Q: Where can we get
more information on the tax treatment of income protection policies introduced
by the Taxation Laws Amendment Act 2013, taking effect on 1 March 2015?
A:Section 10(1)(gI) of the Income
Tax Act(ITA) was inserted as an exemption to exclude from income tax insurance
policy benefits as a result of illness or disablement for which no income tax
deduction was available. In this regard section 11(r) of the ITA was inserted
to prohibit such deduction of the premium. A taxable benefit will also apply to
any premiums paid by an employer for the benefit of or on behalf of the
employee in terms of para 2(k) read with 12C of the Seventh Schedule of the
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.
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.