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Cor says: 21 February 2017 at 12:02 Me and five members of my family want to start investing. Before the profits will be paid out the company that does the investments does the tax part on it and then pay us the profits. What I want to know is, if they pay the family members profit into my bank account with my profit will there be any problems with tax on my side because all the money is going to my account. The company will send each of us an IRP5 at the end of the season so that each of us can fill in our tax return. |
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TaxTim says: 21 February 2017 at 12:08 How long will the money be left in your bank account as you will be liable to pay tax on any interest you might earn on it? With regards to the deposits, you should get a written confirmation between yourself and your family confirming that the amounts deposited are indeed meant for distribution between all of you. |
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Cor says: 21 February 2017 at 12:15 The money will stay in my account as long as the account is open. I want to manage the money for my parents and my wives parents that is why we want it to be paid in one account so that we can manage it better. Not all of the money will be given at one time some will be left behind to be used as needed. So the sum will grow. Paying tax on the interest will be okay with me but its the capital part I worry about. So will I be liable for tax on the capital itself even if my part of the profit is lower? Remembering that all taxes has been deducted before being paid into the account on each persons own tax number. |
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TaxTim says: 21 February 2017 at 12:45 You will only be liable for tax on the interest your bank account earns. |
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Cor says: 21 February 2017 at 14:26 Thank you. I was afraid I would be held liable for the total capital that is in the account although my earnings alone was less than that will be coming in. I will get the letters from each person for permission. |
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TaxTim says: 21 February 2017 at 14:30 Only a pleasure! |
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