Reckon there's a few forum member who will be affected by these proposed changes.
The Revenue Laws Second Amendment Bill was introduced to Parliament in October 2008. It contains proposed changes to the rules governing the calculation of the second provisonal tax payment that will have a significant impact on provisional taxpayers.
To cut a long story short, you may no longer take the easy way out and base your 2nd provisional payment calculation on the "basic amount" as provided by SARS (which usually happens to be your prior year assessed income which is also invariably lower than your current year actual earnings)
The calculation must now be performed on not less than 80% of your actual taxable income for that specific year, failing which an additional tax (penalty) of 20% may be levied.
The prososed effective date is 1/1/2009 which doesn't leave much time for rescue plans.
Points of particular concern are the various forms of accounting adjustments in the case of companies and profit-related awards to individuals - this type of detail is usually only available after year end and when financials are completed.
Depressing thought for the weekend and up-coming festive season, but what the heck - taxes have never been a source of fun..........
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