Elvis Blue wins Idols 6
Somebody commented about the Tax Elvis is going to pay.
I think a lot of tax professionals, accountants and attorneys cringed last night when Elvis announced his gift of R250 000 to Lloyd. SARS will make out a case that his winnings contitute earnings that accrued to him in the employment of a skill, ie his singing and that it was not a game of chance. He might then pay income tax on it of say R180k. The R250k he gives Lloyd constitues a donation and Elvis will have to pay donations tax on the amount that exceeds R100k, so he is in for another R30k. Of his R500, he thus gives Lloyd R250k, SARS R180 + R30k, which will leave him with R40 000. Ouch. They should have been advised to structure this better. Shows you: no good deed goes unpunished.