Declaring Too Much Income to SARS?
It sounds crazy, but it happens more often than one would think… Many a taxpayer has experienced the wrath of SARS when failing to declare all of their income. The penalties for non-declaration of income are severe—up to 200% of the tax evaded as a consequence of not declaring an amount that is taxable. But […]
Banking Fraud and Estate Administration – The Case That Put Banks on Notice
In a landmark judgment delivered by the Western Cape High Court recently, the court made it clear that banks cannot escape liability when they pay estate funds to the wrong person, even when that person presented themselves as the lawfully appointed executor of a deceased estate. The case of Turner NO v Standard Bank of […]
What’s In a Name?
The differences between an allowance, an advance, and a reimbursement are critical when it comes to tax. What’s the difference between an allowance, an advance, and a reimbursement? To many people, these are different terms for the same thing, but to SARS, the category that a payment falls into is critical when it comes to […]
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 […]
When Is a Trust Not a Trust?
When can the provisions of a trust deed be set aside? When you don’t stick to the rules. Far too many people pay their accountant or attorney a visit, draw up a boilerplate trust deed, sign on the dotted line, and think that this piece of paper will take away all their tax and estate […]
Understanding Your Rights as a Taxpayer: Tax Assessments and the Promotion of Administrative Justice Act (PAJA)
We all pay taxes in one way or another, but as a taxpayer, it is important to understand your rights when dealing with tax authorities, the laws applicable, and whether your constitutional rights might be affected. One of the most common taxes paid is personal income tax. A critical aspect thereof is tax assessments, which […]
What to Do When Tax Is Not Cut and Dried
Do you have a complex transaction, and don’t know which way SARS will go? Ask them upfront! Many entities enter into complex transactions where the tax issues are not cut and dried, but the risk of SARS ruling against them is too great. The good news is that since October 2006, there has been a […]
Handling Payroll for Freelance Workers in South Africa
Managing payroll for freelance workers involves a few key points, including understanding legal requirements, setting clear payment structures, and using the right tools. Here’s a practical overview to help businesses handle freelance payroll effectively. Legal Obligations Freelancers are generally considered independent contractors, but businesses still have some legal responsibilities. Tax Obligations Freelancers are responsible for […]
Protect Your Family’s Assets with Effective Estate Planning
Make sure your assets are managed and distributed according to your wishes. Estate planning is an important step in protecting your family’s future and avoiding any unnecessary complications. Here’s a simple guide to the key steps involved in the process. Define Your Goals Start by outlining what you want to achieve. Whether it’s providing for […]
Tax Planning Strategies for Small Business Owners
As a small business owner in South Africa, managing your tax responsibilities effectively is key to maintaining financial health. By adopting smart tax planning strategies, you can reduce your tax burden and keep your business running smoothly. Here are some practical strategies to consider: Utilise Allowable Deductions One of the simplest ways to reduce your […]