Title page for ETD etd-04092009-142658

Document Type Master's Dissertation
Author Van der Westhuizen, Francois Duplessis
Email coisvdw@yahoo.com
URN etd-04092009-142658
Document Title Venture and trade conducted by natural persons for income tax purposes
Degree MCom
Department Taxation
Advisor Name Title
Adv R D De Swardt Co-Supervisor
Prof T Steyn Supervisor
  • SARS
  • South Africa
  • income tax
Date 2009-04-20
Availability restricted

In order to deduct the start-up costs associated with a new business from the entrepreneur’s income for South African income tax purposes, the entrepreneur has to prove that he/she is in fact carrying on a trade, as defined.

Taken from the definition of the term ‘trade’ the term ‘venture’ is not specifically defined in the Income Tax Act. At present there is no concrete guidance from SARS or the legislature assisting an entrepreneur in deciding whether his venture cost incurred falls in the ambit of the definition of a trade, assuming that all other requirements are met for a deduction from the natural person’s income.

The objective of this study is to design a set of tests based on current legislation and relevant case law, aimed at assisting a natural person in determining whether venture costs will qualify as a trade, as defined. The tests will firstly assist in determining whether the entrepreneur is carrying on a trade as defined, and secondly whether venture costs incurred is of a revenue nature.

Copyright © 2009, University of Pretoria. All rights reserved. The copyright in this work vests in the University of Pretoria. No part of this work may be reproduced or transmitted in any form or by any means, without the prior written permission of the University of Pretoria

Please cite as follows:

Van der Westhuizen, FD 2009,Venture and trade conducted by natural persons for income tax purposes, MCom dissertation, University of Pretoria, Pretoria, viewed yymmdd < http://upetd.up.ac.za/thesis/available/etd-04092009-142658/ >


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