Latest news with #VAT
The National
14 hours ago
- Business
- The National
Beyond the Bottom Line: How UAE Companies Can Turn Tax Compliance into Competitive Advantage
This column focuses on different treatments of tax law. If you are in a certain industry, what is the correct timing when invoicing? What information is mandatory on supplier invoices? You can continue to ask questions of this nature up to and including internal document management and compulsory filing with external parties. By way of consequences, inevitably it is the stick, not the carrot, that delivers the greatest response. It is important to understand what penalties can be applied and the sum value of interest on those. This is because it is typically at a later time that problems are discovered. Focusing on the carrot, let us reframe this as a positive business proposition. It is a useful exercise to revisit, line by line, component by component, your profit-and-loss statement to see if contributing elements are optimised. One part often overlooked is tax. Not just corporate tax, but VAT – and depending on your business activities – excise and customs duties. You can tell a lot about a chief executive's leadership by what draws their attention first. 'Sales is vanity, profit is sanity and cash flow is reality.' In uncertain times this adage is never more true. Let's start with sales. From an organisational viewpoint, the location of sales should cause you to consider having a separate entity for non-Gulf business. Depending on what and where you do it, this business might be exempt from corporate tax. At the very least, you can elect to sit outside the UAE's VAT system having satisfied the relevant authorities that you comply with their conditions. What would be lost in reclaimable VAT would be counterbalanced by not having to comply with rules of treatment for client and supplier invoices. Add to that reporting and the potential for disruptive external audits to normal internal operations. Let us add another layer. As more rules are introduced to a tax regime, it requires more effort to manage the increased difficulty. Several regimes that are adding new or amending existing rules, often tugging operational practices in different directions, require an alternative management approach. The worst outcome is when the rules of one tax regime are permitted to dictate the actions of another and do so incorrectly. For example, I've worked with people who, for years, thought that VAT did not apply to their revenue. These businesses will discover that the people to whom they are filing their annual corporate tax return, detailing their revenue, are the same as those they are not reporting their VAT related revenue to. If this is the position you find yourself in, admit the error. The relevant authorities will work with you to correct matters. Yes, with penalties, but having dealt with and settled your dues, the issue is considered resolved and everyone moves on. The above are examples of what you might find when you review your sales processes. It's not a comprehensive list. Let us move on to cost of goods and services. Does your business track the profitability of each piece of work it does at a consolidated level? For a corporate tax perspective, you are interested in whether any of your suppliers are related or connected parties. This means understanding the different parties that make up your supply chain. While you are looking at that, take a look at your margins. While we are talking about transfer pricing, what happens when a related party is not a direct supplier, but instead supplies one who is. Do the same rules of proving that transactions are being carried out at arm's length apply? I do not know. It's possible that a business might be unaware that it's happening. Given ignorance is no defence in law, that might not be sufficient, should it be discovered. Would the value of such business matter? A one-off transaction of value verses multiple micro transactions. Given the breadth of what constitutes a related party in the UAE, it might be easier than you think to find your organisation in this position.
IOL News
a day ago
- Business
- IOL News
Businessman fined R82,000 for tax evasion
Errant taxpayer, Roelof Serdyn, was convicted of one count of failure to submit an Income Tax return, eight counts of failure to submit Pay as You Earn (EMP201) returns, and 32 counts of failure to submit VAT returns. Image: Ziphozonke Lushaba / Independent Newspapers Businessman and errant taxpayer, Roelof Serdyn, was fined R82,000 for failing to submit Income Tax returns, Pay as You Earn returns, and Value Added Tax returns to the South African Revenue Service (SARS) between 2018 and 2024. National Prosecuting Authority (NPA) spokesperson, Eric Ntabazalila, said Serdyn - sentenced in the Bellville Magistrate's Court this week - was convicted of one count of failure to submit an Income Tax return, eight counts of failure to submit Pay as You Earn (EMP201) returns, and 32 counts of failure to submit VAT returns - all in contravention of the Tax Administration Act. Immediately after his sentence, Serdyn paid R42,000, and the balance of R40,000 was paid in monthly instalments of R5,000. Ntabazalila confirmed that a further cumulative amount of R164,000 or, in the alternative, 246 months imprisonment was suspended for five years on certain conditions. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Ad loading 'Serdyn was charged alongside his company, Akvaba (Pty) Ltd, but the charges against the company were withdrawn after its liquidation. The court heard that Akvaba (Pty) Ltd was registered as a taxpayer and was therefore obligated to comply with all tax obligations towards the SARS. 'Serdyn was the representative taxpayer, employer, and representative vendor of Akvaba (Pty) Ltd. He was responsible for the company's tax affairs, which included the submission of all tax returns (IT, PAYE, and VAT) of Akvaba (Pty) Ltd. 'The accused ignored the reminders and final demand notices issued by SARS. When he was summoned to appear in court, the returns were submitted,' said Ntabazalila. In the lead up to the annual tax season opening, Ntabazalila said the case serves as a warning to persons acting as representative vendors, representative employers, and public officers who serve in these positions. 'These duties and responsibilities should not be taken lightly as non-compliance with such duties will have serious consequences for such incumbents in their capacity,' said Ntabazalila. The sentence in this case follows closely on the cases of J W Lubbe (and Jacor Transport Holding), who was sentenced to a fine of R148,000 on June 11, 2025, and H L van der Westhuizen (and Tempo Konstruksie CC), who was sentenced to a fine of R126,000 on May 30, 2025. In a statement, SARS said this tax season marks an important period where income tax returns of the majority of taxpayers are automatically assessed. The category of taxpayers who are automatically assessed will receive notification from SARS from July 7 to 20, 2025. Taxpayers who do not receive notifications from SARS that they are automatically assessed are encouraged to submit their tax returns in a timely and accurate manner from July 21, 2025. The Filing Season will close on October 20, 2025, for non-provisional individuals. SARS urged all taxpayers to prepare their documentation early to check their assessments and to avoid last-minute delays for those who must submit an income return. 'In line with our strategic objective to make it easy for taxpayers to comply, we have identified a large segment of non-provisional and provisional taxpayers who receives income from one or more sources from formal and other forms of employment and whose tax affairs are not complicated have been selected to be automatically assessed,' SARS said. Taxpayers can access their auto-assessed income tax returns through any of SARS's channels, such as the SARS MobiApp or SARS eFiling, to review and verify the completeness and accuracy of the information that resulted in the auto assessment. For more information, visit the SARS website.
The National
a day ago
- Business
- The National
Why UAE companies must understand the nuances of tax laws
This column focuses on different treatments of tax law. If you are in a certain industry, what is the correct timing when invoicing? What information is mandatory on supplier invoices? You can continue to ask questions of this nature up to and including internal document management and compulsory filing with external parties. By way of consequences, inevitably it is the stick, not the carrot, that delivers the greatest response. It is important to understand what penalties can be applied and the sum value of interest on those. This is because it is typically at a later time that problems are discovered. Focusing on the carrot, let us reframe this as a positive business proposition. It is a useful exercise to revisit, line by line, component by component, your profit-and-loss statement to see if contributing elements are optimised. One part often overlooked is tax. Not just corporate tax, but VAT – and depending on your business activities – excise and customs duties. You can tell a lot about a chief executive's leadership by what draws their attention first. 'Sales is vanity, profit is sanity and cash flow is reality.' In uncertain times this adage is never more true. Let's start with sales. From an organisational viewpoint, the location of sales should cause you to consider having a separate entity for non-Gulf business. Depending on what and where you do it, this business might be exempt from corporate tax. At the very least, you can elect to sit outside the UAE's VAT system having satisfied the relevant authorities that you comply with their conditions. What would be lost in reclaimable VAT would be counterbalanced by not having to comply with rules of treatment for client and supplier invoices. Add to that reporting and the potential for disruptive external audits to normal internal operations. Let us add another layer. As more rules are introduced to a tax regime, it requires more effort to manage the increased difficulty. Several regimes that are adding new or amending existing rules, often tugging operational practices in different directions, require an alternative management approach. The worst outcome is when the rules of one tax regime are permitted to dictate the actions of another and do so incorrectly. For example, I've worked with people who, for years, thought that VAT did not apply to their revenue. These businesses will discover that the people to whom they are filing their annual corporate tax return, detailing their revenue, are the same as those they are not reporting their VAT related revenue to. If this is the position you find yourself in, admit the error. The relevant authorities will work with you to correct matters. Yes, with penalties, but having dealt with and settled your dues, the issue is considered resolved and everyone moves on. The above are examples of what you might find when you review your sales processes. It's not a comprehensive list. Let us move on to cost of goods and services. Does your business track the profitability of each piece of work it does at a consolidated level? For a corporate tax perspective, you are interested in whether any of your suppliers are related or connected parties. This means understanding the different parties that make up your supply chain. While you are looking at that, take a look at your margins. While we are talking about transfer pricing, what happens when a related party is not a direct supplier, but instead supplies one who is. Do the same rules of proving that transactions are being carried out at arm's length apply? I do not know. It's possible that a business might be unaware that it's happening. Given ignorance is no defence in law, that might not be sufficient, should it be discovered. Would the value of such business matter? A one-off transaction of value verses multiple micro transactions. Given the breadth of what constitutes a related party in the UAE, it might be easier than you think to find your organisation in this position.
Yahoo
a day ago
- Business
- Yahoo
Continuation of the customs adjustment process initiated by the Tax Authority
BOGOTA, Colombia, June 26, 2025 /PRNewswire/ -- Ecopetrol S.A. (BVC: ECOPETROL; NYSE: EC, the "Company" or "Ecopetrol" and together with its subsidiaries, the "Ecopetrol Group") informs that on May 29, 2025, the Dirección de Impuestos y Aduanas Nacionales (the "Tax Authority") notified Refinería de Cartagena S.A.S. (the "Refinery") of two resolutions mandating the Refinery to conduct correction assessments in relation to customs import declarations for gasoline. In accordance with the Tax Authority's interpretation of the law, the Refinery owed approximately COP 1.0 trillion, plus estimated interests to date of COP 2.1 trillion, for the import of gasoline between 2022 and 2024. On June 26, 2025, the Refinery filed the corresponding motions for reconsideration against the aforementioned customs correction assessments. The official assessments notified by the Tax Authority to the Refinery reflect the continued differences in regulatory interpretation between the Tax Authority and the Ecopetrol Group—an issue that the Refinery has detailed in its motions for reconsideration. Considering that the Tax Authority has decided to apply its regulatory interpretation, Ecopetrol and the Refinery have been making VAT payments on gasoline and diesel imports at the 19% rate since January 2025. It is important to note that these VAT payments do not affect Ecopetrol's and the Refinery's rights to challenge the Tax Authority's interpretation at the appropriate time and before the relevant authorities. Ecopetrol and the Refinery reaffirm their commitment to fully comply with their customs and tax obligations and will respect the decisions issued in this matter by the competent authorities, as stated on May 6, 2025 in a communication published through this medium. Ecopetrol is the largest company in Colombia and one of the main integrated energy companies in the American continent, with more than 19,000 employees. In Colombia, it is responsible for more than 60% of the hydrocarbon production of most transportation, logistics, and hydrocarbon refining systems, and it holds leading positions in the petrochemicals and gas distribution segments. With the acquisition of 51.4% of ISA's shares, the Company participates in energy transmission, the management of real-time systems (XM), and the Barranquilla - Cartagena coastal highway concession. At the international level, Ecopetrol has a stake in strategic basins in the American continent, with Drilling and Exploration operations in the United States (Permian basin and the Gulf of Mexico), Brazil, and Mexico, and, through ISA and its subsidiaries, Ecopetrol holds leading positions in the power transmission business in Brazil, Chile, Peru, and Bolivia, road concessions in Chile, and the telecommunications sector. This release contains statements that may be considered forward-looking statements within the meaning of Section 27A of the U.S. Securities Act of 1933, as amended, and Section 21E of the U.S. Securities Exchange Act of 1934, as amended. All forward-looking statements, whether made in this release or in future filings or press releases, or orally, address matters that involve risks and uncertainties, including in respect of the Company's prospects for growth and its ongoing access to capital to fund the Company's business plan, among others. Consequently, changes in the following factors, among others, could cause actual results to differ materially from those included in the forward-looking statements: market prices of oil & gas, our exploration, and production activities, market conditions, applicable regulations, the exchange rate, the Company's competitiveness and the performance of Colombia's economy and industry, to mention a few. We do not intend and do not assume any obligation to update these forward-looking statements. For more information, please contact: Head of Capital Markets Carolina Tovar Aragón Email: investors@ Head of Corporate Communications (Colombia)Marcela Ulloa Email: View original content to download multimedia: SOURCE Ecopetrol S.A.
Irish Times
3 days ago
- Business
- Irish Times
VAT rate cut for hospitality is back on the table - but will it be enough?
One of the shake-outs from last year's general election and the subsequent Government formation talks is that cutting the VAT rate for the hospitality sector to 9 per cent from 13.5 per cent now looks almost certain to happen. Ahead of last year's budget the idea was knocked back, with Department of Finance officials particularly opposed to the idea, calling it unjustified. 'The cost is very significant. For instance the cost of a further temporary VAT reduction to 9% for a full year is estimated to be €764 million,' the department said at the time. So what changed? READ MORE Aside from the election and a new Coalition, Ireland's budgetary position looks much more precarious as the impacts of Donald Trump's tariffs ripple across the globe, with Ireland and its bounteous corporation tax revenue particularly vulnerable. As a result, as Cliff Taylor notes, the Government has considerably less room to manoeuvre this year in terms of tax cuts than last year, and the mooted cut in VAT for hospitality is likely to eat up most of the available resources. The move has the potential to become a big political issue. Firstly, there is likely to be much less by way of an income tax package for households. As Taylor notes: 'If income tax bands and credits are not adjusted for inflation each year, then taxpayers end up seeing a bit more of their income taken in tax – for example due to a higher proportion of their income being payable at the higher 40 per cent rate.' Just doing nothing, the tax burden creeps higher. Secondly, other SMEs may wonder why they are being left out. And finally customers are unlikely to see much by way of a benefit, other than holding down the rate of inflation they face while eating and drinking out, at least for a while. And what of the benefit for the hospitality sector? The sector remains under pressure with regular reports of businesses closing down, with high costs a frequently cited factor. However, the sector faces a wide range of domestic price pressures, including sharply rising food prices and stubbornly high energy and insurance costs. The more challenging issue for the sector and the Government is that Ireland is now the second most expensive country in the European Union with only Danes expected to pay more for a range of goods and services. When it comes to alcohol and tobacco, prices here are the most expensive, while food and non-alcoholic drink prices in Ireland are third highest in the EU, though this is a slight improvement on recent years. This is likely to be a factor in the decline in inbound tourism – a key pillar for the hospitality sector - this year, with the Central Statistics Office reporting a 4 per cent fall in tourism numbers in April and a 10 per cent decline in spending. While a VAT rate cut may provide short-term relief for the hospitality sector, it is unlikely to deal with the structural challenges it faces. Five Key Reads Annie McCarrick's family in Long Island speak out: 'The gardaí did not investigate who we thought was guilty in the very beginning' - The mother, aunt and oldest friend of the American woman who went missing in Ireland in 1993 talk about how they would take comfort in having their long-standing belief validated. Family Fallouts: 'I can't describe the heartache of not having a relationship with my sister' - When sibling relationships fall apart, it can have devastating consequences on our emotional wellbeing and our physical health. Roe McDermott explores how sibling bonds can become emotionally charged, distant, or even estranged - and the impact this can have. Dolores McNamara: Whatever happened to the €115m lotto winner? This week the country was gripped by the news that an Irish winner had scooped a €250 million EuroMillions jackpot. To mark the occasion, Conor Pope reflects on the fortunes of Limerick woman Dolores McNamara, who won the then largest ever EuroMillions jackpot of €115 million in 2005. The tale encompasses country estates, possibly misguided foreign investments, and security. How AIB came back from the brink: Sixteen years after its initial rescue amid the crash, AIB - once worth less than its art collection - returned this week to full private ownership as the Government sold its final 2 per cent stake to market investors. The Irish bank is now hugely profitable, but, as Joe Brennan writes, the legacy of the bailout still lingers. How the death of an 'old boy from Ireland' in London-Irish suburb sparked a misguided viral appeal: A handwritten notice in a shop window of the death and upcoming funeral of Sligo man Martin Fallon in London recently triggered a well-intentioned but misguided campaign to find Fallon's family. Mark Paul examined what the viral campaign got wrong, as well as Fallon's life story and what it says about the changing nature of a London-Irish enclave. As always, there is much more on , including rundowns of all the latest movies in our film reviews , tips for the best restaurants in our food section and all the latest in sport . There are plenty more articles exclusively available for Irish Times subscribers here . We value your views. Please feel free to send comments, feedback or suggestions for topics you would like to see covered to feedback@ .
