South Africa: Inland Revenue Updates Guidelines on Valuation of Assets for Capital Gains Tax

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

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