TAX ON RETIREMENT LUMP SUMS
Determining the tax consequences in respect of any lump sum benefits from retirement funds can be complex and various legislative changes have been incorporated over the last few years, to regulate and align the tax treatment of these benefits. Lump sum benefits are included in “gross income” in terms of paragraph (e) of the definition […]
CHANGES TO BAD DEBT ALLOWANCE
Most South African businesses are at some point in time exposed to credit risk in the form of bad debts. Although taxpayers would undoubtedly prefer to recover the debts, the Income Tax Act[1] provides for some relief in cases where debts have become bad, or doubtful. Not only does section 11(a) provide for the deduction of […]