Expelled ANC Youth League president Julius Malema's year has been off to a rough start.
First he was found to owe SARS
in excess of R16 million, with capital assets
at his homes attached to the tax
Now, Malema's been accused of lying to SARS
about his assets and removing them, says IOL
As a result, he could walk away with nothing.
Worse, he'll be charged with tax avoidance
for intentionally cheating the tax
system, says the Tax Bulletin
Mention all capital assets in your tax return or you'll be accused of tax avoidance!
You'll face a similar fate if you have 'hidden assets' that you haven't included as 'assets and liabilities' in your tax return
, especially as SARS
is stepping up the intensity of its tax audits,
adds FSP Business
One way to make sure SARS
doesn't accuse you of tax avoidance
is to ensure you've paid your capital gains tax
when you do dispose of assets, the Tax Bulletin
Most capital assets are subject to capital gains tax – even shares, unit trusts, private investments and second-hand policies, or Krugerrands or other silver, platinum, or gold-minted coins, or any other coin that's market value is mainly in the metal it is made of.
And as the date of the disposal of assets can't be pre-determined or manipulated, you'll have to make sure you declare your asset disposal to ensure you aren't accused of tax avoidance
for capital gains tax
If you don't, SARS will find out if and when it does a tax audit of your business and you'll face penalties of up to 200%.
The easiest way to prove you've declared all assets you've disposed of and that you've paid the relevant capital gains tax over to SARS correctly is to keep an asset register.
It may seem obvious, but Entrepreneurmag
says 'The truth is that many businesses don't have a list of all the things they own.'
Here's what you'll need to mention in your asset register
says your asset register
must be very detailed. It should include a name that clearly identifies each asset, as well as the location, age and assessments of value and condition.
To keep up-to-date, it's a good idea to update your asset register at least once a year, or any time your business makes a single major purchase.
Simple as that.
It's the easiest way to ensure you declare all your business capital gains and losses and pay SARS on time to avoid landing in the same boat as Malema.
In the Practical Tax Loose Leaf
we've got a dedicated chapter on Capital Gains Tax,
in this chapter you'll discover...
5 key concepts to understand, before you can get
started calculating your CGT
How to calculate your CGT liability, in 5 easy steps
How will CGT affect small businesses?
How does CGT affect provisional taxpayers?
What's included in CGT if you work from home?
Follow these 8 disposal timing rules
Transfer your residence from a trust or company without
paying capital gains tax or Transfer Duty – here's how
Get your copy of the Practical Tax Loose Leaf today
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