TAX CLEARANCE CERTIFICATES: LAW CHANGES
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TAX CLEARANCE CERTIFICATES: LAW CHANGES

The importance of a tax clearance certificate for most businesses cannot be overstated. It often happens though that SARS raises an assessment giving rise to an unexpected tax liability that affects the business’ tax standing. This, in turn, almost always adversely affects the business. Simply paying the extra tax assessed to ensure the business is...

TRANSFER DUTY EXEMPTION AND CORPORATE TRANSACTIONS: ASSET FOR SHARE AND UNBUNDLING TRANSACTIONS
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TRANSFER DUTY EXEMPTION AND CORPORATE TRANSACTIONS: ASSET FOR SHARE AND UNBUNDLING TRANSACTIONS

The Income Tax Act, No. 58 of 1962 (“the ITA”), contains certain provisions colloquially referred to as “the corporate roll over provisions”. In short, these provisions allow certain transactions to take place without triggering immediate adverse income tax (including capital gains tax), VAT, Transfer Duty or Securities Transfer Tax consequences. The taxes that would have...

THE EMPLOYEE’S BAD DEBT DEDUCTION
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THE EMPLOYEE’S BAD DEBT DEDUCTION

Many businesses are struggling to make ends meet. Unfortunately, in these circumstances, employers may be unable to pay salaries but nevertheless still issue IRP5 certificates indicating the salary to which the employee became entitled (despite the fact that it may not have been actually paid). This is often not well received by the employee when...

TAX TIPS – SECTION 24C
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TAX TIPS – SECTION 24C

Upfront payments are common in many industries but especially in construction and manufacturing. These upfront payments often defray costs that will be incurred over more than one tax year. The trouble from a tax perspective is that the full upfront payment is taxable with deductions to be incurred in following years not being deductible. That...

TAX TIP – LESSOR’S WEAR AND TEAR ALLOWANCE
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TAX TIP – LESSOR’S WEAR AND TEAR ALLOWANCE

Taxpayers who let certain assets may qualify for a wear and tear deduction in respect of that asset. Under certain circumstances, the wear and tear deductible in respect of those assets are effectively limited to the rental income generated from that asset. Lessors should therefore be mindful of the applicable tax legislation governing wear and...