Real Estate Investor Magazine South Africa Real Estate Investor Magazine - October 2017 | Page 58

WEALTH PLANNING
Choose the Most Tax-Efficient
Investment Vehicle
Has Section 7 (C) of the income tax act got you snookered?
JOSÉ DELGADO
José Delgado is the Director of
iProtect
I
t is important to choose the correct
entity for your property investments
before you embark on your property
investment journey. Taxation regimes of
various entities and regulation thereof
tend to change quite regularly.
On 19th of January 2017 The Taxa-
tion Laws Amendment Act, Act no 15 of
2016 was published in the Government
Gazette, introducing Section 7 (C) into
the Income Tax Act. Subsequent to this
new section being introduced, a further
Tax Bill has been proposed to further
curb the circumvention of Section 7(C) by
broadening the scope of the section to in-
clude loans made to Companies and other
mechanisms