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.
Isn't it strange how something that seems so simple can end up being extremely complex once you get into it? Stripping your child's bicycle is one such animal, and so is the new Dividend Withholding Tax that replaces STC sometime in 2010. This month we look at some of the difficulties the new tax poses for collective investment schemes.
About three or four years ago I stuck my neck out and predicted that the day would come where the "deemed kilometre" method of claiming business travel against a travel allowance falls away, making it compulsory for travel allowance recipients to keep a logbook for claiming business travel. This year's Budget proved that prediction to be true, in that as from 1 March 2010 any claims for business travel must now be substantiated by a logbook - the deemed method will be no more.
Prior to 2002, many people used private companies and close corporations as vehicles to purchase their homes. At the time, the purchase of the shares in a company or the interest in a close corporation owning a domestic residence was not subject to transfer duty.
The implementation of the new dividends tax, which was first mentioned in the Budget speech in February 2007 and ever since has been the subject of much discussion and debate, will remain a hot topic for the months to come.