The tax deductibility of donations, with specific reference to donations of property made in kind to public benefit organisations

dc.contributor.authorOberholzer, Ruanda
dc.date.accessioned2010-07-19T13:16:30Z
dc.date.available2010-07-19T13:16:30Z
dc.date.issued2004-12
dc.description.abstractSection 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.citationOberholzer, 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.issn1561-896X
dc.identifier.urihttp://hdl.handle.net/2263/14501
dc.language.isoenen_US
dc.publisherCollege of Economic and Management Sciences, University of South Africaen_US
dc.rightsCollege of Economic and Management Sciences, University of South Africaen_US
dc.subjectTax deductionsen_US
dc.subjectTax planningen_US
dc.subjectTaxationen_US
dc.subjectSouth African Revenue Service (SARS)en_US
dc.subjectPropertyen_US
dc.subjectIncome taxen_US
dc.subjectIncome Tax Act 58 of 1962en_US
dc.subjectFinancial managementen_US
dc.subjectDonationsen_US
dc.subjectCashen_US
dc.subjectTax lawen_US
dc.subjectManagementen_US
dc.subjectBusinessen_US
dc.titleThe tax deductibility of donations, with specific reference to donations of property made in kind to public benefit organisationsen_US
dc.typeArticleen_US

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