Category Archives: Case Studies

CAPITAL GAINS TAX

An amount of R1 211 675.00 was saved after objections were lodged with SARS i.r.o. Capital Gains Tax, Income tax, penalties and interest, which was incorrectly levied. Capital Gains Tax is only levied if the selling price of a primary home owned by a natural person or special trust is more than R2 million (2014). Small business assets which have an interest for the amount of R1.8 million (2014) Rollover relief:
  • Transfer between spouses
  • Share block conversions to sectional title of full title
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ESTATE DUTY SAVED

    Estate duty to the amount of R 3 220 000 was saved by founding trusts and a partnership and doing thorough estate planning. When estate planning is done all assets must be taken into account.  Sometimes clients “forget” about insurance policies that are also assets for estate duty purposes. In some cases  assets were bought in trusts.  The trading was done in the Trusts and not in the person’s personal capacity. The assets increased in value over a period of time.  Young people usually forget the increased value which is added to their assets over time.  Buying assets in a Trust can be functional but it is of the utmost importance to determine which assets are permissible....
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VAT SAVED

VAT amounting to R430 126 was saved when property was sold in the correct manner.  The VAT act has subsequently been amended and the amount refunded to the client. The business was registered for VAT and farms had been purchased from a person who was not registered for VAT. We advised that VAT be claimed on second-hand goods (the farms).  Although transfer duties had been paid, SARS refunded the VAT.  Quite often businesses do not claim all the permissible VAT. Due to our thorough knowledge of legislation we are in a position to advise clients when VAT can be claimed.   Claiming VAT on double-cab bakkies is not permissible and may lead to penalties and interest being levied by SARS....
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