IEASA National - News

Estate agencies urged to take advantage of Small Business Tax Amnesty   Article Date :15 Jun 2006 Agencies urged to get tax affairs in order. The recent amendments to the small business tax amnesty offered by the South African Revenue Service (SARS), provides estate agencies with the ideal opportunity to get their tax affairs in order. According to Bill Rawson, President of the Institute of Estate Agents of South Africa, this amnesty could not have come at a more opportune time for the property industry. “As a result of a new transfer duty application form, transfer attorneys are obliged by law to submit the tax numbers of any agency principals and their agents who were involved in the sale of a property and who benefit from the transaction. “When a property transfer goes through, a simple cross-reference system enables SARS to see if any taxes are still outstanding and if so, then they attach the commission payable to the agent or agency.” As a result of this legislation, it has become essential for estate agents to make sure that their tax affairs are up to date, to prevent SARS from taking steps to withhold their commission. “Many estate agencies might have been hesitant to come clean, out of fear of the heavy penalties that might arise from late payments. However, with the announcement that all businesses with a turnover of up to R10 million will be exempt from penalty, (except for a graduated levy not exceeding 5% on taxable income) there is no excuse for an estate agency not to come clean and rather avoid attachment of their income.” CLICK HERE TO RETURN TO THE MAIN NEWS PAGE