Individuals, Partnerships, Investors Vs Sharedealers, Cis Flashcards
S12 T tax free investment
Owned by a natural person or deceased or insolvent estate.
Returns are exempt from tax. Dividend is exempt from div tax.
Contribution is ltd to R30000 pa and R500 000 in aggregate.
If exceeds aggregate amount and annual limit , penalty of 40% deemed to be normal tax, unless it was taken into account for annual limit already, then not again for aggregate limit.
Capitalized returns do not affect the limits, nor does transfers between investments.
9C amounts received on disposal of share deemed capital
Income from sale of share deemed capital if held for longer than 3 years in a resident company for entire period.
If claimed any deduction in respect of a loss in terms of s11, this must be added back to income.
S25BA cis
Amount other than capital, received by the cis and not distributed to person within 12 months, deemed income of Cis and taxed in their hands.
Thus dividend will not be exempt.
Any capital gain or loss maid by the trust must be disregarded. Only cgt when dispose of units interest. Para61
S10C exemption of non deductible portion of compulsory annuities
Allow amount of annuity which was from a rf or raf to extent contributions did not qualify for allowances.
S7 income of spouses
Other relating to spouses
Spouses usually taxed separately unless s7 applies.
If income transferred to one spouse through donation or scheme, sole purpose to save tax. Or if trade together and income is excessive, if exceeds what would be reasonably entitled to.
Then may be taxed in the correct spouses hands. Deductions follow the income.
Married icop. Letting of fixed property and non trade income will be split.
Medical expenditures claim by spouse who paid.
Contributions to pension or raf deductible by member of fund
Included in gi is amount received as a result of divorce or for maintenance. S10(1)u exempts it.
Payer gets no allowance s21.
