Compensation for losses: Which ‘hole’ is filled?
Many taxpayers assume that compensation for losses is of a capital nature. It depends… There are no hard and fast rules for determining whether a particular gain is of a capital or a revenue nature. Each case needs to be decided on its own facts. The distinction is important because of the lower effective rate […]
Travel claims, but no allowance?
For commission-earners and the self-employed, the rules are slightly different—but travel costs can be claimed. The mistake that I make when writing articles about travel allowances is that I tend to forget that not all of us are ‘wage slaves’. Indeed, there are many taxpayers for whom the saying, “If a man will not work, […]
Understanding the foreign services income exemption: The requirement for service rendering
Many articles have been written about the application of the foreign income exemption provided for under Section 10(1)(o)(ii) of the Income Tax Act. This section provides for an exemption from South African tax from specific employment income earned while rendering services outside South Africa. The section limits such income qualifying for the exemption to any […]