Tax Breaks Newsletter - Volume 2009, Issue 287, 2009
Volume 2009, Issue 287, 2009
Author Ron WarrenSource: Tax Breaks Newsletter 2009, pp 2 –3 (2009)More Less
Author Ansu BurgerSource: Tax Breaks Newsletter 2009, pp 4 –5 (2009)More Less
Source: Tax Breaks Newsletter 2009, pp 5 –6 (2009)More Less
Section 8(25) of the VAT Act contains relief measures for transactions that fall into the ambit of the Income Tax reorganisation rollover provisions (i.e. Sections 42, 44, 45 or 47 of the Income Tax Act). This VAT relief effectively deems the seller and the buyer to be one and the same person. The effect is that a reorganisation for VAT purposes is deemed to be a non-event.
Author Tim DesmondSource: Tax Breaks Newsletter 2009, pp 6 –7 (2009)More Less
In a recent case before the Tax Court in Cape Town, the issue of allocating a purchase price in the sale of a business was considered. The allocation of the purchase price for a business can, amongst other things, have significant tax implications for the parties. SARS therefore often takes an interest in how such allocations are made.