Transfer-duty avoidance schemes targeted

Individuals could find themselves facing proceedings totalling R105m it they fail to settle unpaid transfer duty, including interest and penalties, by the end of the month. This follows examinations of trust deed files at the master's office in terms of the Transfer Duty Act, in which a number of discrepancies had been found. The act applies to transactions that were concluded on or after December last year.

The receiver has issued assessments on fixed property transactions, trust deeds which were fixed and property transactions which occurred as existing trusts but were replaced by new trusts or fixed-property transactions. According to Daniel Erasmus, head of tax at Moss Morris Attorneys, purchasers of trust-owned property which involved changes of beneficiaries and trustees were technical and involved complex principles.

Full report in Business Day