• Wrong document? Swap it for free
  • Written by students who passed
  • Immediately available after payment
  • Read online or as PDF
Sell
Where do you study
Your language
Document preview thumbnail
Preview 2 out of 7 pages
Summary

Summary The consumer 2

Document preview thumbnail
Preview 2 out of 7 pages

the consumer section of the ieb syllabus for consumers summarised this contains: taxes, taxation, interest rates, inflation

Content preview

Taxes
Paid to SARS (South African Revenue Services)

SARS acts as a tax collector on behalf of the government




WHY DO WE PAY TAXES?

Source of income for the govenment

Tax money is used to fund social and economic programmes, and provide public goods and
services

Government revenue comes from mostly income tax, and a third comes from indirect
taxation (mainly VAT)

Feb = budget speech from minister of finance (outlines government’s total expenditures for
the next financial year and how these will be funded)

Paying taxes is a legal obligation

TAX EVASION- illegal methods to reduce tax liabilities

TAX AVOIDANCE- legal methods and good financial planning to reduce their tax burden




Types of taxation

DIRECT TAXTAION

Based on the principle that people should contribute to the wealth of the state in the same
measure that they contribute to their own wealth




Income tax

Levied on all income and profit recieved by a taxpayer

Income = any salary, wage, bonus, remuneration for overtime or lump sum recieved

Tax is also levied on any business revenue, any investments, rental income, annuities,
pension, capital gains or dividends

, Main revenue of the state and is a legal obligation

Paid in the form of PAYE or provisional tax

South Africans pay income tax by submitting tax forms, from SARS, before a certain date. Tax
forms are issued every year (1 March to end of Feb)




PAYE

Tax that an employer subtracts from employees’ income and pays to SARS

Advantage- not one lump sum

Employer issues an employee taax certificate (IRP5/IT3) to employee. It reflects the total
income in a particular tax year as well a the total PAYE deductions paid over to SARS.

Pension fund contributions and payments towards a retirement annuity are deducted
BEFORE tax is calculated




Provisional tax

Paid by persons with an irregular income

Paid in 2 amounts (middle and end of year) so not one large amount to pay

Based on estimated income of taxpayer and is based on income in previous year

IRP6 form

Final liability is determined when the tax form is filled in and assessed by SARS




Capital gains tax

Tax paid on profit made when asset is sold




Property tax

Paid by homeowners to municipality

Amount according to value and location of property

Used for infrastructure for services (library etc.)

Document information

Schooljaar
200
Uploaded on
August 15, 2023
Number of pages
7
Written in
2023/2024
Type
Summary
R60,00

Wrong document? Swap it for free Within 14 days of purchase and before downloading, you can choose a different document. You can simply spend the amount again.
Written by students who passed
Immediately available after payment
Read online or as PDF

Seller avatar
brooklynduthie
5,0
(2)
Sold
3
Followers
1
Items
21
Last sold
7 months ago




Why students choose Stuvia

Created by fellow students, verified by reviews

Quality you can trust: written by students who passed their exams and reviewed by others who've used these notes.

Didn't get what you expected? Choose another document

No worries! You can immediately select a different document that better matches what you need.

Pay how you prefer, start learning right away

No subscription, no commitments. Pay the way you're used to via credit card or EFT and download your PDF document instantly.

Student with book image

“Bought, downloaded, and aced it. It really can be that simple.”

Alisha Student

Working on your references?

Create accurate citations in APA, MLA and Harvard with our free citation generator.

Working on your references?

Frequently asked questions