Hi, In the current tax year I sold shares in my 3 year old business to my other shareholder. The shareholder transferred the agreed amount via an attorney (they subtracted their fees related to this transaction) to my account. The nett amount was in the low millions and I expect the full amount to be subject to CGT.
What kind of documentation do I have to provide SARS with and what kind of documentation should I keep should I ever be audited by SARS? Which amount do I record in my return?
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21 November 2012 at 14:12
You would include in your return the proceeds and the "cost" (base cost) of the shares when established. The difference will be the amount subject to capital gains tax. You should keep the original share certificate/purchase agreement and the lawyers letter showing the sale amount in case SARS requests supporting documentation.
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