Tax changes dull trusts' sparkle
Friday, July 17, 2020
Skills sharing: Hore
Most wealthy parents used to make use of this vehicle, as an estate planning mechanism and it would legally suppress Capital Gains Tax and Donations & Inheritance Tax on inheritances.
Private trusts are vehicles which are created mainly to house property on behalf of heirs with the main benefit of facilitating smooth and tax-free transfers to heirs.
Whilst celebrating milestones in inclusivity, with notably P5 billion awarded to vulnerable groups, the report sounds a 'siren' on a dangerous and growing trend: the ballooning use of micro-procurement. That this method, designed for small-scale, efficient purchases, now accounts for a staggering 25% (P8 billion) of total procurement value is not a sign of agility, but a 'red flag'. The PPRA’s warning is unequivocal and must be...