Savings Expert

question

Posted by: Mariska | 2016/09/08 15:57

Taxed on Academic Scholarship?

Hi, I have received an academic scholarship from my parent's employer. They warned us that they will tax us on the "donation" and they added the amount of R10 000 to my parent's income statement, which put them in a higher tax bracket, therefore paying a higher income tax rate, but only for that one month. The tax paid on the scholarship self is deducted monthly from my parent's salary. Is this fair? Is there any way we can claim that tax? I know that donations are only taxed when it exceeds R100 000. They paid the R10 000 directly into the institution's account. Do you have any advice on this one? Thank you in regards

expert answer

Posted by: Gerald Mwandiambira | 2016/11/01 15:00
Without understanding your parents full tax liabilities, it is impossible to try plot a way on this one. Best you engage a Certified Financial Planning Professional or Tax Practitioner on this.

Tax is a highly complex area governed by law with criminal implications when the law is broken. So rather that dice with jail or fines, please consult a professional for guidance.

Your case does provide some compelling reasons which may assist your parents in lowering their tax liability.

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