The tax deductibility of donations, with specific reference to donations of property made in kind to public benefit organisations
dc.contributor.author | Oberholzer, Ruanda | |
dc.date.accessioned | 2010-07-19T13:16:30Z | |
dc.date.available | 2010-07-19T13:16:30Z | |
dc.date.issued | 2004-12 | |
dc.description.abstract | Section 18A of the Income Tax Act (Act 58 of 1962), as amended by the Revenue Laws Amendment Act (Act 45 of 2003) entitles a taxpayer (an individual or a legal entity, including a trust) to deduct annual donations to certain public benefit organisations, not exceeding 5% of taxable income. The question arises whether the same tax deduction applies when a taxpayer decides to make a donation in cash as opposed to a donation of property in kind. The aim of this paper is to compare the effect on a taxpayer's taxable income of making a cash donation compared with a donation of property in kind. It appears that the tax deduction in respect of donations is greater when a taxpayer decides to donate an amount in cash rather than a donation of property in kind. The paper shows that, under current legislation, a donation of property made in kind can be structured in such a way that it will provide a taxpayer with an identical tax deduction. It is hoped that current legislation pertaining to the deduction of a donation of property in kind will be amended soon, as the provisions are clearly inequitable in relation to a taxpayer who wishes to donate property in kind rather than a cash amount to a public benefit organisation. | en_US |
dc.identifier.citation | Oberholzer, R 2004, 'The tax deductibility of donations, with specific reference to donations of property made in kind to public benefit organisations', Southern African Business Review, vol. 8, no. 3, pp. 68-75. [http://www.unisa.ac.za/sabusinessreview] | en_US |
dc.identifier.issn | 1561-896X | |
dc.identifier.uri | http://hdl.handle.net/2263/14501 | |
dc.language.iso | en | en_US |
dc.publisher | College of Economic and Management Sciences, University of South Africa | en_US |
dc.rights | College of Economic and Management Sciences, University of South Africa | en_US |
dc.subject | Tax deductions | en_US |
dc.subject | Tax planning | en_US |
dc.subject | Taxation | en_US |
dc.subject | South African Revenue Service (SARS) | en_US |
dc.subject | Property | en_US |
dc.subject | Income tax | en_US |
dc.subject | Income Tax Act 58 of 1962 | en_US |
dc.subject | Financial management | en_US |
dc.subject | Donations | en_US |
dc.subject | Cash | en_US |
dc.subject | Tax law | en_US |
dc.subject | Management | en_US |
dc.subject | Business | en_US |
dc.title | The tax deductibility of donations, with specific reference to donations of property made in kind to public benefit organisations | en_US |
dc.type | Article | en_US |