Scrapping of double taxation



The Receiver of Revenue, has back-tracked on his imposition of transfer duty on a natural person on conversion of share-black flats to sectional title ownership status, where transfer duty was paid in respect of the acquisition of the shares. The transfer duty on conversion of share-black flats to sectional title was in addition to transfer duty being paid on the sale of shares in the unit. Notice of the scrapping of the double taxation was published in the Government Gazette dated December 22 2003 and is backdated to December 13 2002 when the additional transfer duty was introduced. The backdating, says Durban conveyancer Bruce Forrest, senior partner at Meumann White, means that anyone who paid transfer duty on the conversion from share block to sectional title can now reclaim this entire amount back from the receiver. He advises those eligible for a refund to initiate their claims through the conveyancer who effected the process, as the receiver has indicated that he will only pay out such refunds to the conveyancer. The relevant section states that: "No duty shall be payable...on the conversion.... to ownership in the unit in respect of which that person had the right of use, if the acquisition of that share was subject to duty". The Property Professional On-line Edition 76 Article: 9 February 2004 Rodney Hayter email: hayter@icon.co.za Subscribe for your weekly property news updates brought to you by www.rodneyhayter.com, KwaZulu Natal's premier property news website.