... SARS has proposed a 2 year tax window, which will allow people who currently hold their primary residence through a close corporation or a private company the opportunity to transfer their property into their own personal names.

They will not incur any Capital Gains Tax, dividend tax or transfer duty liability, provided that registration of the property into the name of a natural person takes place before 31 December 2011.

These provisions will in all likelihood come into effect during the first quarter of 2010, and can be a huge cost saving. Watch our website for the future updates in this regard.

Please contact one of our professionals about transferring your property into your personal name. We also advise that you consult with your accountant.

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... FACT FOR THE WEEK Historically, SARS was legally required to refund a taxpayer the tax in dispute, together with interest thereon, where the taxpayer succeeded with a tax appeal. Interest was paid to taxpayers either where the Tax Court ruled in favour of the taxpayer or where SARS conceded the appeal before it was ruled on by the tax court.
However, where SARS allowed the taxpayers objection to an assessment, the law did not require that SARS refund the tax together with interest to the taxpayer. Under the “pay now argue later” rule taxpayers must pay tax in dispute first, unless SARS agrees to defer the payment of the tax, and then proceed with their dispute against the assessment.

Section 88A of the Income Tax act will now be amended to require that SARS pays interest on tax refunds to taxpayers when SARS allows an objection, and will also clarify as to when SARS will agree to defer the payment of tax in dispute.

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... If you buy a property within a 5 year period after the property was built, you should request the NHBRC (National Home Builders Registration Council) Enrolment Certificate from the seller. This Certificate warrants any residential dwelling against poor workmanship resulting in structural defects for a period of 5 (five) years. The National Home Builders Registration Council Act requires that all newly build residential dwellings are enrolled by any Developer, Contractor or Prospective Home Owner with the NHBRC, whether being built cash or through financial assistance by any legal bond holder and as it is an offense not to comply with the relevant legislation, the seller / bond holder should therefore be in possession of the original certificate. Our advise is that you make the NHBRC Enrolment Certificate a condition of your Offer to Purchase if you buy a new property and it falls within the 5 (five) years warranty period.

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... Purchasers who are not South African residents may apply for a mortgage bond from a South African bank equal to a maximum of 50% of the purchase price. The remaining 50% of the purchase price must be brought into South Africa in cash from a foreign bank. A non-resident's mortgage bond is furthermore subject to exchange control approval, as is a mortgage bond for a company, close corporation or partnership of which 75% or more is owned by non-residents

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... The Consumer Protection Act will become law as of October 2010. Read our full article on our website

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