Donations tax is payable on the total value of property disposed of (whether directly or indirectly) by a resident by means of a donation. (“Donation” is the gratuitous disposal of a property in this case, without expecting something in return.)
Tax News
FAQ – Do any exemptions apply to Donations Tax?
Donors as individuals In terms of section 56(2) of the Income Tax Act, 1962, donations tax shall not be payable in respect of the sum of the values of all property disposed of under donations (by a donor who is a natural person), where it exceeds R100 000 during any year of assessment. This came into operation on 1 March 2007 and is applicable in respect of any year of assessment commencing on or after that date. In other words, the first R100 000 of any bona fide donation will be free of donations tax. It should be noted that this amount is the maximum allowed (in totality) per year of assessment. Donors other than individuals For juristic persons such as private companies, the exemption is limited to R10 000 per year of assessment in respect of casual gifts. However, where a year of assessment is less than 12 months, Read More …
SARS and your bank account
On 29 February 2012, the South African Revenue Service (SARS) issued a notice in Government Gazette No 35090 (Notice No 173) relating to the liability of certain institutions, most notably banks, to furnish SARS with financial information about taxpayers. The notice was issued in terms of s69 of the Income Tax Act, No 58 of 1962, which section has been superseded by s26 of the Tax Administration Act, No 28 of 2011 (TAA).
Anti-avoidance: share repurchases through subsidiaries
Judgment was handed down on 16 November 2012 by the Tax Court in the case of A Ltd v Commissioner for the South African Revenue Service. The facts were as follows. A Ltd was a company listed on the JSE
Avoidance as accepted practice – Commissioner for the South African Revenue Service v NWK Ltd 2011 (2) SA 67 (SCA)
Judgment was handed down in the important case of Bosch and McCleland v Commissioner for the South African Revenue Service on 20 November 2012 by a full bench of the Western Cape High Court (a case we have previously reported on).
High Court interprets NWK judgment
Judgment in the case of Mariana Bosch and Ian McClelland v Commissioner for the South African Revenue Service (case no A94/2012) was handed down on 20 November 2012 by a full bench of the Western Cape High Court. The main judgment was written by Davis J (Baartman J concurring) and a separate judgment was written by Waglay J. The matter was on appeal from the Tax Court.
South Africa Takes First African Chair Of Global Tax Forum
At a meeting held in Cape Town on October 26 – 27 South African Revenues Service (SARS) official Kosie Louw was elected chairperson of the Global Forum on Transparency and Exchange of Information for Tax Purposes.
South Africa's New Tax Administration Act Is In Force
by Lorys Charalambous, Tax-News.com, Cyprus 04 October 2012 The South African Revenue Service (SARS) has announced that the Tax Administration Act (TAA), which is intended to simplify and provide greater coherence in South African tax administration law, and was promulgated on July 4, 2012, largely came into effect on October 1, 2012.
SARS Rolls Out Mobile Phone Tax Return Filing
In a first for revenue authorities in Africa, the South African Revenue Service (SARS) has announced that taxpayers can now complete and file their tax returns via their mobile phones using its eFiling application. Using the application, users can submit their individual income tax return, view their notice of assessment and see their income tax statement of account, as well as view their tax calculator. For taxpayers to be able to submit their tax return using the SARS eFiling app, taxpayers must first register for eFiling from a computer or laptop at the SARS website. Once registered, users can then eFile from their mobile device or tablet. Earlier in September, SARS also announced that users of e-Filing who required assistance while completing their tax returns online would be able to use the Help-You-eFile service, a new facility which allows them to be in direct contact with a SARS Call Centre Read More …
South Africa Closes Loopholes In New Dividend Tax
by Lorys Charalambous, Tax-News.com, Cyprus South Africa’s Minister of Finance, Pravin Gordhan, has announced the closing of tax avoidance schemes which have arisen with regard to the operation of the new dividends tax.