Q: What is the
correct way to declare in an individual tax return, when a non-resident (who
immigrated in Jan 2015 to SA), received a gift from a friend overseas for R6
million in cash? Is this amount taxable?
A: In our view the donation received from a non-resident would be capital in
nature and not subject to donations tax for the non-resident donor or resident
done. However the amount should still be disclosed in the ITR12 tax return as a
non-taxable amount (See SARS ITR12 Guide at 5.8).
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.