Williams

Capital Gains Tax; a practitioner's manual

Capital gains tax came into effect in South Africa on 1 October 2001. The disposal of assets, after that date, by way of sale, donation or expropriation may give rise to a capital gains tax liability. In addition, a wide range of other acts and events are deemed to be "disposals" and may similarly give rise to a capital gains tax liability. Death results in a deemed disposal, and thus triggers a potential capital gains tax liability. Capital gains tax is imposed on a residence basis and South African residents are therefore potentially liable for capital gains tax on their world-wide assets. The introduction of capital gains tax has completely changed the fiscal landscape in South Africa. In this new era, no contract (or variation of a contract), no business deal, no corporate reconstruction, no sale of investments, no waiver or reduction of a debt and no formation or variation of a trust should be entered into without careful appraisal of the capital gains tax consequences. This work is designed to meet the needs of attorneys, accountants, tax consultants, investment advisers, and other professionals. The manual explains, in depth and in detail, the conceptual basis and the practical implications of capital gains tax. The book includes a paragraph-by-paragraph commentary on the provisions of the Eighth Schedule and the Corporate Rules, including many practical illustrations of capital gains tax calculations. The first edition of this work earned high praise in professional and business circles, with one commentator describing it as “a commanding work” The second edition incorporates legislative amendments up to and including the Second Revenue Laws Amendment Act 34 of 2004. The commentary on the Eighth Schedule has been considerably expanded with the addition of many new practical examples. A detailed commentary on the Corporate Rules has been added, plus new chapters on foreign currency gains and losses, anti-avoidance provisions, and administrative requirements.