Tax 6: Donations Tax Flashcards
What is donatis mortis cause?
donation in contemplation of death
A donation could be a ____ disposal, a debt ____ or _____. It could also be an ______ consideration (i.e. below ____).
gratuitous
waiver or reduction
inadequate
MV
Overseas property exempted from donations tax: a SA resident who inherited a property from a ____ or a _____ who purchased property and now became a _____ resident.
non-res
non-res
SA
A portion of the donations tax can be added to the _______ of an asset
base cost
Donations are valued at ____.
MV
A donation cancelled within _____ is seen as a specific deduction.
6 months
T/F: Cash is included in the definition of property for donations tax.
True, unlike CGT
Who is liable for donations tax?
donor
By when must donations tax be paid?
by the END of the following month
What are some important exemptions from donations tax?
- between SPOUSES
- to PBO
- maintenance
- casual donations by a company (up to R10 000)
A ______ donation by a company is specifically exempt, but must be R_____ or less and must be ________ if less than one year.
casual
R10 000
apportioned
Donations are paid by _____ residents only and at a flat rate of ____%.
SA
20%
What is a deemed donation?
When disposed at < MV – the difference = the deemed donation
The general exemption for donations tax is R_____ per year.
100 000
Identify the 6 steps for determining donations tax [write it down!].
See notes
