SARS E-Filing 2016

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zerocool2009 said:
LOL

Ok, go to www.taxtim.co.za (they have millions of questions that people who don't know ask them).

One of them was related to a car being sold. I took that section and posted in here for who ever is worrying about CGT

In other words, I can now sell my car for R500 000, and I bought it for lets say R300 000 (and not pay tax on the profit)

If I where a car dealer on the other hand, yes, then CGT comes into play

Anyway, find out and PM me please (would love to hear if I am right or wrong)
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If you are a car dealer then CGT does not come into play as buying and selling cars as a trade excludes it as a CGT transaction. The same goes for trading in fixed property as a trade(think property developers)

Defenition from the Eighth Schedule of the Income Tax Act:

‘asset’
includes—
(a) property of whatever nature, whether movable or immovable, corporeal or incorporeal, excluding any currency, but including any coin made mainly from gold or platinum; and
(b) a right or interest of whatever nature to or in such property;

Excluded from CGT is "Personal-Use Assets.

S53 Personal-use assets
(1) A natural person or a special trust must disregard a capital gain or capital loss determined in respect of the disposal of a personal-use asset as contemplated in subparagraph (2).


(2) A personal-use asset is an asset of a natural person or a special trust that is used mainly for purposes other than the carrying on of a trade.



(3) Personal use assets do not include—
(a) a coin made mainly from gold or platinum of which the market value is mainly attributable to the material from which it is minted or cast;
(b) immovable property;
(c) an aircraft, the empty mass of which exceeds 450 kilograms;
(d) a boat exceeding ten metres in length;
(e) a financial instrument;
(f) any fiduciary, usufructuary or other like interest, the value of which decreases over time;
(g) any contract in terms of which a person, in return for payment of a premium, is entitled to policy benefits upon the happening of a certain event and includes a reinsurance policy in respect of such a contract, but excludes any short-term policy contemplated in the Short-term Insurance Act;
(h) any short-term policy contemplated in the Short-term Insurance Act to the extent that it relates to any asset which is not a personal-use asset; and


4) For the purposes of subparagraph (2), an asset of a natural person or a special trust to whom an allowance is or was paid or payable in respect of the use of that asset for business purposes, must be treated as being used mainly for purposes other than the carrying on of a trade.

http://www.acts.co.za/income-tax-act-1962/sch_8_part_viii_other_exclusions
 
Thanks Signates, that covered my earlier question nicely.
 
zerocool2009 said:
https://www.taxtim.com/za/blog/how-is-profit-on-sale-of-private-vehicles-taxed
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He's answer is actually off. You need to look at the intent of the transaction first. His intent is to buy the bakkie and sell it at a profit irrespective if it's a once off transaction or 3 in 10 years. The "personal use" definition also falls away because of this even though he might use it for personal use his intent is clear, to purchase an asset and sell it at a profit.

The intent of the transaction can however change but you would need to look at the time between buying the asset and selling it.
 
signates said:
He's answer is actually off. You need to look at the intent of the transaction first. His intent is to buy the bakkie and sell it at a profit irrespective if it's a once off transaction or 3 in 10 years. The "personal use" definition also falls away because of this even though he might use it for personal use his intent is clear, to purchase an asset and sell it at a profit.

The intent of the transaction can however change but you would need to look at the time between buying the asset and selling it.
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What if I really wanted to buy a vehicle for personal use but then shortly after I receive an offer that would be stupid to refuse? What then?
 
TheBadMadMan said:
What if I really wanted to buy a vehicle for personal use but then shortly after I receive an offer that would be stupid to refuse? What then?
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The profit is incidental to the primary intent so no need to declare the profit. SARS however can question this though. If they rule against you, you would need to lodge an objection and if that fails, go through the appeals process, tax tribunal and finally through the tax court where you would need to convinced a judge what your intent was regarding the transaction.
 
signates said:
The profit is incidental to the primary intent so no need to declare the profit. SARS however can question this though. If they rule against you, you would need to lodge an objection and if that fails, go through the appeals process, tax tribunal and finally through the tax court where you would need to convinced a judge what your intent was regarding the transaction.
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Damn sounds like a real pain in the a$$.
I'm assuming this assumes that you declared the income?
 
TheBadMadMan said:
Damn sounds like a real pain in the a$$.
I'm assuming this assumes that you declared the income?
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No need to declare it. This is based on if SARS find out by other means.

It's amazing how SARS gets to know of financial transactions that's not declared. It's not always through first hand information but more through random third/fourth party audits that leads to customer/supplier invoice verification.

I personally know of someone who did not declare any or very little of their income as a supplier to a large retailer for more than 10 years. The retailer was one year audited which led to verification of certain supplies which lead them to this person who was trading as a sole prop. They checked their system and found no record of the income in there tax returns and then went back to the retailer to get details of all the expenses over the years. They were hit with more than R5m in tax and penalties on undeclared income. Fortunately no criminal investigation but SARS took everything including their home and put it on auction to recover the debt. They haven't recovered to this day and it's been more than 15 years ago.
 
Can anybody please tell me how the primary, secondary and tertiary rebate works? E.g. if someone is say 78 years old, would they get only the tertiary rebate or all three?
 
Dianysis said:
Can anybody please tell me how the primary, secondary and tertiary rebate works? E.g. if someone is say 78 years old, would they get only the tertiary rebate or all three?
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Primary rebate applies to all tax payers. Secondary applies to those between 65 % 75. Tertiary to those over 75. A 78 year old would get all 3.
 
When selected for audit is it necessary to also print out the letter requesting the supporting documents and uploading it with everything else?
I uploaded my IRP5, logbook, and medical aid certificate but am now not sure if I needed to upload that letter also.

I uploaded all of the documents on the 12th of July and have not heard any news since then so was just wondering if there might be some kind of hold up because of this.
 
The_Mowgs said:
When selected for audit is it necessary to also print out the letter requesting the supporting documents and uploading it with everything else?
I uploaded my IRP5, logbook, and medical aid certificate but am now not sure if I needed to upload that letter also.

I uploaded all of the documents on the 12th of July and have not heard any news since then so was just wondering if there might be some kind of hold up because of this.
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No need to upload the letter.
 
What's the limit for receiving/giving a donation tax free per year?

A family member wants to gift another family member some money but would prefer they arent taxed, perhaps better to give it over 2yrs etc but we need to know the tax free limit per annum.
 
Once can donate up to R100 00 per year free of donations tax. Any tax due on donations is payable by the donor, but should that tax not be paid then the donor and donee are joint and severally liable.
 
Devo1 said:
Done my return this morning. Sars owes me!!! :)





-R0.59
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They owed my in 2015 and paid R185, they owed me in 2015 and have still not paid the R603, now with 2016 all together they owe me R3800... let's see if I get paid out... and I even settled the 0.14c that I owed them from 2001 :p
 
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