Tag: interest

The tax court, in a reportable judgment handed down on 13 January 2025, considered whether raising fees are finance charges which are similar to interest, and therefore, tax-deductible on the same basis as interest.

Ten children are invited to a birthday party. As they arrive, they are each given three golden tokens. The host explains that they will play various games with great prizes using these tokens. In the first game the prize is a brand-new bicycle, which the host says he will give to whichever child offers him the most tokens. This is the supply of desirable goods.

Many of us would like to put money aside for saving and investing but struggle to remain committed and disciplined each month. Being part of a savings club is a great way to reach your financial goals. Saving can be difficult on your own, but South Africans have always been creative when it comes to solving problems. To help us get into the habit of regular saving, over 11.5 million of us have joined savings clubs and stokvels.

South Africans are well-known for their participation in stokvel saving schemes where members contribute a fixed monthly amount that is paid out to a specific member on a specified date. Employers can integrate these payments into existing processes to make it safer and more convenient for those members.

Low-interest or no-interest loans to trusts are again in the sights of SARS and the Treasury. The 2017 Draft Taxation Laws Amendment Bill (Draft TLAB)...