Alert 12

IN 43: Disposal of shares

IN 43 provides clarity on the interpretation and application of section 9C, which deems any amount received or accrued (other than a dividend or foreign dividend) or any expenditure incurred in respect of an equity share to be of a capital nature if that equity share had, at the time of the receipt or accrual of that amount or incurral of that expenditure been held for a continuous period of at least...

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Draft tax bills: Emergency tax relief measures

National Treasury has published the second batch of the 2021 draft tax bills dealing with emergency tax measures in response to the continuing Covid-19 pandemic and recent unrest in the country.

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LDC Taxpayer v CSARS

LDC sold vacant land with development rights for subdivision to KMC. The price was payable in tranches on the sale by KMC of each subdivided erf to an end-user purchaser. LDC did not declare the capital gain on disposal in its 2017 return as it believed that “accrual” was deferred until sale to the end-users. SARS imposed a 25% understatement penalty to which LDC objected.

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