South Africa: Inheritance Tax

The most significant proposals in the 2018 Budget Review will probably affect all taxpayers in South Africa, not only those with accumulated wealth.

The Davis Tax Committee ("DTC") released its much-anticipated second (and final) interim report (the "Report") on estate duty on 24 August 2016.

On 24 August 2016, the Davis Tax Committee released its long-awaited report on estate duty, which was submitted to the South African Minister of Finance for consideration on 28 April 2016.

A far-reaching judgment was recently given by the Cape Tax Court dealing with the fiscal consequences of a taxpayer acquiring a so-called living annuity. In particular, the taxpayer invested an amount of approximately R6million into a life annuity which gave him an initial guaranteed income of approximately R42 000 per month. These amounts could be revised annually at the insistence of the taxpayer, subject to the taxpayer being limited to directing the insurer to pay amounts equal to not less

Since our readmission to the international community South Africa has set about developing one of the largest networks of double tax treaties in the world.

The question whether there can ever be a recoupment by a partner to the extent that he disposes of his interest in a partnership as opposed to a partnership disposing of assets, has always been contentious. In this context it was always contended by taxpayers that there cannot be a recoupment to the extent that a partner disposes of a partnership interest, even though a partnership is not a separate legal entity and income that has accrued to partners in common is deemed to have accrued to each