Our usufruct method cuts transfer duty with about 80%!

The fact that our methods are ground breaking came out in a letter of appreciation from one of our members. She wrote the following letter to Treoc’s CEO:

Dear Mr. Deyzel

RE: Recognition for excellent service rendered by Theo Naude from TREOC Accounting, Pretoria and Hanlie de Boer from TREOC Accounting Randburg

We joined Treoc as Platinum Members in 2007. At that stage we already owned 5 properties which we were then advised to transfer to the newly created Investment Trust using the usufruct method.

In September 2009 we received notification that SARS was conducting an audit on my husband’s personal tax returns and the investigating officer specifically requested information relating to the transfer of the properties. It was explained to her that the transfers were done using the usufruct method, but she insisted that either capital gains tax, transfer duties or donations tax was payable. Needless to say this caused a great deal of stress and angst in our home.

I contacted Theo Naude at the Pretoria office regarding this matter, and he referred me to Hanlie de Boer in Randburg. Hanlie was very knowledgeable and even offered to speak to the SARS investigating officer personally so that she could explain to her how usufruct transfers works. This was a great boost to our morale, as the SARS investigating officer was becoming rather insistent that we owed a great deal of money.

After providing SARS with all the documents that they requested (proof of registration date, property values, transfer duties paid, title deeds, etc.), the investigating officer still felt that there were duties payable.

Theo and Hanlie communicated directly with SARS, providing .........................

To read further, please log in. If you do not have an account, please subscribe