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TaxTim says: 8 November 2013 at 9:45 You are entitled to register bonds as you wish and leverage interest rates off one another if that is financially more acceptable. If you had done all this at the beginning of the transaction then it would have been ok, SARS should not have a problem with this as you are merely borrowing money to pay off another debt. However the rules around Tax Avoidance and planning to avoid tax are very strict and basically you cannot enter into any transaction whereby the sole or main reason is to avoid tax or reduce your liability outside of the provisions of the ACT. So in your case, the financial reasons, being the better interest rate should be the primary reason for your entering into this transaction. |
