is payable in accordance with section 37(1) of the CEA, considered.
goods are classified in part 1 of schedule 1 to the CEA according to the terms of the headings and the relevant section and chapter notes.
the starting point for the classification of goods is the language of the schedule which must be considered in context and given a sensible meaning; the headings are the first and paramount consideration in determining classification between headings.
Binding private ruling 307: relief from double taxation of interest
this ruling determines whether South Africa or Brazil has the taxing rights in respect of interest income on bonds issued by the government of Brazil and paid to a South African resident.
section 108 of the Income Tax Act, 1962 (the “Act”), considered.
paragraph 4(b) of article 11 of the Convention between the government of the Republic of South Africa and the government of the Federative Republic of Brazil for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income, considered.
Binding class ruling 63: income tax implications of settlement agreement
this ruling determines the treatment of contributions made by employer companies to a trust in terms of a settlement agreement and how the amount accruing to or received by the trust and the beneficiaries of the trust will be treated.
section 1(1) of the Act: definitions of “gross income” (paragraph (d)) and “severance benefit”, considered.
sections 11(a), 23(g), and 25B(2) of the Act, considered.
Binding class ruling 64: transfer of a security that constitutes a participatory interest in a collective investment scheme
this ruling determines security transfer tax consequences of the transfer of a security that constitutes a participatory interest in a collective investment scheme, regulated by the Collective Investment Schemes Control Act, 2002.
section 1 of the Securities Transfer Tax Act, 2007 (the “STT Act”), considered.
sections 2(1)(a) and 8(1)(f) of the STT Act, considered.
SARS replaces practice note 4 of 1999 | treatment of gains and losses on foreign exchange transactions with interpretation note 101 | section 24I – gains or losses on foreign exchange transactions.
sections 24I and 1(1) of the Income Tax Act, 1962 (the “Act”) – the definition of “trading stock”;
sections 3(4)(b), 6quat(4), 8(4)(a), 9(2)(l), 9(4)(e), paragraphs (c)(ii) and (iii) of the proviso to section 9D(2A), 9D(6), 9D(9)(fA)(ii) and (iii), 9D(9A)(a)(iii), 11(a), 11(i), 11(j), 19, 20(2), 22(3)(a)(i), 24J(2), (3), and (5A), and 25D of the Act.
paragraphs 12A, 35(3)(a), and 43 of the Eighth Schedule to the Act.
