Tax Professional (SA) Practice Questions - SAIT EISA Tax Professional Board Examination Exam

Access More Questions

Under South African Income Tax Act Section 45 (Intra-Group Transactions), what is the key tax consequence when an asset is transferred between companies in the same group of companies?

Roll-over relief applies: no tax recoupment or capital gain is recognized at transfer date, and the transferee steps into the shoes of the transferor Immediate taxation of all capital gains at 80% inclusion Mandatory 20% Dividends Tax is levied on the asset value The transfer is treated as an arm's-length open market sale subject to immediate 15% VAT

Correct Answer:

Roll-over relief applies: no tax recoupment or capital gain is recognized at transfer date, and the transferee steps into the shoes of the transferor

Access more questions from this quiz

Continue to Tax Professional (SA) Practice Questions - SAIT EISA Tax Professional Board Examination Exam for more practice questions and the full quiz experience.

Access More Questions