Property Developers Beware: Deemed Accruals Can Seriously Disrupt Your Cash Flow

Property development can be a profitable business, but it also carries substantial risks. One of those is cash flow problems – get your projections wrong and you could face serious financial trouble.

So it’s important you know of the recent SCA decision about a R1.9m income tax assessment levied by SARS on a developer which had sold plots in one tax year but was paid only during the next tax year when the transfers took place. Was it justified in declaring the income only in the second tax year?

The Court’s decision has serious cash flow implications for developers in a similar position.

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By | 2019-01-09T06:10:41+02:00 January 9th, 2019|News|0 Comments

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