The South African Revenue Service (SARS) would like to remind taxpayers who have not yet done their valuations for purposes of Capital Gains Tax that they have exactly three days to do so to be eligible use the market value method in determining the base cost of assets they held on 1 October 2001.
Taxpayers must complete and sign the CGT2 valuation form and in instances where the valuation was done by another person, that person must also sign the form. The form does not need to be submitted to SARS immediately. In most cases, it must be submitted with the tax return on the year in which the asset was disposed of.
Only in the instances listed below will the taxpayer need to submit the CGT2 valuation form with their first tax return submitted after the September 2004 deadline:
On these assets, the submission of the form may be required whether or not the asset was sold. As is the case with most other tax forms, taxpayers are advised to keep a copy of the valuation form submitted for their own records.
SARS would also like to remind taxpayers that the market value for local listed financial instruments (shares, warrants, agricultural and financial futures) and unit trusts as at 1 October 2001 was published by SARS in the Government Gazette.
SARS would like to appeal to taxpayers to refrain from inflating valuations as this could result in additional taxes of up to 200% of the tax evaded and criminal prosecution in terms of the Income Tax Act, 1962. Taxpayers still requiring assistance should visit their nearest SARS branch office or the SARS website at www.sars.gov.za.
For more information please contact Sechaba Nkosi at (012) 422 5046 or 082 465 2901
ISSUED BY THE COMMISSIONER FOR THE SOUTH AFRICAN REVENUE SERVICE