Substantial debit member's loan account

[Chrisjan B]

That's not spend - its waste...

[SSS100]

And me and u as tax payer have no control over, therefore no recourse as well
Hence the husband point of view in this post

[CLIVE-TRIANGLE]

The 7th Schedule to the Income Tax Act covers this aspect (writing off of a loan) pretty well. As matters stand it would regarded as taxable income in the hands of the wife, hence my "if only it were that simple" comment.

[Blurock]

SSS100, if only it were that simple!

Trevor, the reason I asked about the accounting officer is because in my experience one sometimes meets much resistance and you are then forced to accede to the client's wishes, let the predicted consequences come to pass, try not to gloat when they do, pick up the pieces and repair what you can. The alternative often is to lose the assignment.

You clearly know what you are doing, so I'd say trust you instincts.

SARS are getting more clued up (to collect tax) by the day. I think it is grossly unfair of the client to expect of the accountant to risk his reputation and possibly his career to cook the books to avoid paying tax.

There are legal ways of structuring remuneration and reduce tax liability. Use it.

We all have to pay tax. We can not expect some citizens to pay and others not. If all accountants stick to their ethical and moral principles, they can start making a difference in curbing corruption. No use shouting about the chief criminal in charge who is stealing the country into bankruptcy. Change starts with you and me.

[Justloadit]

I am not advocating tax evasion or corruption in any way, but when the chief criminal steals millions, the few rands that the laymen is attempting to evade may seem to be insignificant when the values are compared.

[Blurock]

There are some legal ways to reduce tax; keep a log book so you can deduct your business travel, avoid using toll roads, don't smoke or drink beer (ad valorem tax), buy only basic foods which are zero rated for vat.... (I am sure the Forum members will be more creative on this one)

According to research, only 1.5 million South Africans pay 84% of all tax in SA.
Adding the next income group, earning between R150k - R200k per month, the figure is 2.3 million paying 93% of all tax.
Add the next tier and you get 3.3 million people paying 99% of all tax in this country.
The remaining 1% tax is paid by 1.3 million low income earners.

Of the 10.3 million registered tax payers, only 4.8 million have to submit tax returns as the rest are below the threshold.

What I want to know is; how is this sustainable? How can 3.3 million people carry a population of 54 million, maybe adding another 6-8 million illegal immigrants who are also demanding housing, services and social grants?

Our monkeypalities can not cope with the burden as they often have to make adjustments to their budgets to help fund the world cup, the Africa cup of nations, the parties of the ruling party (emphasis on party) as well as their own functions.

When we object to the waste and corruption, we are told that we are unpatriotic and to f@ck off overseas.
If we do, who will pay the taxes?

[Justloadit]

What you are forgetting is that there is the VAT component in the majority of items sold daily, 14% to be exact. Some one pays this full 14%, and it is usually the last person buying the goods.

If it was not for this VAT portion, there is no ways that the current system would have been able to sustain this system. So effectively, the low income earners, the ones supposedly below the threshold are the ones paying the tax through the VAT portion.

[Blurock]

What you are forgetting is that there is the VAT component in the majority of items sold daily, 14% to be exact. Some one pays this full 14%, and it is usually the last person buying the goods.

If it was not for this VAT portion, there is no ways that the current system would have been able to sustain this system. So effectively, the low income earners, the ones supposedly below the threshold are the ones paying the tax through the VAT portion.

And that's all they pay, plus the sin tax on beer and cigarettes. They get it all back in free housing, free electricity, free water, subsidies and grants.

[Dave A]

When we object to the waste and corruption, we are told that we are unpatriotic and to f@ck off overseas.
If we do, who will pay the taxes?

The theoretical assumption behind that argument is that when that person leaves, someone will fill the space they've vacated. In reality part, and at times all, of that person's value add is lost to the country forever. And of course their capital value is lost forever regardless...

You know that old adage - "it's easier to keep an existing customer than get a new one" - I think there's a similar principle that applies to skills flight too that our government should bear in mind when it comes up with these trite responses.

[Blurock]

You know that old adage - "it's easier to keep an existing customer than get a new one" - I think there's a similar principle that applies to skills flight too that our government should bear in mind when it comes up with these trite responses.

After they have killed and eaten the Golden Goose, will they change to horse meat?

[Justloadit]

After they have killed and eaten the Golden Goose, will they change to horse meat?

No sorry, horse meat will be banned. No Goose, no horse, now what