By Clint Riddin
These documents then set out what is taxable income and how the income should be taxed. Over the next two issues, we will set out the formula for taxing other income and how SARS will administer the returns for this taxable income in terms of the new Interpretation Note 64.
In closing, we refer back to previous comments; whilst people generally do not like paying tax, it is not wise for trustees to treat the taxation of a scheme as they might their own tax affairs. Trustees and office bearers have a fiduciary responsibility to a scheme and any liability arising out of non-registration, or tax avoidance, could negate the indemnity afforded by the sectional titles act, or any constitution in terms of a home owners’ association, and be recovered by members from the trustees in their personal capacities.
For further reading visit the SARS website, www.sars.gov.za. Click on ‘whats new’ on the left hand side menu.
Article reference: Paddocks Press: Volume 7, Issue 4, Page 2
Taxation of community schemes by SARS – Part 2