Spelling suggestions: "subject:"inheritance anda transfer taxa"" "subject:"inheritance ando transfer taxa""
21 |
Deemed property of the estate in terms of Section 3(3)(d) of the Estate Duty Act 45 of 1955De Souza, Tanya 11 1900 (has links)
In section 3(3)(d) of the Estate Duty Act 45 of 1955 (the Act) the
legislature introduced the concept "competent to dispose", described in
section 3(5) of The Act as a "power". If the deceased was "competent to
dispose" property for his own benefit or that of his estate, section 3(3)(d)
deems that property to be property of the estate. In order to determine
when property may be deemed property of the deceased estate it is
necessary to analyse the meaning of section 3(3)(d) as read with section
3(5) of the Act. An analysis of section 3(3)(d) of the Act indicates that it
may be applied to those with a legal right to dispose of property for their
own benefit or for the benefit of their estates. This interpretation is based
on the meaning of "competent to dispose", and "power" as derived form
the analysis. / Private Law / LL.M.
|
22 |
n Teoretiese en praktiese ondersoek na 'n betroubare en toepaslike boedelbeplanningsmodelPretorius, F. J.(Frederik Johannes) 12 1900 (has links)
Thesis (LLM)--University of Stellenbosch, 2004. / ENGLISH ABSTRACT: This study deals with a theoretical and practical investigation of the
subject discipline of estate planning in order to identify a reliable and
appropriate estate planning model. For purposes of this study, the
investigation is restricted to the development of such a model in
respect of a person within the niche of an average salary earner with
the focus on an appropriate financial planning in respect of his death.
An investigation is conducted into the basis from which the
subject emerged and developed. It is determined that this basis is the
method of successionand that it also forms an integral part of any
proposed estate planning. Relevant principles and the methods of
succession which were in force in the Roman, Roman-Dutch and
English law of succession are analysed. Through the historic
development, against the background of these systems, a link is made
to the South African law of successionand the position in terms of the
South African law is determined. The theoretical basis of the subject
discipline is also laid down. The different role players involved are
identified in the process and the proposed estate planning process is
identified and described.
The administration of estates process within the context of the
English law is compared with the same process in the context of the
South African law through a comparative study. This investigation is
limited to those aspects of the administration of estates process
important for purposes of estate planning, especially in view of the influence that the rules of the Englishlaw had on the South African law
in respect of this process.
Practical problems currently experienced by trust companies in
respect of the administration of estates are also identified and
analysed. These problems also indicate the need for the identification
of a reliable and appropriate estate planning model.
The identification of an appropriate estate analysis model is
identified as an essential control mechanism for the proposed estate
planning model. This model is furthermore expanded in order to point
out the problem areas in respect of different scenarios with a
determined conventional family construction as the basis for the
analysis.
Available estate planning instruments and techniques are
identified as aids in order to facilitate the testator's estate plan by
virtue of the proposed estate planning model. Testamentary
mechanisms are distinguished from inter vivos mechanisms and
applicable legislation is discussed.
A reliable and appropriate estate planning model is identified,
bearing in mind the results of the researchconducted.
This study is concluded with an adjudication and consolidation
of the results of the research with a special reference to the
implementation phase of an estate plan and the frequent revision
thereof. / AFRIKAANSE OPSOMMING: Hierdie studie handeloor 'n teoretiese en praktiese ondersoek van die
vakdissipline boedelbeplanning met die oog daarop om 'n betroubare
en toepaslike boedelbeplanningsmodel te identifiseer. Die ondersoek
word vir doeleindes van hierdie studie beperk en afgebaken tot die
ontwikkeling van so 'n model vir 'n persoon wat homself in die nis van
die gemiddelde salaristrekker bevind met die fokus op 'n toepaslike
finansiële beplanning vir die intrede van dié se dood.
Daar word ondersoek ingestel na die basis waaruit dié
vakdissipline ontstaan en ontwikkel het. Daar is gevind dat die metode
van erfopvolging daardie basis uitmaak en ook 'n integrale deel vorm
van enige boedelbeplanningwat onderneem word. Relevante beginsels
en die metodes van erfopvolging soos dit in die Romeinse, Romeins-
Hollandse en Engelse erfreg gegeld het, word ontleed. Met die
historiese ontwikkeling in hierdie stelsels as agtergrond, word daar by
die Suid-Afrikaanse erfreg aangesluit en die posisie volgens die Suid-
Afrikaanse reg bepaal. Die teoretiese grondslag van die vakdissipline
word ook vasgelê. Die verskillende rolspelers betrokke by die
voorgestelde boedelbeplanningsproses word geïdentifiseer en die
voorgestelde boedelbeplanningsprosesword beskryf.
Die boedelberedderingsprosesword ook binne die konteks van
die Engelse reg met dié proses binne die konteks van die Suid-
Afrikaanse reg deur 'n regsvergelykende studie vergelyk. Hierdie
ondersoek word ook beperk tot daardie aspekte van die beredderingsproses wat vir doeleindes van boedelbeplanning van
belang is, juis in die lig van die invloed van die Engelsregtelike reëls op
die Suid-Afrikaanse reg ten aansien van gemelde proses.
Praktiese probleme wat tans tydens die beredderingsproses van
bestorwe boedels deur trustmaatskappye ervaar word, word ook
geïdentifiseer en ontleed. Hierdie probleme ondersteun ook die
behoefte aan die identifisering van 'n betroubare en toepaslike
boedelbeplanningsmodel.
Die identifisering van 'n toepaslike boedelontledingsmodel word
aangetoon as 'n onontbeerlike kontrolemeganisme van die
voorgestelde boedelbeplanningsmodel. Hierdie ontledingsmodel word
ook uitgebrei om probleemareas ten aansien van verskillende
scenario's uit te wys met 'n bepaalde konvensionele gesinskonstruksie
as die basis vir die ontledingsmodel.
Beskikbare boedelbeplanningsinstrumente en -tegnieke word
geïdentifiseer as hulpmiddels om die erflater se toepaslike boedelplan
ingevolge die struktuur van die voorgestelde boedelbeplanningsmodel
te fasiliteer. Testamentêre meganismes word van inter vivos
meganismes onderskei en toepaslike wetgewing word ook bespreek.
Na aanleiding van die resultate van hierdie navorsing word 'n
betroubare en toepaslike boedelbeplanningsmodel geïdentifiseer.
Die studie word afgesluit met 'n beoordeling en samevatting van
die resultate van die navorsing met 'n spesifieke verwysing na die implementeringsfase van 'n boedelplan en die gereelde hersiening
daarvan.
|
23 |
Skenkings aan 'n trust en die daaropvolgende vermindering van die trust se uitstaande leningsrekening : die belasting op kapitaalwinsdilemmaMarx, Erick 12 1900 (has links)
Thesis (MComm) Stellenbosch University, 2005. / AFRIKAANSE OPSOMMING: Wanneer 'n natuurlike persoon (die vereffenaar) besluit om sy of haar groeibates
(byvoorbeeld, vaste eiendom of aandele) aan sy of haar familietrust oor te dra, word
sodanige bate-oordrag se markwaarde gewoonlik (volgens die mening van die
belastingskrywers, Keith Huxham en Phillip Haupt) deur die toestaan van 'n rentevrye
leningsrekening aan die trust gefinansier. Die vermindering van die bedoelde uitstaande
skuld by wyse van skenkings van die vereffenaar, het met die verordening van belasting
op kapitaalwins (BKW) op 1 Oktober 2001 'n BKW-dilemma vir sodanige trust geskep. 'n
BKW-aanspreeklikheid ingevolge paragraaf 12(5) van die Agtste Bylae tot die
Inkomstebelastingwet, NO.58 van 1962, soos gewysig, (hierna as "die Wet" verwys) sal in
hierdie omstandighede vir die trust ontstaan, omrede die toepaslike vermindering as 'n
vermindering van 'n debiteur (die familietrust) se skuld (die uitstaande leningsverpligting)
deur 'n krediteur (die vereffenaar) teen geen vergoeding beskou mag word.
Belastingraadgewers in die algemeen adviseer gevolglik (volgens onder meer die siening
van 'n regskonsultant van San lam Trust, Elmarene Erasmus) hulle kliente dat 'n trust
benut moet word op 'n wyse wat verseker dat die vereffenaar nie die trust se tersaaklike
uitstaande leningsrekening vir geen werklike betaling verminder nie. 'n Werklike betaling
van die skenking word derhalwe voorgestel. Sodanige werklike betaling word
bewerkstellig deurdat die vereffenaar 'n bedrag geld ten bedrae van R30 000 (die
skenkingsbelasting-vrystellingsperk ingevolge artikel 56(2)(b) van die Wet) direk aan die
trust betaal of andersins 'n tjek vir die betrokke bedrag aan die trust uitreik. Teen die einde
van die belastingjaar, dit wil se nadat die toepaslike skenking ontvang is, besluit die
trustees van die trust meestal om die kontant, wat per die trust se rekeningkundige
rekords op hande is, aan te wend ter aflossing van 'n gedeelte van die uitstaande
leningsverpligting aan die vereffenaar verskuldig.
Daar word deurgaans veronderstel dat die toepaslike trust in hierdie omstandighede oor
geen verdere uitstaande skuld, rentedraend al dan nie, beskik nie.
Deur te aanvaar dat die vereffenaar nie.regstreeks afstand doen van 'n gedeelte van die
uitstaande lening vir geen betaling nie, is die waarskynlikheid dat 'n BKWaanspreeklikheid
vir die trust (vanwee enige leningsvermindering) sal ontstaan deur
middel van die studie bepaal.
Die betekenis van die frase "verminder of afgelos" ("reduced or discharged" per die
Engelse teks van die Wet) ingevolge paragraaf 12(5) van die Agtste Bylae tot die Wet is
onder meer verklaar aan die hand van die woordeboekbetekenis van die woorde
"reduced" en "discharged" en die strekking van "kwytskelding" en "voldoening" as
relevante vorme van tenietgaan van 'n verbintenis (byvoorbeeld, 'n uitstaande
leningsverpligting) kragtens die Suid-Afrikaanse kontrakte- en handelsreg. Die skrywer het
die gevolgtrekking gemaak dat die betrokke frase dui op die gedeeltelike of algehele
kwytskelding deur 'n krediteur van 'n skuld (soos byvoorbeeld, 'n uitstaande
leningsverpligting) wat deur 'n debiteur aan die bedoelde krediteur verskuldig is.
Voldoening (as 'n verskyningsvorm van die tenietgaan van 'n verbintenis) aan 'n skuld op
'n gedeeltelike of volledige basis deur middel van die betaling van 'n bedrag geld of 'n
tjekbetaling kan egter volgens hierdie gevolgtrekking nie as 'n vermindering of aflossing
van 'n skuld teen geen vergoeding ingevolge paragraaf 12(5) van die Agtste Bylae tot die
Wet gesien word nie.
Die sogenaamde "verwisseling van tjeks" - prosedure ter ondersteuning van die
tersaaklike skenking- en leningvermindering-betalings is vir studiedoeleindes as 'n
ekwivalent vir 'n verwisseling van 'n bedrag geld geag. 'n Ondersoek na die relevante
howe se benaderings in Suid-Afrikaanse belastingsake [naamlik, ITC 1583 (1993) 57
SATC 58, ITC 1603 (1995) 58 SATC 212 en ITC 1690 (1999) 62 SATC 497] asook
buitelandse sake [naamlik, Richard Walter (Pty) Limited v Commissioner of Taxation
(1996) 67 FCR 243; 33 ATR 97 en MacNiven (Her Majesty's Inspector of Taxes) v
Westmoreland Investments Limited (2001) UKHL 6; (2001) 1 ALL ER 865] ten aansien
van sodanige prosedure, het aangetoon dat dit benut kan word as 'n grondslag vir die
geldige nakoming van, oftewel voldoening aan 'n verbonde party se uitstaande skuld
ingevolge 'n tersaaklike transaksie of reeling. Die onderliggende transaksie of reeling moet
egter oor 'n regsgeldige uitwerking beskik, ooreenstemmend met die toepaslike
regsgeldige bedoeling van die betrokke partye.
Analisering van die vermindering van 'n trust se uitstaande leningsverpligting in samehang
met die voorafgaande ontvangs van skenkingbetalings, het ook met verwysing na die
gemeenregtelike wese bo vorm - leerstuk geskied. Hierdie ontleding het onder andere
benadruk dat die belastingdoeltreffende werking (veraI in 'n BKW-konteks) van die
bestudeerde reeling die aanwesigheid van egte ("genuine") en ongesimuleerde skenkingen
leningvermindering-betalings, ooreenkomstig die regsgeldige bedoeling van die
vereffenaar en trustees van die familietrust, om onderskeidelik skenkings en
leningverminderings teweeg te bring, vereis.
Die moontlike toepassing en effek van artikel 103(1) van die Wet (die Suid-Afrikaanse
algemene teenvermydingsbepaling) op die bestudeerde reeling, is oorweeg deur onder
meer ag te slaan op die siening van belastingskrywers (soos byvoorbeeld, D. Clegg, M.A.
Kolitz en K. van der Linde) aangaande die uitwerking van hierdie bepaling op transaksies
en reelings in die algemeen. Die skrywer het tot die gevolgtrekking gekom dat die
toepaslike skenking- en leningvermindering-betalings onderskeidelik op 'n afsonderlike
basis oor bona fide besigheidsdoelwitte moet beskik. Die besigheidsdoelwit van die
skenkingbetalings mag byvoorbeeld verband hou met die vereffenaar se oogmerk om sy
of haar persoonlike bates buite die bereik van sy of haar ondernemingskrediteure te plaas,
gegewe die aanname dat die vereffenaar 'n sake-ondernemimg bedryf. Die
leningvermindering-betalings se gepaardgaande besigheidsdoelwit mag weer betrekking
he op die verbetering van die familietrust se balansstaatposisie soos weerspieel deur
finansiele verhoudingsgetalle met betrekking tot onder andere Iikwiditeit en solvabiliteit.
Verder is dit in hierdie verband van essensiele belang dat daar geen skakel of verbintenis
tussen die onderliggende betalings moet bestaan nie. Die belastingskrywer, M.L. Stein se
mening bied steun vir die belang van die afwesigheid van die bedoelde interafhanklikheid.
Die teenwoordigheid van die betrokke besigheidsdoelwitte tesame met die ontbreking van
enige interafhanklikheid tussen die relevante betalings, behoort dus (volgens die skrywer
se beskouing) te verhoed dat die belastingeffektiewe werking (veral in 'n BKW-verband)
van die reeling onder oorweging deur artikeI103(1) van die Wet se toepassing en effek ter
syde gestel word.
Die skrywer het tot die slotsom gekom dat egte, onvoorwaardelike (jaarlikse)
skenkingbetalings deur die vereffenaar aan sy of haar familietrust wat aan die einde van
die belastingjaar opgevolg word deur ongesimuleerde leningvermindering-betalings,
geInisieer deur die trust se trustees sonder enige inmenging of invloed van die
vereffenaar, na aile waarskynJikheid'n BKW-dilemma vir die familietrust (in die vorm van
'n BKW-aanspreeklikheid per paragraaf 12(5) van die Agtste Bylae tot die Wet ten aansien
van enige leningsvermindering) sal uitskakel. / ENGLISH ABSTRACT: When a natural person (the settlor) decides to transfer his or her growth assets (for
example, fixed property or shares) to his or her family trust, the market value of such a
asset transfer is usually financed (according to the opinion of certain tax authors, for
instance, Keith Huxham and Phillip Haupt) through the grant of a interest free loan
account to the appropriate trust. The reduction of the proper indebtedness by way of
donations from the settlor, created a capital gains tax (CGT) dilemma for the trust
concerned since the commencement of CGT on 1 October 2001. A liability for CGT in
terms of paragraph 12(5) of the Eighth Schedule to the Income Tax Act 58 of 1962, as
amended, (hereinafter referred to as ''the Act'1 will arise in these circumstances in respect
of the trust, because the applicable reduction may be seen as a reduction of the debt (the
outstanding loan account) of a debtor (the family trust) by a creditor (the settlor) for no
consideration.
In general, tax consultants consequently advise their clients (in accordance with, among
others, the view of Elmar{me Erasmus, a legal advisor of Sanlam Trust) that a trust should
be utilise in a manner which would ensure that the settlor does not reduce the outstanding
loan account of the relevant trust for no actual payment. Hence an actual payment of the
donation is proposed. The real payment as such is accomplish through the direct payment
of R30 000 (the exemption amount for donation tax purposes in terms of section 56(2)(b)
of the Act) by the settlor to the trust or otherwise through the issue of a cheque in the
amount of R30 000 by him or her. At the end of the tax year, that is after the receipt of the
relevant donation, the trustees of the trust will in most of the time decide to appropriate the
cash on hand (as per the accounting records of the trust) in order to redeem a portion of
the outstanding loan liability due to the settlor.
The assumption that the apposite trust in these circumstances has no additional
outstanding debt (interest free or not) is maintained on a continuous basis.
By the acceptance of the fact that the settlor does not directly relinquish a portion of the
outstanding loan for no payment, the probability that a CGT liability would arise in respect
of the trust (on account of any loan reduction) is determined by means of the study
concerned.
The meaning of the phrase "reduced or discharged" in terms of paragraph 12(5) of the
Eighth Schedule to the Act is inter alia explained according to the dictionary construction of
the words "reduced" and "discharged" and the effect of "remission" and "settlement" as
relevant forms of dissolution of an agreement in pursuance of the contract - and
mercantile law of South Africa. The author concluded that the appropriate phrase is
indicative of the partial or complete remission of an indebtedness (for example, an
outstanding loan liability) by a creditor owed by a debtor to the creditor involved.
Settlement (as a form of dissolution of an agreement) of an indebtedness on a partial or
complete basis by means of the payment of an amount of money or payment by cheque
may however in accordance with this inference not be perceived as a reduction or
dischargement of a debt for no consideration in terms of paragraph 12(5) of the Eighth
Schedule to the Act.
The so - called "exchange of cheques" procedure in support of the relevant donation - and
loan reduction payments is deemed for study purposes to be the equivalent of an
exchange of an amount of money. An examination of the approaches by the proper courts
in South African tax cases [to wit, ITC 1583 (1993) 57 SATC 58, ITC 1603 (1995) 58
SATC 212 and ITC 1690 (1999) 62 SATC 497] as well as foreign cases [to wit, Richard
Walter (Pty) Limited v Commissioner of Taxation (1996) 67 FCR 243; 33 ATR 97 and
MacNiven (Her Majesty's Inspector of Taxes) v Westmoreland Investments Limited (2001)
UKHL 6; (2001) 1 ALL ER 865] with regard to the procedure in question has demonstrated
that it could be turn to account as a basis for the valid fulfilment of, that is to say the
settlement of the outstanding indebtedness of a connected person in respect of the
relevant transaction or arrangement. The underlying transaction or arrangement should
however have a result sufficient in law, in correspondence with the apposite legal intention
of the parties involved.
Analysis of the reduction of the outstanding loan liability in relation to a trust in conjunction
with the foregoing receipt of donation payments also occurred with reference to the
common - law substance over form doctrine. The analysis in question inter alia
emphasises that the tax efficient operation (especially in a CGT context) of the scrutinised
arrangement necessitates the existence of genuine, unsimulated donation - and loan
reduction payments according to the legal intentions of the settlor and trustees of the
family trust to respectively give occasion to donations and loan reductions.
The conceivable application and effect of section 103(1) of the Act (the general anti _
avoidance provision in South Africa) in respect of the scrutinised arrangement is
considered inter alia on account of the views of certain tax authors (for instance, D. Clegg,
M.A. Kolitz and K. van der Linde) with reference to the application and effect of this
provision on transactions and arrangements in general. The author deduced that the
relevant donation - and loan reduction payments each ought to possess a bona fide
business purpose on a separate basis. The business purpose in connection with the
donation payments may for instance have relevance to the intention of the settlor to locate
his or her personal assets outside the range of his or her business creditors, in light of the
supposition that the settlor is carrying on a business venture. The business purpose that
may be coupled with the loan reduction payments could refer to the enhancement of the
balance sheet position of the family trust as reflected by financial ratios in respect of,
among other things, liquidity and solvability. Moreover it is essential in this context that no
link or connection exists between the underlying payments. The opinion of the tax author,
M.L. Stein renders support for the significance of the absence in relation to the correlation
concerned. The presence of the appropriate business purposes along with the absence of
any interdependance between the relevant payments should consequently (according to
the view of the author) avert that the application and effect of section 103(1) of the Act
would disregard the tax efficient operation (particularly in a CGT context) of the
arrangement considered.
The author arrived at a conclusion that genuine, unconditional (annual) donation
payments by the settlor to his or her family trust which are succeeded by unsimulated loan
reduction payments at the end of the tax year, initiated by the trustees of the trust without
any interference from or influence of the settlor, would in all probability preclude a CGT
dilemma (in the form of a CGT liability in terms of paragraph 12(5) of the Eighth Schedule
to the Act in relation to any loan reduction) for the family trust.
|
24 |
PRIVATE ANNUITIES AND INSTALLMENT SALES FOR ESTATE PLANNING: AN ANALYTICAL COMPARISON.NAGODA, ROBERT JOHN, II. January 1982 (has links)
This study is designed to analyze and compare the private annuity and installment sale transaction from an estate planning perspective. This comparison is to be made in the environment of gifting and other likely assumptions. The research is broken into three separate parts. The first portion is a careful examination of the tax aspects of both transactions. The second portion is the discussion and documentation of the models themselves. The third portion is a discussion of the output, its implications and a comparison of both techniques. The 1976 Tax Reform Act caused definite changes in the areas of estate planning; these changes required planners to look at other techniques to accomplish what had once been done with gifting. This study looks at the private annuity and installment sale transaction in that light. A private annuity is a sale, generally between family members, of property in return for a fixed payment for the remainder of the life of the transferor. An installment sale is now the method used for reporting gain on a sale where the payment extends further than the current tax year. Both of these methods may be used to transfer property prior to death as estate planning techniques. A comparison of both alternatives shows that generally the private annuity is more favorable for a younger transferor or one with a shorter expected life. The installment sale is generally more favorable for an older transferor with a longer expected life. All the planning methods were more favorable than doing nothing and the model shows an optimal point for gifting dependent upon the unified credit. The study shows promise for quantification in the area of taxation. The research would have been impossible if the large data base could not have been generated through use of computer simulation of the transactions. As the technology becomes more available the use of quantification techniques similar to those utilized in this study will increase.
|
25 |
Die invloed van kapitaalwinsbelasting op boedelbeplanning en boedelbelasting en die toepaslikheid van trusts in boedelbeplanning na die inwerkingtreding van KapitaalwinsbelastingKotze, Jan Harmse, Van Wyk, E. 03 1900 (has links)
Thesis (MAcc)--University of Stellenbosch, 2009. / AFRIKAANSE OPSOMMING: Met die bekendstelling van kapitaalwinsbelasting in 2000 was belastingpligtiges en
belastingadviseurs bekommerd oor die invloed daarvan op belasting- en
boedelbeplanning. Om die volle impak daarvan te verstaan moet die werking van
kapitaalwinsbelasting ondersoek word.
Paragraaf 10 van die Agste Bylae definieer die belasbare kapitaalwinste vir die jaar
van aanslag. Hiervolgens word kapitale winste in die hande van verskillende
belastingpligtiges teen verskillende “koerse” belas. In die algemeen word daar na
Paragraaf 10 verwys as die insluitingsartikel wat op kapitaalwinste van toepassing
is. Aangesien slegs ‘n “gedeelte” van kapitaalwinste onderhewig is aan normale
belasting is een van die grootste faktore in die huidige belastingomgewing steeds
om te onderskei tussen inkomste van ‘n kapitale of nie-kapitale aard.
Deur die toepassing van Paragraaf 10 word kapitaalwinste gerealiseer deur Trusts
en Maatskappye teen hoër koerse belas, as in die geval van individue. Dit het tot
gevolg dat belastingpligtiges en belastingadviseurs die gebruik van trusts as ‘n
effektiewe hulpmiddel vir boedelbeplanning begin bevraagteken het. Die effektiewe
belastingkoers van toepassing op kapitaalwinste gerealiseer deur individue is egter
die laagste van al die verskillende belastingpligtiges. Wanneer ‘n individue te
sterwe kom is sy boedel onderhewig aan boedelbelasting, wat ‘n verdere belasting
las tot gevolg het. Indien ‘n trust effektief toegepas word tydens die opstel van ‘n
boedelplan vir ‘n individu sal die bates van die trust nie onderhewig wees aan
boedelbelasting nie.
Deur die verskeie opsies wat beskikbaar is vir ‘n belastingpligtige, wanneer hy ‘n
besluit moet neem watter beleggingsvoertuig hy moet gebruik vir die belegging,
kan die effektiewe belastingkoerse vergelyk word. Deur die uitkomste van die
verskeie opsies teenoor mekaar te vergelyk bewys dit dat indien ‘n trust korrek
aangewend word, dit steeds as ‘n effektiewe hulpmiddel in ‘n boedelplan kan
aangewend word.
Tydens die uitvoer van die vergelyking van die verskillende opsies wat vir die
belastingpligtige beskikbaar is, is die tydwaarde van geld buite rekening gelaat.
Indien die lewensverwagting van ‘n individu in berekening gebring word kan die
uitkoms van die vergelyking moontlik anders wees.
Deur dit alles in ag te neem bevestig dit weereens dat elke individue se boedelplan
uniek sal wees indien sy persoonlike finansiële omstandighede in ag geneem
word. / ENGLISH ABSTRACT: With the introduction of capital gains taxation in 2000, taxpayers and their advisors
feared the impact thereof on tax planning and estate planning. To determine the
impact thereof the taxation of capital gains must be understood.
Paragraph 10 of the Eight Schedule define the taxable portion of capital gains for
the year of assesment. Paragraph 10 is also commonly known as the inclusion
clause applicaple on capital gains. This application of paragraph 10 has the effect
that capital gains realised by different types of taxpayers are taxed at different
rates. Due to the application of paragraph 10 only a portion of the capital gain
realised by the taxpayer is subject to normal taxation. Therefor one of the biggest
concerns for taxpayers still is to determine if income are of a capital nature or not.
The inclusion rate, according to paragraph 10, applicable on capital gains realised
by trusts and companies is higher than that of a individual and gives rise to a
bigger tax burden relating to capital profits for trusts and companies. Therefor
taxpayers and their advisors doubt wether a trust could still be used as an effective
tool for estate planning. The effective tax rate on caiptal gains for individuals is the
lowest for all types of taxpayers. But when an individual dies his estate is subject to
estate duty, which leaves an additional burden for an individual to take into
account. When a trust is effectively utilised in preparing an estate plan for an
individual, the assets of the trust should not be subject to estate duty.
By evaluating the effective tax rates applicable to the different options available to
a taxpayer when he needs to determine which investment vehicle to use when
making an investment, a comparision can be made. By comparing the effective tax
rates a conclusion can be drawn that a trust can still be used as an effective tool
for estate planning when utilised properly.
When the comparison was made the time value of money was ignored. If the life
expectancy of a individual are taken into account the outcome could be different.
When everything is taken into consideration the conclusion is that the estate plan
for every individual is unique and determined by his or her personal financial
circumstances.
|
26 |
The levying of capital gains tax at death02 September 2013 (has links)
LL.M. (Tax Law) / Capital Gains Tax (“CGT”) was introduced with effect from 1 October 2001 by the insertion of section 26A and an Eighth Schedule into the Income Tax Act 58 of 1962, by the Taxation Laws Amendment Act 5 of 2001. Paragraph 40(1) of the Eight Schedule provides that a deceased person must, with certain exceptions, be treated as having disposed of his assets to his estate for proceeds equal to the market value of those assets as at the date of death. Paragraph 40(1A) of the Eight Schedule provides that if an asset of a deceased person is treated as having been disposed of under paragraph 40(1) and is transferred directly to the estate of the deceased person, the estate must be treated as having acquired the asset at a cost equal to its market value as at the date of death for base-cost purposes, and if the asset is transferred directly to an heir or legatee, the heir or legatee must be treated as having acquired the asset at a cost equal to its market value as at the date of death for base-cost purposes. The capital gain will be the difference between the market value of a taxable asset of the deceased on the date of his death and its base cost to him, which is included in his final income tax assessment and which will have to be settled out of the estate‟s assets. There are many arguments in favour of the discontinuance of the levying of CGT at the death of a taxpayer in South Africa, which arguments become evident when comparing the South African CGT provisions regarding the levying of CGT at death with tax jurisdictions such as Australia, the United States, the United Kingdom, Canada, Botswana and Nigeria. Canada for example abolished their inheritance tax in 1972 which in that particular situation justifies the levying of CGT at death. If CGT will continue to be levied at the death of a taxpayer it is suggested that a carry-over approach in terms of which the heir inherits the asset at its acquisition cost and the CGT liability is deferred until the heir actually disposes of the asset should be followed. This approach is currently followed in Australia, Botswana and Nigeria. The holder of an inherited bare dominium will suffer at the hands of a CGT anomaly where the deceased created a limited interest, for example a usufruct over a fixed property bequeathed by him to the bare dominium holder. The anomaly that transpires is that the limited interest created by the deceased will result in an artificial drop in the base cost of the fixed property so bequeathed and there will be no adjustment to the base cost when the bare dominium holder succeeds to full ownership of the fixed property, for example when the usufructuary passes away, meaning that the same capital gain will be taxed twice. It is submitted that legislative amendments are required to provide for an increase in the base cost applicable to the bare dominium holder when the usufructuary eventually passes away. Alternatively the SARS‟s current practice in this respect should be altered to avoid the unbearable situation where a capital gain may be taxed at 2 separate instances. At least two anomalies exist when dealing with capital losses in the deceased‟s final period of assessment and in the winding up of the deceased‟s estate. Firstly a capital loss may not be carried forward from the deceased‟s final assessment to his deceased estate to be set off against capital gains that may be realised in the winding up of the estate. Secondly a capital loss incurred on the sale of a capital asset during the winding up of a deceased estate cannot be carried over from the deceased estate to the heirs of the deceased and will thus remain unutilised. It is suggested that the method followed in Canada in respect of capital losses that occurred in the year of a taxpayer‟s death should be followed in South Africa, ie that such capital loss may be carried back three years in order to reduce any taxable capital gains that occurred in those years or that the capital losses may be utilised to reduce other income of the taxpayer in his final return. It is further suggested that this method should also be followed in respect of unutilised capital losses that occurred in the winding up of the estate, alternatively the capital losses so realised must be carried over to the heirs of the deceased.
|
27 |
Kapitaaloordragbelasting as 'n addisionele bron van inkomste vir die regering van Suid-Afrika15 August 2012 (has links)
M. Comm. / The purpose of this study is to determine the desirability of implementing of a system of capital transfer tax in South Africa. The implementation of a capital transfer tax system in South Africa should generate additional income without placing a further administrative or financial burden on the South African Revenue Services. A system of capital transfer tax will replace the current system of donation tax and estate duty in South Africa. Any new system will be based on the principles established by these two forms of taxation, but should simultaneously address many of the loopholes in these two systems. Since the Margo Commission's recommendation in 1986 that South Africa should implement a system of capital transfer tax, much has been written about this form of capital tax but the government has never implemented the recommendations. However, it is certain that a system of capital transfer tax will be implemented in South Africa in the future. The current system of donation tax and estate duty is not effective in levying the taxes and earning the income for the government for which it was originally designed. Over the years numerous ways have been developed to legally avoid these taxes, which is why they are referred to as voluntary taxes (Anon, 1988:17). This dissertation consists of three parts: The first part is a literature study in which capital taxes are discussed. The distinction between income and capital is reviewed. The various forms of capital taxes are identified and the arguments for and against introducing one of them are discussed. This part concludes with arguments for and against a system of capital transfer tax for South Africa. The second part is an analysis of donation tax and estate duty as currently levied in South Africa. The shortcomings of the current legislation are discussed and legal ways to avoid estate duty are identified. The inheritance tax system in the UK and the donation tax and estate duty system in the USA are also briefly discussed. The anti-avoidance measures implemented in these countries are discussed in some detail in view of recommendations to implement similar measures in South Africa. In the third part a capital transfer tax system for South Africa is proposed. Precautions to minimise the avoidance of these taxes through interest-free loans and generation-skipping devises are discussed. Finally a conclusion is reached regarding the matters analysed in this dissertation.
|
28 |
Decision Criteria for Gifts Under the 1976 Tax Reform ActByars, Richard B. 12 1900 (has links)
The 1976 Tax Reform Act made many changes in the taxation of estate and gift transfers. Previously gifts and estates were taxed separately and the gift tax rate was 75 percent of the estate tax rate; and there was a $30,000 exemption for gifts and a $60,000 exemption for estate transfers. Under the new law the exemptions were repealed and replaced with a unified credit against the tax; and the tax on estate and gift transfers was combined into one increasing rate schedule. Under the prior law, deathbed gifts were advantageous because the gift tax paid on the transfer was excluded from the taxable estate but was allowed as a credit against the estate tax since gifts within three years of the date of death were included in the gross estate unless the estate could demonstrate that the gifts were not made in contemplation of death. Under the new law, gift taxes paid on transfers which occur within three years of the date of death are included in the taxable estate.
|
29 |
A Model for Optimal Interspousal Transfers in Estate PlanningPulliam, Dale R. 12 1900 (has links)
The problem with which this study is concerned is that of determining the optimal transfer of property from a decedent to his surviving spouse. A secondary problem addressed is whether equity between common law states and community property states in the application of the estate tax provisions has been achieved through the allowance of the marital deduction. From this analysis decision criteria were developed to aid taxpayers and their advisors in determining optimal property transfers to a surviving spouse. Conclusions of the study were the following: (1) The primary concern when formulating an estate plan should be to determine whether any property should be transferred to the surviving spouse. The literature has stressed qualifying transfers for the marital deduction while giving minimal consideration to the wisdom of doing so. This study indicates that in a majority of estates optimal results are obtained by making no transfers to the surviving spouse. (2) Relative after-tax rates of return of the surviving spouse and other beneficiaries are the most important factors in determining optimal transfers to the spouse. This again conflicts with the literature which has emphasized relative estate sizes as the dominant factor. (3) Rates of inflation have minimal influence in determining the size of the optimal transfer. (4) Citizens of common law states are generally favored as opposed to citizens of community property states in the application of the estate tax laws. Citizens of these states have more flexibility in. planning transfers to beneficiaries and may generally do so at a lower tax cost through use of the marital deduction.
|
30 |
An analysis and exposition of the definition of property for estate duty purposes with reference to a future capital transfer tax.Delport, Mariana 13 August 2012 (has links)
M.Comm. / The first objective of this dissertation is to establish whether wealth or capital taxes are relevant to South Africa. If the answer is yes, the further objective is to identify the various forms of capital and wealth taxes in order to determine which form of wealth or capital tax would be suitable in South Africa in the future (refer chapter 2). The second objective, once the form of capital tax for a future South Africa is identified, is to determine which assets or, in other words, which property will be subjected to such a tax (chapters 3-5). The third objective is to analyse the recommendations contained in the fourth interim report of the Katz Commission of Inquiry into certain 3 aspects of the tax structure of South Africa (hereafter, referred to as the Katz Commission) and to examine the effect of these recommendations on the inclusion of property in the deceased's estate which will be subjected to such a tax (chapter 5). The fourth objective is to provide the reader with two diagrams which will enable such person to determine: whether a deceased person's estate will be subject to estate duty in terms of the current Act 45 of 1955, as amended (hereafter, referred to as the Act); and what an estate consists of (chapter 6). The fifth objective is to provide the reader with a comprehensive alphabetical property checklist to enable such person to determine whether a specific asset should be included in the estate of a deceased person (chapter 6).
|
Page generated in 0.1313 seconds