Bikini model says SARS ruined her life

[dualmeister]

Actually the donations exemption is R100k per year, not R200k. Also the rate is 20% up to R30 million, and then 25% of however much exceeds R30 million.

Apologies. You are correct. Did not know it increase after R30M.

There are some work a rounds apparently though. For example there is no limit to the amount that spouses can transfer between each other. So theoretically if each spouses donated R100K to the same person then you could get to the R200K. This is what I was thinking of ... for no particular reason of course

 

[deweyzeph]

This is my understanding as well. My take is that she does not owe SARS anything, and it was gifted/donated by a non-resident.

She should've rather gotten the payment on paypal or bitcoin instead.

The crux of SARS's case however is that they do not believe the money was a donation from Hariri, but from her own father, a resident of South Africa and therefore subject to donations tax.

The distinction between a gift and a donation is one that has been explored many times in tax law. There is a lot of case history, but the bottom line is that SARS has to be satisfied that a gift is a genuine gift and proportional to the lifestyle and means of both the person giving the gift and the person receiving the gift. What's curious though is how anyone involved in this transaction, whoever they may have been, would think that it would not attract the attention of the authorities. You can't just give someone $16 million and treat it like you've just given them some pocket money.

 

[deweyzeph]

There are some work a rounds apparently though. For example there is no limit to the amount that spouses can transfer between each other. So theoretically if each spouses donated R100K to the same person then you could get to the R200K. This is what I was thinking of ... for no particular reason of course

While it's true that there's no limit to how much spouses can donate to each other, there are very strong anti-avoidance measures in the income tax act covering the substance of transactions. While what you're suggesting might work in theory, in reality if that transaction were to be audited by SARS, they would question the substance of the transaction and whether it was entered into in order to avoid donations tax.

 

[dualmeister]

While it's true that there's no limit to how much spouses can donate to each other, there are very strong anti-avoidance measures in the income tax act covering the substance of transactions. While what you're suggesting might work in theory, in reality if that transaction were to be audited by SARS, they would question the substance of the transaction and whether it was entered into in order to avoid donations tax.

Good thing I'm poor then and have nothing to donate

 

[CB40]

Good thing I'm poor then and have nothing to donate

Only your sperm

 

[Swa]

The figures being thrown around are all over the place. Some are saying R200m while others are saying R150m or less.

imagine what she had to do for that money.
Imagine how many orgies that pays for.
Holey cow... pun intended.

For that kind of money you usually get a bit more than access to holes. Think 50 shades stuff.

Actually the donations exemption is R100k per year, not R200k. Also the rate is 20% up to R30 million, and then 25% of however much exceeds R30 million.

The argument that she has put forward is that the money was a gift and not a donation and therefore is not subject to donations tax. Alternatively another argument is that if it was a donation then it was donated by a non-resident and donations by non-residents to residents do not attract donations tax.

Donations Tax

Well this seems more like a technicality then as in neither case it would attract tax. So not sure exactly what Sars is setting out to prove. Seems like indeed another case of wasting tax payers' money.

 

[deweyzeph]

Well this seems more like a technicality then as in neither case it would attract tax. So not sure exactly what Sars is setting out to prove. Seems like indeed another case of wasting tax payers' money.

They're trying to prove that the donation did not come from a non-resident, but in fact came from her own father.

 

[Swa]

They're trying to prove that the donation did not come from a non-resident, but in fact came from her own father.

Well then they should have the papertrail to prove it. Seems they're asking her instead to prove it's not the case. Also I can't see the reasoning behind it. Even rich people don't give out those sums of money just to have them lying around.

 

[ToxicBunny]

Well she is right in one aspect that the court case ruined her career... Because it's obvious that she isn't a model but a very fscking expensive whore...

 

[Craig_]

I found the answer from the nytimes article.

"career" may be what she actually means. Being a prostitute isn't really what you can call a career.

 

[ToxicBunny]

"career" may be what she actually means. Being a prostitute isn't really what you can call a career.

At r150m it's a bloody good career if you ask me.

 

[Mila]

"career" may be what she actually means. Being a prostitute isn't really what you can call a career.

Its the oldest profesion known to man.. How is it not a career.
I can fry burgers at macdonalds or i'm pretty enough to make a desirable lay?
I can tell you which pays more for less hours...on your feet.


badabish!!

 

[gottagoon]

Its the oldest profesion known to man.. How is it not a career.
I can fry burgers at macdonalds or i'm pretty enough to make a desirable lay?
I can tell you which pays more for less hours...on your feet.


badabish!!

LOL ahahaha

 

[Vrotappel]

Well then they should have the papertrail to prove it. Seems they're asking her instead to prove it's not the case. Also I can't see the reasoning behind it. Even rich people don't give out those sums of money just to have them lying around.

Onus is on the taxpayer.

 

[Vrotappel]

If this is for 'services rendered' then it is income and taxable. I don't buy the gift story one second.

 

[ToxicBunny]

If this is for 'services rendered' then it is income and taxable. I don't buy the gift story one second.

Of course it's income... She was paid to do very very weird things that his wife at the time wouldn't.

 

[Vrotappel]

Maybe it is still the father and the politician is just whoring out his name for a kickback.

 

[Gordon_R]

Maybe it is still the father and the politician is just whoring out his name for a kickback.

Very murky story, need to be careful of libel laws here:
If the Mauritius trip took place in 2012, and she was born in 1993, then she was 19 at the time of the 'modelling services'. I wonder if her father was her legal guardian, since she was under 21 when the 'donation' took place?

 

[nightjar]

... Being a prostitute isn't really what you can call a career.

Of course it is - and much more honest than a preacher or a politician.
She provides a service and gets paid.
Preachers and politicians get paid for the promises they make but fail to fulfill.

 

[surface]

If this is for 'services rendered' then it is income and taxable. I don't buy the gift story one second.

Gift tax