I pay provisional tax and have 2 contractors to whom I pay FEES (commission) on sales leads that they generate for me. My question is: I wish to use the services of my daughter-in-law (same surname as mine) in a similar capacity so will SARS see this as shifting my tax burden to avoid a higher bracket or will I be allowed to book this family member as a legitimate earner in her own right? I would maintain a payments register and her fees would be paid over periodically to her banking account. I read somewhere that one cannot employ a family members in your business???
This should not be a problem with SARS as long as you maintain a proper audit trail (i.e. she invoices you for her fees) and the fees you pay her are market related and consistent with your other contractors.
Get Tax Deadline Reminders, News and Tips
We'll tell you when you need to file, along with tax tips and updates.