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Welcome to the Tax-News weekly newsletter,

 

Tax-News.com carries topical headlines and features on international tax, legal, economics, business and investment issues.

 

 

Latest Tax-News Special Feature

 

Accounting Standards: Introduction to IFRS

 

As if tax wasn't complicated enough in most jurisdictions, businesses must also contend with accounting standards rules that, internationally, are in a state of flux as countries harmonize their own rules with ever-evolving international standards at different speeds. This feature attempts to make sense of the current accounting standards situation, and the transition to global standards.

 

From National to International Financial Reporting Standards (IFRS)

 

It is a legal requirement in most jurisdictions that public companies must present their accounts and other financial information according to a standard set of accounting rules. Traditionally, these rules were developed at national level - US Generally Accepted Accounting Principles (GAAP) is but one example. However, globalization means that thousands of companies now operate in more than one jurisdiction - sometimes several - and this means that accounts have to be prepared and published under numerous different sets of national accounting rules. This undesirable situation has led to confusion and a general lack of transparency for investors when scrutinizing a company's financial records. The answer to this has been the development of a single set of standards that can be used by companies to present information in a uniform way regardless of jurisdiction, a process begun in 1973 by the Board of the International Accounting Standards Committee, which issued International Accounting Standards (IASs). The fact that this is still very much a work in progress 40 years later is a testament to how arduous a task this has been.

 

Read full feature »

 


Sovereign Trust (South Africa) Limited

Q&A with Coreen Hayman, Managing Director of Sovereign Trust (South Africa) Limited

 

The South African Government is eager to make it easier for its residents to invest internationally and for non-residents to invest in South Africa. Significant changes to our exchange control rules and dividend tax regime are clear indications of the Government's attempts to make this happen. Coreen Hayman, Managing Director of Sovereign Trust (South Africa) Limited (an offshore service provider with company, trust and cross border tax consultancy expertise) deals with some of the more frequent questions raised in connection with this topic.

 

Q1: Dividend tax replaced Secondary Tax on Companies (STC) recently - when did the changes come into effect and what has changed?


Q2: Why the change?


Q3: Apparently South Africans shareholders are not liable for tax on dividends received from a foreign company. Is that true?


Q4: What are Exchange Control Regulations?


Q5: Do these Regulations only apply to South African nationals?


Q6: In terms of the Exchange Control Regulations, Investment allowances have increased significantly over the last decade. How much can a South African currently invest abroad?


Q7: Is it true that you can reduce income tax and estate duty by transferring your annual Investment Allowance to an offshore trust and investing through the trust?

 

For more information on Sovereign, please visit our website: www.SovereignGroup.com

Cape Town Office, 7 West Quay Road, Block A, 2nd Floor, V&A Waterfront, Cape Town, 8001
Tel: +27 (0) 21 418 2170

Fax: +27 (0) 86 645 0489
sact@sovereigngroup.com

Latest Tax News

 

Aus Govt Unveils MRRT Revenue Figures

The Australian Government has revealed details of the revenue so far generated by the controversial Minerals Resource Rent Tax, with the amount raised falling dramatically below that forecast.
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South Korea Concentrates On FTA Network

South Korean Minister of Strategy and Finance, Bahk Jaewan, hosted the 3rd Crisis Management Meeting of 2013 on February 7 and led a discussion on the country's challenges and future plans, now it has earned the title of a "free trade agreement hub," having signed treaties with 45 countries across three continents by the end of 2012.
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Ireland Completes Latest Bailout Review

Ireland has completed its latest bailout review, with the troika concluding that the economic recovery is continuing and praising the Government for its commitment to meeting the targets set.
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Belgium Falls Short On Dissuasive Environmental Taxes

Belgium has one of the lowest environmental tax burdens in Europe, according to a recent study on the latest developments in the area of environmental taxation conducted by Eurostat, the statistical office of the European Union.
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