The Draft Taxation Laws Amendment Bill, 2009, released recently for public comments, contains two significant estate duty amendments. The first constitutes a concession, while the second is an anti-avoidance provision.
A common bar to the deductibility of expenditure is the Income Tax Act requirement that the expenditure must be "in the production of income". For expenditure to be considered "in the production of income", it must be expended for the purpose of producing an income that is taxable and not exempt.
SARS issued an updated VAT 409 guide on fixed property and construction transactions during December 2008, in which it clarifies, amongst other things, the VAT accounting procedures for rental pool schemes.