Weird SARS situation - endowment inheritance to the wrong person

What is the total value of the endowment?
 
Either way tax is going to be paid here I think. So not sure what the ideal workaround here would be
 
airborne said:
That's a good one but won't Sars be wise to that?
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It was possible a few years ago, I actually did that myself with no issues.

It's possible that they may have tightened up on it by now though.
 
I made a loan of R1m to my ex-employee's shops business to buy key-cutting computers, a bakkie, etc. The business is repaying this at R10k a month and has been doing so since January 2022

SARS decided this was not a loan and is rental income. I sent SARS a copy of the signed loan agreement. Their response is that "value received" does not constitute a loan agreement and fined me R33k for what they see as mis-declaring income.

To make a video appointment is a 6-week delay and there was supposed to be such a appointment on 9th December. That morning SARS called to say the appointment was cancelled and I must make another. This is now 3rd March 2025
 
chrisc said:
I made a loan of R1m to my ex-employee's shops business to buy key-cutting computers, a bakkie, etc. The business is repaying this at R10k a month and has been doing so since January 2022

SARS decided this was not a loan and is rental income. I sent SARS a copy of the signed loan agreement. Their response is that "value received" does not constitute a loan agreement and fined me R33k for what they see as mis-declaring income.

To make a video appointment is a 6-week delay and there was supposed to be such a appointment on 9th December. That morning SARS called to say the appointment was cancelled and I must make another. This is now 3rd March 2025
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Yikes.

What do they regard the R1 mill loan as?
 
Can't she just sign out acceptance of it to the estate rather?
 
vigras rojara said:
Yikes.

What do they regard the R1 mill loan as?
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SARS just brushed this aside. The SARS lady was very aggressive and kept interrupting me. I just decided not to answer her questions as she had already made her decision and ignored what I told her
 
chrisc said:
SARS just brushed this aside. The SARS lady was very aggressive and kept interrupting me. I just decided not to answer her questions as she had already made her decision and ignored what I told her
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Hectic!

I've never had much of a problem with them, but it has admittedly been a few years since I've had anything remotely complex on my return.
 
zerocool2009 said:
You pay zero taxes on endowments! Even in estate cases. They are excluded.
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You're missing the point. When ex wife donates the R600k to new wife, it will be taxed...

I hear that SARS have tightened up on donations disguised as loans and they must now be done at market rates - that interest will experience income tax at marginal rates (I. E. Your highest bracket).

It does suck. I do wonder if there was any letter or something not processed, then you would think they could change it. Otherwise the endowment is as it is written... So... Slightly tough luck?
 
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