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.
| Identifer | oai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:sun/oai:scholar.sun.ac.za:10019.1/20425 |
| Date | 12 1900 |
| Creators | Marx, Erick |
| Contributors | Van Schalkwyk, C. J., Stellenbosch University. Faculty of Economic and Management Sciences. Dept. of Accountancy., Davids, Ricardo |
| Publisher | Stellenbosch : Stellenbosch University |
| Source Sets | South African National ETD Portal |
| Language | en_ZA |
| Detected Language | Unknown |
| Type | Thesis |
| Format | 102 p. |
| Rights | Stellenbosch University |
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