A Taxman’s Casebook Asset for share deals – Double tax disguised as a tax dispensation

Section 42 looks like a gift, defer tax, swap assets for shares, keep the deal moving. But the buyer quietly inherits the seller's full tax liability, the same gain gets taxed twice, and disposing of assets within 18 months triggers anti-avoidance rules that SARS's own return can't even capture. Lesson: get the base cost in writing. Allocate assets correctly. Know the difference between a tax deferral and a tax trap, because your clients are counting on you to.