Every Contract Has a Tax Consequence
When drafting a contract, ignoring tax will often be to your peril. Every single contract in terms of which money or property changes hands has tax consequences for the parties involved. These consequences have been plainly evident in cases where people bought their fixed property in a Close Corporation or private company, thinking that because […]
Expenses Must Be Intended to Produce Taxable Income
To successfully deduct an expense, there must be a link to earning taxable income. Section 11(a) of the Income Tax Act, the so-called ‘general deduction formula’, seems to have produced more court cases than virtually any other Section of the Act. And each time, the courts tell us the same thing: In order for you […]
What to Do if You Owe SARS Money
Owing money to the South African Revenue Service (SARS) can be stressful, but don’t panic. By understanding your options and taking prompt action, you can resolve the issue and minimise the impact. This guide will equip you with the knowledge you need to navigate a tax debt situation. The importance of addressing tax debt Take […]
The business of business travel
Business travel means different things to SARS than to taxpayers. While it has been compulsory for recipients of travel allowances to substantiate their claims by means of a detailed logbook for some years, it has become ever more critical to understand exactly what SARS understands by the term ‘business travel’. The simple reason for making […]
Tax Implications for marriages in community of property
The default marriage regime has some complicated tax consequences. When couples are caught up in wedding and honeymoon planning, visiting their attorney often takes a backseat. Many couples don’t realise that different marital laws affect how their assets are managed during marriage, divided if it ends, and how they’re taxed. The different legal frameworks determine […]
Your PAYE obligations as an employer
As an employer, it is your responsibility to withhold tax from your employees’ salaries and remit it to SARS. Employee tax is a key component of the South African tax system and is the mechanism through which employers withhold and remit income tax on behalf of their employees. Commonly known as PAYE (which stands for […]