A Final Call for Change

The racing Industry is the only Industry that has not been "RING FENCED" yet by the SARS.
Hence the racing Industry is currently the only Industry where no Strick Controls can be applied.
Its much like the TAXI Industry, everyone for himself.

Racing has always been a tax writeoff for the rich, or anyone that needed to pay too much taxes.
During the 70's and 80's we did it with farms.
Most professional people such as doctors, attorneys were buying farms and writting the losses off under their practise.

For the racing industry to be run as a professional outfit, the Industry needs to be "ring fenced" by SARS.
SARS wont as too many people will lose their jobs, as the rich will not buy horses and tax writeoffs from the taxpayers will stop, forcing a major slump in the industry.

Going back to march 2010, the new minister of finance indicated that we have only 3,2 million taxpayers left in the country from about 60,000,000 people, explaining the inverse of the percentage unemployed.
Italy has 21 million tax payers from 60,000,000, UK has +20 million tax payes from 60,000,000 people.
The country cannot afford more unemployment, hence SARS will not "ringfence" the industry.

A different perspective
1990 - Spoornet employed 160,000 people
2000 - Spoornet employed 37,000 people
2010 - Spoornet employs < ????? people

Given the SARS predicament, the dwindeling number of tax payers, the racing Industry will have to find a complete new recipe for success.
Restructuring the Industry as it is will only result in more job losses, and allow a faster decline in revenue.

Guess we will soon be on cartoon racehorses like the UK - less expenses and easier to maintain.

Andrewest Wrote:

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>


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> Guess we will soon be on cartoon racehorses like
> the UK - less expenses and easier to maintain.


Its only on for the compulsive,addicted,degenerate gambler. Apparently they take millions of pounds a week. Besides the virtual horses they have virtual dogs and virtual motor car racing.

Andre,your an IT wiz any way of tracing our impostor? Reckon he is a banned member that knows a bit about Lucky or thinks he does..

i thought the Taxation of race horses has changed and there is no more writing off of expenses? I thought I saw a similar post somewhere else on the subject?????

Am I wrong?

Tommy,

SARS seems to be making it up as we go along from year to year; from what I can gather for this year, as long as the 'losses' you claim plus your 'taxable income' (that is without taking these 'losses' into account) does not exceed a certain amount (R525 000 for this year), you are OK - no ringfencing applies.

From the SARS documentation:

'A pre-requisite for the application of section 20A is that, in the year in which the ring-fencing is applied, the sum of the taxpayer’s taxable income (determined without having regard to other provisions of this section) and any assessed loss and balance of assessed loss which were set off in terms of section 20 in determining that taxable income, equals or exceeds the amount at which the maximum marginal tax rate chargeable in respect of individuals becomes applicable. In respect of the 2010 year of assessment the maximum marginal tax rate will apply to taxable income in excess of R525,000'.

So as I understand it, if your taxable income = R300 000, you can claim losses up to R225 000 and 'ring-fencing' does then not apply for this year.

Frodo Wrote:

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> Tommy,
>
> SARS seems to be making it up as we go along from
> year to year; from what I can gather for this
> year, as long as the 'losses' you claim plus your
> 'taxable income' (that is without taking these
> 'losses' into account) does not exceed a certain
> amount (R525 000 for this year), you are OK - no
> ringfencing applies.
>
> From the SARS documentation:
>
> 'A pre-requisite for the application of section
> 20A is that, in the year in which the ring-fencing
> is applied, the sum of the taxpayer’s taxable
> income (determined without having regard to other
> provisions of this section) and any assessed loss
> and balance of assessed loss which were set off in
> terms of section 20 in determining that taxable
> income, equals or exceeds the amount at which the
> maximum marginal tax rate chargeable in respect of
> individuals becomes applicable. In respect of the
> 2010 year of assessment the maximum marginal tax
> rate will apply to taxable income in excess of
> R525,000'.
>
> So as I understand it, if your taxable income =
> R300 000, you can claim losses up to R225 000 and
> 'ring-fencing' does then not apply for this year.


Thanks Frodo,

So both are partly correct. From one standpoint there is no ring fencing (as long as your taxable income combined with your does not exceed R525k). From another standpoint there is ring fencing if you are a big man in the racing game and your taxable income exceeds R525k......

In other words the new ruling is only really applicable to guys who own race horses, but cannot really afford to be race horse owners as they don't really earn enough money to be able to pay the purchase price as well as the upkeep??!?!?!?

As long as they keep taxing the big boys, then I guess they are happy?

I'm sure they will change their tune tomorrow or the next day, but for now if you are a very small owner with only a slightly above average income, you should be able to claim your expenses back!

Zoros post has been removed from sticky but have added link.

www.africanbettingclan.com/forum/phorum-...15/read.php?3,145475

FYI in reply to something that has been posted elsewhere,Lucky was sent a copy of the original post around lunchtime yesterday..

As for the IP tracing...it can be traced..why bother...dont give the man the extra advertising...if you insits..call Riaan my mate..you got his number...
As for millions of pounds made by the bookmakers...

William Hill posted a 32 million pound profit...
but.....
32,000,000 / 2300 outlets / 12 months / 31 days = 37.40 pounds per day per shop.....

a profitable business ?
will you buy shares ?

missed the Warren Buffet class....
If William Hill owned the 2300 buildings where the outlets are run....yes...then we had a business....
perhaps the RSA bookmakers must buy the buildings from where their outlets are run.....
perhaps their profits are also only R500 per day per outlet?

Andre,hills rent...

will the BBR saga be the catalyst for change? see the sorry state of affairs of the industry, and the remaining rats biting each other on a sinking ship.

Your just aswell to give them all Gimp masks Don,because there is only one master!!!