Determining a Taxable Capital Gain or an Assessed Capital Loss: Some Problems
Despite the South African legislature’s intention to introduce capital gains tax (CGT) as a simple and clear tax, it is an extremely complex tax. Several provisions of both the Eighth Schedule to the Income Tax Act 58 of 1962 and the Act itself have to betaken into account in determining whether a taxable capital gain or an assessed capital loss has arisen during the year of assessment. The application of these principles is often surrounded by uncertainty. Hence, the purpose of this article is not only to provide an overview of some of the different provisions that have to be taken into account and the interaction between them, but also to highlight some of the problems arising from the application of the principles themselves.
Assessed capital loss, Interpretation of capital gains tax ,Base cost ,Legislation,Capital gain/loss, Meaning of ‘proceeds’ for CGT-purposes, Capital gains tax, Net capital gain,Capital gains tax building blocks,Proceeds,Consecutive disposals, Taxable capital gain, Inclusion of rights and assets for capital gains purposes, Unaccrued amounts – paragraph 39A, Unquantified amounts – section 24M
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.