GoGlobal Properties, a new property fund exported from South Africa is getting ready to operate in Europe.

Real Estate Investment Trust (REIT) regime is set to usher in a new era for the listed property sector by affording certain tax advantages to qualifying entities and providing certainty in respect of the tax treatment of property loan stock companies.

Monday, 18 June 2012 12:50

On auction kickbacks and commissions

According to Wall & Smith, there is no doubt that the alleged payment of incentives to banks and others is only the tip of the iceberg in the investigations on the auction alliance business practices by SARS and the EAAB.

Payment of part of the 10% Auctioneers commission to a seller or buyer and the ramifications of how this payment was treated from a tax and accounting perspective by all of the parties involved is something we assume will also form part of SARS investigations.

It is accepted practice that commission, whether paid by either seller or buyer is part of the sale price and will accordingly attract VAT, transfer duty or be treated in one of the ways outlined below.

If the buyer is refunded part of the auctioneer’s commission initially paid by him it is not income, it is a reduction in the purchase price, lower VAT or transfer duty.

If the seller is paid part of the auctioneer’s commission it is not income, it is an increase in the purchase price, higher VAT or transfer duty.

Whether paid to either the seller or the buyer the auctioneer will treat it as a deduction.

It is also important to note if the seller is a non-resident a portion of the purchase price must be withheld in terms of the Revenue Laws Amendment Act No. 32 of 2004 (not applicable to a purchase price less than R 2 000 000)


Source: Wall & Smith

For more information on when VAT or transfer duty are affected see Wall & Smith website

Published in Blog

Murray & Roberts said it is using 'section 45' of the Tax Act to merge with its subsidiary Concor, forming a single company called Murray & Roberts Construction with R6,5bn turnover.

Page 6 of 6

Most Popular

Residential sectional title sales again on the rise

May 27, 2021
Over the past 15 years, the sectional title market in South Africa has become entrenched…

Pick n Pay and Fortress co-invest in a super distribution centre development

May 26, 2021
Fortress REIT announced that their biggest logistics development to date was signed with…

Ongoing property market uncertainty makes the right finance partner key to extracting value

May 26, 2021
Claire Denny
Results from the listed property sector in 2020 showed property values reducing by an…

East Rand Mall will soon deliver the first phase of its major taxi rank upgrade

May 26, 2021
Phase 1 upgrade to the taxi rank at EastRand Mall
The first-phase upgrade of East Rand Mall taxi rank in the retail heart of Boksburg,…

Insurance policy renewals – the devil is in the details

May 27, 2021
Although your insurance policy should be reviewed annually, by paying your insurance…

Please publish modules in offcanvas position.