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Flashcards in Learning Unit 1 Deck (36):
1

Name the different taxes set up by the South African government

1. Income tax
2. Value added Tax
3.estate duty
4.excise duty
5. Customs duty
6. Transfer duty
7. Air passenger tax
8. Securities transfer
9. UIF
10. Skills development levy(SDL)

2

Income tax includes

Capital gains
Turnover tax
Dividends tax

3

The government has a fiscal year that runs from

1 April to 31 March each year

4

The budget speech is based on

The National Budgets

5

When is draft taxation bills promulgated as a Act of Parliament?

When the act is published in the Government Gazette

6

The Income Tax Act stays exactly the same every year?

No , it's affected by a number of amended acts every year

7

Before legislation is passed by parliament it is called

A Bill

8

A Bill is always accompanied by

An explanatory memorandum, which gives reasons for the amendment

9

The government issues two amendment Acts per fiscal year

1. Taxation Laws amendment Act
2. Taxation Laws second amendment Act

10

Date of promulgation

Date at which it is published in the GOVERNMENT GAZETTE

11

Attached to our Income tax act are

11 Schedules

12

SARS

South African Revenue Service

13

The commissioner of SARS has powers and duties given to him/ her by

The Income Tax Act

14

The commissioner reports to

A board of directors which in turn is accountable to the MINISTER OF FINANCE

15

SARS was established in terms of the

South African revenue Service Act as an autonomous and independent section of Government

16

The South African tax regime is set by

The national Treasury and administered by the commissioner

17

CSARS , CIR , SIR are abbreviations for

The commissioner of SARS

18

On what basis are South Africans taxed?

Residency

19

What does residence basis of taxation mean

Residents of RSA are taxed on all their income they earn , anywhere in the world

20

Where a person is not a resident , they will still be taxed

In South Africa on income earned from a South African source

21

Taxation in RSA can be classified According to

1. What is tax levied on
2. The method used to calculate tax
3. Who must pay

22

Taxes based on what is taxed

1. Income - income tax
2. Consumption-VAT
3.Wealth-Capital gains
4. Other - transfer duty

23

Taxes based on who pays

1. Direct - person who earns pays
2. Indirect - seller bears impact while consumer pays

24

Taxes based on method of calculation

1. proportional - company tax
2. Progressive
3. Regressive

25

Taxation rules are also referred to as

Provisions

26

Binding general rulings issued by the CSARS

Are binding on SARS AND TAXPAYERS

27

Interpretation notes

Are NOT binding on SARS except if they are a binding private of class ruling.

28

The purpose of an interpretation note is

To set out how SARS will interpret or apply certain provisions

29

If a interpretation note provides guidance on how the CSARS intends using his/her discretion

The interpretation note will be binding on SARS and therefore have the same effect as the law

30

CONTRA FISCUM rule

According to this rule , where a provision of the Income Tax Act has 2 interpretations , the court will interpret the provision in terms of the interpretation that places the smaller burden on the taxpayer.

31

When a taxpayer Disagrees with SARS regarding an assessment, name the overarching remedies

1. Alternative dispute resolution (ADR)
2. The tax board
3. The tax court

32

Request for reasons

A taxpayer who is aggrieved by an assessment may request SARS to provide the reasons for the assessment prior to lodging an objection.

33

Lodging a objection

A taxpayer who wishes to object to an assessment must deliver a NOO within 30 days after the delivery of reasons from SARS. Specify grounds for objection on the NOO form or the ADR1 form

34

If a objection has been lodged by the taxpayer, SARS must

Notify the taxpayer of the allowance/ disallowance of the objection and the basis for it within 60 days after delivery of the taxpayer's objection

35

The NOO FORM is applicable to

Personal Income Tax (administrative penalties and assessed tax)

corporate income tax

36

The Alternative dispute resolution for objection (ADR1)

VAT
PAYE assessment
Income tax for trusts
Secondary tax on companies prior to 1 April 2011

Donations tax