MET DIE LAASTE NUUSBRIEF VAN 2018

Nog ‘n jaar is verby en met die laaste nuusbrief van  2018 wil ons al ons kliënte bedank vir hulle ondersteuning en ‘n baie geseënde feestyd en voorspoedige 2019 toewens. Aan al ons personeel baie dankie vir die hardewerk en suksesvolle 2018. Mag elkeen van julle die feestyd en ruskans geniet en kom veilig terug.

Hierdie artikel is ʼn algemene inligtingsblad en moet nie as professionele advies beskou word nie. Geen verantwoordelikheid word aanvaar vir enige foute, verlies of skade wat ondervind word as gevolg  van die gebruik van enige inligting vervat in hierdie artikel nie. Kontak altyd ʼn finansiële raadgewer vir spesifieke en gedetailleerde advies. (E&OE)

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S129 NOTICE TO THE CONSUMER AND “DELIVERY”

There are many reasons why a consumer may default in his payments to a credit provider. Notwithstanding these reasons, the credit provider must follow certain procedures to enforce the agreement.

The first step, is for the credit provider to deliver to the consumer a written notice in terms of Section 129(1)(a) of the National Credit Act 34 of 2005 (“NCA”), notifying the consumer of the default and proposals as to what the consumer may do to resolve any disputes that he/she may have with the agreement or to work out a plan for the payments due under the agreement to be brought up to date. The consumer has ten business days to respond to the credit provider once he/she has received the letter. It must be noted though, that the consumer is under no obligation to respond to the notice in terms of Section 129(1)(a) (“the S129 notice”).

The consumer must be in default with his/her payment for at least twenty business days in terms of S130(1)(a) of the NCA, before the credit provider can deliver the S129 notice to the consumer.

The consumer must further be aware that the credit provider is legally bound to deliver the notice in terms of the S129 notice to the address of the consumer that is cited on the credit agreement – the address that the consumer chose when he/she signed the agreement.

The S129 notice, in terms of the Act, must be delivered to the consumer via registered post. The word “delivered” has been interpreted by the courts to give clarity, viz, the notice is to be dispatched to the correct post office for the address chosen by the consumer, when the credit agreement was signed, or to an adult at the location designated by the consumer, when the credit agreement was signed. Should the credit provider follow one of the above methods for delivery of the S129 notice, but the consumer failed to receive it by not collecting the notice from the post office, it would not be the fault of the credit provider and it would be deemed that the credit provider followed the “letter of the law” and would thus be within its rights to proceed with the issuing and serving of the summons.

Thus, it is not a defence for the consumer to raise that the notice was not delivered to him/her, as was explained by the Constitutional Court in the case of Kubyana v Standard Bank of South Africa Ltd, after revisiting the majority decision held by the Constitutional Court in the case of Sebola and Another v Standard Bank of South Africa Ltd and Another.

It falls upon the shoulders of the consumer to inform the credit provider, in writing, by hand or electronic mail, of any changes to his/her designated address in respect of receiving notices which defer from the credit agreement, to enable the credit provider to change the consumer’s records. Should the consumer not inform the credit provider of the new details, the credit provider will be bound to use the address as per the credit agreement and the consequence of this, is that the consumer will not receive the S129 notice, and when the ten business days have expired for the consumer to timeously give  the credit provider his intentions of how he/she wishes to deal with the default payments, the credit provider will be within its rights to proceed with the issuing and serving of the summons, incurring legal costs for the account of the consumer.

This was held in the court case of Robertson v Firstrand Bank Ltd t/a Wesbank.

Reference List:

  • National Credit Act 34 of 2005 read together with Amendment 19 of 2014
  • Kubyana v Standard Bank of South Africa Ltd (2014) ZACC
  • Sebola v Standard Bank of South Africa Ltd 2012(5) SA 142 (CC)
  • Robertson v Firstrand Bank t/a Wesbank (2015) ZAECGHC 7

This article is a general information sheet and should not be used or relied upon as professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact your financial adviser for specific and detailed advice.  Errors and omissions excepted (E&OE)

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KORPORATIEWE BEHEER – FINANSIËLE JAAREINDE

Die finansiële jaar van ’n maatskappy staan bekend as die rekenkundige periode. Ingevolge artikel 27 van die Maatskappywet No. 71 van 2008 (“die Wet”), het elke maatskappy wat geregistreer is ingevolge die Wet ’n finansiële jaareinde. Hierdie datum word vervat op die Kennisgewing van Inkorporasie-dokument van ’n betrokke maatskappy.

Die eerste finansiële jaareinde van ’n maatskappy begin op die datum waarop die maatskappy geregistreer is. Hierdie laasgenoemde datum verskyn op die registrasie dokumentasie van die maatskappy. Die finansiële jaareinde van die maatskappy sal dan eindig op die datum soos wat dit verskyn op die Kennisgewing van Inkorporasie-dokument van die maatskappy.

Die opeenvolgende finansiële jaar van ’n maatskappy begin op die datum direk na die voorafgaande finansiële jaar geëindig het, en sal dan weer eindig op die datum soos vervat in die Kennisgewing van inkorporasie-dokument van die maatskappy, behalwe as die maatskappy se finansiële jaareinde verander word deur ’n besluit van die direksie gedurende die betrokke finansiële jaar.

Die direksie van ’n maatskappy mag die finansiële jaar van ’n maatskappy enige tyd wysig deur ’n aansoek van wysiging in te dien by die Companies and Intellectual Property Commission (“CIPC”) deur die indiening van ’n CoR 25-vorm wat geteken is deur een van die direkteure van die maatskappy asook ’n ondersteunde resolusie wat geteken is deur al die direkteure van die betrokke maatskappy.

Die vereistes vir die wysiging van ’n finansiële jaareinde soos uiteengesit is in die Wet is as volg:

  1. ’n finansiële jaareinde mag slegs een keer in ’n betrokke finansiële jaar gewysig word;
  2. die nuut-verkose finansiële jaareinde moet ’n datum wees wat later is as die datum waarop die wysiging ingedien word by die CIPC; en
  3. die nuwe finansiële jaareinde mag nie daartoe aanleiding gee dat die nuwe finansiële jaar langer as 15 maande sal wees ná die voorafgaande finansiële jaar geëindig het nie.

As die finansiële jaar van ’n maatskappy eindig op ’n Saterdag of ’n Sondag van ’n betrokke jaar, dan sal daar geag word dat die finansiële jaar eindig op die volgende amptelike besigheidsdag.

Hierdie artikel is ʼn algemene inligtingsblad en moet nie as professionele advies beskou word nie. Geen verantwoordelikheid word aanvaar vir enige foute, verlies of skade wat ondervind word as gevolg  van die gebruik van enige inligting vervat in hierdie artikel nie. Kontak altyd ʼn finansiële raadgewer vir spesifieke en gedetailleerde advies. (E&OE)

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MANAGEMENT’S RESPONSIBILITY

Throughout the audit of a set of financial statements, the phrase “management/director’s responsibility” appears. It is included in the engagement letter, the financial statements and the auditor’s report.  But what does it mean?

Management is responsible for the management of the business, for implementing and monitoring of internal controls in the business, and in terms of the Companies Act (“the Act”), for maintaining adequate accounting records and the content and integrity of the financial statements.  These financial statements must be issued annually to reflect the results thereof.

These financial statements are used by various users (shareholders, directors, banks, SARS, etc.) to make certain decisions (buying and selling of shares, valuations, credit terms, etc.), and therefore need to be a true representation of the business.  It is therefore critical that all transactions are valid, are recorded accurately and completely in the correct financial year, are classified correctly, and that all assets and liabilities that exist are recorded at the true cost/value thereof.

In terms of the Act, financial statements are to be prepared using either International Financial Reporting Standards (“IFRS”) or IFRS for Small to Medium-sized Entities (“IFRS for SME’s”).  Luckily management is not responsible to be experts in the above-mentioned standards, as the Act does allow for management to delegate the task of preparing the financial statements to someone with the knowledge and skill set to be able to perform this task.  The Act does, however, not allow management to delegate the responsibilities that go along with it too, so they need to ensure that when they do delegate the task, that it is to a responsible person and that they review the financial statements before approving it.

This article is a general information sheet and should not be used or relied upon as professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact your financial adviser for specific and detailed advice.  Errors and omissions excepted (E&OE)

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Verskillende rentekoerse in belasting

Die Inkomstebelastingwet[1] bevat definisies vir verskillende rentekoerse. Hierdie rentekoerse dien as die basis vir renteberekeninge in inkomstebelasting in verskillende omstandighede en kan breedweg in drie hoofareas gekategoriseer word. Kennis van die verskil tussen hierdie onderskeie tipes rentekoerse kan ’n wesenlike impak hê op die bedrag rente wat deur belastingbetalers verskuldig of ontvangbaar is, asook die wyse waarop hulle transaksies struktureer, beïnvloed.

Wat is die verskillende tipes rentekoerse en wanneer is hulle van toepassing? SAID onderskei tans tussen twee “voorgeskrewe tariewe” en ’n sogenaamde “amptelike rentekoers”. Die voorgeskrewe tariewe is administratief van aard en van toepassing op belastingskulde, terwyl die amptelike rentekoers meer substantief van aard is en die basislyn bepaal waarteen die billikheid van rentekoerse op transaksies gemeet word.

  • Eerste voorgeskrewe koers: Hierdie is die rentekoers wat van toepassing is op enige belastingskuld deur belastingbetalers aan SAID betaalbaar, of belastingterugbetalings deur SAID aan belastingbetalers verskuldig op grond van suksesvolle appèlle en sekere vertraagde terugbetalings. Die koers word bepaal deur ’n kennisgewing in die Staatskoerant ingevolge die Wet op Openbare Finansiële Bestuur[2]. Sedert 1 Julie 2018, staan ​​hierdie koers op 10% (die hoogste was 19% in 1999!).
  • Tweede voorgeskrewe koers: Hierdie koers is van toepassing op die oorbetaling van voorlopige belasting en is gekoppel aan die eerste voorgeskrewe koers. Ongelukkig is hierdie koers wat slegs in belastingbetalers se guns is, 4 persentasiepunte onder die eerste voorgeskrewe koers, dus tans 6%.
  • Amptelike rentekoers: Die amptelike koers vir Rand-gedenomineerde skuld is gekoppel aan die terugkoopkoers plus 100 basispunte. Die amptelike koers word aangepas aan die begin van die maand wat volg op die maand waarin die Suid-Afrikaanse Reserwebank die terugkoopkoers verander (tans 7,5% sedert 1 April 2018).

Dit is belangrik om daarop te let dat die voorgeskrewe koers tans nog deur die Wet gereguleer word. Daar word al lank voorgestel dat dit gereguleer word ingevolge die Wet op Belastingadministrasie. Die relevante bepalings is reeds in die Wet op Belastingadministrasie vervat, maar die effektiewe datum moet nog bepaal word. Dit lyk egter nie asof dit, ten minste uit ’n waardeperspektief, enige wesenlike impak sal hê nie.

“Rentekoers” in inkomstebelasting kan meer as een betekenis aanneem, afhangende van die spesifieke omstandighede. Dit is dus van kritieke belang dat belastingbetalers eerstens bewus is van watter wetgewing op enige tydstip van toepassing is en tweedens watter tipe rentekoers in hul spesifieke omstandighede van toepassing is.

[1] No 58 van 1962

[2] No 1 van 1999

Hierdie artikel is ʼn algemene inligtingsblad en moet nie as professionele advies beskou word nie. Geen verantwoordelikheid word aanvaar vir enige foute, verlies of skade wat ondervind word as gevolg  van die gebruik van enige inligting vervat in hierdie artikel nie. Kontak altyd ʼn finansiële raadgewer vir spesifieke en gedetailleerde advies. (E&OE)

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SAID rente op voorlopige belasting

Soos met verskeie ander saketransaksies, trek belasting in sy verskillende vorme ook rente aan, óf betaalbaar deur die belastingbetaler aan die SAID, óf aan die belastingbetaler verskuldig deur die SAID. Benewens om te weet watter van die verskillende SAID-rentekoerse van toepassing is (wat dikwels op sigself ’n uitdaging is), word dit toenemend belangrik om te weet in watter omstandighede rente van toepassing is, asook die relevante inkomstebelastinghantering van daardie rente. Hierdie artikel ondersoek een só ’n scenario: voorlopige belasting.

Oorbetaling van voorlopige belasting

Indien ’n belastingbetaler enige belastingkrediet het (die bedrag waarmee die belasting wat reeds betaal is die berekende belastingaanspreeklikheid oorskry) en daardie krediet R10 000 te bowe gaan, of die belastingbetaler ’n belastingkrediet het en die belasbare inkomste ’n bepaalde bedrag oorskry (R50 000 vir individue en trusts en R20 000 vir maatskappye), verdien die belastingbetaler rente teen die voorgeskrewe koers, naamlik 6% (vergeleke met die 10% wanneer rente aan die SAID betaalbaar is. (Kyk meer besonderhede hieronder).

Daaropvolgende inkomstebelastinghantering

Rente verdien van die SAID sal ingesluit word in die bruto inkomste van ’n belastingbetaler en is dus ten volle belasbaar (onderworpe aan enige jaarlikse rentevrystellings vir natuurlike persone). Alhoewel inkomstebelasting oor die algemeen volgens die beginsels van ontvangs en toevalling werk, bepaal artikel 7E van die Wet spesifiek dat enige rente wat deur die SAID aan ’n belastingbetaler verskuldig is, slegs as toegeval geag sal word op die datum waarop dit betaal is aan (ontvang word deur) ’n belastingbetaler. Alhoewel dit minder wesenlik vir individue is, kan dit lei tot verskille in hantering vir maatskappye en moontlik aanleiding gee tot uitgestelde belasting.

Onderbetaling van voorlopige belasting

As ’n belastingbetaler se normale belastingverpligting enige belastingkrediet oorskry en die belasbare inkomste ’n bepaalde bedrag oorskry (R50 000 vir individue en trusts en R20 000 vir maatskappye), sal rente deur die SAID teen die voorgeskrewe koers gehef word – tans 10%. Rente is ook betaalbaar teen die voorgeskrewe koers van 10% op laat betalings ten opsigte van eerste, tweede en derde voorlopige belastingperiodes.

Daaropvolgende inkomstebelastinghantering

Artikel 23(d) verbied die aftrekking van belasbare inkomste van enige rente betaal kragtens enige wet wat deur die SAID geadministreer word. Daarom sal enige rente wat aan die SAID betaal word, nie aftrekbaar wees vir inkomstebelasting nie. Vermoedelik is dit omdat hierdie rente nie beskou sal word as verkry in die produksie van inkomste of bestee vir die doeleindes van ’n bedryf nie.

Gegewe die wyd-gepubliseerde vertragings van terugbetalings vir verskillende soorte belasting, behoort belastingbetalers hulle rekeningstate van die SAID noukeurig na te gaan om te verseker dat die rente waarop hulle geregtig is ingevolge die verskillende belastingwette, aan hulle betaal is. Belastingbetalers behoort ook deeglik kennis te neem van die sperdatums vir voorlopige belastingbetalings om te verseker dat rente nie op laat betalings of enige onderbetalings aangegaan word nie.

Hierdie artikel is ʼn algemene inligtingsblad en moet nie as professionele advies beskou word nie. Geen verantwoordelikheid word aanvaar vir enige foute, verlies of skade wat ondervind word as gevolg  van die gebruik van enige inligting vervat in hierdie artikel nie. Kontak altyd ʼn finansiële raadgewer vir spesifieke en gedetailleerde advies. (E&OE)

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Additional changes to income tax returns for trusts

The South African Revenue Service (“SARS”) implemented several changes to the income tax returns for trusts (the ITR12T) on 17 September 2018. These changes are in addition to the changes already made on 26 February 2018. The September 2018 changes apply in respect of the year of assessment ending on 28 February 2018. Taxpayers that already saved or submitted the relevant 2018 ITR12T prior to the implementation of the latest changes, will not be presented with any of the new fields for completion.

Similar to the February 2018 changes, these additional changes form part of SARS’ ongoing efforts to promote efficiency and compliance.

Three new fields will be pre-populated on the ITR12T. The first is the “Trust Type”. Validation questions will be presented for a response if the Trust Type is Special Trust Type A or B. The Trust Type may change based on the answers provided.

The second and third fields relate to income from local farming operations (IT48) and income from local partnership farming operations (IT48V). These fields will now include auto-calculations and cater for negative currency to be captured.

Where applicable, trustees will now also be able to select one or both of the following options: “vested” and “discretionary”.

The ITR12T wizard has also been updated to include a question pertaining to imputed income from controlled foreign companies (“CFC”). If this question is answered yes, the ITR12T will display a new container to be completed. Please note that trusts, together with any connected person in relation to the trust, that holds at least 10% of the participation rights in a CFC, will also be required to submit a completed IT10B form (or IT10A form for years prior to 2012).

More fields have been added to the ITR12T with regards to the reduction of debts (section 19 of the Income Tax Act[1]), cash contributions to a rehabilitation trust fund (section 37A of the Income Tax Act) and amounts in respect of certain (tainted) intellectual property (section 23I of the Income Tax Act).

Furthermore, SARS indicated that the following documents should be submitted with the ITR12T (as a minimum) and include financial statements and/or administration accounts, all certificates and documents relating to income and deductions, proof of any tax credits claimed, particulars of assets and liabilities, as well as details of persons or beneficiaries to whom income, capital and/or assets were distributed or vested.

The take away is that trusts should carefully consider these new requirements in order to ensure that the relevant ITR12T is completed correctly. For more information on these new fields, an example of the new ITR12T form is available on SARS’ website for consideration.

[1] No. 58 of 1962

This article is a general information sheet and should not be used or relied upon as professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact your financial adviser for specific and detailed advice.  Errors and omissions excepted (E&OE)

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Deduction for photovoltaic solar energy plants

Section 12B(1) and (2) of the Income Tax Act[1] provides for a 50/30/20 income tax deduction in respect of certain machinery or plant owned by the taxpayer and which was or is brought into use for the first time by that taxpayer, for the purpose of his or her trade to be used by that taxpayer in the generation of electricity from, amongst others, photovoltaic solar energy (both for energy of more than 1 megawatt and energy not exceeding 1 megawatt) or concentrated solar energy. The tax deduction also applies to any improvements to the qualifying plant or machinery which is not repairs.

In cases of plant and machinery used in the generation of electricity from photovoltaic solar energy in respect of energy less than 1 megawatt, the taxpayer may write off 100% of the costs of such plant or machinery in the year brought into use.[2]

The cost of any asset for purposes of section 12B also includes the direct cost of installation or the erection thereof.[3]

In a recent binding private ruling (BPR 311) the applicant proposed to install solar power systems at each of the sites it rented to reduce electricity costs. As each system will only be supplemented and not replace the electricity provided by the main grid, it was proposed to generate less than 1 megawatt of electricity.

The taxpayer will purchase the photovoltaic solar panels, appoint and pay independent contracts to perform the installation planning, procure and purchase all other relevant equipment and install the systems at the relevant sites. These systems at each site comprised of the panels, AC inverters, DC combiner boxes, racking, cables and wiring.

In terms of the ruling, the taxpayer was entitled to claim the costs in respect of all the components of each system in terms of sections 12B(1) and (2). As each system will generate less than 1 megawatt of electricity, 100% of these costs were deductible in the year brought into use. No deduction was, however, claimed in respect of the costs of distribution boxes as it did not form part of the photovoltaic solar energy system.

It was furthermore proposed that the taxpayer would incur certain related expenditure as part of the cost of the installation, including the installation planning costs, panel delivery costs and installation safety officer costs. SARS, in this regard, ruled that these costs all formed part of the direct costs of installation and erection of the systems and were therefore deductible in terms of section 12B(3).

Taxpayers installing solar energy systems should therefore carefully consider the tax deductions in terms of section 12B to ensure that all relevant costs are claimed for income tax purposes.

[1] No. 58 of 1962

[2] See section 12B(2)(b)

[3] Section 12B(3)

This article is a general information sheet and should not be used or relied upon as professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact your financial adviser for specific and detailed advice.  Errors and omissions excepted (E&OE)

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GELDIGHEID VAN VOETSTOOTSKLOUSULES ONDER DIE WET OP GEBRUIKERSBESKERMING

Verbruikers verkies dikwels om tweedehandse goedere te koop om geld te bespaar of bloot omdat hulle ’n winskoop raakgeloop het. Hoewel tweedehandse goedere moontlik ’n winskoop kan wees, kan dit riskant wees om dit te koop omdat dit gebreke mag bevat terwyl die verbruiker se reg om te verhaal in so ’n geval uiters beperk kan wees. Hierdie besorgdheid oor gebreke word vererger wanneer items van hoë waarde gekoop word, soos motorvoertuie waar latente gebreke duur kan wees om te herstel en die verbruiker dikwels in ’n situasie kan beland waar hy/sy betekenisvolle bedrae geld moet bestee aan die herstel van gebreke terwyl hy/sy steeds die aanvanklike aankoopprys afbetaal.

Die grootste beperking van die verbruiker se reg op verhaling wanneer foutiewe goedere gekoop word is die sogenoemde “voetstoots”-klousule wat dikwels ingesluit word in mondelinge of skriftelike verkoopooreenkomste. Hierdie klousules word dikwels na verwys as “soos dit is” klousules omdat dit letterlik beteken dat die verbruiker die produk koop soos dit staan, met alle latente en sigbare gebreke ingesluit. Die verkoper kan dan nie gemeenregtelik verantwoordelik gehou word vir skadevergoeding wanneer sulke gebreke ontdek word nie terwyl die verbruiker geen remedie nie.

Die tradisionele posisie soos hierbo uiteengesit is egter dramaties gewysig met betrekking tot tweedehandse goedere wat verkoop word deur ’n verskaffer wat goedere of dienste lewer in die normale verloop van sy/haar besigheid. (Dit sluit in die meeste verkopers wat nie private persone is wat bloot hul goedere op ’n eenmalige grondslag verkoop nie). Hierdie beskerming word deur die Wet verleen aan verbruikers wat sowel tweedehandse as nuwe goedere koop.

Artikel 55 van die Wet stel bepaalde standaarde waaraan goedere wat deur verskaffers verkoop word, moet voldoen. Die artikel vereis eerstens dat goedere redelik geskik moet wees vir die doel waarvoor dit algemeen gebruik word. Die goedere moet tweedens van ’n goeie kwaliteit wees, in ’n goeie werkende toestand verkeer en vry wees van enige gebreke. Laastens moet die goedere bruikbaar en duursaam wees vir ’n redelike tydperk in ag genome die gebruik wat normaalweg daarvan gemaak sal word en met inagneming van enige relevante omstandighede.

Artikel 56 van die Wet skep ’n implisiete waarborg waarvolgens verbruikers oor sekere remedies beskik as die bogenoemde standaarde nie nagekom word nie. Verbruikers mag ingevolge die implisiete waarborg sulke defektiewe goedere teruggee vir herstel, terugbetaling of vervanging. Die waarborg is geldig vir ses maande na die aankoopdatum.

Uit die voorgaande is dit duidelik dat die tradisionele voetstootsklousule wat kragtens die gemene reg geldig was, nie langer verkopers beskerm teen aanspreeklikheid vir defektiewe goedere nie. ’n Voetstootsklousule wat egter pertinent meld wat die kondisie is van die item wat verkoop word en wat al die defekte wat teenwoordig is, lys, sal kragtens die Wet geldig wees as die verbruiker dit uitdruklik aanvaar. Dit is die posisie aangesien die verbruiker nie benadeel sal word nie omdat hy of sy bewus sal wees van die defekte en dus ’n ingeligte besluit kan neem.

Voorts moet daar ook op gelet word dat sowel die standaarde wat in artikel 55 uiteengesit word as die waarborg in artikel 56, ingesluit moet word in ’n verkoopooreenkoms. Die verbruiker word dus altyd beskerm. Dit is gerade dat verbruikers wat oorweeg om ’n tweedehandse motorvoertuig of ’n ander waardevolle tweedehandse artikel aan te koop, eerder so ’n artikel van ’n handelaar koop as van ’n private persoon wat ’n eenmalige verkooptransaksie aangaan, aangesien voetstootsklousules tussen private persone wat ’n verkooptransaksie aangaan steeds geldig sal wees (tensy die verkoper opsetlik die gebreke verberg het).

Dokumente geraadpleeg

  • Consumer Protection Act 68 of 2008

  • Advisory Note 1: Consumer Goods and Service Ombud

  • Consumer Protection Guide for Lawyers: Law Society of South Africa

  • Right to Return Goods in Terms of Section 56 of the CPA: SEESA

Hierdie artikel is ʼn algemene inligtingsblad en moet nie as professionele advies beskou word nie. Geen verantwoordelikheid word aanvaar vir enige foute, verlies of skade wat ondervind word as gevolg  van die gebruik van enige inligting vervat in hierdie artikel nie. Kontak altyd ʼn finansiële raadgewer vir spesifieke en gedetailleerde advies. (E&OE)

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REGISTRATION OF A TRUST AS A TAXPAYER

The frustration experienced by taxpayers and the complexity of registering a trust as a taxpayer with the South African Revenue Service (SARS), has been widely publicised in recent years. Despite calls from industry bodies for a simplified approach (like companies and individuals), registering a trust as a taxpayer remains an overly complex process.

The inconsistency of information received by taxpayers between the SARS website and different branch offices is one of the areas of major concern. SARS’ website, for example, indicates that either certified or uncertified copies of identity documents are acceptable, whereas branch officers only accept certified copies. Another frustration is requirements that are seemingly not in line with legislation. As an example, SARS requires the appointment, by resolution, of a so-called “main trustee”, whereas the concept of a “main trustee” does not exist in the Trust Property Control Act 57 of 1998. The same act requires that a separate bank account must be used for deposits received by persons in their capacity as trustees of a trust, but SARS seemingly requires some trusts to have bank accounts while not imposing this requirement on others during registration.

Based on recent interactions with SARS, the following guidelines should assist taxpayers in registering trusts as a taxpayer. Although many of the requirements do not seem to agree with what is required by legislation (or sometimes common sense), a call on such formal matters at a branch office will not assist taxpayers and they should rather ensure that the documents below are at hand. All the documents indicated below must be in a certified form:

  • A completed IT77TR form (available on the SARS website);

  • A resolution appointing one of the trustees a “main trustee”. Even if this is indicated in a trust deed, it must be specifically resolved. It is suggested that it is this “main trustee” that represents the trust at the SARS branch office;

  • A resolution authorising the said “main trustee” to sign all documents on behalf of the trust for purposes of registering it as a taxpayer with SARS;

  • Identify documents of all trustees (if you use the new smartcard ID document, ensure that both the front and the back are copied). Note that the trustee doing the registration, must also have their original identity document at the branch;

  • Proof of address for all trustees (ensure that this address on the proof agrees to what is completed on the IT77TR form);

  • Proof of address of the trust. For these purposes, use the CRA01 available on the SARS website to accompany the proof of address. It is suggested that two versions of the CRA01 are completed. One by the “main trustee” and one by a different trustee, since different branch offices require different trustees to complete the form;

  • Proof of banking details. If the bank account is less than one month old, then a letter from the bank confirming that the details are in order. In all other cases, a bank statement is required;

  • The trust deed; and

  • The letter of authority from the Master’s Office.

For good measure it is suggested, if possible, to take all original documents along to the branch as well (only present these if required and ensure it is returned). Also, ensure that a proof of registration and the taxpayer reference number of the trust is obtained after successful registration.

This article is a general information sheet and should not be used or relied upon as professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact your financial adviser for specific and detailed advice.  Errors and omissions excepted (E&OE)

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