Bribes, penalties, and fines: Don’t expect help from SARS
Deductions are disallowed under Section 23(o)—but it’s not quite cut and dried… 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 […]
Travel claims, but no allowance?
For commission-earners and the self-employed, the rules are slightly different—but travel costs can be claimed. The common mistake that I make when writing articles about travel allowances is that I tend to forget that not all of us are ‘wage slaves’. Indeed, there are many taxpayers for whom the saying, “If a man will not […]
Belasting gevolge van ‘n skenking
Skenkings, wat effek ‘n ooreenkomste is waar een party instem om iets van waarde aan ‘n ander te skenk, word deur die Inkomstebelastingwet beheer en is as sodanig belasbaar. Daarom, voordat u aan u kind hul eerste motor gee of u volwasse kind help om hul eerste eiendom te bekom, is dit raadsaam om die […]
Don’t lose that assessed loss!
Assessed losses can be carried forward—provided that the company doesn’t cease trading If the amount of allowable deductions exceeds the taxable income in your business, you will end up with what is known as an ‘assessed loss’ for tax purposes. In terms of Section 20 of the Income Tax Act, you are entitled to carry […]
Deducting bond interest when using an access bond facility
You can use a loan re-advance against your house to purchase a rental property, and get the interest allowed as a tax deduction – it just needs to be structured properly One of the questions most frequently asked is whether interest on a bond raised to purchase a rental property is deductible against the rent […]
Waarna om te kyk wanneer u ‘n BTW-faktuur indien
Alle belastingpligtiges wat deur ‘n BTW-verifikasie van SARS gegaan het, weet hoe frustrerend die vertragings op inset-BTW-terugbetalings kan wees wanneer ondersteunende dokumente nie aan die vereistes vir ‘n geldige belastingfaktuur voldoen nie. Hieronder herbesoek ons ‘n paar van die nodige sleutelelemente om behoorlike nakoming in hierdie verband te verseker. Die BTW-wet identifiseer verskillende transaksies wat […]
SARS and the never ending cycle of inappropriate verifications
Taxpayer complaints of this nature are now classified as systemic. By Amanda Visser 4 May 2022 The Office of the Tax Ombud recently identified repeated verifications of the same tax risk by the South African Revenue Service (SARS) as a systemic issue. These inappropriate verifications were discovered during an analysis to determine the root causes behind delays […]
Analysing tax exemption for dividends
Dividends are a valuable part of many shareholders’ income, but even though they are exempt from regular income tax, it does not mean that they are completely exempt from tax. A dividend can be defined as any local or foreign dividend paid by a resident company of South Africa or a foreign country, provided that the […]
How will the 2022 Budget changes affect you?
The annual National Budget Speech was delivered on 23 February 2022 by Finance Minister Enoch Godongwana. Practitioners are getting to grips with some of the more pertinent changes that will become a reality for taxpayers, particularly in the individuals, employment and savings areas. Reviewing the timing of accrual and incurral of variable remuneration Section 7B […]
What to do after discovering fraud in your business
Anyone who’s ever had the misfortune to fall prey to credit card fraud, knows that it’s a huge hassle. If you’re running a business, you should be aware that your business may be at an even greater risk of having its financial data compromised, which can have much more serious implications compared to that of […]