Deeltydse Boerdery As Belastingbeplannings-Instrument

This article focuses on the suitability of part-time fanning as an instrument in taxation planning. Part-time fanning in Canada, the USA and New Zealand is investigated briefly and compared to South Africa. A person qualifies as a Janner for taxation purposes if he has a genuine intention to carry on fanning as a trade. The intention is established objectively. A part-time Janner can save taxation by purchasing livestock before he commences fanning, eradicating noxious plants, preventing soil erosion, purchasing fanning machinery and equipment, incurring expenditure to establish and maintain plantations and chasing levelling. A part-time Janner saves taxation when a deduction is not limited to fanning income or an assessed fanning loss arises which is claimed against his other taxable income. A part-time Janner is obstructed in saving taxation by the limitation of livestock purchasing costs and capital expenditure to fanning income. The general provision against taxation avoidance should be considered particularly with regard to fanning schemes. A person can be taxed as a Janner if he is a limited partner in a fanning partnership.