Ring-fencing trading losses
Top-rate taxpayers need to watch out for Section 20A Section 20 of the Income Tax Act 58 of 1962 deals with the set-off of losses from a trade against other income. In general, such set-off is allowed (see sub-paragraph (1)(b)), provided that the loss is incurred in the taxpayer’s own name (i.e. not in a […]
How trusts preserve generational wealth
The estate duty savings are compounded over several generations Articles on trusts are often aimed at settlors or donors to highlight the benefit of trusts and the role they play in estate planning at the ‘first-generation’ level. In this article, the author aims to illustrate to second-generation beneficiaries the effect of the decisions their parents […]
Distributing retirement fund death benefits
As per Section 37C of the Pension Funds Act, once trustees have identified dependants of a deceased member, the next step is to allocate the death benefit in a proportion they deem fit. This article highlights some of the key factors in making this determination. Section 37C grants trustees at least 12 months to search […]
Bribes, penalties, and fines: Don’t expect help from SARS
The meeting went on longer than you expected, and now you’re rushing to get to your next appointment. It’s a new client, and a successful deal will be lucrative both for your company and this month’s commission cheque. But not five minutes after you get onto the freeway, some plod with a hairdryer in his […]
Section 24C Allowance: Future Expenditure
The nature of a taxpayer’s business may be such that the taxpayer receives amounts under a contract that will be used to finance expenditure to be incurred in future in performing under that contract. Generally, this would result in an inclusion of the amount in that taxpayer’s income in that year of assessment. In contrast, […]
Submit your return on time, or face penalties
Non-residents and earners of foreign income are also receiving extra attention this year The tax season for the 2022 tax year has just started, and it will be one of the shortest to date. The period to submit tax returns opened on 1 July 2022 and runs to 24 October 2022 for individual taxpayers who […]
Is your disclosure “voluntary”?
In December 2021, the Supreme Court of Appeal (SCA) handed down a judgment dismissing an appeal against a decision of the Tax Court. The issue before the SCA was whether the South African Revenue Services (SARS) was correct in rejecting Purveyors South Africa Mine Services (Pty) Ltd’s (Purveyors) Voluntary Disclosure Programme application (VDP application) for […]
Tax invoice correction
Since it is illegal to issue more than one tax invoice per taxable supply, and another tax invoice may not be issued to alter any consideration in respect of an original tax invoice issued, the Value-Added Tax Act[1] prescribes very specific circumstances in which vendors may issue credit notes in respect of tax invoices that […]
Jou lewende hawe voer Jan Taks
Die gesegde lui, daar is net twee dinge in die lewe wat seker is: die dood en belasting. Die twee loop dikwels hand-aan-hand en beide is (ongelukkig) onafwendbaar. Die wysiging van artikel 9HA van die Inkomstebelastingwet, Nr. 58 van 1962 (“die Wet”) het ’n negatiewe implikasie vir enige boer wat ’n vorm van lewende hawe […]
Employee share schemes: Spur restaurants suffer a blow
In October 2021, the Supreme Court of Appeal (SCA) handed down judgment upholding the Commissioner for the South African Revenue Service’s appeal against an earlier decision in the Western Cape High Court in favour of Spur Group in relation to employee share schemes. The issue for determination by the SCA was whether the high court […]