Die belang van belasting op toegevoegde waarde vir boedelbeplanning
Maritz, Willem Johannes Stoltz
MetadataShow full item record
In the context of estate planning value-added tax (VAT) is particularly of importance to the estate owner who either in his personal capacity is registered as a VAT vendor or who, although not a VAT vendor, conducts an enterprise in his personal capacity and in the course whereof he makes vatable supplies. In first mentioned instance the estate owner's deceased estate will upon his demise be a VAT vendor whilst in last mentioned instance the likelihood exists that the deceased estate will be a VAT vendor. If the deceased estate is a VAT vendor the executor in his capacity as representative VAT vendor will have to account for output tax on the supply of all those assets that were either wholly or partially used in the course or furtherance of the enterprise in respect of which the deceased made vatable supplies. The supply of enterprise assets to purchasers, heirs or legatees constitutes the continuation of the enterprise. In certain instances the deceased estate will have to account for output tax at the standard rate on the open market value of the supply of an asset used in the course of the enterprise, however, the output tax will not be carried by the direct recipient of the asset but in fact by the deceased estate. The deceased estate will upon paying the output tax from its resources be legally unable to recover same from the recipient of the supply. In the case of bequests it is, however, possible through the use of a bequest price to either wholly of in part shift the carrying of the output tax from the deceased estate to the heir or legatee. In certain instances the liability upon the deceased estate to pay output tax in respect of enterprise assets supplied to purchasers, heirs or legatees could put a strain upon the deceased estate's cash resources. In might result in other estate assets having to be sold. When this happens the estate planner's carefully laid plans to provide for his dependants and to ensure a smooth administration of his deceased estate could be jeopardized. It requires a careful factual analysis to determine whether a deceased estate would carry output tax liability in respect of the supply of estate assets. VAT does not, however, affect those assets in the deceased estate that were not used in the course or furtherance of the deceased's VAT enterprise. In the context of estate planning VAT is of no significance to the estate owner who does not in his personal capacity conduct an enterprise which makes vatable supplies.
- Law