Tax objectives Flashcards
What is your objective in Tax ?
To find out which and how much taxs a person owes to SARS
What are all the types of tax you could owe to SARS?
WORD: IVDDE
- Income Tax = T1
- Value Added Tax = T2
- Donations Tax = T3
- Dividends Tax = T4
- Estate tax = T5
What do you need to think about in terms of talking about what is owed to sars in each tax category?
overall
Income Tax
- think about how you are getting to the end goal what the normal tax liability is, uise this main formula
* Gross income (s1)
* special inclusions
* exemptions (s10)
* deductions and allowances (s11-19 and 23)
* inclusions in taxable income (fringe benefits and Capital gains)
* assessed losses brought forward
* = taxable income/ assessed loss
* apply the tax rates
* less rebates
* normal tax payable
* less prepaid taxes like PAYE and provisional tax
* = final normal tax payable
* all the other stuff
- use the sections to come to your final answer by doing the following
* evaluate if the section applies and why, tell them
* then tell them how it needs to be applied
Value added Tax
- Input Vat
* Registered vendor? (was VAT even charged?)
* notional VAT claim?
* value of VAT?
* time of claim = their time of supply
- Output Vat
- time of supply?
- value of supply (think of rules like exports)
- value of VAT?
- registered vendor?
Donations Tax
- how much is the levy
- when is it payable
- anything that is causing tax
Dividends Tax
- how much is the levy
- when is it payable
- anything that is causing tax
Estate duty
- how much is the levy
- when is it payable
- anything that is causing tax
BUT YOU NEED TO LOOK CLOSELY AT WHAT THEY ARE ACTUALLY ASKING FOR, REALLY THINK ABOUT IT
What are the relevant THEMES that fall under the taxes that we were taught this year in CTA 2023?
- CGT
- Trusts
- Interest
- Leases
- Limitation of deductions
- capital allowances and recoupments
- foreign exchange
- trading stock
- temporary allowances
- tax avoidance
- assessed losses
- companies and special corperate rules
- investors vs share dealers
- fringe benefits
- retirement planning
- employees Tax
- Provisional Tax
- foreign income
- DTAs
- non-residents and with holding tax
- Transfer pricing
What is your word to remember all the themes we have done in tax?
CTILL - CFTTT - ASIFR - EPFDN - T
Where and how do you submit your Tax payments?
efiling?
How do you answer Tax questions in CTA 2023?
- they always want us to give the tax implications, to do that:
- we think about what sections are relevant by looking for KEY WORDS,
- state the requirements of those relevant sections and then how they are met
- state the implications of that sections and how it looks when applied - have the right perspective by finding out if they want you to answer from a TAX CATEGORY perspective or a THEME perspective (things in both perspectives are listed on card above)
- in a TAX CATEGORY perspective, your answer is based on all the sections relevant to the information they give you, that will help you determine the taxable amount they want
- in a THEME perspective, you need to base your answer not in tax categories but upon any sections that relate to that theme, whether VAT, income or donations
- IT IS NORMALLY VERY HELPFUL TO THINK ABOUT THE THEME SO THAT YOU CAN RECALL THE INFO TAUGHT IN THAT WEEK AND THEN ANSWER IN TAX CATEGORY FORM
- write the words given above, out to help you remember the topics and taxes when answering questions
Themes = CTILL - CFTTT - ASIFR - EPFDN - T
Taxes = use your head - Know your sections
