Are waitrons tips taxable, and who bears the onus to pay to SARS?
The fourth schedule of the Income Tax Act 58 of 1962 (hereinafter referred to as ‘the Act’) deals specifically with tips and the tax implication in respect thereof. As contained in the preamble of the Act ‘tip’ is defined as “[a]voluntary payment that a patron primarily awards to a recipient who renders a service. The … Are waitrons tips taxable, and who bears the onus to pay to SARS?