Abstract
For income tax purposes, a taxpayer operating a business will account for discount received differently from a taxpayer not operating a business. When a taxpayer operating a business obtains goods or services at a discount, the taxpayer can claim a section 11(a) deduction at the value of the goods or services, net of the discount received. The discount reduces the value of the net reduction of taxable income and the taxpayer is effectively taxed on the discount received. A taxpayer who is not operating a business will not qualify for a section 11(a) deduction (read together with section 23(g)) for goods or services obtained (it does not meet the requirements ‘for the purposes of trade’ and ‘in the production of income’). Discount received in the hands of a non-trading person (often a natural person) is currently not subject to normal South African income tax. The main objective of this article is to investigate whether the existing provisions in the Income Tax Act No. 58 of 1962 and related case law provide a basis for taxing discount received in the hands of the non-trading individual. In order to meet this objective, local literature was analysed to determine the correct income tax treatment and it was found that discount received by a non-trading person meets all the requirements of the ‘gross income’ definition and consequently should be taxable.
Highlights
For income tax purposes, a taxpayer operating a business will account for discount received differently from a taxpayer not operating a business
Die regspraak oor of ‘n bedrag voor of na aftrekking van die korting by bruto inkomste ingesluit moet word, verskil
Die hoofdoel van die navorsing wat in hierdie artikel ter sprake is, was om aandag aan hierdie gaping te gee deur ondersoek in te stel of die bestaande bepalings in die Wet en verwante plaaslike regspraak ‘n basis bied, al dan nie, vir die belasbaarheid van afslag of korting in die hande van die Suid-Afrikaanse niehandeldrywende natuurlike persoon
Summary
Wanneer ‘n belastingpligtige wat ‘n bedryf beoefen goedere of dienste teen ‘n afslag of korting verkry, sal die belastingpligtige, ingevolge die Inkomstebelastingwet nr. 58 van 1962 (“die Wet”), ‘n artikel 11(a)-aftrekking eis teen die waarde van die goedere of dienste na aftrekking van die afslag of korting ontvang, of die volle koopprys as aftrekking eis en die afslag op die inkomsterekening toon om belas te word. Die vraag ontstaan of afslag of korting ontvang in die hande van ‘n belastingpligtige wat nie ‘n bedryf beoefen nie, nie afsonderlik by bruto inkomste ingesluit moet word nie. Brink en Viviers (2012:438) het bevind dat selfs al word kliëntelojaliteitsprogramvoordele ontvang nie tans in Suid-Afrika belas nie, bied die bestaande bepalings in die Wet en verwante regspraak wel ‘n basis vir die belasbaarheid van ‘n kliëntelojaliteitsprogramtransaksie in die hande van die verbruiker as ‘n natuurlike persoon. Die hoofdoel van die navorsing wat in hierdie artikel ter sprake is, was om aandag aan hierdie gaping te gee deur ondersoek in te stel of die bestaande bepalings in die Wet en verwante plaaslike regspraak ‘n basis bied, al dan nie, vir die belasbaarheid van afslag of korting in die hande van die Suid-Afrikaanse niehandeldrywende natuurlike persoon. Ten einde ‘n afslag- of kortingtransaksie in sy geheel te beoordeel, word die inkomstebelastinggevolge vir die niehandeldrywende natuurlike persoon wat die afslag of korting ontvang, vergelyk met die verskaffer wat die afslag of korting toestaan
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