General notes: Semester 2

Question 1

SARS owes you money and you owe them

Answer 1

• Refund represents a capital receipt and is thus excluded from gross income
• The repayment to SARS is not deductible (section 23(d)).
• The interest received is deemed to accrue on (date paid) and must be included in gross income for the 2021 year of assessment (section 7E).
• The interest repaid to SARS qualifies for deduction under section 7F in the 2022 year of assessment

Question 2

WHT

Answer 2

• No WHT to SA company if it is dual listed

Question 3

Exam notes

Answer 3

• If asked normal tax consider framework and CGT
• Always consider the relationship between parties if you’re not working at MV you will apply an anti-avoidance provision

Discuss:

1. Scope and implications
2. Case law
3. Calculations

• If you have a change of use asset (use 15% even if used 14% initially)

Uncertainty provisions:

1. s20B (revenue loss)
2. s39A ( capital loss)
3. s24M