BUDGET SPEECH 2025 SYNOPSIS
The Budget Speech of 2025 was not as devastating as initially expected with the rumours of the 2% VAT increase, although VAT did not remain untouched.
Articles
VAT HIKE – WHAT IF IT HAPPENS?
The postponement of the budget speech which was set to take place on Wednesday, 19 February 2025 has left the country questioning exactly what could have been in the budget that was so controversial that the speech could not go ahead but had to be postponed until 12 March 2025.
Mineral Royalty: Treatment of Transport, Insurance and Handling Expenses
The Mineral and Petroleum Resources Royalty Act, No. 28 of 2008 (as amended), (the Royalty Act) imposes the obligation on a person to 'pay a royalty for the benefit of the National Revenue Fund in respect of the transfer of a mineral resource extracted within the Republic'.
The Digicall Solutions Case: Trafficking in Tax Losses
Shepstone & Wylie Attorneys' Johan Kotze and Jenifer Woker successfully defended Digicall Solutions (Pty) Ltd in its recent dispute against SARS. This Western Cape High Court case dealt with trafficking in tax losses.
Related Finance Charges vs Similar Finance Charges: How Broadly Will the New Definition of Interest Be Interpreted?
Under the Taxation Laws Amendment Act, the word 'related' is now to be substituted by the word 'similar', so that the definition of interest will read "interest or similar finance charges". This change is more than likely to narrow the courts' previous interpretations.
Interest on Late Payment of Retirement Benefits
Clarification on how interest on lump sum benefits should be treated.
Contradictory Legislation: VAT Zero-rating of Supplies to Custom Controlled Areas / IDZ Operators
Generally, the export of movable goods qualifies for VAT zero-rating. An exception can be found in section 11(1)(m) of the VAT Act, where movable goods are supplied to a customs controlled area enterprise or an Industrial Development Zone (IDZ) operator in South Africa.
Cancellation, Termination or Variation of Disposals Subject to Capital Gains Tax
When two people transact, they normally negotiate the terms in good faith, but things happen to transactions and the seller may agree to repay part of the purchase price to the purchaser.
Construction and Interpretation of Tax Legislation: Then and Now
As early as 1926 Judge Stratford held in Farrar's Estate v CIR that '[the] governing rule on interpretation is to endeavour to ascertain the intention of the law-maker from a study of the provisions of the enactment in question'.