Q: Please can you help me, I need to show on an individual’s tax return a
donation of R100k made to his daughter, where I can fill this in on the tax
A: The payer of a donation does not disclose the
donation in the ITR12 return unless the donation is deductible in terms of section
18A of the Income Tax Act (ITA) , then such deduction will be claimed. No
specific provision in the ITA deals with the submission of the return but the
payer must however disclose the donation on the IT144 donation form and as the
donation tax must be paid by the end of the following month it is our view that
the form must be submitted to SARS within this time as well.
The recipient’s daughter
would have to, where the donation is tax exempt, disclose the donation received
as non-taxable income in her ITR12 return.
Disclaimer: Nothing in this query and answer should be construed as
constituting tax advice or a tax opinion. An expert should be consulted for
advice based on the facts and circumstances of each transaction/case. Even
though great care has been taken to ensure the accuracy of the answer, SAIT do
not accept any responsibility for consequences of decisions taken based on this
query and answer. It remains your own responsibility to consult the relevant
primary resources when taking a decision.
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.