Citibank in Sars’ crosshairs over VAT liability
The tax agency said secondment of international employees constitutes taxable imported services
The local unit of US investment banking group Citibank is in the crosshairs of the SA Revenue Service (Sars) over the secondment of the company’s offshore employees, an activity the tax agency says amounts to the importation of services and is subject to VAT.
The outcome of the dispute is likely to have ripple effects on other multinational firms operating in SA as they tend to send their employees to work in other countries to manage and assist with special projects and implement firm-wide systems...
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