August 2019


Leverage - August 2019 Edition
This month’s Leverage focuses on Estate Planning. Legal adviser, Deon van Vuuren, explains the workings of the usufruct (or so-called ‘one-year wonder’) specifically in the context of anti-avoidance provisions contained in the Income Tax Act. Legal adviser, Andre Schoeman, tackles the mystifying and frequently misunderstood topic of massing estates with the purpose of creating a limited interest, a practice most commonly seen in the farming community. Download


GEPF update
The Government Employee Pension Fund (GEPF) is a retirement fund for government employees. This document summarises GEPF law, the GEPF member’s guide and the tax legislation applicable to the fund benefits.Download
Section 10C
This article looks at the practical implications of Section 10C of the Income Tax Act, which defines a compulsory annuity as the remainder of the retirement interest of a person payable in the form of an annuity as provided for in the definition of pension fund, retirement annuity fund and pension preservation fund.Download
The Living Annuity
This summary focuses on member-owned living annuities ‒ which has the structure of a long-term insurance policy purchased by a member of a retirement fund ‒ the practical issues arising from this vehicle, what income can be earned from it, tax implications, and all other aspects that need to be considered.Download
GEPF early retirement offer
In response to the growing budget deficit, government employees are now permitted to take early retirement without penalties, in terms of section 16(6) of the Public Services Act. This article outlines to whom this provision applies and for how long and the issues that should be raised with a client who is thinking of taking early retirement.Download
Protection of benefits
This article looks at Section 63 of the Long Term Insurance Act, which deals with the protection of policy benefits provided under certain long term insurance policies in the event of the insolvency of the policyholder or the policyholder’s estate.Download
Disallowed contributions
In 2018 SARS provided certainty in respect of disallowed contributions and whether a contribution made in a tax year can also be seen as a disallowed contribution in that same year of assessment. This article shows how the sequence of the tax calculation supports their decision and also looks at the implications of Estate Duty.Download
Endowments (technical details)
The endowment policy is governed by the Long Term Insurance Act and the Income Tax Act. The Long Term Insurance Act governs all insurance policies, places some restrictions on the policies and also provides for some form of protection. This article unpacks all the technical details surrounding endowments in light of the various governing acts.Download

Business Assurance - One Pagers

Retirement fund tax rules
A tabled summary of the tax rules governing various Retirement Funds, including Retirement Annuities, Pension Fund, Provident Fund, Preservation Fund and Living Annuity.Download
Executor’s fees and estate duty consequences of long term insurance policies and investment table
This table summarises the rules pertaining to the most common long term insurance policies and investments held by individuals in respect of executor’s fees and estate duty consequences.Download