Timing of asset disposals and accrual of proceeds

Extracted by Pieter Esterhuizen of LUMENROCK from an article by prof Pieter van der Zwan, first published in his newsletter on 13 June 2017


The timing of disposals of assets and the resulting accrual of the proceeds have been contentious aspects over the years. In a recent case decided in the Cape Tax Court it was held that s 24(1) applies to cash transactions. As a result, the date when an agreement for the disposal of certain property is entered into plays an important role in determining the timing of the seller’s tax liability arising from the sale of the property. This article provides a brief overview and analysis of a case decided in the Cape Town Tax Court on 30 May 2017.

Read more: Timing of asset disposals and accrual of proceeds

Tax Court on the capital gains tax rules pertaining to the reduction of proceeds after sale

Extracted by Pieter Esterhuizen,CA(SA) TEP, from an article first publised on and then posted by Jerome Brink (CFH) on SAIT newsletter on 20 March 2017


It is a general principle of South African income tax that a taxpayer is taxed on the receipt or accrual of an amount. However, it is often necessary and equitable to take into account certain events arising subsequent to the accrual of an amount in pursuance of the disposal of an asset for capital gains tax (CGT) purposes.

Read more: Tax Court on the capital gains tax rules pertaining to the reduction of proceeds after sale

Threshold registration requirement for the skills development levy


Extracted and slightly adaptedby Peter Stewart, CA(SA)from CMV, published 21 October 2016


It seems like there is recently an increased level of audits being conducted by the South African Revenue Service in relation to taxpayers’ obligations in terms of the Skills Development Levies Act, 9 of 1999 (SDL Act). The focus appears to be specifically on non-compliant taxpayers who fail to register as required in terms of section 5 of the SDL Act, and thus for these employers to pay the requisite levy over to SARS.

Read more: Threshold registration requirement for the skills development levy

Direct offshore investment and tax: Effect of Currency gains and losses for CGT purposes

Adapted and corrected by Pieter Esterhuizen, CA(SA) TEP RA from an article by Tertius Troost,  CA(SA), originally published on Moneyweb on 30 May 2016


The rand's volatility that South Africa is used to these days and the market volatility worldwide, have the effect that we as investors should have a relook at what the effect of this is on us for Capital Gains Tax (CGT) purposes.

Read more: Direct offshore investment and tax: Effect of Currency gains and losses for CGT purposes




Gerrit and Agnes Kirsten
Gerrit and Agnes Kirsten
We would like to thank Jaco van Niekerk for his financial advice and assistance in setting up our retirement options, and are looking forward to a longstanding business relationship with him and LUMENROCK Financial Consultants. We appreciate his honesty and sincerity and the professional way in which everything was done. - See more at:
IS Ferreira
IS Ferreira
I have known Pieter Esterhuizen for over ten years in his capacity as my accountant and financial advisor. His sound and very professional financial advice has always been outstanding. He and his firm is dynamic, trustworthy and very loyal to me as a client. It is an honour and privilege for me to be associated with Pieter and LUMENROCK.
BD Boshoff
Director: Bernhoff Boerdery
Pieter Esterhuizen (prior KSE and now LUMENROCK) has been our auditor for the past 17 years. He was the accountant for several of our companies in property development, as well as the farming sector. It was during this period of time that he distinguished himself as a unique financial advisor, who is always capable of doing what is best for each and every company – in every possible situation. H...



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