Tax Breaks Newsletter - Volume 2009, Issue 285, 2009
Volume 2009, Issue 285, 2009
Source: Tax Breaks Newsletter 2009, pp 1 –2 (2009)More Less
Business travel is not as glamorous as it seems - no matter how exotic the location, much business travel comprises shuttling between the airport, the office, and the hotel. But given the weakness of the South African Rand against most major currencies, not to mention the tightening of corporate budgets, trying to sweeten the deal with a few days of holiday time is simply becoming too expensive nowadays.
Source: Tax Breaks Newsletter 2009, pp 2 –4 (2009)More Less
The fundamental governing principle of value-added tax (VAT) is that it is leviable on the supply of goods and services by a vendor. It can be difficult enough just to determine the correct VAT treatment of a transaction. Imagine the additional frustration created when SARS assesses a business on supplies it was not even aware that it had made.
Source: Tax Breaks Newsletter 2009 (2009)More Less
A question I am often asked is around the tax implications of writing off loan accounts when someone dies. This is a common situation when benevolent parents loan money to their children (rather than donate, since this attracts Donations Tax), and then "write off" the loan in their wills when they die. However, a nasty CGT surprise awaits if you get it wrong
Author Mmangaliso NzimandeSource: Tax Breaks Newsletter 2009, pp 4 –5 (2009)More Less
Paragraph 12(5) of the Eighth Schedule to the Income Tax Act 58 of 1962, as amended, was introduced to deal specifically with the scenario where a debt owed by a debtor to a creditor is reduced or discharged by the creditor for no consideration, or for one which is less than the amount by which the face value of the debt is reduced or discharged. In these circumstances, the debtor is liable for Capital Gains Tax (CGT) on an amount equal to the extent to which the debtor has been relieved of his obligations. The debtor is deemed to have acquired a claim to so much of the debt as is reduced or discharged for no consideration, and to have disposed of the claim for proceeds equal to the reduction or discharge.
Author Chris EagarSource: Tax Breaks Newsletter 2009 (2009)More Less
Author Charl NiemandSource: Tax Breaks Newsletter 2009 (2009)More Less