Tag: capital gain
The National Treasury’s vicious crackdown on CIS tax avoidance
National Treasury has proposed three major amendments affecting portfolios of Collective Investment Schemes (CISs) in the draft Taxation Laws Amendment Bill, 2025 (TLAB). The National Treasury’s vicious crackdown aims to close several tax loopholes and strengthen compliance within the CIS framework.
Crypto tax risks – voluntary disclosure window closing
Thousands of South Africans who have traded or invested in crypto assets may soon face severe penalties. The South African Revenue Service (SARS) has started issuing letters to individuals suspected of undeclared crypto gains. Experts warn that those who fail to act now risk not only hefty fines but also potential criminal prosecution.
SARS compliance for trusts and NPOs
In its drive to meet the ambitious 2025/26 revenue estimate of R1.986 trillion, the South African Revenue Service (SARS) has made its expectations clear. Timely, transparent and accurate tax submissions are now the new normal. Central to this approach is the expanded use of third-party data. This applies broadly, including trusts and Non-Profit Organisations (NPOs).
Unforeseen tax debt arising from crypto trading
Landing in a position of indebtedness to South African Revenue Service (SARS) can be quite a stressful journey on its own; if forgetting to leave room for crypto profits or gain, in your suitcase, the destination becomes all that more daunting.
Capital gains cannot flow through multiple discretionary trusts
A recent Supreme Court of Appeal (SCA) judgement has clarified that a capital gain distributed from one trust to a second and then to a natural person beneficiary must be taxed in the hands of the second trust, not the natural person.
Trusts still relevant for asset protection, estate planning and retirement planning?
A trust is a legal arrangement, where assets are held by one party (the trustee) for the benefit of another (beneficiary) as instructed by the owner (trustor/settlor). Recently many people have started to question the usefulness of trusts, given that the tax benefits afforded to trusts in the past, have eroded over time.
Offshore trust rules to be tightened?
The general principle is that South African resident individuals who have settled offshore trusts are taxed on the income and capital gains of that trust (or its underlying subsidiary) in terms of the Income Tax Act, 1962 (the Act).
