SA income tax laws expand by ½ a page EVERY day…

 Save R1 million in tax right now using just ONE of the latest amendments

Now you can turn every change in our tax law into a tax saving opportunity in less than 20 minutes a month

Dear taxpayer,

Time is money, so I’ll get right to the point.

Since 2000, our income tax laws have expanded by more than 1 138 pages of amendments (at least) and each one presents you with a tax saving opportunity.

For instance, share-for-share relief was repealed in the 2007/08 Tax Law Amendment Act promulgated on 8 January 2008. With just this one change, you need to rethink your family structures to ensure optimal tax efficiency. Here is how you could save more than R1 million in taxes.

Let me explain.

Say you set up a family trust that acquired property for R1 million in 1998. For argument sake, today that property is worth R11 million…so you decide to sell it.

On disposal of the property, the capital gains tax inclusion rate is 50%. Also, the tax rate is 40% for trusts and only 29% for companies.

With the new share-for-share relief repeal, you have two choices – both of which result in substantial tax savings:

1. You take advantage of the lower tax rate by making a Section 42 transfer of the property from the trust to a newly formed company.

   The trust will own 100% of the company, and the company will own the property.

   When you sell the property, your effective company tax is R10 million (R11 million – R1 million base cost) x 50% x 29%. This gives you tax due of R1 450 000. If the trust had made the sale the tax due would have been R2 million.

   By completing the sale through the company rather than the trust, you save R550 000 in taxes

   Or....
    

2. You keep the property in the trust and distribute the profit into your personal name
   
   In this case, you’d use the conduit principle, where the gain in your hands is only taxable at a rate of 10%.

   By completing the sale as a beneficiary, you save R1 million in taxes.

7 more tax saving tips you should implement now

My name is Rachel Paterson and I’m writing to you today to tell you about the countless ways you can save on your taxes…especially by turning the latest and many tax law amendments to your favour.

It’s easy really…when you know the tricks and tips, have all the latest interpretation notes, and understand how the landmark rulings affect you.

It’s even easier when all of this lands on your desk every month, takes you only 20 minutes to read, and requires nothing more of you than to put all the tax saving advice into action.

In fact, it’s as easy as a subscription to Simplify your Tax 

 Here are just seven of the many other tax saving opportunities we've recently covered in Simplify your Tax:

• How to get DOUBLE tax relief from a learnership agreement and the four steps you must follow to do so;
• How to save 30% on any profit from listed shares;
• 3 tips to help you save tax on your claims;
• 3 tricks to cut tax on your company vehicle;
• How to make sure SARS doesn’t take its 36% cut of your hard-earned retirement money;
• 6 travel claim snares to avoid; and
• 9 ways to smash the “no input tax claims on entertainment expenses” rule.

Here’s another tax saving opportunity for you…

Use a logbook to claim back fringe benefit tax on your company vehicle

If you have a company vehicle, you’ll mostly suffer 2.5% monthly fringe benefit tax on its value.

Therefore, if the car is worth R200 000, you’ll pay tax on the R60 000 fringe benefit per year (R200 000 x 2.5%).

If you’ve travelled less than 10 000 private kilometres in your company car, claim a pro rata reduction of your fringe benefit tax.

If you’ve only done 7 000 private kilometres and have a logbook to back this up, your fringe benefit will be reduced by:

(10 000km – 7 000km) x R60 000 = R18 000, therefore, you will be taxable on R42 000 (R60 000 - R18 000).
10 000km

Save tax simply in 20 minutes a month

Simplify your Tax is an eight-page newsletter jam packed with one tax saving tip after another. To show you how much Simplify your Tax can save you every month, I’m offering you a RISK-FREE trial.

Click on the link below to complete the order form and send it back to me and I’ll send you your first issue of Simplify your Tax FREE.

You’ll have no obligation but to read it, apply our tips and save, save, save.

If you decide you can save more on your taxes without our service, simply send me an email and I’ll cancel your subscription. You’ll owe nothing, there’ll be no hard feelings, and you can keep your free issue.

But I know you’ll find Simplify your Tax to be the tax-saving godsend it is. Within a few shorts months, you’ll have saved enough tax to pay for the subscription many times over.

I’m so confident you’ll save significantly on your taxes that I’d like to go a step further. When you pay for your first issue, I’ll send you…

1. A Travel Allowance vs. Company Car Calculator to help you maximise your tax planning around travel allowances and company cars; and
2. 202 Tax Tips, an easy-to-use book containing 202 practical tax
   tips you can implement immediately.
3. The Tax Bulletin, weekly tax tip in your Inbox every Thursday.

Finally, you’ll also be able to send us questions if you have a specific tax issue tying you up. Give us 72 hours and you’ll have a practical answer waiting for you in your inbox. This service is free to subscribers only.

Take me up on my RISK-FREE trial offer by clicking on the button below and subscribe now.  You’ll save thousands on tax.

Yours sincerely

Rachal Petersaon
Publisher, Simplify your Tax

PS: There’s absolutely no risk to you so put Simplify your Tax to the test. Your first issue is FREE. If you cancel before the end of your 14-day RISK-FREE trial period, you’ve lost absolutely nothing. Instead, you’ll have gained several new tax saving tips. Go on.