SARS TO KNOW MORE ABOUT YOU

MORE WAYS THAN ONE IN WHICH THE TAXMAN KNOWS YOUR INCOME

Taxpayers are in for a stronger audit from SARS with the new requirement that certain persons – such as banks, financial institutions and medical schemes – must submit third party returns.

Estate agents and attorneys are also required to submit third party returns if they “pay amounts to, receives amounts on behalf of” another person. As such interest earned on a purchase price deposit or occupational rental collected, will be brought under SARS’ attention, via the estate agent or attorney as third party.

The information provided to SARS in this way will be used to pre-populate a taxpayer’s return and will help SARS to verify accuracy of taxpayers’ disclosures.

Contact us at allison@rivigangroup.com should you have any questions in this regard.

Article courtesy of our lawyers www.stbb.co.za.

‘OCCUPATION’ vs ‘POSSESSION’

With legal jargon as confusing as it is, and the fact that legislation keeps changing and moving the goal posts, it's essential that we do all that we can to keep our clients up to date with legal information that can help them make informed decisions around their property investments!

Every week our lawyers (Smith Tabata Buchanan Boyes) send us great little snippets that are really useful.  Here is one of them regarding the difference between occupation and possession - two fundamentally different concepts.

Many homebuyers are unaware of the legal difference between the terms ‘occupation’ and ‘possession’ of a property as used in sale agreements.