Category Archives: Case Studies

Is your company/close corporation still “alive”?

Perhaps the most detrimental effects of a company or close corporation that was deregistered due to non - compliance with annual returns , is the fact that all of its assets ( including fixed assets such as houses or buildings ) vested in the state. Pam is the only member of a close corporation ( PK Investments CC ) . Three years ago, Pam decided to buy property as an investment. In order to protect the property from creditors and the rental income to isolate, Pam decided to transfer the property in the name of PK Investments CC. Pam has invested substantially in the maintenance of the property and has recently become a very attractive offer received for the sale of the property that she, as the only member of HP Investments CC , decided to accept. Unfortunately, before transfer of the home was done, the purchaser 's lawyer inform Pam...
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After following our advice, income tax to the amount of R 283 671 were saved by a Close corporation because our firm registered the taxpayer correctly at SARS. The importance of registering a taxpayer cannot be over emphasized and the knowledge thereof is of the utmost importance.  The following is some of the registration requirements:
  • Must an individual be registered for provisional tax and save penalties?
  •  Not all dependents have to register for income tax. Special provisions are applicable.
  •  A nonprofit company (old section 21 Company) is not automatically exempt from paying tax. A registration has to be done.
  • Certain companies/ Close corporations may be registered as a small business corporation.  If one qualifies for this the saving will be for the years that one has been registered as such R94 000 per year (2014).  If one’s business trades for say 15 years the saving is     R1.4 m.
  • Some trusts can be registered as special...
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A client commissioned lawyers to draw up various sale agreements.  We advised the lawyers to amend the agreements which lead to a saving in Capital Gains Tax for the amount of  R 700 000. A client sold some of his companies.  Lawyers drew up contracts which the client forwarded to us for review i.r.o. tax implications. Legally the lawyer did an excellent job but all the tax implications were not taken into consideration. The same situation can occur during divorce settlements when there is a shareholder buy-out or a payment of goodwill.      ...
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