Tax


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Clive Hull

Posted : Saturday, 04 Feb 2012 07:30 Question

Clive366
Joined : 04 Feb 2012
Posts : 2
Location : Umhlanga Rocks, KwaZulu-Natal

Please advise whether tax is payable on the income derived from MTN following the installation of a cellphone transmission mast on our building.

Riacco van As

Replied : Friday, 10 Feb 2012 10:13 Answer

Riacco433
Joined : 10 Feb 2012
Posts : 3
Location : Bellville, Western Cape

Hi Clive, a body corporate is taxed in terms of Section 10(1)(3) of the income tax act which states that investment income, rental income and other abnormal income (fines etc) is taxed if this total, less certain expenses, exceeds R 50,000 for the tax year. Accordingly, if your MTN rental income is the only "abnormal" income under this section and it does not exceed R 50,000 no tax will be payable.

Nicole Crisp

Posted : Tuesday, 07 Feb 2012 16:04 Question

Nicole884
Joined : 07 Feb 2012
Posts : 3
Location : Vanwyksdorp, Western Cape

Who has to submit the BC's tax return? Should it be the Managing Agent or the Auditor? At present our auditor is doing it and charging us R2500 a year for a nil tax return. Thanks. Nicole

Riacco van As

Replied : Friday, 10 Feb 2012 10:08 Answer

Riacco433
Joined : 10 Feb 2012
Posts : 3
Location : Bellville, Western Cape

Hi Nicole, the return can be done by either the managing agent or the auditor, it depends on your agreement with both parties. I would however suggest that the auditor performs this task, due to the nature thereof. In terms of our ethical rules and regulations i cannot comment on another auditor's fees, but can suggest that you discuss the fee with him, as it should be open for discussion.

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