The costs of deceased estates explained
An important function of an executor, the person who is appointed by the Master of the High Court to administer a deceased estate, is to account for the liabilities in the estate of the deceased. Keep in mind that only once the liabilities in the estate have been discharged can the heirs receive their inheritances. […]
Deducting Income Tax and CGT for Estate Duty
Is subjecting taxpayers to estate duty on post-death asset growth appropriate? In 1789 Benjamin Franklin said that “in this world nothing can be said to be certain, except death and taxes”. He was right about death—but anyone who has had to interpret our tax laws would know that the task is fraught with uncertainty. This […]
Testator beware! The hidden tax consequences of limited interests
Sufficiently providing for one’s loved ones in the event of death is often the greatest legacy one can leave behind. However, failure to undertake proper estate planning can often create unintended consequences- especially that of an increased tax bill for the heirs! Usufructs, and other limited interests, are a popular way of providing security, especially […]
TIME FOR ESTATE DUTY TO GO?
The days of estate duty may be numbered according to Nicolene Schoeman of Schoeman Attorneys and an article by Barry Ger, Cape Town-based tax consultant, in the May issue of De Rebus, the SA attorneys’ journal published by the Law Society of South Africa (LSSA). His opinion is echoed by several other media reports. In […]
IS FIXED PROPERTY IN A TRUST STILL VIABLE?
Gerrie Vosser examines the tax and costs related to different scenarios in order to determine whether it is still a feasible option to hold fixed property in a trust. For many years the high transfer duty rate applying to trusts made it less attractive to purchase fixed properties in trust, a situation that changed, quite unexpectedly, for the better when […]
BE CAREFUL NOT TO OVERLOOK SECURITIES TRANSFER TAX
As if there are not yet enough different types of taxes doing the rounds, Securities Transfer Tax (STT) is just another way in which SARS makes a buck. In the past, the Stamp Duties Act, 1968, catered for the registration of transfer of unlisted securities whereas the Uncertificated Securities Tax Act, 1998, catered for the change in beneficial ownership […]
DIVIDENDS PART 2 – THE “ALL NEW” AND CONTROVERSIAL DIVIDEND WITHOLDING TAX
Following suit and aligning its tax on dividends with international practice,South Africais the latest country to replace its secondary-tax-on-companies (STC) regime with the controversial dividend-witholding-tax (DWT), which came into effect on 01 April 2012. Distinction between STC and DWT STC was payable at a rate of 10% of the net dividend amount. The net dividend amount is […]
ESCAPING THE HIGHER CAPITALS GAINS TAX RATE
By Barry Ger, senior manager for corporate tax at KPMG 01 April 2012 A window of opportunity opens for some companies. If your company is thinking of selling any capital assets and its year end is not February or March there may be a window of opportunity to do it at the lower effective tax rate for […]
BUYING YOUR PROPERTY IN A TRUST: IS IT REALLY WORTH IT?
A trust is a legal entity with its own distinct identity. It has the contractual capacity to acquire, hold and dispose of property and other such assets for the benefit of its nominated beneficiaries. All trusts are governed and administered in terms of the Trust Property Control Act, and formed and governed in terms of a […]
CAPITAL GAINS TAX LIABILITY: INCREASED RELIEF FOR INDIVIDUALS
Any person’s capital gain or loss is determined, for each asset disposed of, during the year of assessment as follows: Proceeds xxxx Less: Base cost xxxx Equals: Capital gain or loss xxxx In order to calculate a taxable capital gain, the sum of all the capital gains and losses for each asset (determined separately) disposed of […]
