Web(Haupt, 2024:856) Exempt from Section 7C: The following listed scenarios are those in which section 7C(5) will not be applied: • If the trust is a SARS–approved public benefit organisation or a small business funding entity; • The loan advance or credit was provided to the trust by reason of or in return for a vested interest held by that person in the income or … WebThe new rule. The Taxation Laws Amendment Bill 2016 introduced a new antiavoidance measure in the context of low-interest or interest-free loans made to trusts. The purpose is to address the avoidance of donations tax and estate duty through the transfer of assets to trust on loan account. The new Section 7C of the Income Tax Act will deem the ...
Introduction Trust Structures and anti-avoidance: Section 7C …
Web19 Nov 2024 · Section 75 also applies to foreign purchases, as well as goods bought online and by telephone. Section 75 does not only cover credit cards. It also applies to store … WebSection 7C(3) specifically states that the “person” providing a loan to a trust: at a lower interest rate than the prescribed interest rate, prescribed by SARS, shall be deemed to make a donation to the trust, equal to the difference of the interest rate charged on the loan and the interest rate as prescribed by SARS; or cotatron
INTEREST-FREE LOANS: IS THIS STILL ALLOWED? - Credis …
Web9 Mar 2024 · Section 7C deems the interest that is not levied or charged on an interest-free loan, as a deemed donation on the last day of each tax year for a loan that was outstanding for any period during that preceding tax year. The interest forgone is calculated by using the official interest rate in the 7th Schedule to the Income Tax Act, currently ... Web6 Oct 2024 · The most recent addition to the armoury of SARS to combat these practices is the amendments to section 7C (s7C) of the Income Tax Act 58 of 1962 (ITA). These latest anti-avoidance provisions target instances where a person "sells" their assets to the trust on loan account where the loan is subject to interest that is below market related rate ... WebIn their haste to avoid the application of section 7C to loans made to offshore companies held by offshore trusts, certain individuals are contemplating capitalising these loans into zero coupon redeemable preference shares. In this way the section cannot apply, because it clearly refers only to a loan. Moreover, it is hoped that section 7 of ... cota training