INSTITUTE OF ACCOUNTING AND COMMERCE The …

1 Ered when updating the edu-cation material or held for consideration during the next periodic review of the IFRS for SMEs, as applicable. Members can forward sugges-tions and comments to the IAC office. Currently there are no Q&As. All Q&As issued before the 2015 Amendments to the IFRS for SMEs have either been incorporated into the IFRS for SMEs (and made mandatory) and/or the IFRS Foun-dation's educational material (remains non-mandatory). T h e 2 0 1 5 I F R S f o r SMEs together with accompany-ing documents such as the Basis for Conclusions and illustrative financial statements are now available for free download on the followin g IFRS SME webpage: The International ACCOUNTING Standards Board ('the Board') has set up a procedure whereby small companies and other in-terested parties can submit implementation issues on the IFRS for SMEs for considera-tion.

2 IFRS for SMEs is the Standard developed for entities that do not have public accountability and regarding the preparation of general purpose financial state-ments. The Board decided that a pro-cedure should be established to allow interested parties to sub-mit implementation issues on the IFRS for SMEs. Submitted issues will be dealt with one of two ways: The issue will be referred for consideration by the SME I m p l e m e n t a t i o n G r o u p (SMEIG) if the issue is likely to be pervasive; unintended or inconsistent implementation has or is likely to occur because of lack of clarity in the Stand-ard; and the SMEIG can reach a consensus on the appropri-ate treatment on a timely basis.

3 For these issues the SMEIG will then consider whether to develop non-mandatory im-plementation guidance to address the issue in the form of questions and answers (Q&As). Other issues will be consid-2015 IFRS for SMEs Welcome 2016 Welcome to the first edition of the Professional for 2016. In this issue we revisit the various taxes administered by SARS, including some of the withhold-ing taxes. We also have a look at IFRS for SMEs in respect of share-based payments and pro-vide some food for thought on group dynamics. In this way we ease into the new year before the announcement of the Annu-al Budget by the Minister of Finance in February.

4 Given the current turmoil in South Africa s economy and the sword of credit ratings above our heads it will be very interesting to see how our new (old) Minister of Finance will perform the very delicate balancing act to fund the various needs of South Afri-cans. We hope that you will enjoy this newsletter and please feel free to submit your comments, suggestions and questions to the IAC office. INSTITUTE OF ACCOUNTING AND COMMERCE January 2016 Volume 7, Issue 1 The Professional Special points of interest: Tax Board jurisdiction increased to disputes amounting to R1million. (Effective from 1/1/2016) Inside this issue: Deceased estates Tax Board Donations tax STT 2 3 4 BPRs Royalties Share plans 5 6 7 Taxing dividends Claiming foreign tax 8 9 Share-based pay-ments Joint ventures 10 Exchange control Unprofessional conduct 11 12 Group functioning Diversity Fees & penalties 13 14 IAC Helpline CPD 15 At the beginning of a new year, the last thing one wants to think about is death.

5 Unfortunately one cannot avoid it and it is therefore very important to ensure that all the necessary documents are accessible when needed. As a tax practitioner, clients may also expect you to assist with the winding up of their estate, especially with regards to tax affairs. SARS has to be notified when a person dies, irrespective of whether estate duty is payable. Estate duty is only payable to the extent a deceased person s net estate exceeds million and is levied at 20%. Notification Copies of the following docu-ments must be sent to SARS: Death certificate or death notice.

6 Identity document of the deceased. Letters of Executorship (J238) (if applicable). Letter of Authority (J170) )(in cases where the estate is less than R250 000). Certified copy of the execu-tor s identity document. Power of attorney (if applica-ble). The name, address and con-t a c t d e t a i l s o f the executor or agent. The last Will and Testament of the deceased. An Inventory of the de-ceased s assets. The liquidation and distribu-tion accounts (if available). These documents may be sent to the relevant Centralised Processing Centres that is clos-est to the Master of the High Court where the estate is ad-ministered.

7 E-mail The documents may be sent to the following mailbox facilities: For Gauteng North including Centurion and Pretoria, North West, Mpumalanga and Limpo-po: For Western Cape and East-ern Cape south of East Lon-don: For KwaZulu-Natal and northern parts of the East-ern Cape up to and including East Lon-don: For Gauteng South including Midrand, Greater Johannes-burg, Kempton Park, Boks-burg, Vereeniging and Springs, Free State and Northern Cape: Postal addresses Alternatively the documents may be mailed to: Alberton - Alberton CPO Private Bag X 15 New Redruth 1450 Bellville - Bellville CPO P/Bag X 11 Bellville 7535 Doringkloof - Doringkloof CPO Box 436 Pretoria 0001 Durban - Durban CPO PO Box 921 Durban 4000 Free State Bloemfontein office PO Box 313 Bloem-fontein 9300 East London P/Bag X9012 East London 5200 Port Elizabeth and Uitenhage PE office PO Box 345 Port Elizabeth 6000 Once SARS has coded the taxpayer s profile as a deceased estate, SARS will issue the ap-plicable letters to the executor.

8 Advising of what further steps need to be taken. Other estate duty consid-erations Additional guidance is provided by SARS in the form of guides which addresses the estate duty implications on key man policies and buy and sell agree-ments. These guides are availa-ble on the SARS website. Payment due Estate Duty is due within 1 year of date of death or 30 days from date of assess-ment, if assessment is issued within 1 year of date of death. Interest is levied on late payments. VAT If the deceased person was a vendor, the executor also need to consider the VAT implica-tions of the various supplies made by the estate, including distributions.

9 For further infor-mation, please refer to VAT413 Guide for deceased estates. Deceased estates The tragedy of life is not death but what dies inside us while we live. Robin Williams Page 2 The Professional The Tax Board came into op-eration in 1992. It was estab-lished to speedily deal with appeals by the taxpayer against the Commissioner s assess-ment. With the introduction of the Tax Administration Act (TA Act), the Tax Board is now governed by sections 108-115 of the TA Act. The Tax Board hears tax ap-peals involving tax in dispute that does not exceed the amount determined by the Minister under section 109(1)(a).

10 Jurisdiction An appeal against and assess-ment or decision must firstly be heard by a Tax Board if the dispute does not exceed the amount the Minister of Finance determines by public notice and A senior SARS official and the taxpayer agrees to pre-sent the matter to the Tax Board. From 1 May 2007 until 31 De-cember 2015, this amount was R 500 000. The amount was however increased to R1million with effect from 1 January 2016. The Tax Board must hear the matter at a place which is clos-est to the taxpayer s residence or place of business, unless the taxpayer and SARS agree that the appeal may be heard at another place.