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Lexis® Practical Guidance: Income Tax

Why Lexis® Practical Guidance: Income Tax?

Lexis® Practical Guidance Income Tax comprehensively covers all matters relating to tax on individuals, companies and other business entities. With access to regular updates, tax practitioners can easily stay up-to-date with new developments and changes in Income Tax legislation, including deciphering of the latest SARS rulings by our panel of expert authors.

  • Lexis® Practical Guidance Income Tax comprises five detailed modules:
    Business and Trade: Covering a range of tax transactions relating to business operations as well as niche transactions like Sharia financing and specialist tax payers.
  • Mergers, Acquisitions and Startups: providing insight on the impact that tax may have as well as the tax consequences relating to restructures, business acquisition/sale, joint ventures and financing.
  • Investment and Wealth Management: Discussing the range of tax matters that relate to investors, from deciding on a holding structure, investing cross border to making donations.
  • Employment: Providing guidance on numerous remuneration practices, including fringe benefits, allowances, retirement funds, foreigners working locally as well South Africans working abroad.
  • Administration and Compliance: Covering the Tax Administration Act 28 of 2011 and including guidance such as dealing with SARS, handling disputes, risk management such as reportable arrangements and voluntary disclosure as well capital gains tax when disposing assets.

With Lexis® Practical Guidance: Income Tax you get:


Convenient online access to:
  • More than 310 Guidance Notes within 86 Topics
  • 45 Forms and Precedents – convenient and relevant resources all in one place
  • Legislation & Case Law – access to relevant cases at the click of a button
  • Over 100 other Useful Resources such as flowcharts, external websites and additional readings

Guidance on each step taken in Income Tax:
  • Determining income, expenditure and loses
  • Acquiring and disposing of an asset
  • Cross-border transacting, investing and working
  • Specialist tax payers
  • Mergers, acquisitions and start-ups
  • Joint venturing (JV/partnership)
  • Choosing a holding structure
  • Acquiring an asset
  • Investing for retirement and funding employee retirement

 

  • Making donations
  • Trusts and estates
  • Income from investments
  • Determining remuneration
  • Funding post retirement obligations
  • Rates, rebates and inclusions
  • Dealing with SARS
  • Disputes with SARS
  • Capital gains tax

Guidance Notes

Useful reference material that offers direct access to relevant case law, legislation and commentary works, and practical know-how on specific areas within Income Tax.
A few key guidance notes are outlined below. The full list can be viewed in the complete table of contents.


Registration

This guidance note discusses:

  • The three common kinds of trusts in South Africa.
  • The formation of a trust.
  • Registration as a taxpayer.

This guidance note also includes the following resource:

  • The Acceptance of Trust as Trustee form.

Taxation of Offshore Trusts

This guidance note looks at:

  • The income earned by non-resident trusts.
    - This income will be subject to tax in South Africa if the trust has been a resident and which has become part of the trust capital of the offshore trust.
    - If this income is distributed to a South African beneficiary it will be taxable in the hands of the beneficiary in the year the trust capital is distributed.
  • The Mechanics of section 25B(2A).

This guidance note also includes the following resource:

  • Mechanics of section 25B(2A) flowchart.

Capital Gains and Trusts

This guidance note discusses:

  • The separate and distinct rules for the taxation of income derived by trusts on the one hand, and capital gains derived by trusts on the other.
  • Disposals by a trust.
  • The provisions relating to the vesting of capital gains in a beneficiary of a trust which may be overridden by specific anti-avoidance provisions.
  • Where the asset or the capital gain do not vest in a beneficiary.
  • Where an asset in a trust vests in a non-resident beneficiary or the capital gain arising from the disposal of an asset vests in a non-resident beneficiary.
  • Non-resident trusts.
  • Capital losses which must remain within the trust and cannot be distributed to beneficiaries.

This guidance note also includes the following resource:

  • SARS Comprehensive Guide to Capital Gains Tax.

Practical Aids

Precedents, checklists and forms that can be used to offer advice confidently and execute tasks accurately.
A few key resources are listed below. The full list can be viewed in the complete table of contents.

  • Friday Page
    - Written by Michael Stein and updated every Friday
    - Offers updates and analysis on tax developments in South Africa
  • Monthly Review
    - Written by Jonathon Silke
    - Offers updates on the latest case law
  • Annual tax deduction tables
  • Monthly tax deduction tables
  • Fortnightly tax deduction tables
  • Weekly tax deduction tables
  • Other Employment tax deduction tables
  • All double taxation agreements
    - Agreements between the two tax administrations of two countries that enables the administrations to eliminate double taxation.
    - Users have access to the Double Taxation Agreements (DTAs) and Protocols that are already in force.
  • Summary diagram of when a company is a CFC
  • How do I apply for income tax exemption as a PBO?
  • Illustration of when tax exemptions may apply
  • Transfer Duty Guide
  • FIA 001 form - Application for a tax clearance certificate
  • Sample of IRP5/IT3(a)
  • Donation receipt template
  • Acceptance of trust as trustee form
  • Return of information required ito section 7 of the Estate Duty Act - REV267 form
  • IRP 30A Application for exemption
  • Guide for employers iro employees Tax
  • Cost-to-company implementation plan flowchart
  • Table of possible benefits to be included in cost-to-company negotiations
  • Flowchart to determine if non-resident individual is liable to tax in South Africa
  • Dispute resolution flowchart
  • Completion of the Monthly EMP201 declaration - External Guide
  • Comprehensive Guide to Capital Gains Tax

Authors




Terry McCarthy

BSc Agric Econ (Hons) (University of Rhodesia), B Compt (Hons) (Unisa), Ad Tax Cert CA (SA)

Terry McCarthy joined PricewaterhouseCoopers (PwC) in 1979 and was made a partner in 1986. Terry practised as a tax partner for over 30 years, with a focus on South African Corporate Tax. Terry also previously fulfilled the role of external examiner in taxation to the University of the Witwatersrand for a number of years. Terry is an expert in his field and is currently an independent tax consultant and contributing author on several LexisNexis tax publications.

Time is scarce and the law is ever changing. Keeping pace with the shifts is a job unto itself but, chances are, it is not your only job. 

Curated by top South African legal experts, LexisNexis® Practical Guidance™ helps you navigate dynamic legal terrain by delivering practical aids for your everyday concerns in one convenient platform .

It saves you time and energy so you can focus on the expertise that only you have.


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