Helping someone out may be exempt from donations tax—but as always, the devil is in the detail… Donations tax is one of those strange taxes where people often question its existence. After all, why would SARS be so mean as to want to tax someone’s generosity? The main reason is estate duty—or, more specifically, the potential avoidance thereof. In fact, if donations tax did not exist, this would open a massive estate duty loophole. Since estate duty is levied at 20% of the taxable value of one’s estate exceeding R3.5 million (and at 25% of the portion exceeding R30 million), […]