Any idea on how Sars will proceed to collect the capital gains tax due and at what rate will they be taxed?
Important:
This answer is based on tax law for the tax year ending 28 February 2020.
Answer:
We didn’t, in our guidance, imply that capital gain must be separately disclosed. In terms of the legislation, of which we provided an extract, the ‘taxable turnover’ (a defined term) of a registered micro business includes 50% of all receipts of a capital nature from the disposal of certain assets.
It is therefore not the capital gain, but 50% of the actual receipt, that is included in the ‘taxable turnover’ amount and declared as such (or as part of) and not separately. A micro business is taxed on its taxable turnover and nothing else.
This of course assumes that the micro business is not, because of this disposal, disqualified from being a micro business – when the total of all amounts received by that person from the disposal of the listed assets exceeds R1,5 million over a period of three years comprising the current year of assessment and the immediately preceding two years of assessment. We didn’t refer to this as you mentioned that the amount received was R1,2 million.