OPINION: Why Sars targets ‘connected persons’ in relation to a trust

OPINION: Why Sars targets ‘connected persons’ in relation to a trust

The SA Revenue Service (Sars) attempts to limit the abuse of trusts as a means of tax evasion by individuals. Sars identifies persons and entities that are closely connected to the beneficiaries of the trust – especially where income and capital gains have been transferred to such persons and entities – since the beneficiaries are the parties who will directly benefit from all income and capital gains accrued in the trust.

Updates from the 2018 budget speech

Updates from the 2018 budget speech

2018 BUDGET SPEECH UPDATE. The Minister of Finance announced amendments to tax and other legislation that may affect investors. These changes come
into effect on 1 March 2018, unless otherwise indicated.

Old Mutual Invest Tax Free Plan

Old Mutual Invest Tax Free Plan

. What are the main benefits of a TFSA?

You don’t pay any tax on investment income (interest and dividends) earned in the product, or any capital gains. There are no restrictions on the funds you can invest in (other than that funds cannot charge performance fee), and no minimum investment period is required. You are also not limited on the withdrawals you can make from your investment.

What taxes do I pay when I invest offshore?

What taxes do I pay when I invest offshore?

Investing offshore allows you to diversify and benefit from a broader universe of investment ideas, but what about the tax you may have to pay? As with any other investment, it is important to get the full picture before you make any decisions. When you invest offshore, the tax you may be required to pay depends heavily on the way you choose to invest.

How do we benefit from having a Retirement Annuity?

“What’s the point of having a Retirement Annuity when I’m still relatively young?” When we think of retirement annuities, we seem to forget that old age creeps up much quicker than anticipated, and the worst part is, once we realise we need to start saving, we are suddenly overwhelmed with a huge capital shortage.  Thousands of people are confronted with this problem on an annual basis. “How am I supposed to benefit from something if I can’t even withdraw the full amount before a certain age?” Well, there are many benefits attached to investing in a Retirement Annuity. When you pass away, the retirement annuity is not included in your estate for estate duty purposes.  Upon your death your loved ones, or chosen beneficiaries can withdraw the full fund value as a cash lump sum.  The lump sum will be tax deductible. Your retirement annuity is protected against insolvency.  The same applies, should you be insolvent at the time of your death.  This means that your beneficiaries will be protected. On retirement preferential tax tables apply to your lump sum benefit received Should you own a retirement annuity you will be tax exempt from all returns achieved in the underlying fund.  This includes capital gains tax, income tax and dividends withholding tax. You are even entitled to a tax deduction for any contributions made- up to 15% of taxable non-retirement funding income.  This is currently in addition to any tax deduction for pension fund contributions. A retirement annuity can also be used as an estate planning tool for a suitable client Estate planning is the process of anticipating and arranging...