oa Meditari : Research Journal of the School of Accounting Sciences - Determining a taxable capital gain or an assessed capital loss : some problems
|Article Title||Determining a taxable capital gain or an assessed capital loss : some problems|
|© Publisher:||University of Pretoria|
|Journal||Meditari : Research Journal of the School of Accounting Sciences|
|Publication Date||Jan 2007|
|Pages||35 - 50|
|Keyword(s)||Assessed capital loss, Base cost, Capital gain / loss, Capital gains tax, Capital gains tax building blocks, Consecutive disposals, Inclusion of rights and assets for capital gains tax purposes, Interpretation of capital gains tax legislation, Meaning of 'proceeds' for CGT-purposes, Net capital gain, Proceeds, Taxable capital gain, Unaccrued amounts - paragraph 39A and Unquantified amounts - section 24M|
Despite the South African legislature's intention to introduce capital gains tax (CGT) as a simple and clear tax, it is an extremely complex tax. Several provisions of both the Eighth Schedule to the Income Tax Act 58 of 1962 and the Act itself have to be taken into account in determining whether a taxable capital gain or an assessed capital loss has arisen during the year of assessment. The application of these principles is often surrounded by uncertainty. Hence, the purpose of this article is not only to provide an overview of some of the different provisions that have to be taken into account and the interaction between them, but also to highlight some of the problems arising from the application of the principles themselves.
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