Laying the Foundation
-
Brief History and Course Introduction
-
Purpose of this Platform
-
Permission to Learn
-
Long-term Insurance Tax - Is it really that complicated, and can it be demystified?
-
Definition of Course
-
Why will this platform be useful?
-
What this platform is not
-
Focus area of this Platform
-
Lecture Order
-
CPD Hours
-
Copyright
-
Disclaimer
-
Contact Details, Comments, Support and Privacy
-
Comments and Questions relating to the section "Laying the Foundation"
Glossary of often used Terms
-
Purpose of this Section
-
General Terms and Definitions
-
Section 29A, SARS and Tax Specific Terms
-
Insurance Specific Terms and Definitions
-
Terms and Definitions in the Income Tax Act
-
Terms and Definitions in the Tax Administration Act (TAA)
-
A few often-used Latin words and phrases
-
Arrangement of Sections in the Income Tax Act
-
Comments and Questions relating to the section "Glossary of Often Used Terms"
Process when Submitting a Tax Return - Quick Reminders
So, you are part of the Finance/Tax Team
-
Role of the Tax Team
-
When dealing with SARS (and others):
-
Follow the process, and always keep your details at SARS up to date:
-
Can you perform a standard tax calculation for a life insurance company?
-
Basic information and documents needed when you perform a Tax Calculation
-
SARS Query Resolution Process (Large Business Centre)
-
SARS New Online Query System and Complaints Number
-
Comments and Questions relating to the section "So you are part of the Tax/Finance Team"
Preparing for an Audit
Taxation of Long-term Insurance Companies
-
Where does it fit in and how must it be approached?
-
Before we get started with Section 29A - What is life insurance business?
-
Difficulties when Taxing a Life Insurance Company
-
How should profits and investment returns in a "life insurance business" be treated?
-
Section 29A in a nutshell
-
Underlying Principles of Five Funds Tax
-
The Risk Policy Fund
-
Comments and Questions relating to the section "Taxation of Long-term Insurance Companies"
Long Term Insurance Tax- Section 29A of the Income Tax Act
-
Taxation of Long-Term Insurers - The Frame
-
What does Section 29A and 29B say? (The wording of the Act)
-
What does Section 29A and 29B say? (The wording of the Act) w.e.f. 1 January 2023
-
How to Establish and Maintain the Separate Funds
-
The Simplistic "Goal" when you perform the Five Funds Tax Calculation
-
Comments and Questions relating to the section "Long-Term Insurance Tax - Section 29A of the Income Tax Act"
IFRS 17
-
🆕IFRS 17 - Perspective
-
🆕Brief Comment on IFRS 17
-
🆕 Complexities from a Tax point of view - Brief Comment
-
🆕Adjusted IRFS Definition - Changes
-
🆕In Summary
-
Tax Laws Amendment Act - 2022 - IFRS 17 adjustments to section 28 and 29A
-
EXPLANATORY MEMORANDUM ON THE TAXATION LAWS AMENDMENT ACT, 2022 - IRFS 17 Adjustments
-
IFRS 17 - Statement
-
What is IFRS17? - www.IFRS.org - Accounting
-
Deloitte Africa Insurance Outlook 2022
-
Comments and Questions relating to the section "IFRS 17"
Forms 1 to 7 and the Tax Calculation
The Forms - Form 1
-
Form 1
-
Linking Section 29A to Forms 1 to 7
-
Form 1 - Introduction
-
Value of liabilities at beginning of year - Form 1 - Line 1
-
Before IFRS 17 - Total per Financial Statements - Form 1, Column 1
-
IFRS 17 - Total per Financial Statements - Form 1 Column 1 (AFS)
-
IFRS 17 - Total per Financial Statements - Form 1 Column 1 (Forms)
-
Form 1 - Column 2 - IFRS 17 Adjustments - New Forms
-
Adjustments - Form 1, Column 2 (IFRS 4) or Column 3 (IFRS 17)
-
Adjusted Total - Column 3
-
Allocations per Fund - Make-up of the Five Funds
-
Allocations per fund, in principle - Form 1, Columns 4 to 8
-
Disregarded Income, Commissions and Premium Adjustments
-
Allocation of Premiums and Claims - Form 1, Lines 4 and 9
-
Allocation of Investment income, foreign premiums and foreign reinsurance premiums and other Income - Form 1, Line 5
-
Allocation of Net accounting REALISED gains (losses) on investment assets - Form 1, Line 6
-
Allocation of Net accounting UNREALISED gains (losses) on investment assets - Form 1, Line 7
-
Form 1 and BGR 30
-
Allocation of Direct Expenses Attributable to Income- Form 1, Line 11
-
Allocation of Selling and Administration of Policy Expenses - Form 1, Line 12
-
Allocation of Other Expenses - Form 1, Line 13
-
Allocation of Taxation - Form 1, Line 14
-
Allocation of Dividends Paid - Form 1, Line 15
-
Transfer in Respect of Tax Status Changes - Form 1, Line 17
-
Changes in Share Capital per Financial Statements - Form 1, Line 18
-
Other - Form 1, Lines 20 and 21
-
Transfer to or from the Life Fund
-
Market Value of Assets at end of year - Form 1, Line 21 and 22
-
Deduct: Value of liabilities at end of year - Form 1, Line 24
-
Deduct/add Transfer (to)from CF - Form 1, Line 23
-
Asset Reconciliation - Form 1 - Note 6 and 7
-
Once-off election for transfer of risk policies - Form 1, Line 2
-
Form 1 - Conclusion
-
Comments and Questions relating to the section "The Forms - Form 1"
Foreign Dividends and CFC's
The Forms - Form 2
The Forms - Form 3
The Forms - Form 4
-
Selling and Administration of Policies Expenses
-
Other Expenses
-
Capital Expenses and other Add- Backs and Adjustments
-
Some Typical Adjustments Made on Form 4
-
Expense Ratio - Applicable to IPF and CPF
-
Expense Ratio - Corporate Fund
-
Expense Ratio - Risk Policy Fund
-
Binding General Ruling (BGR) 30
-
Short Summary of Expenses
-
Comments and Questions relating to the section "The Forms - Form 4"
The Forms - Form 5
The Forms - Form 6
The Forms - Form 7
-
Introduction of Loss Limitation Rules
-
Calculation of Tax Payable
-
Calculation of Policyholder Fund Tax
-
Calculation of Risk Policy Fund Tax
-
Calculation of Corporate Fund Tax
-
Donation Deduction - Corporate fund and Policyholder Funds Tax
-
Donation Deductions - General
-
Reasonability Check
-
Comments and Questions relating to the section "The Forms - Form 7"
ITR14L Tax Return Submission and Assessment
Provisional Tax and Paragraph 19 (3)
-
What it is and who should pay?
-
Interpretation Note 1 - Guidance on the interpretation of the Law relating to Provisional Tax
-
SARS Guide - Provisional Tax
-
Paragraph 19(3) of the Fourth Schedule and its Applicability to Long-term Insurance Companies
-
What to expect when SARS applies Paragraph 19(3)
-
Section 6quat rebates
-
Comments and Questions relating to the section "Provisional Tax and Paragraph 19(3)"
Questions and Answers - Mostly with a focus on Section 29A
-
Purpose of Q&A
-
Is there a difference between the Corporate Fund and the Shareholders' Fund?
-
Must a company really establish Five Funds?
-
What does "the manner in which its business is conducted" mean?
-
How must one apportion expenses to the different Funds?
-
What is the tax effect if I get my expense allocations wrong?
-
Can an expense form part of the Fund Build-up if it is not tax deductible?
-
What does it mean to trade?
-
With regards to assessed losses, does the Trade Requirement apply to every Fund of a Life-Insurance Company?
-
What is back-solving?
-
How must Asset Management Fees be apportioned?
-
Does the General Deduction Formula apply to long-term insurers?
-
What must be done if the auditors are not satisfied that there is sufficient documentary evidence for expenses?
-
What is the main difference between life insurance tax calculation and other companies' tax calculations?
-
What is the difference between a Transfer Credit and an Assessed Loss in a PHF?
-
How does one utilize an assessed loss in a PHF?
-
What is a Special Transfer?
-
What is Locked-in New Business Strain?
-
Are premiums and claims part of gross income and expenses?
-
What is the rationale for a 30% transfer deduction?
-
Why can the Risk Policyholder Fund (RPF) deduct 100% selling and other expenses?
-
What is an "Annuity"?
-
Does dividend withholding tax (DWT) apply to a Policyholder Fund?
-
Section 23H and Benefits - Must Selling Expenses be Spread, and if so, How??
-
Can a company declare dividends out of a Policyholder Fund or the Risk Policy Fund?
-
How much detail must there be on the IT14L with regards to the Five Funds?
-
Can a life-insurance company claim wear and tear on assets?
-
What is Taxable Income? A Framework
-
Assessed Losses and Transfer Deductions
-
What does "shall be included" in Section 29A(1)(d)(i) mean?
-
Why is "year of assessment" important?
-
What does dormant mean?
-
Can SARS disallow excessive or unnecessary expenses?
-
Must provisional tax be based on best estimates or actual amounts?
-
What to do when a tax rate changes - Application of IAS 12
-
What is a "Business Day" and why is it important?
-
Must a micro-insurer perform a five-funds tax calculation?
-
What is the Meaning of SAM in an Insurance Environment?
-
If all premiums paid are refunded to a policyholder after 15 years, must the policy be allocated to the IPF or RPF?
IT14SD
Long-term Insurance - Interpretation Notes (IN)
-
What are Interpretation Notes?
-
IN 47 (Issue5) and BGR 7 (Issue 4) - Wear and Tear
-
IN 102 (Issue 2) - Classification of Risk Policy - 12 May 2022
-
IN102 (Issue 1) - Classification of risk policy and once-off election to transfer policies issued before 2016
-
Comments and Questions relating to the section "Long-term Insurance - Interpretation Notes (IN)"
Rulings Issued by SARS
Long-term Insurance - Binding Class Rulings (BCR)
Long-term Insurance - Binding General Rulings - (BGR)
-
What are Binding General Rulings (BGR)?
-
BGR 30 - Allocation of direct and indirect expenses within and between an insurer's funds - Issue 2
-
BGR30 - Allocation of direct and indirect expenses within and between an insurer's funds - Issue 1
-
BGR31 - Interest on late payment of benefits
-
BGR34 - Management of superannuation schemes
Long-term Insurance - Binding Private Rulings (BPR)
-
What are Binding Private Rulings (BPR)?
-
BPR 105 - Single Premium Whole Life Insurance Policy issued
-
BPR141 - Transfer of securities - UPF to UPF
-
BPR179 - Single Premium Life Insurance Policy Issued by an Off-shore Insurer
-
BPR226 - Transfer of the Long-term Insurance Business Partly to a Third Party and Partly Intra-group
-
BPR250 - Risk Policies
-
BPR251 - Cancellation of reinsurance agreement
-
BPR322 - Policy - Equity Linked Note
-
BPR358 - Amalgamation of Short and Long-term Insurers
-
BPR-402-Transfer of long-term insurance business to a local branch of a foreign reinsurer
-
BPR 416 -Transfer-of-reinsurance-business-from-a-resident-company-to-a-local-branch-of-a-foreign
Certain Explanatory Memorandums (EM) and Taxation Laws Amendment Bills (TLAB) relating to Insurance Tax Amendments
-
General
-
Explanatory Memorandum and TLAB 2024
-
Expanatory Memorandum and TLAB 2023
-
Explanatory Memorandum 2022 - IFRS 17 amendments
-
Explanatory Memorandum and TLAB 2021 - Definition of Insurer, Expense Ratio Clarification and Short-term Insurance Transfers
-
Explanatory Memorandum and TLAB - 2020 - Meaning of Market Value
-
Explanatory Memorandum and TLAB - 2019 - Foreign Reinsurance and Phasing-in Rules
-
TLAB - 2018
-
Explanatory Memorandum and TLAB - 2017 - Valuation Method, DAC and DRL
-
Explanatory Memorandum and TLAB - 2016 - Valuation Method
-
Explanatory Memorandum and TLAB - 2015 - Risk Policies, Foreign Reinsurance and Micro-Insurance
-
Explanatory Memorandum and TLAB - 2014 - Risk Policies and Foreign Reinsurance
-
Explanatory Memorandum & TLAB - 2013 - Investment Policies Disguised as Short-term Insurance Policies
-
Explanatory Memorandum and TLAB - 2012 - Mark to Market CGT Change and Deduction Formula
-
Explanatory Memorandum - 2011 - Employer Owned Insurance Policies
-
Explanatory Memorandum 2007 - Long-term insurers and controlled foreign companies
-
Explanatory Memorandum and TLAB - 2001 - Amendment of Section 29A and Second Hand Policies
-
Explanatory Memorandum 1999 - Introduction Section 29A
-
Explanatory Memorandum 1993 - Introduction of Section 29 - Four Funds Approach
Dissertations, Research Papers and Old Documents
-
Relevance of Dissertations, Research Papers and Old Documents
-
Taxation of Life Insurance - TE Hartwig
-
Taxation of Life Insurance in South Africa - Revisited RJ Clover
-
Taxation of Life Insurers in South Africa - Dissertation - Stefan Botha
-
Taxation of Long-term Insurers - Dissertation - HD Matthews
-
Thesis on Four Funds - Peter Donaldson
-
An Analysis of the Proposed Annual Mark-to-Market Taxation of the Capital Gains of Long-term insurance Policyholders - N Johnson
-
Capital vs. Revenue - Some Guidance
-
The Impact of Solvency Assessment and Management on Life Taxation - CE Pretorius
-
The Jacobs Committee Report (1992) - The Full Report
-
Jacobs Committee Report - Chapter 5 Dealing with the Long Term Savings Industry
-
Old Accounting Statement - AC 121 - Disclosure in the Financial Statements of Long Term Insurers
-
IT 18 - Tax Calculation when Section 29 was Introduced
Old FSB Documents and Other Interpretations
-
Usefulness of FSB Documents and Interpretations
-
Directive 140.B.ii GAAP and Prescribed Requirements 8 Nov 2014
-
Info Letter 1 of 2013 Treatment of deferred tax liabilities for statutory reporting purposes 4 Febr 2013
-
SAP104 Calculation Of Assets Liability And CAR Eff 31 Dec 2012
-
PGN 104
-
The impact of the implementation of the Solvency II 5 May 2012
-
Board Notice 169 of 2011 Eff 1 Jan 2012 Short-term Insurance
-
LT Tax Directive Current Liabilities Cover Letter Dec 2011
-
LT Tax Directive Current Liabilities Eff 9 Dec 2011
-
Directive 140.B.iii(LT) Differences AFS and LT 10 March 2006
-
Directive 145.A.i Disregard Negative Liabilities 8 Nov 2004
-
Info Letter 4 of 2004 Value of Liabilities 26 March 2004
-
FSB Directive to Long-term Insurers dated 7 March 2000
-
FSB Basic Guide to Long-term insurance
Other Useful Publications
Legislation and Websites
