Die aanwending van artikel 4(q) en artikel 4(m) van die Boedelbelastingwet nommer 45 van 1955 by boedelbeplanning

Abstract

This study deals with the use of the above allowable deductions before 1 November 1984 and afterwards. Difficulties experienced in the wording of the articles caused by the 1987 and 1988 legislation are discussed. It is considered that in the absence of a decision of the Highest Court of Appeal on the interpretation of these articles the matter is still contentious and open for debate. The astute estate planner should take note of the Commissioner of Inland Revenue's approach to the interpretation of these articles when drafting an estate plan making use of these allowable deductions. A decision of the Income Tax Special Court in an unreported Income Tax Special Court case, case ED 64 dated 21 April 1998 should also be borne in mind because the court's interpretation is not the same as the Commissioner of Inland Revenue's. It is submitted that a carefully structured estate plan might still make use of both these deductions in certain circumstances if bearing in mind the caveat which applies to all estate planning that an estate plan must be reviewed frequently in the light of changes to existing statutes by parliament and new court decisions which might throw a different light on the subject matter.