Taxation of Trusts
Trusts have become a sought after vehicle to raise funds for various purposes, protect assets and provide financial security for dependents. Unfortunately, they are also separate persons for tax purposes, and one needs to think carefully about the tax implications for trusts before simply creating one.
We offer a dedicated session to discuss the tax workings of trusts.
Deferred Tax – Back to Basics
Many accountants and auditors cringe at the thought of calculating tax.
“It’s not my specialty” or “I haven’t studied tax since varsity” is often the sentiment, leaving accountants, auditors and their clients feeling uneasy.
We aim to get you back up to date with Income Tax and explore the typical transactions we see in business from a current Income Tax perspective.
Current Tax computation
To be a complete professional accountant, auditor, tax practitioner and finance professional, one should be able to recognise and appreciate the tax effect of every transaction / balance.
Understanding the resulting deferred tax effect of transactions is just as important.
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Taxation of Trusts
This session will address matters including, but not limited to, the following:
Income tax rules (including capital gains tax) governing the taxation between a donor, trust and beneficiary
Rules governing loans granted to trusts
Administrative provisions for the submission of trust tax returns
Deferred Tax – Back to Basics
Course Content
We will explore the typical transactions we see in business from a current Income Tax perspective by doing the following:
Refreshing ourselves on the current Income Tax Act legislation, including the concepts of gross income, exempt income and deductions amongst other elements.
Practically completing a current income tax calculation
Current Tax computation
Balances considered for deferred tax impact on this course:
Property, Plant and Equipment
Investment Property
Intangible Assets
Inventory
Debtors
Creditors
Prepayments
Income in Advance
Provisions
