Deductibility of interest for non-trading individuals
SARS Practice Note 31.2 (PN31.2) provides for a person to be able to deduct interest paid, even where that person is not a moneylender or doesn’t carry on any other trade, where that interest expense is incurred in the production of other interest earned to the extent that it does not exceed the interest income. […]
Changes to the dispute management process
The South African Revenue Service (SARS) recently introduced certain changes and improvements to its current dispute management process. Any taxpayer who is aggrieved by any assessment may request SARS to provide those reasons for the assessment sufficient to enable the taxpayer to formulate an objection. For the first time, taxpayers will be able to make […]
Penalties on Underpayment of Provisional Tax
Under paragraph 20(1) of the Fourth Schedule to the Income Tax Act 58 of 1962, amended (“the Act”), if the actual taxable income of a provisional taxpayer, as finally determined under the Act, exceeds R1 000 000 and the estimate made in the return for the payment of provisional tax, that is the so-called second provisional […]