Davey’s Locker
Loans Between Trusts
Yet more on s 7C of the Income Tax Act In essence, s 7C of the Income Tax Act subjects to an annual donations tax, effective as from 1 March 2017, an interest-free or low-interest loan to a resident trust. The effect of applying the 20% donations tax rate to the 8%...
The Special Voluntary Disclosure
Extend the deadline! A group of tax practitioners (me included) is lobbying the National Treasury, requesting the Minister of Finance to grant an extension to the SVDP. Complexity During the 2002/2003 forex and tax amnesty process there was one valuation date for the...
Primary Residence Exemption
More on s 7C of the Income Tax Act Effective as from 1 March 2017, s 7C of the Income Tax Act subjects to an annual donations tax an interest-free or low-interest loan to a resident trust (167, 168 TSH 2017; see also the Monthly Notebook in this issue). An exemption...
SVDP Diagrammatic Depiction
Section 7C of the Income Tax Act revisited
I covered the new s 7C of the Income Tax Act, effective as from 1 March 2017, in 162 tsh 2016. In essence, donations tax is levied annually on the provision of an interest-free or soft loan by a natural person (or such a person’s connected person) to a domestic trust,...
Budget Speech 2017 – 2018 Tax Year
BUDGET SPEECH 2017/18 TAX YEAR INDIVIDUALS The maximum marginal rate for natural persons is increased to 45% (previously 41%) and is reached when taxable income exceeds R1 500 000. The minimum rate of tax remains at 18% on taxable income not exceeding R189 880. The...
End of an Exemption
Removal of foreign service retirement fund tax exemption Current tax position Currently, s 10(1)(gC), as read with s 9(1)(i) of the Income Tax Act, exempts the receipt of a foreign pension arising from employment services rendered outside the Republic (140 tsh 2014)....
USP and Bona Fide Inadvertent Error
Understatement penalties—Part 2 Bona fide inadvertent error As stated in 164 tsh 2016, s222(1) of the Tax Administration Act refers to the imposition of an understatement penalty, unless the understatement results from ‘a bona fide inadvertent error’. It follows that...
Special Voluntary Disclosure Programme
SARB RELIEF The South African Reserve Bank’s relief for exchange control breaches, contained in Circular 6 of 2016, was canvassed in 160 tsh 2016, and remains unchanged. In essence administrative breaches (moneys always abroad but not previously reported to SARB, such...
Special voluntary disclosure programme
FORTH AND FINAL VERSION? October 2016 SARB relief The South African Reserve Bank’s relief for exchange control breaches, contained in Circular 6 of 2016, was canvassed in 160 tsh 2016, and remains unchanged. In essence administrative breaches (moneys always abroad but...
Interest-free loans to trusts
SECOND DRAFT OF SECTION 7C September 2016 On 25 September 2016 the National Treasury issued the ‘second batch’ of the 2016 Draft Taxation Laws Amendment Bill (TLAB) for public comment (see the Monthly Listing). This second batch incorporates amendments consequent upon...
Retirement funds
THE CGT EXCLUSION AND OFFSHORE BOONDOGGLES August 2016 Contributions: as you were In 156 tsh 2015, I looked at the new tax treatment of contributions to retirement funds, effective as from 1 March 2016, pointing out that, since ‘taxable income’ includes a taxable...