A new regulatory framework is coming into effect for the tax advisory industry this year, to hold tax practitioners accountable for the advice they give to taxpayers. That's great news, but businesses often struggle through their tax problems on their own - especially when it comes to capital gains tax. Luckily, there's one smart business investment you can make that'll result in your business paying less tax in the long run...
The behaviour of some tax practitioners continues to bother SARS.
But compliant tax practitioners have now also expressed frustration over 'the low level of education and poor quality service they get from its officials', says the Business Day's BD Live
As a result, taxpayers tend to struggle as they get poor support from tax practitioners.
That's why Finance Minister Pravin Gordhan said in last year's budget speech that "one shudders to think" what advice tax practitioners are giving their clients when many of them are not tax compliant, adds the Business Day's BD Live website.
Has your business invested in shares as capital assets? You'll love this tax reduction!
Take the new South African real estate investment trust structure, for example.
Businesses will finally be able to invest in the new structure from 1 May, which lets you profit from a managing company taking care of all the logistics of purchasing and selling property.
The best part?
Buy real estate investment trust shares to pay over less tax when you decide to sell them for a profit…
And tax saving this is passed on to the businesses that invest in the real estate investment trust, as they are exempt from paying securities transfer tax on buying or selling South African real estate investment trust shares.
So you won't face the 'double taxation' headache if your business invests in a real estate investment trust – do your research and invest in one today.
It's the best way to boost your business' bottom line without leaving it open to excessive taxes when you choose to sell your shares!