South Africa Inland Revenue Updates Guidelines on Valuation of Assets for Capital Gains Tax
The South African Inland Revenue Aug. 19 published Issue No. 3 of the Guide on Valuation of Assets for Capital Gains Tax (CGT) Purposes. The guideline explains and provides examples of how to determine the market value of assets: 1) on the valuation date, which is generally Oct. 1, 2001, with some exceptions; and 2) outside of the valuation date, including pre-valuation assets and circumstances such as cessation and commencement of residence, death or donation, and connected person transactions at a non-arm’s length price. [South Africa, Revenue Service, 08/19/15]
Do NOT ignore the historical valuation guide which created legitimate expectations back in 2001, so to the extent that SARS have changed this in the new guide, they a ‘married’ to their old directions to the extent this suits taxpayers. Please carefully review if exposed to CGT now based on pre-2001 assets :cgt valuations_guide
