Unit 5 - Donations Tax Payments

Question 1

Under s59, who is liable for the payment of donations tax?

Answer 1

The donor

Question 2

Under s60, when is the donations tax payable?

Answer 2

By the end of the month following that month in which the donation takes effect.

Pmt happens per donation.

Question 3

What happens if the donor does not pay within the prescribed period?

Answer 3

The donor & donee shall be jointly & severally liable for the tax.

i.e. SARS can recover the full amount from either the donor/donee.

Question 4

What happens i the donee pays the donations tax?

Answer 4

The donee can recover it from the donor.

Question 5

What happens if the donations tax is pd late?

Answer 5

Interest is payable ito s89(2)

• Once the interest provision in the Tax Administration Act comes into effect, s89(2) will cease to apply.

Donations tax - is subject to penalty provision, but there is no late pmt penalty.

Question 6

How does a person pay donations tax?

Answer 6

Via E-filing