The ‘Big Three’ Tax Worries (Part 3): Property
Rounding up our series on the three main worries for taxpayers, we discuss property. So, you now know how to claim your car expenses on your tax return, and are reasonably confident that you can now manage your share investments without incurring the wrath of SARS. But the one thing that really keeps you awake […]
Have a Little R.E.S.P.E.C.T for My Wishes
Your will gives you the final say – even after you’re gone. A Michigan court has ruled that a handwritten document from 2014 is Aretha Franklin’s valid last will and testament after the Queen of Soul passed away without a formal will in 2018. This follows a year-long court battle between her sons to determine […]
The ‘Big Three’ Tax Worries (Part 2): Shares
In the second part of this series, we focus on shares. If claiming against our car allowances is the number one thing that keeps us awake at night as taxpayers, then the fear of SARS lying in wait to lay their grubby paws on the slightest gain that we make on our share investments must […]
Understanding Residency in Terms of Tax
When earning an income in South Africa, you are probably paying tax. The Income Tax Act 58 of 1962 (“the Act”) describes gross income as: “(i) in the case of any resident, the total amount, in cash or otherwise, received by or accrued to or in favour of such resident; or (ii) in the case […]
The ‘Big Three’ Tax Worries (part 1): Cars
What keeps taxpayers awake at night? Judging by the many questions that I’ve been asked as a tax practitioner over the years, there is a definite ‘Big Three’ when it comes to problems that cause taxpayers sleepless nights: cars, shares, and property. The tax treatment of these three items probably causes more anxiety, and has […]
How SARS Holds Individuals Accountable with Lifestyle Audits
When it comes to tracking down tax-dodgers, SARS has the tools, the people, and the will. Tax evasion and illicit financial flows are two areas that have long undermined economic growth in South Africa and public trust in governance. To counter these challenges, SARS has increasingly leaned on a controversial but effective tool—the lifestyle audit. […]
Banking Fraud and Estate Administration – The Case That Put Banks on Notice
In a landmark judgment delivered by the Western Cape High Court recently, the court made it clear that banks cannot escape liability when they pay estate funds to the wrong person, even when that person presented themselves as the lawfully appointed executor of a deceased estate. The case of Turner NO v Standard Bank of […]
What’s In a Name?
The differences between an allowance, an advance, and a reimbursement are critical when it comes to tax. What’s the difference between an allowance, an advance, and a reimbursement? To many people, these are different terms for the same thing, but to SARS, the category that a payment falls into is critical when it comes to […]
What to Do When Tax Is Not Cut and Dried
Do you have a complex transaction, and don’t know which way SARS will go? Ask them upfront! Many entities enter into complex transactions where the tax issues are not cut and dried, but the risk of SARS ruling against them is too great. The good news is that since October 2006, there has been a […]
Long-Term Goals, or Short-Term Gains?
More than a million applications have already been lodged with the South African Revenue Service (SARS) to pull funds out of their savings. Given that this amounts to R21.4 billion, that’s a frightening amount of money for a country that doesn’t have a savings culture. What with more people withdrawing cash under the Two Pot […]