Cape Town - With President Jacob Zuma's State of the Nation
address done and dusted, the focus now turns to the Budget speech by Finance
Minister Pravin Gordhan.
This year the all important Budget speech is set to take place on February 27,
later than usual and less than 24 hours before the end of the current tax year.
Any tax changes announced in the speech will thus come into effect a mere two
days after Gordhan's speech.
"Once again, a super tax on the wealthy is being mooted" especially
in light of income and inequality disparities highlighted in the census,
according to Marteen Michau, head of fiduciary and tax at Sanlam Private
Investments.
The funds are largely expected to then be filtered down to addressing poverty
and inequality.
Michau said that "some sort of increase in taxation of the wealthy seems
inevitable".
"This might take the form of an increase in the inclusion rate for capital
gains tax; alternatively, an increase in the marginal tax rate applicable to
the highest income earners might be on the cards."
The speech is also widely expected to touch on issues such as mining taxes, how
a national health insurance system might be funded, the implementation of toll
roads and social security taxes.
Certain retirement tax reforms have been talked about, said Michau, although
mostly for implementation in 2014.
The window period for taking residential properties out of South African trusts
and companies without tax liability (if certain requirements were met), had
also just come to an end.
Meanwhile, Michau also signalled a reminder to taxpayers to gather any
outstanding documentation and have any meetings that might help to manage their tax
planning ahead of the month-end deadline.
- Fin24
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