PROCEEDS

Once an asset is disposed of the amount which is received by or which accrues to the seller of the asset constitutes the proceeds from the disposal.
 
Assets disposed of by donation, for a consideration not measurable in money, or to a connected person at a non-arm’s-length price are treated as being disposed of for an amount received or accrued equal to the market value of the asset. Amounts included in income such as a recoupment of capital allowances are excluded from proceeds.
 
 
Last Updated: 19/11/2014 2:24 PM     print this page
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 Top FAQs

Can a penalty be imposed by SARS if an asset was incorrectly valued by a taxpayer? If so, under which section of the Act?
Yes - section 222 of the Tax Administration Act, 2011.