Donations Tax – Part 4 of 4

November 21, 2012 in Uncategorized

When is a disposal considered a donation?

If any property has been disposed of for a consideration that, in the opinion of the Commissioner, is not an adequate consideration, that property is treated as having been disposed of by donation. The donor is liable for the payment of the donations tax. If the donor fails to pay the tax within the prescribed period, the donor and the donee are jointly and severally liable for the tax.

http://www.sars.gov.za/home.asp?pid=181

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