by VDT Attorneys | May 20, 2026 | Debt waivers, Forgiven debt can have tax consequences, Tax Advice
A concession or compromise of a debt is defined broadly in paragraph 12A(1). It includes situations in which a debt is cancelled, waived, or extinguished by redemption or merger. In addition, a concession or compromise includes the conversion of debt into equity....
by VDT Attorneys | Feb 4, 2026 | Tax, Tax Advice, Tax planning, Trust loans, Trusts
Section 7C of the Income Tax Act 58 of 1962 was introduced to address the perceived tax advantage of interest-free or low-interest loans to trusts when attempting to transfer wealth below market value. Where a connected person advances a loan to a trust at a rate...
by VDT Attorneys | Nov 24, 2025 | Reportable Arrangements, SARS, SARS disclosure rules, Tax, Tax Advice, Tax planning
A reportable arrangement is any transaction or structure that SARS believes could give rise to unusual or significant tax benefits. These include arrangements that result in a tax benefit of more than R5 million, the use of hybrid instruments that look like debt but...
by VDT Attorneys | Sep 4, 2025 | AML, Anti-Money Laundering, Anti-money Laundering Amendment Act, Estate Planning, Tax, Tax Advice, Wills and estates
Estate planning does not operate in a vacuum. It is shaped by tax policy, political pressures, and economic realities. Recent developments in South Africa illustrate how quickly the landscape can change. For example, although the government rejected new...
by VDT Attorneys | Jul 16, 2025 | AI, Artificial Intelligence, Tax, Tax Advice, Tax filing
The South African Revenue Service (SARS) is modernising its operations by integrating advanced data analytics and artificial intelligence (AI) to strengthen tax compliance and boost revenue collection. SARS is using AI to analyse large amounts of data quickly and...
by VDT Attorneys | Jun 30, 2025 | Owing SARS money, SARS, SARS debt compromise agreement, Tax, Tax Advice, Tax planning
When a taxpayer is unable to pay its tax obligation to the South African Revenue Service (“SARS”), the taxpayer either has the choice to enter a deferral payment arrangement wherein they can arrange for a deferred payment plan, or the taxpayer may enter into a debt...
