Print Page   |   Report Abuse
News & Press: Technical & tax law questions

Taxability of lump sum amount transferred to a family trust

04 March 2014   (0 Comments)
Posted by: Author: SAIT Technical
Share |

Author: SAIT Technical

The answer to this query is based on legislation as at 2014/03/04.

Q: When a person want to make a Trust (family) and put a lump sum of money in the trust will this be taxable? 

A: If the amount is donated to the trust, then donations tax will apply (20%) in terms of s 54 of the Income Tax Act on the amount which the donation exceeds the annual exclusion for natural persons (R 100,000).


WHY REGISTER WITH SAIT?

Section 240A of the Tax Administration Act, 2011 (as amended) requires that all tax practitioners register with a recognized controlling body before 1 July 2013. It is a criminal offense to not register with both a recognized controlling body and SARS.

MINIMUM REQUIREMENTS TO REGISTER

The Act requires that a minimum academic and practical requirments be set to register with a controlling body. Click here for the minimum requirements of SAIT.

Membership Management Software Powered by YourMembership  ::  Legal