Latest news with #R780
Daily Maverick
10 hours ago
- Business
- Daily Maverick
The Financial Wellness Coach: How to cut estate duty and avoid heavy tax
Although it may seem like a good idea to transfer assets before death to reduce estate duty, doing so can actually result in higher tax costs. Question: My father is a widower and has just been diagnosed with cancer. The prognosis is not good and I'm helping him to tidy up his affairs to make the inheritance process easier. I am his only child. His assets consist of a house worth R4-million and various share investments worth R8-million. To reduce his estate duty bill, we are thinking of transferring the house to his only grandchild while he is still alive. advertisement Don't want to see this? Remove ads Does this make sense? Are there any other factors we should consider? Answer: Although it may seem like a good idea to transfer assets before death to reduce estate duty, doing so can actually result in higher tax costs during your father's lifetime. This is because of: • Immediate payment of capital gains tax (CGT) If your father transfers the house to his grandchild now, he will trigger a CGT event. He will need to pay tax on the growth in value of the property from when he bought it until the date of transfer. This could be substantial, especially if the house has appreciated significantly. • Donations tax Donating the house (valued at R4-million) to the grandchild will also trigger donations tax at 20% on the value above the R100,000 annual exemption. This means that your father will have to pay donations tax of R780,000. • Transfer costs The transfer will also incur costs such as conveyancing attorney fees, deeds office charges and transfer duty. As you can see, this approach would result in a high immediate tax burden (CGT plus donations tax plus fees) without actually reducing the tax payable, as donations tax is charged at the same rate as estate duty (20%). Additionally, the value of these taxes is paid during your father's lifetime, thereby reducing the capital available for investment and growth. advertisement Don't want to see this? Remove ads Alternative strategy An alternative solution that is worth considering is the following: Your father's estate is worth R12-million. He will get the R7-million estate duty abatement. This means that R5-million of his estate would be dutiable, which, at a rate of 20%, means that he would be paying R1-million in estate duty. One of the few options is to make use of disallowed retirement contributions. In short, if you buy a retirement annuity (RA) that is worth more than the lesser of R350,000 or 27.5% of your taxable income, the excess contributions are classed as disallowed contributions. If you buy a living annuity with that money and your beneficiaries elect to receive the proceeds of the annuity when you die, this amount will not trigger estate duty. Consider this scenario Your father buys an RA for R5-million (which is above the allowable deduction threshold); The excess contributions are classified as disallowed for tax purposes; He then converts this RA into a living annuity; and If your child (his grandchild) is listed as the beneficiary of the living annuity and chooses to receive the benefit as an income stream, no estate duty will be payable on this amount upon your father's death. This will result in the following: A saving of R1-million in estate duty, as the living annuity falls outside the estate for estate duty purposes; A saving of R200,000 in executor fees, as the living annuity has a beneficiary and need not be dealt with by the executor; The income paid to your child will be taxable in their hands, but since they will probably have little to no income while still young, the tax will be minimal, if any; and This structure can fund education, living expenses or long-term income. This is a fantastic way for your father's legacy to live on. Although it is never nice to think about death, a bit of planning can make a material difference to the amount of money that leaks from an estate when there is a death. advertisement Don't want to see this? Remove ads advertisement Don't want to see this? Remove ads I would strongly recommend that you speak to a suitably qualified professional before implementing any of these ideas, because I'm only seeing part of your financial picture and there may be other factors that need to be taken into account. DM Kenny Meiring is an independent financial adviser. Contact him on 082 856 0348 or at Send your questions to [email protected]. This story first appeared in our weekly Daily Maverick 168 newspaper, which is available countrywide for R35.
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The Citizen
4 days ago
- Entertainment
- The Citizen
Soccer star Thulani Hlatshwayo flexes new R1m ride [PICS]
Thulani Hlatshwayo is enjoying life off the pitch, just weeks after SuperSport United was sold and his contract expired. Former Bafana Bafana captain and Supersport United defender Thulani 'Tyson' Hlatshwayo showed off his new set of wheels recently. Instagram/ thulani03 South African footballer Thulani 'Tyson' Hlatshwayo may be without a club, but he's definitely not in short supply of style. The 35-year-old former Orlando Pirates and Bafana Bafana captain has recently been spotted behind the wheel of a sleek new Volkswagen Golf 8.5 R, valued at just more than R1 million in South Africa. Thulani Hlatshwayo: Luxury ride for a soccer legend The supercar, known for its turbocharged performance and refined design, joins an impressive garage of vehicles the defender has owned over the years. These included a rugged Jeep Wrangler Rubicon worth around R780,000, and a VW Golf 7 GTI – showcasing Tyson's preference for high-performance machines. Thulani Hlatshwayo shows off his black Jeep Wrangler Rubicon. Picture: Instagram Shared in a recent Instagram post, the Golf 8.5 R drew attention for both its bold styling and the timing of its debut, just weeks after Hlatshwayo's contract with SuperSport United officially ended on 30 June 2025. Life after SuperSport: Uncertain future, certain swagger Following the surprise R50-million sale of SuperSport United to Calvin Le John, the son of Sports Minister Gayton McKenzie, the newly renamed Siwelele FC retained several staff members but did not extend Hlatshwayo's contract. Thulani Hlatshwayo (right) with coach Gavin Hunt after joining Supersport United as defender. Picture: SuperSport/X With his future club still unknown, it's clear that Hlatshwayo is taking time to enjoy the rewards of his hard work, including his flashy new Golf and some well-earned family time. The veteran defender posted some photos of himself and his son posing alongside his new set of wheels. Take a look… ALSO READ: 'If Pitso bought it, I'd be happy' – Masina saddened by SuperSport sale Doting father and husband Over the years, Hlatshwayo has been vocal on social media about his love and affection for his wife, Kenosi Masegela, whom he married in 2017. Thulani 'Tyson' Hlatshwayo and Kenosi Masegela on their wedding day in 2017. Picture: X The Hlatshwayos have become known for their luxury travel escapes, often sharing snapshots from tropical locales such as Thailand and Mauritius. Football star Thulani Hlatshwayo and his wife, Kenosi, on holiday. Picture: Instagram Their wanderlust lifestyle matches Hlatshwayo's high-performance car collection and gives fans a glimpse into the couple's taste for the finer things in life… From captain to cruiser: A storied career Thulani Hlatshwayo's journey from Senaone Gunners FC to captaining both Bidvest Wits and Bafana Bafana has cemented his place in local football history. After joining Orlando Pirates in 2020, expectations were high – especially following his standout performance in the 2019 AFCON, where South Africa stunned hosts Egypt. Thulani Hlatshwayo has not had the best of times at Orlando Pirates. Picture: Lefty Shivambu/Gallo Images However, his spell at Pirates was marred by limited game time. Speaking to Hlatshwayo admitted he had 'fallen out of love with football' at Pirates, but reignited his passion after reuniting with coach Gavin Hunt at SuperSport. 'I'm happy now, I fell in love with the game again when I joined SuperSport,' he told the sports publication. Thulani Hlatshwayo: Net worth Hlatshwayo's estimated net worth of R2 million remains strong, thanks to endorsements, investments, and long-standing club contracts. According to NewsHub360, his salary during his Orlando Pirates tenure placed him among South Africa's Top 10 highest-earning footballers.
IOL News
23-05-2025
- IOL News
Fraudster gets eight years for house scam
Riaan Dandrey Belelie was sentenced at the George Regional Court on Wednesday for a fraudulent house sale transaction, which cost the complainant R300 000. Image: Supplied / Hawks A George man has been sentenced to eight years' imprisonment for defrauding a complainant of R300 000 in housing sale scam. Riaan Dandrey Belelie, 39, was sentenced at the George Regional Court on Wednesday, said Hawks spokesperson Zinzi Hani. According to Hani, Belelie went about the transaction in 2018. On the sentence, Hani said: 'This comes after he entered into a plea agreement with the State on charges of fraud, forgery, and uttering. He was sentenced to eight years' imprisonment, of which four years is suspended for five years. 'It is reported that on August 3, 2018, the complainant agreed to sell a house to the accused for the amount of R780 000. According to the terms of the agreement, the accused should pay a deposit of R350 000 on the date of signing the contract,' said Hani. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Next Stay Close ✕ The court heard that the balance of R430 000 should be paid in three instalments of R143 334, and further, the amount of R5000 per month for rent from September 2018 until November 2018. 'On August 5, 2018, a proof of payment to the amount of R300 000 was sent via email to the complainant. It was sent on a Standard Bank internet banking letterhead. Upon the receipt of proof of payment, the accused moved into the property. It was later discovered that the proof of payment was forged. This led to the arrest of the accused, which further resulted in his sentencing,' said Hani. The complainant suffered a potential loss of R300 000 and Belelie will effectively serve four years' direct imprisonment. Cape Times
IOL News
22-05-2025
- IOL News
Fraudster sentenced to eight years for R300,000 house sale scam
Riaan Dandrey Belelie was sentenced at the George Regional Court on Wednesday for a fraudulent house sale transaction, which cost the complainant R300 000. Image: Supplied / Hawks A fraudster has been sentenced to eight years' imprisonment after defrauding a complainant of R300,000. The convict, 39-year-old Riaan Dandrey Belelie, was sentenced at the George Regional Court on Wednesday for a fraudulent house sale transaction, as confirmed by Hawks spokesperson Zinzi Hani. According to Hani, Belelie went about the transaction in 2018. On the sentence, Hani said: 'This comes after he entered into a plea agreement with the State on charges of fraud, forgery, and uttering. He was sentenced to eight years' imprisonment, of which four years is suspended for five years. 'It is reported that on 3 August 2018, the complainant agreed to sell a house to the accused for the amount of R780,000. According to the terms of the agreement, the accused should pay a deposit of R350,000 on the date of signing the contract,' said Hani. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Next Stay Close ✕ The court heard that the balance of R430,000 should be paid in three instalments of R143,334, and further, the amount of R5,000 per month for rent from September 2018 until November 2018. 'On 5 August 2018, a proof of payment to the amount of R300,000 was sent via email to the complainant. It was sent on a Standard Bank internet banking letterhead. Upon the receipt of proof of payment, the accused moved into the property. It was later discovered that the proof of payment was forged. This led to the arrest of the accused, which further resulted in his sentencing,' said Hani. The complainant suffered a potential loss of R300,000 and Belelie will effectively serve four years' direct imprisonment.
The Citizen
21-05-2025
- Business
- The Citizen
These Gauteng municipalities are lagging behind with their refuse collection bills
The Ekurhuleni municipality recently reported that refuse collection debt stood at R2.3 billion with 35% of customers not paying their bills. Gauteng's municipalities have millions in refuse collection debt sitting on their books. Electricity and water debts extend into the billions, but the cost of move waste from households to landfills is mounting. Gauteng's refuse removal resources may be in the dumps, but non-payment from residents is hampering recovery efforts. Ekurhuleni debt over R2 billion Refuse removal services in major municipalities operate as separate departments with individual budgets and revenue generation objectives. The figures were recently provided by Cooperative Governance and Traditional Affairs (Cogta) MEC Jacob Mamabolo in a written response to a question posed in the provincial legislature. The MEC's response was a compilation of information provided by the province's 11 municipalities on how they handled their refuse removal matters. The City of Ekurhuleni has the highest reported debt for waste collection, while other municipalities focused on the percentage of residents not paying for the service. Ekurhuleni reported their total refuse debt stood at R2.3 billion as of February 2025, and that the averages payment rate was in line with other services at just over 65%. The City of Johannesburg reported a payment of 75% of waste management bills, adding that R780 million has been allocated to Pikitup for the financial year to cover bad debts. Johannesburg offers free waste collection at properties valued R350 000 and under, as does the City of Tshwane for residents of informal settlements and indigent households. 'The city indicates that its billing system for waste services to households is not issued separately, thus it is not possible to isolate and allocate unpaid municipal bills to just one line item on a typical municipal bill,' stated Tshwane's feedback. Low payment rates Other smaller municipalities in the province noted that it was difficult to calculate refuse removal as it was lumped together with other services. Those municipalities that disclosed their debts were the Merafong, Lesedi and Emfuleni municipalities. Merafong listed a R19 million debt with a 46% non-payment rate from residents and businesses, while Lesedi reported a R173 million refuse debt, with 60% of residents and 72% of businesses paying their bills. Emfuleni is currently under Operation Shanela interventions after being identified as one of the eight worst municipalities in the country by Cogta. Emfuleni's reported a R615 million debt, explaining that while 52% of those serviced paid their bills, the amounts were problematic. 'The other challenge is that the rate applied to waste is not viable for the municipality. It is too low, and if it were to increase, it would become unaffordable for customers,' Emfuleni's response stated. Rand West City indicated that 31% of residents were not paying for services, while Midvaal had between 87% and 94% of its residents paying their rates. The Sedibeng and West Rand District municipalities did not provide waste management services to residents, while Mogale City stated service charges were billed together. Mamabolo's office was contacted for further comment, which will be added once received. NOW READ: Gauteng's waste collection woes: R1 billion needed for landfills, R60 million for fleets
