client is a member of a close corporation and her husband is a member of
another close corporation. They are married in community of property. Will both
these close corporations qualify for as small business corporations or does
being married in COP disqualify that?
Also, must a company/sole trader/cc register with SARS
as a SBC or do they automatically qualify if turnover is less than R14 million
so that they can enjoy the tax breaks that come with being a SBC?
the member interest of the two CC's fall within the joint estate then we are of
the view that the members married in community of property have an interest in
the equity of both CC's and therefore do not comply with the requirements of a
SBC per s12E(4)(a)(ii) ITA.
would have qualified, the SBC regime is elected in the tax return for the
relevant year of assessment.
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.