Is a maintenance payment a ‘donation’?
Helping someone out may be exempt from donations tax—but as always, the devil is in the detail… Donations tax is one of those strange taxes where people often question its existence. After all, why would SARS be so mean as to want to tax someone’s generosity? The main reason is estate duty—or, more specifically, the […]
Capital gains tax on donations and bequests
Paragraph 12(5) of the Eighth Schedule to the Income Tax Act was scrapped on 1 January 2013 and replaced with a new paragraph 12(A) which, in certain circumstances, provides relief on the payment of capital gains tax when debt is written off. These new provisions came into effect on 1 March 2013. In terms of […]