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 […]

Deductions on amounts already taxed

It often happens that a person may receive remuneration and other similar amounts (for services rendered or to be rendered, or by virtue of employment or the holding of any office), which subsequently have to be refunded, often because of contractual obligations not having been fulfilled, or due to an overpayment which was previously subject to tax. These amounts […]

TAX DEDUCTIONS AGAINST SALARY EARNINGS

Our clients who earn only a salary will know that very few tax deductions are available against salary income for income tax purposes and whereby they may reduce the taxable income derived ultimately from such remunerations. Section 23(m) of the Income Tax Act[1] provides that none of the deductions ordinarily available to taxpayers in terms […]