I usually watched the final five minutes of each episode of Survivor: South Africa, before waiting for Carte Blanche, and read this morning that Graham Jenneker was the winner.
Most of the comments were lovely which was expected as well as childish in-fighting, which was also expected.
What interested me though were the comments regarding the taxable amount.
Happyboy - What is the total amount after tax?
Shepherd - It cannot be taxed.
Rene - The taxman will take his share. Mandla, the winner of Big Brother, he only got R608 000 of the million.
Bethe - Congratulations on your 600k after tax.
Linda Rose - Is this prize tax free? I don't think so which is sad.
Mark - I think it is tax free. It is not classified as gambling tax.
Terrylin - (Yes, that's me). This is not taxable. Tax is only payable on the interest earned and not the capital should he invest this.
The comment from Koos - Sheesh Terrylin, that is not how it works ... the money is taxable immediately .... it's not a lump sum from a retirement plan ..., prompted me to call SARS.
Koos, you are partially correct as I am, along with Rene, Bethe and Mark.
However, after speaking to D at SARS, I am still confused. D asked me to hold on as she checked gambling tax on the website. (Mark). I was then told that 18% is applicable up to R1 million and 25% thereafter.
According to D's calculations, Graham will forfeit R180 000 and not R392 000 (Rene) or R400 000 (Bethe).
D went on to say that a directive must be submitted before the balance would be paid out. This also applies to a lump sum retirement plan (Koos).
Graham will be taxed on the balance if invested . (Terrylin).
I am confused because D ended with: "If the Survivor Directive is not submitted, SARS will be none the wiser as this also happens with Lottery and Casino winnings."
I kid you not.
Please could someone, anyone, in the know, clarify this for us?