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Article 7 (C) OF THE INCOME TAX ACT, 58 of 1962 - effective from 1 March 2017 As from 1 March 2017, in terms of this new provision, low-interest (or interest-free) loans are targeted to trusts. This article applies where a natural person (or a company that is a "connected person" with respect to that natural person) (hereinafter trust creditor) under paragraph (d) (iv) of the definition of connected persons, make a low-interest or interest-free loan to a trust whose natural person is a "connected person". This article states that the difference between the "official interest rate, currently at 8%, and the amount of interest actually charged on the loan to the trust is deemed to be a continuous donation to the trust. As a result, the lender is taxed on a deemed donation that he makes to the trust which will be calculated as follows. Should the natural person's loan amount to...
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Exchange control circular issued in respect of special voluntary disclosure programme

On 13 July 2016 the Financial Surveillance Department (FinSurv) of the South African Reserve Bank (SARB) issued exchange control circular no. 6/2016 (Circular) regarding details and information required in an application for exchange control relief submitted as part of the joint tax and exchange control Special Voluntary Disclosure Programme (SVDP) which was announced by the Minister of Finance in the 2016 Budget Speech. The SVDP will run for a period of six months from 1 October 2016 to 31 March 2017 (SVDP Period). The SVDP will afford South African residents (individuals, sole proprietorships, partnerships, deceased estates, insolvent estates, South African trusts, close corporations and companies) and former residents the opportunity to disclose their foreign assets held in contravention of the Exchange Control Regulations, 1961 (Regulations) so as to regularise their affairs from an exchange control perspective. According to the Circular, applications for exchange control relief under the SVDP must be made pursuant...
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2016 TAX SEASON INCOME FROM 1 MARCH 2015 UP TO 29 FEBRUARY 2016 1. WHO IS REQUIRED TO SUBMIT AN INCOME TAX RETURN TO SARS 1.1 All individuals whose income from ONE employer is greater than R350 000 for the      next year. 1.2 All individuals whose income is less than R350 000 if: • Their source of income is from more than one employer • They receive a car allowance • They have other sources of income (rent, interest etc) • They have deductions they want to claim (e.g. medical expenses, retirement annuity              contributions) • They have local capital gains/losses. 1.3 Note this list is not exhaustive and we should be contacted should you need clarity. 2. WHAT SUPPORTING DOCUMENTS DO YOU NEED IN ORDER TO COMPLETE YOUR TAX RETURN? 2.1 Your banking details 2.2 Your IRP5/IT3(a) certificate(s) 2.3 Certificates that you received in respect of any investment income IT3(b) 2.4 Details of medical expenses...
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