Wat is die betekenis van boerdery vir inkomstebelastingdoeleindes?
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Date
2001
Authors
Bobbert, M. C. J.
Journal Title
Journal ISSN
Volume Title
Publisher
Faculty of Law, University of the Free State
Abstract
English: The question is frequently asked whether certain activities by a taxpayer may be
regarded as farming for income tax purposes. If so, certain farming expenses will be
allowed as deductions in terms of the First Schedule to the Act which otherwise would
not have been the case. Having indicated how the taxable income of a taxpayer is
calculated, the definition of a trade is referred to. The meaning of farming is not
defined, but in s 26 reference is made to pastoral, agricultural and other farming
operations. There are certain sections in the Act, paragraphs in the First Schedule to
the Act and practice notes which refer to certain types of farming activities. Reference
is also made to the interpretation of farming by our courts (High and Special Courts)
and the findings of the Special Boards. The viewpoints of several authors are also
discussed. Additional examples of farming activities are given and the standard bona
fide farming questionnaire by the SAIS is examined. The exigency of a feasibility
study is emphasised to determine the viability of a proposed farming project. The
following two-pronged test is advocated (i) did the taxpayer genuinely intend to farm
and (ii) did he have a reasonable prospect of making a profit from the farming
activities in the foreseeable future?
Afrikaans: The question is frequently asked whether certain activities by a taxpayer may be regarded as farming for income tax purposes. If so, certain farming expenses will be allowed as deductions in terms of the First Schedule to the Act which otherwise would not have been the case. Having indicated how the taxable income of a taxpayer is calculated, the definition of a trade is referred to. The meaning of farming is not defined, but in s 26 reference is made to pastoral, agricultural and other farming operations. There are certain sections in the Act, paragraphs in the First Schedule to the Act and practice notes which refer to certain types of farming activities. Reference is also made to the interpretation of farming by our courts (High and Special Courts) and the findings of the Special Boards. The viewpoints of several authors are also discussed. Additional examples of farming activities are given and the standard bona fide farming questionnaire by the SAIS is examined. The exigency of a feasibility study is emphasised to determine the viability of a proposed farming project. The following two-pronged test is advocated (i) did the taxpayer genuinely intend to farm and (ii) did he have a reasonable prospect of making a profit from the farming activities in the foreseeable future?
Afrikaans: The question is frequently asked whether certain activities by a taxpayer may be regarded as farming for income tax purposes. If so, certain farming expenses will be allowed as deductions in terms of the First Schedule to the Act which otherwise would not have been the case. Having indicated how the taxable income of a taxpayer is calculated, the definition of a trade is referred to. The meaning of farming is not defined, but in s 26 reference is made to pastoral, agricultural and other farming operations. There are certain sections in the Act, paragraphs in the First Schedule to the Act and practice notes which refer to certain types of farming activities. Reference is also made to the interpretation of farming by our courts (High and Special Courts) and the findings of the Special Boards. The viewpoints of several authors are also discussed. Additional examples of farming activities are given and the standard bona fide farming questionnaire by the SAIS is examined. The exigency of a feasibility study is emphasised to determine the viability of a proposed farming project. The following two-pronged test is advocated (i) did the taxpayer genuinely intend to farm and (ii) did he have a reasonable prospect of making a profit from the farming activities in the foreseeable future?
Description
Keywords
Farming, Income tax, Farming expenses
Citation
Bobbert, M. C. J. (2001). Wat is die betekenis van boerdery vir inkomstebelastingdoeleindes?. Journal for Juridical Science, 26(3).