HomeHome SearchSearch MenuMenu Our productsOur products

These seven ATR applications can be rejected by SARS' at any time

by , 06 May 2016
If you happen to find yourself in a situation where you're not quite sure of the tax implications on a particular transaction, in other words there are no tax laws which cover the transaction, you can apply for what's known as an advanced ta ruling (ATR).

But you can only do so in certain situations. These include...

*****MUST HAVE*****

Every South African tax law explained by our experts

The Practical Tax Loose Leaf Service offers you:

·         All the definitions and legal regulations, useful advice, exceptions to the rules that help you slip through the legislative jungle of taxes.

·         Case studies and practical examples that show you what elements you should consider for your taxes to be perfect.

·         Red flags you need to watch out for and the penalties you'll face if you don't respect them.

·         Sample templates at your disposal, ready to be filled in, customised and printed.
 
Click here for more details
 
**********************
 
·         If you create an employee benefit scheme and it forms part of the employees' gross income, your company will be able to apply for an advanced tax ruling;

·         If you're a landlord, you may wish to know if the value of any upgrades on a leasehold property, if made by the tenant, will form part of the gross income in your hands;

·         If there's a newly introduced section to the Income Tax Act, coming into effect soon, you may request an advanced tax ruling because you're not sure how this new section will affect your future transactions; and

·         You can request an advanced tax ruling if you need to know whether an amount you receive will be revenue or capital when SARS taxes the transaction.

Now, there are other situations in which you can apply for an ATR, but they're at the complete discretion of SARS. In other words, while the law doesn't require the Commissioner to reject them, it doesn't stop him from doing it either.

These rejections are referred to as discretionary exclusions. And in order to prevent any unnecessary surprises and disappointments, you need to know what they are.

Here are the seven situations in which your ATR application may receive a discretionary exclusion…

Situation#1:

Material facts in relation to an issue that can't be established at the time of application.

Situation#2:

An issue that relies on assumptions for a future event. In other words, it can't be reasonably determined at the time of application.

Situation#3:

You fail, or refuse, to provide information that has been requested by the Commissioner
 

*To learn what the other four situations that can easily lead to a discretionary exclusion are, simply page over to Chapter A 04 in your Practical Tax Loose Leaf Service handbook, or click here to order your copy today


Related articles




Related articles



Related Products



Comments
0 comments


Recommended for You 

  Quick Tax Solutions for Busy Taxpayers – 35 tax answers at a glance



Here are all the most interesting, thought-provoking and common tax questions
asked by our subscribers over the last tax year – everything from A to Z!

To download Quick Tax Solutions for Busy Taxpayers – 35 tax answers at a glance click here now >>>
  Employees always sick? How to stop it today



Make sure you develop a leave policy to regulate sick leave in your company.

BONUS! You'll find an example of the leave policy and procedure in this report.

To download Employees always sick? How to stop it today click here now >>>
  Absenteeism: Little known ways to reduce absenteeism



This FREE e-report will tell you how you can reduce absenteeism in your workplace while avoiding the CCMA and without infringing your employees' labour rights.

To download Absenteeism: Little known ways to reduce absenteeism click here now >>>
  7 Health & safety strategies to save you thousands



Don't let a health and safety incident cost you one more cent. Implement these seven
strategies in your company today.

To download 7 Health & safety strategies to save you thousands click here now >>>