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Government investigating wealth tax for South Africa – what to expect
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While no ‘solidarity tax’ was announced by Finance minister Tito Mboweni in his 2021 Budget Speech, National Treasury has indicated that it will assess the viability of a future wealth tax as it collects more data in the coming months.
“Following the recommendations of the Davis Tax Committee, SARS will focus on consolidating wealth data for taxpayers through third-party information,” Treasury said in its 2021 budget review.
“This will assist in broadening the tax base, improving tax compliance and assessing the feasibility of a wealth tax.”
From the comments made in the 2021 Budget Speech, it does not appear that South Africa will see the introduction of a wealth tax in 2022, said Roxanna Naidoo, attorney at Tax Consulting South Africa.
11 mistakes on your taxes that come with 2 yearsâ imprisonment
By Opinion
By Roxanna Naidoo and Lisa Mihalik
A new set of tax law amendments, signed by President Cyril Ramaphosa, and promulgated on 20 January 2021 has granted Sars all the legal fire power it needs to impose criminal sanctions on taxpayers who neglect their tax affairs.
Criminal Negligence
Prior to the promulgation of the Tax Administration Laws Amendment Act, 2020 (Amendment Act) a mistake made by a taxpayer was only a crime when it was done âwilfully and without just cause.â In other words, the law required an element of intent; where negligence or ignorance caused your administrative non-compliance, you would have gotten off with a slap on the wrist.
11 mistakes on your tax return that could land you in jail for two years 04 February 2021 - 06:00 A defence commonly used by taxpayers - I didn t know - is not going to work since new laws were promulgated on January 20 that hold individuals to a higher standard of care when dealing with their taxes. Image: Picture: GALLO IMAGES
Failure to register your details with revenue service Sars or not notifying it of changes to your details could result in up to two years imprisonment, says Tax Consulting SA.
Roxanna Naidoo, an attorney, and Lisa Mihalik, the tax and legal administrator, both of Tax Consulting SA, said a new set of law amendments, signed by President Cyril Ramaphosa and promulgated on January 20, has granted Sars the legal firepower it needs to impose criminal sanctions on taxpayers who neglect their tax affairs.
12 tax law changes to discuss with your accountant in South Africa post Covid-19
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While the country was under lockdown, South African Revenue Service (SARS) and National Treasury have been hard at work, using this time to refine the law in SARS’ favour, says Roxanna Naidoo, admitted attorney at Tax Consulting South Africa.
These changes do not refer to the Covid-19 tax relief changes, but are aimed at closing tax loopholes and to simply give SARS and the National Prosecuting Authority more teeth.
Ask your accountant or tax advisor to help you understand the amendments and their impact on your tax planning and tax compliance strategy, said Naidoo, alluding to a number of such amendments.