Applying section 7C of the Income Tax Act with confidence
Author: Karen van Wyk
Study time: 2 hours
Trusts are often used as a tax planning vehicle. It is an effective tool to transfer assets or income to beneficiaries. Unfortunately, unexpected and unwanted tax consequences sometimes arise on transactions entered into with trusts. In this course we unpack when section 7C will be applicable (and when it will not be applicable), how section 7C works, the calculation of the tax consequences arising on section 7C transactions, and the interaction between section 7C and other tax provisions.
Overview of relevant legislation
Certificate of participation / certificate of completion
- Understand what the scope of section 7C is and when section 7C will be applicable.
- Apply the requirements of section 7C to a scenario and determine whether section 7C is applicable.
- Determine and calculate the impact of section 7C on a transaction.
- Understand the interaction between section 7 and section 7C.
- Provide basic advice on how section 7C can be avoided.
Link with SAICA Competency Framework
- Technical competencies: Compliance - Tax governance
- Technical competencies: Compliance - Laws and regulations
- Technical competencies: Strategy and governance - Tax planning