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ASSET ACQUIRED AT LESS THAN ACTUAL VALUE, Unless ER firstly used the Asset…
ASSET ACQUIRED AT LESS THAN ACTUAL VALUE
Value
Movable Asset acquired to be given to EE---> Cost
Trading Stock ---> Lower of Cost / MV
Use the MV of the Asset unless:
EE must own the Asset
Bravery act/ Long service award then Value (As determined above)
For consideration < MV
a. Reduced by lower of aggregate Cost of Assets given during the YOA or
Acquired for no consideration or
R5000
Def of Long Service Award is
First period of 15 years or subsequent period of 10 years
NO VALUE Assets
ER & EE are not connected
Def of Remuneration Proxy!!
Remuneration Proxy </= R250 000
it is annualised remuneration that a person earned from that ER in the previous YOA
MV </= R450 000
Includes cash Equivalent of Fringe benefits
Immovable Property acquired by EE
Except Residential Accommodation Fringe Benefit
All These must be satisfied to have no value
Remuneration Proxy
Remuneration x 365/days worked
Always anualise by:
Unless ER firstly used the Asset before EE