Every Contract Has a Tax Consequence
When drafting a contract, ignoring tax will often be to your peril. Every single contract in terms of which money or property changes hands has tax consequences for the parties involved. These consequences have been plainly evident in cases where people bought their fixed property in a Close Corporation or private company, thinking that because […]
Expenses Must Be Intended to Produce Taxable Income
To successfully deduct an expense, there must be a link to earning taxable income. Section 11(a) of the Income Tax Act, the so-called ‘general deduction formula’, seems to have produced more court cases than virtually any other Section of the Act. And each time, the courts tell us the same thing: In order for you […]
Tax deductions for employees working from home
More and more employers are allowing salaried employees to work from home to avoid wasting productive hours while commuting. Such employees may claim a home office deduction (allowed for under the “Other Deductions” section of the personal income tax return or ITR12 form) if certain strict requirements are met. The deductibility of these expenses is determined by section 11 (in particular paragraphs (a), (d) and (e), […]