Estate duty to change!
Tax Bulletin | 3 September, 2009 | Hot Topics:
Dear fellow taxpayer,
I think it’s safe to say spring is here. I for one am looking forward to mothballing my winter suits for another nine months.
The weather isn’t the only thing to change...
Estate duty to change!
Among the numerous changes in the 2009 Taxation Laws Amendment Act which should become law in the New Year, there’s a proposal to amend Section 4A of the Estate Duty Act to allow the R3.5 million deduction to roll over between spousal estates.
Public comments allege this proposal is too narrow
These comments were made before the Standing Committee of Finance in Parliament. For instance, the estates of some predeceased spouses often transfer assets to other parties (e.g. jewellery, personal effects and immovable property). As a result, the rule should allow the estate of the predeceased spouse to freely bequeath assets with unused Section 4A deductions to roll over to the estate of the surviving spouse.
National Treasury saw the sense in thus criticism, and has agreed to amend the proposal in the Draft Legislation for more flexibility.
Stay tax savvy,
Matsika Vengesa
Tax Consultant: Practical Tax Handbook
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Editors note
Fulvia Stoltz
Tax Bulletin Editor
The Tax Bulletin is packed full of tax tips, commentary on changes to the tax landscape and is also an interactive tax forum which aims to help you efficiently manage your taxes and avoid all the traps. It is also a handy reminder of the deadlines which taxpayers have to meet.