Good morning,
I had an interesting question this morning, and wasn't sure what the answer would be.
Would pocket money be seen as taxable income? Does it fall under the R100,000 donations tax exemption?
What do you guys think?
Good morning,
I had an interesting question this morning, and wasn't sure what the answer would be.
Would pocket money be seen as taxable income? Does it fall under the R100,000 donations tax exemption?
What do you guys think?
Pocket money is normally given to a minor, and doesn't a minor fall under their parents taxable income? In which case they are giving the money to themselves so its not income.
Secondly, I vaguely recall income for small amounts per annum are not taxable. I unfortunately can't remember the details. Either there was an annual limit of a few k under which ad hoc income was not considered taxable, or it was considered to be "immaterial".
Thirdly, if the individual is a separate tax payer, then won't pocket money be less than R70k per year and therefore fall under the 0 tax due bracket?
Not as far as I am aware. When trust beneficiaries get an allocation from a trust, they are registered for tax and their income declared under their own name...Pocket money is normally given to a minor, and doesn't a minor fall under their parents taxable income? In which case they are giving the money to themselves so its not income.
The only exemption I know of, is R100 000, and something about incidental gifts.Secondly, I vaguely recall income for small amounts per annum are not taxable. I unfortunately can't remember the details. Either there was an annual limit of a few k under which ad hoc income was not considered taxable, or it was considered to be "immaterial".
This can be true yes. However, the question would be, do they still have a liability to file a return?Thirdly, if the individual is a separate tax payer, then won't pocket money be less than R70k per year and therefore fall under the 0 tax due bracket?
Pocket money is normally given to a minor ......... aren't we being a little pedantic about wanting to tax that minor and taking pocket money a bit far ?
Your earned that money, paid tax on it and then give pocket money to your child !!
dellatjie (15-Nov-16)
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