Maggie Kgobane(Tax Expert) live on Yilungelo Lakho

Maggie Kgobane was interviewed on Tax related matters with SARS Manager Thokozani Mzantsi and Advocate Ombudsman Eric Mkhawane of SARS on Yilungelo Lakho on SABC 1 on the 10th of July 2017. Maggie shared her expertise with utmost confidence.

She addressed questions that are frequently asked by taxpayers regarding Taxation and included useful guidelines that should be followed when filing your tax return. Tax Consulting South Africa is very proud of Maggie’s sterling performance on national television.

Please see below a clip of the interview:


A repeat of the interview will air at 22:00 on 2017-07-13 on SABC 1


Scams and Phishing Attacks

Members of the public are randomly emailed with false emails made to look as if these emails were sent from SARS, but are in fact fraudulent emails aimed at enticing unsuspecting taxpayers to part with personal information such as bank account details. Examples include emails that appear to be from or indicating that tax payers are eligible to receive TAX refunds.

These emails contain links to false forms and false websites made to look like the “real thing”, but with the aim of fooling people into entering personal information such as bank account details which the criminals then extract and use fraudulently.

Please note these are scams and SARS taxpayers should take note of the following:

  • Do not open or respond to emails from unknown sources.
  • Beware of emails that ask for personal, tax, banking and eFiling details (login credentials, passwords, pins, credit / debit card information, etc.) as SARS will never ask taxpayers for such information in an email.
  • SARS will not request your banking details through the phone, email or websites.
  • Beware of false sms’s.

More samples:

Institution Specific Scams: Absa | Capitec | FNB | Nedbank | Standard Bank

Topic Specific Scams: Audit | Personal and Banking Details | Refunds | Payments

Source Specific Scams: Email | Letter/Fax | Phone Call | SMS | Website

 Example of Latest Scams:

Guide on the Determination of Medical Tax Credits (Issue 7)

The guide provides general guidelines to determine the medical fees tax credit and additional medical aid tax credit for income tax purposes. The guide includes the relevant definitions and formulas as well as detailed examples for purposes of the medical fees tax credit and additional medical aid tax credit calculation.

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BPR 242: Venture Capital Company Investment in Qualifying Companies

  • This ruling determines –
    • Whether or not the investee is a “controlled group company” and that the shares purchased by the Applicant and Co-Investor is “equity shares”; and
    • The meaning of “hotel keeper” and the allowances that a hotel keeper may claim.
  • The Applicant and Co-Investor intends to invest in qualifying companies that will carry on the business of hotel keepers. They will each appoint a company (manager) to operate and manage their respective hotels. The manager will guarantee certain profit targets per annum.
  • The Applicant intends to exit this investment on or before the 5th year of the investment. The Co-Applicants will sell their respective hotels and distribute the proceeds to their shareholders.
  • The ruling held that each share of the Co-Applicants will constitute an “equity share” and therefore a “qualifying share” and that neither of the Co-Applicants will constitute a “controlled group company” for so long as they do not hold more than 70% of the total equity shares, irrespective of the fact that the Applicant may invest more than 70% of the aggregate share capital in each of the Co-Applicants in monetary terms.
  • The Applicant and Co-Investor can then get a deduction for the funds invested in the Co-Applicants in terms of the venture capital company regime.

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D v Commissioner, SARS (VAT 1390):

“Whether the delivery of food orders to the taxpayer’s customers constitute a service supplied by it for consideration in the course, or furtherance, of its enterprise (and therefore whether same is within ambit of Value Added Tax Act, No. 89 of 1991). If so,  whether VAT falls to be paid on taxpayer’s delivery charges or whether same should be borne by taxpayer’s deliverers/ drivers (independent contractors).”

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Taxation Laws Amendment Bill & Tax Administration Laws Amendment Bill Update

The 2016 draft taxation laws amendment bill and draft tax administration laws amendment bill has been published for public comment. Comments are due by 8 August 2016.

2016 Draft Tax Administration Laws Amendment Bill

The draft Tax Administration Laws Amendment Bill, 2016, is hereby published for comment. The draft legislation gives effect to matters presented by the Minister of Finance in the Budget Review 2016, as tabled in Parliament earlier this year.

Members of the public are invited to submit comments on the draft legislation by no later than 8 August 2016 to:

Adele Collins at

Click here to download the bill.

2016 Draft Taxation Laws Amendment Bill

Click here to download the bill.

Working in South Africa: The Tax & Fiscal Implications

South Africa is one of the expatriate jurisdictions where proactive planning makes a significant difference to the tax and exchange control implications of an international mobile employee. The primary reasons are:

  • Unlike most other countries, with good planning, you only become ‘tax resident’ in the beginning of your sixth year in South Africa; and
  • There are various tax provisions which provide specific tax relief for expatriate employees, as well as various South African Revenue Service (SARS) practice notes and binding rulings that gives additional relief.

Typical mistakes you should avoid:

The following are examples of things that may sound like a good idea, but, from a South African tax perspective, is not:

  • Open ended contracts and applying for permanent residency too soon. These are examples of items which SARS and the South African Reserve Bank often use to determine whether you have an intention to reside permanently in South Africa thus making you ordinarily resident and therefore, tax resident in South Africa. Not only will you then be liable to tax in South Africa on world-wide income, but you will also be subject to South African exchange control regulations. We have in recent months defended expatriates who SARS held to be tax resident in South Africa on the basis of an open ended employment contracts. Good planning would be entering into a fixed term contract with the option to renew.
  • Housing or accommodation related allowances are never good ideas because they are fully taxable with no tax relief. Company provided accommodation either directly or through outsourced provider qualifies for various exemptions.
  • Expatiates based in South Africa but who travels internationally qualifies for various exemptions. Whilst the principles are complex and there is no ‘one-size –fits-all’, it dates back to 1946 and states that days worked outside South Africa by a non-resident is exempt from South African tax.

A word of caution:

Whilst South African tax law has favourable provisions for expatriates, SARS has a dedicated audit focus on expatriates, for example, in the SARS standard payroll questionnaire, there is an entire section dealing with expatriates to ensure correct treatment and to identify abuse of favourable provisions.

The rule of thumb is that the employment contract or secondment agreement should be optimally structured from a tax perspective. This must be done before the work permit application.

2015/16 Budget Updates

Taxpayers are reminded to take into account some of the changes announced in by Finance Minister Nhlanhla Nene in his budget speech on 25 February 2015:

  • Contributions to an Income protector no longer tax deductible;
  • The primary rebate has been increased to R13 257; and
  • The medical scheme fees tax credit for monthly medical contributions for the 2016 tax year is R270 per person, which includes the main member and the first dependent. All other dependants set at R181 per dependant.

2015 Tax Indaba – Jerry Botha

Day 3 Stream 2 – Administrative and IT Issues in payroll

2014 Tax Indaba – Jerry Botha

Tax Law changes impacting employee remuneration and benefits, remuneration structuring and employee pay practice
Tax Indaba 2014
9 – 13 June 2014