Ombuds – Why and How to Use Them
“Who you gonna call?” (Ghostbusters) An “ombud” (often called ombudsperson, ombudsman or ombudswoman, and sometimes not referred to as an “ombud” at all) is an independent and impartial person or office who will investigate any complaint you may have against a business, government agency, or public or private institution falling under their authority. Ombuds seek […]
Must you pay tax on your rental income?
Letting out property can give you an excellent “annuity” income, and if that concept appeals to you and a buy-to-let property comes your way at the right price put an offer in right now; before the current ‘buyer’s market’ runs its course. In your financial planning however remember the tax implications, because as a landlord […]
Expats and employers: Plan now for the new Expat Tax changes
“An income tax form is like a laundry list – either way you lose your shirt” (Comedian Fred Allen) This article is important to you if you are either a South African working abroad or an employer of one. If you don’t fall into either of those categories, but know someone who does, please think […]
Making money with Airbnb? Tax and other issues
Airbnb is an increasingly popular and lucrative way for residential property owners to earn extra income from short-term rentals of spare rooms, holiday houses, apartments and the like. Bear in mind these 3 factors – You need to provide for taxes. SARS has recently confirmed that your Airbnb earnings (after deduction of allowable expenses) are […]
BUYING AND SELLING PROPERTY: WHO PAYS THE TAXMAN?
Note: What follows is of necessity just a general summary of some complex provisions, there are various exemptions and exceptions (such as possible zero-rating of going concern sales), and many traps for the unwary. So take specific advice on your particular circumstances. Whether you are the buyer or the seller of property, one of you is […]
SARS: (TAX) CRIME DOESN’T PAY!
“The income tax created more criminals than any other single act of government” (Barry M. Goldwater) SARS it seems retains a much higher enforcement capability than some recent media speculation has suggested. It has announced a 92% conviction rate in cases handed over for prosecution in tax and customs-related crimes, mostly involving high net-worth individuals, […]
THE NEW TRANSFER DUTY RATES: WILL YOU PAY LESS, OR MORE?
In a nutshell, the transfer duty tax breaks announced in Budget 2015 will reduce costs for most middle-income households but will increase costs of property transactions above about R2,65m (with maximum savings at about the R2m to R2,3m level). Remember that no transfer duty is payable when VAT applies to a sale. The new rates […]
TAX PENALTIES: WHAT MUST SARS PROVE?
SARS has the power to impose severe penalties on any taxpayer failing to declare or pay taxes in accordance with law. For example, in a case recently before the Tax Court, a corporate taxpayer was audited by SARS and found to have overstated input VAT. It was assessed (after partial allowance of an objection) for: […]