Thesis (MAcc) -- Stellenbosch University, 2010. / ENGLISH ABSTRACT: Due to a number of legislative changes, the tax treatment of pension interest at divorce has become a complicated issue, as it is not only affected by the Income Tax Act, but also by the Pension Funds Act as well as the Divorce Act. Because these changes are still fairly new to the industry, there are still a couple of technical issues on which the industry is not clear. In practice there are many articles and writers trying to give some form of guidance regarding the technical issues of pension interest at divorce. The study will refer to case law that affected the changes made to the Pension Funds Act, which led to the institution of the “clean-break” principle. Some of the technical issues with regard to a payment of an award made to a non-member spouse by a divorce order will be included along with a discussion on difficulties and uncertainties arising from the “clean-break” principle. The focus of the study will then be directed towards changes made to the Income Tax Act. Specific reference will be made to the tax on an award made to a non-member spouse by a divorce order. In some cases the tax on such an award will be recovered from the member spouse. The Income Tax Act does however provide for a right of recovery, which will be discussed. The payment of the tax from the member’s individual reserve however constitutes an additional accrual according to the Income Tax Act, which leads to a tax-on-tax issue. A discussion on GN33 will be included, as GN33 addresses the tax-on-tax issue. A chapter on preservation funds is included, as it is important to understand the working of these funds on when a non-member spouse has the option to transfer his/her pension interest to such a fund. The study will then look at an inequitable position in which the member finds him/herself when party to a divorce order made before 13 September 2007. Due to the changes made to the Income Tax Act, a situation arose where the member spouse looses out on all or part of his/her R300 000 tax free benefit as allowed by the Income Tax Act for withdrawals from his/her retirement funds. The study will include considerations for financial planning. The industry is placing more and more emphasis on sound financial planning, and it is therefore important to understand the key considerations, which an advisor or a party to a divorce should consider. The study will include a discussion on some of the outstanding issues, which the industry expects the legislature to address in the near future. As the changes to the Income Tax Act are ever changing and the discussion on pension interest at divorce is still a new topic under discussion, the industry is keeping an eye on the expected changes from the finance ministry and the legislature. / AFRIKAANSE OPSOMMING: As gevolg van ’n aantal veranderinge in wetgewing, het die belastinghantering van
pensioenbelang by egskeiding ’n ingewikkelde kwessie geword, aangesien dit nie net deur
die Inkomstebelastingwet beïnvloed word nie, maar ook deur die Pensioenfondswet sowel
as die Egskeidingswet. Die studie sal verwys na regspraak wat aanleiding gegee het tot die
veranderinge wat in die Pensioenfondswet gemaak is en wat gelei het tot die instelling van
die “skoon-breuk”-beginsel.
Sommige van die tegniese vrae wat betref die betaling van ’n toekenning aan ’n nie-lid-gade
by ’n egskeidingsbevel sal ingesluit word saam met ’n bespreking van probleme en
onsekerhede wat uit die “skoon-breuk”-beginsel voortspruit.
Die fokus van die studie sal dan gerig word op veranderinge wat in die
Inkomstebelastingwet aangebring is. As gevolg van veranderinge in wetgewing op spesifieke
datums, word ’n toekenning wat aan ’n nie-lid-gade gemaak is in terme van ’n
egskeidingsbevel belas onder drie verskillende belastingregimes, afhangende van die datum
van die egskeidingsbevel.
Daar sal spesifiek verwys word na die belasting op ’n toekenning aan ’n nie-lid-gade. In
sommige gevalle sal die belasting op so ’n toekenning verhaal word van die lid-gade. Die
Inkomstebelastingwet maak egter voorsiening vir ’n verhalingsreg wat ook bespreek sal
word. Die betaling van die belasting vanuit die lid-gade se minimum individuele reserwe
word egter erken as ’n addisionele toevalling in terme van die Inkomstebelastingwet wat lei
tot ’n belasting-op-belasting kwessie. GN33 sal bespreek word aangesien hierdie algemene
nota die kwessie aanspreek. ’n Hoofstuk oor bewaringsfondse word ingesluit, aangesien dit belangrik is om die werking
van hierdie fondse te verstaan wanneer ’n nie-lid-gade die opsie het om sy/haar
pensioenbelang na so ’n fonds oor te dra.
Die studie sal dan kyk na ’n onbillike posisie waarin die lid hom/haarself bevind as hy/sy
party was by ’n egskeiding voor 13 September 2007. As gevolg van die veranderinge wat in
die Inkomstebelastingwet aangebring is, het ’n situasie ontstaan waar die lid eggenoot ’n
gedeelte van sy/haar R300 000 belastingvrye voordeel vir onttrekkings van sy/haar
aftreefonds, verloor.
Die studie sal oorwegings vir finansiële beplanning insluit. Die bedryf plaas al meer klem op
omvattende finansiële beplanning en dit is dus belangrik om die deurslaggewende
oorwegings waarmee ’n adviseur of ’n party by ’n egskeiding moet rekening hou, te
verstaan.
Ten slotte sal die studie ’n bespreking insluit van sommige uitstaande kwessies wat die
industrie verwag die wetgewer in die toekoms moet aanspreek.
| Identifer | oai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:sun/oai:scholar.sun.ac.za:10019.1/19878 |
| Date | 12 1900 |
| Creators | Du Preez, Johannes Lodewicus |
| Contributors | Van Schalkwyk, C. J., Stellenbosch University. Faculty of Economic and Management Sciences. Dept. of Accountancy. |
| Publisher | Stellenbosch : Stellenbosch University |
| Source Sets | South African National ETD Portal |
| Language | en_ZA |
| Detected Language | English |
| Type | Thesis |
| Format | 86 p. |
| Rights | Stellenbosch University |
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