The Consequences of Making Loans to Trusts
Family trusts have long been a central feature of South African estate and wealth planning, with high-net-worth individuals using trust structures to protect assets and to save certain assets, particularly from estate duty. However, many taxpayers who hold substantial assets baulk at the idea of losing complete control over any assets that they may transfer […]
Your Will is Set, But Who is in Charge? A Guide to the Executor of Your Estate
Completing your last will and testament is one of the most responsible steps you can take to protect your loved ones. It provides clarity, minimises conflict, and ensures your assets are distributed according to your wishes. However, a will is only as effective as the person tasked with carrying it out. This crucial role is […]
“Can’t Buy Me Love” (Money and Relationships)
Money may not be able to buy you love, but it sure can make or break it! Money can be a source of joy, opportunity, and growth, but in relationships, it can also be a source of stress and conflict. Financial disagreements are one of the leading causes of tension in relationships, often stemming from […]
Section 12J Investments: The Numbers Don’t Lie
No hype, just solid numbers outlining the impact of the tax breaks on your investment returns when using a Section 12J vehicle. Jerry Maguire (portrayed by Tom Cruise) will go down in film history for his memorable quote when he shouted, “Show me the money!” However, while I’m unlikely to achieve anywhere near a similar […]
Capital Gains Tax considerations for retiring small business owners
Retirement for small business owners is not simply a case of handing in your resignation letter and having a big party at which the company presents you with a gold watch. It often involves the not inconsiderable task of selling your business particularly if there is no ‘heir apparent’ to take over the reins. And […]
Are you giving signals, trading tips, or trading on behalf of others? beware!
You’re at a braai with friends, and the conversation turns to the latest hot stock or cryptocurrency. Feeling confident in your recent trading success, you offer specific advice to a friend, telling them exactly what to buy and sell. While you might have good intentions, this scenario could land you in hot water if you’re […]
Key considerations before borrowing money in South Africa
Securing a loan is a common approach for financing various personal and business needs in South Africa, from purchasing property to covering unexpected expenses. However, the decision to borrow money requires careful thought and planning. Here are essential factors to consider before you commit to a loan. Assess your financial situation: Evaluate your needs and […]
Don’t lose that tax loss!
Sustaining losses on certain activities, blissfully assuming that SARS will chip in at year-end? Make sure that this loss is not ‘lost’ forever. Many people have invested in second properties based on the knowledge that, for the first few years at least, they would have to fund the shortfall until such time as the rents […]
Is a maintenance payment a ‘Donation’?
Helping someone out may be exempt from donations tax—but as always, the devil is in the detail… Donations tax is one of those strange taxes where people often question its existence. After all, why would SARS be so mean as to want to tax someone’s generosity? The main reason is estate duty—or, more specifically, the […]
Your PAYE obligations as an employer
As an employer, it is your responsibility to withhold tax from your employees’ salaries and remit it to SARS. Employee tax is a key component of the South African tax system and is the mechanism through which employers withhold and remit income tax on behalf of their employees. Commonly known as PAYE (which stands for […]
