Corporate Tax
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Current Issues: Capital Gains Tax (2022)

CPD Hours: 2

Price: R495.00


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Current Issues: Capital Gains Tax (2022)

Presenters : Wessel Smit


Overview

CGT is usually triggered on the transfer of wealth, but some ordinary business transactions can also have CGT consequences. In any restructuring of an organisation, CGT becomes a serious consideration, and lack of planning could result in significant tax liability for the parties. Legislative amendments in recent years and the introduction of anti-avoidance measures have increased the complexity of CGT.

Current issues in CGT include:

  • CGT consequences of a primary residence used in trade and/or as a home-office.
  • Receipt of tax-exempt dividends regarded as “proceeds” for CGT purposes.
  • Risks and considerations for disposing shares in a private company that is subject to a suspensive condition.
  • Involuntary disposal of assets (roll-over relief).
  • Incurring capital losses in transactions with connected persons.
  • CGT and B-BBEE restructuring.

Recording content

In this recording, we take a practical look at selected CGT topics, which will include the following:

  • Dividends treated as proceeds (par 43A of the 8th Schedule).
  • Roll-over: Involuntary disposal (par 65 of the 8th Schedule).
  • A primary residence used partly for trade, such as a home office (paragraphs 44 to 51A of the 8th Schedule).
  • Capital losses and connected persons (paragraphs 39 & 56 of the 8th Schedule).

Competencies developed in this CPD

After viewing this recording, you will be:

  • Competent to advise clients on the scope of paragraph 43A of the 8th Schedule and calculate a taxable capital gain in terms of this paragraph.
  • Able to understand the meaning of an “extraordinary dividend” in terms of paragraph 43A of the 8th Schedule to the Income Tax Act (ITA).
  • Effectively apply the rollover relief for involuntary disposals in terms of paragraph 65 of the 8th Schedule to the ITA.
  • Competent to calculate the portion of the capital gain on the disposal of a primary residence, used partly for trade purposes, which will not qualify for the R2m primary residence exclusion.
  • Able to advise clients on the capital loss consequences for transactions between “connected persons.”

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