Tax Implications Of a Cash Gift/Loan Between Family Members

Posted 30 September 2014

My wife received a R250K cash gift (or loan) from her mother on the condition that it should be repaid if the mother needs it back - otherwise it is to form part of her inheritance.Is there any tax implication to this besides my wife declaring the interest earned on this amount as taxable income on her returns?

If you donate R100 000 to your spouse, does she need to declare it as income and pay normal income t

Posted 23 September 2014

If you donate R100 000 to your spouse, does she need to declare it as income and pay normal income tax on it?If yes;If your spouse is in a lower tax bracket than you, would you donate money to him / her annually? Then the spouse will be taxed on the donation at lower rate than what you would be taxed at?

Will SARS suspect me of tax evasion If I don't declare a watch(R23 000) donated to a friend.

Posted 25 August 2014

What happens if SARS finds out about a casual gift(a watch) I have given to a friend. Will SARS investigate me for tax evasion if I have donated a watch valued at R23 000 to a friend and I have not declared any details relating to that donation on any tax returns. I'm aware that I would qualify for the R100 000 general exemption for donation.

Gift Taxation

Posted 19 August 2014

Is a gift of money given from Mother to Son regarded as a donation?
Is any amount exceeding R100,000 given as a gift taxable?
Does the SARS rules re Donations and Gifts also apply to moving money from one offshore bank account to another family members offshore bank account? This money was taken out legally.
Do you have to declare a Donation or a Gift of R100,000 on your Income Tax Return and, if so, under which section?

What is a reasonable market related interest rate to use on a loan to a family trust?

Posted 8 August 2014

Hi Tim, what is regarded as a reasonable interest rate on a loan made by a trustee to a family (discretionary) trust in order to avoid a "Deemed donation" being made in the form of no/too low interest? I would argue that it would be an "opportunity cost" rate - for example a FNB money market rate.

Do I need to declare my foreign income on my ITR12?

Posted 6 August 2014

I was living and working outside of SA for more than 6 months in the last tax year. On the first page of the tax return, it asks if I was unemployed for the full tax year. I called an agent at SARS and explained that I was unemployed in SA but employed in the UK for the tax year. She asked if I have an IRP5, which I don't as I didn't work in SA for the tax year. She then said that I would then say that I was unemployed.

I am wanting to check if that is correct. I understand that my i...

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What qualifies as a PBO donation?

Posted 30 July 2014

Hi Tim,I have file my tax return for the 2011 and claim for donation on the code 4011 for the amount of R13500.00 to church of my choice for the faith of goodwill. All payments have been made in cash payments for that tax year of 2011. To my question is SARS selected me for auditing and I have provided them all documents like my medical aid certificates, RA Old Mutual ITC and my IRP5 certificate for 2011. Do I still need to provide the proof for that donation of the above amount and do I need to...

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What documents do I need?

Posted 29 July 2014

What documents do I need copies of to do my tax?

CGT Calculation for non resident?

Posted 25 July 2014

CGT
I inherited shares in a 3 private companies at a total value of R650,000.00 in 2003.
I intend selling all the shares at a total price of R2,500,000.00.
I would thus make a capital profit of R1,850,000.00
I am a non resident of South Africa and a citizen of and tax resident of Australia.
I pay taxes in South Africa on dividend and interest at a tax rate of 18%.
What would my CGT liability be.

Charity deduction - where do I include this on my tax return?

Posted 15 July 2014

I have received a tax certificate from a charity that I donate to. Where on the tax return do I add it?

If I received a cash donation of below R50 000 from parents do I need to declare this for tax purpos

Posted 11 July 2014

If I received a cash donation of below R50 000 from parents do I need to declare this for tax

Can I claim if I get commission that's less than 50% of my income?

Posted 9 July 2014

What can I claim for if I get commission that is less than 50% of my income?

Offshore money received from my brother for me to buy property in RSA.

Posted 7 July 2014

Hi Tim..i received R500 000 from my brother in Australia (he is an Australian Citizen) so for him that was like only 50 000 Aus dollars to help me get a deposit for a house here in RSA. For the outstanding amount I got a loan at a local bank. Which one pays the tax?

Am I liable for tax on the repayment of a loan account and how do I reflect this in my tax return?

Posted 1 July 2014

I invested (in the form of a loan account) in a start up private company as a shareholder at the end of 2004. I have been receiving monthly income from the company since mid 2013 as repayment of the original loan account plus annual interest. How do I account for these repayments in my tax return and am I liable for tax on these repayments of the loan account?

We are a non profit organisation, do we need to pay tax in any way?

Posted 1 July 2014

We are a non profit organisation, do we need to pay tax in any way?

Is donation received an income?

Posted 30 June 2014

Is donation received from a relative included in gross income?

Church and the IT12 for eFiling?

Posted 3 June 2014

I want to ask if I should use the IT12TR or the IT12IE when submitting returns for a "church" on eFiling

Deductions on Section 18A donations

Posted 30 May 2014

What is the total deduction you can claim (as a % of your taxable income) for Section 18A donations?

Are donations to political parties tax deductible?

Posted 15 May 2014

Are donations to political parties tax deductible?

Income tax legislation?

Posted 9 April 2014

I need to know income tax legislation and criteria for deductible income tax.

Tax reliefstructure salary for tax purposes?

Posted 25 March 2014

I pay medical aid for myself and 2 dependents

What deduction can I take monthly from my salary in this regards

The medical aid payment if R7000 a month as one of the dependents is over 21

What other benefitdeductions can I make on my salary to save tax ??

Tax on inheritance?

Posted 3 March 2014

If I inherit money from my father will I be taxed on it?

A donation of R100 000 to children will it reduce your tax or what is the benefits of doing it?

Posted 26 February 2014

If you declare a R100 000 donation to your children will it help reducing you tax or what benefits is there in doing it?

If you declare before 28 February that you donate R100 000 to your children what impact will it have

Posted 25 February 2014

If you declare before 28 February that you donate R100 000 to your children what impact will it have on your individual tax?

SARS wants me to submit supporting documents, but the document list is empty

Posted 20 February 2014

I think SARS owes me a refund because my ITA34 reflected a negative number and said "refund due to you". Anyway they are now giving me grief, disputing my refund and demanding I respond in 21 days by sending me a "Final Request to Revise Income Tax Return or Submit Relevant Material". However in this document they say: "In the event that you couldn't find an error, you also had the option of submitting to SARS copies of the following material in support of the declarations made in your income tax return:" This is followed by an empty document list. ...

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