New Fuel Levy Implementation Sparks Nationwide Debate.
While some have praised the measure for its potential to drive economic growth and reduce reliance on external funding, others have expressed concerns about its impact on everyday living costs. Commuters, transport companies, and small businesses have voiced apprehensions over increased expenses that may exacerbate the cost of goods and services. Advocacy groups have urged the government to consider subsidies or relief packages for vulnerable communities disproportionately affected by the levy.
In response to the criticism, the government has committed to monitoring the levy’s impact on inflation and economic stability. Officials have stated that a portion of the revenue will be directed toward initiatives aimed at alleviating financial pressure on low-income households. Plans for public consultations are also in place to ensure transparency and address citizen concerns.
Despite the challenges posed by this policy, its proponents argue that the fuel levy represents a vital step toward balancing fiscal responsibility with sustainable development. As the nation navigates this new economic landscape, the debate around the fuel levy is likely to intensify in the months ahead.
SARS Launches 2025 Tax Season with Expanded Auto-Assessments and Compliance Focus.
This year’s tax season opens on 7 July 2025 for non-provisional taxpayers, who must submit their returns by 20 October 2025. Provisional taxpayers and trusts have until 19 January 2026 to file. A key feature of this season is the expanded auto-assessment program, which now covers over 4.8 million taxpayers. SARS will issue auto-assessment notifications between 7 and 20 July, with refunds processed within 72 hours for those who accept the assessments.
Taxpayers who are not auto-assessed or who wish to dispute their assessments can begin manual filing from 21 July 2025. SARS Commissioner Edward Kieswetter emphasized the agency’s focus on improving efficiency and enforcing compliance. “We are committed to making it easier for honest taxpayers to comply, while taking firm action against those who do not,” he said.
SARS has also issued a stern warning to non-compliant taxpayers, highlighting that failure to meet obligations could result in penalties, fines, or imprisonment. The agency is leveraging data analytics and third-party information to identify discrepancies and enforce accountability.
As the filing season begins, SARS encourages all taxpayers to verify their personal details on the eFiling platform, respond promptly to notifications, and seek assistance if needed. The agency’s digital channels and contact centres are fully operational to support the public throughout the season.
Should you want professional advice in this regard please do not hesitate to contact our offices.
SARS Tax Case Sends Strong Message on Trust Accountability.
The case, Taxpayer D v CSARS (IT 35476), involved a taxpayer who failed to justify the origin of R42 million advanced to a company under their control. SARS deemed the amount undeclared income and, after further investigation, assessed the taxpayer on a total of R57.1 million — including R20 million in interest income linked to shareholder loan accounts.
The taxpayer’s attempt to revise the loan amount to R3 million mid-trial was rejected by the court, which found the explanation unconvincing. Notably, the taxpayer did not testify, relying solely on legal and accounting representatives. The court’s judgment emphasized that unsupported claims and retrospective adjustments are insufficient when facing SARS’s increasingly data-driven enforcement.
This case underscores several critical lessons:
- Documentation is non-negotiable: Trustees must maintain clear, consistent records, including resolutions, loan agreements, and financial statements.
- Accountability cannot be outsourced: Trustees and funders must understand the financial affairs of their trusts and companies, rather than relying entirely on advisors.
- Transparency is essential: SARS is intensifying its focus on complex trust structures and inter-company loans, especially where transactions appear circular or opaque.
Understanding the Essential Requirements and Structure of a Trust in South Africa.
Essential Requirements for a Valid Trust
To establish a valid trust, the founder must have a serious intention to create the trust. This involves transferring control of the trust assets to trustees, who manage them not in their personal capacities but for the benefit of the beneficiaries. The trust property must be clearly identified, and its object must be lawful and explicitly stated. Trustees must have legal capacity and proper authorisation, such as Letters of Authority issued by the Master of the High Court. Additionally, there must be at least one beneficiary, who must be clearly identified or easily identifiable. The validity of a trust instrument is often tested by creditors, SARS, or in legal disputes, as the Trust Property Control Act does not specify formation procedures.
Structure of a Trust
A trust consists of four key components:
- Founder/Donor: The individual who establishes the trust and transfers ownership of assets.
- Trustees: Appointed individuals or entities responsible for administering and managing the trust assets.
- Trust Assets: Property transferred to the trust, which can include movable or immovable assets.
- Beneficiaries: Those who benefit from the trust, either through income or capital distributions. Beneficiaries may have vested or discretionary rights.
This structure ensures the trust operates effectively, with clear roles and responsibilities for all parties involved. Trusts are widely used for estate planning, asset protection, and financial management, making them a valuable tool in South Africa’s legal and financial landscape.
Should you require professional advice in this regard do not hesitate to contact our offices.
