Completing your individual tax return can be cumbersome and overwhelming, especially if you are uninformed about the basics. However, the important part of completing a tax return is to know exactly what you are allowed to claim as a deduction, and then to understand how you should claim that deduction.
SARS has issued a Binding Private Ruling (BPR 151) on 13 August 2013 relating to the donations tax, capital gains tax, and estate duty consequences of the renunciation (repudiation) of a right to benefit under a will.
For as long as I can remember, it has been a rule of mine that one should not make decisions "for tax purposes". In other words, a decision should make sense on its own merits. Only once the decision has been made, should one then begin to consider the most tax-efficient way of going about it.
I originally wrote this article in October 2010, and the principles outlined therein remain valid. However, a query that I received from an annuity provider highlights a practical problem arising from requests received on the strength of this article. Although the persons concerned were seeking to invoke something I had never written, I thought it would be appropriate to re-publish the article, and include the query and my response thereto, so that the record can be set straight.
SARS recently published a ruling dealing with the question as to whether the cancellation and extinguishment of a right to claim interest on a shareholder loan will trigger a capital gains tax (CGT) liability (Binding Private Ruling: BPR 152).
The draft Taxation Administration Laws Amendment Bill, 2013 (TALAB), released on 5 July 2013 has extended the definition of 'SARS confidential information' to include information relating to the auditing procedures or methods used by SARS in a tax assessment.