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Tax Happy Hour: Explanation of Assessed Loss Balances: Limitations for Companies and Individuals

To equip Chartered Business Accountants in Practice with clear, practical guidance on the treatment of assessed losses under the Income Tax Act, SARS guidance, and recent developments. The session will highlight common pitfalls, anti-avoidance rules, and how to safeguard clients from costly mistakes.

1 CPD unit 20 August 2025 1 presenter

What will set you apart

By completing this course you will gain the following competencies

  • Understand the current rules for carrying forward assessed losses and how the R1 million/80% limitation works.
  • Learn how Section 103(2) anti-avoidance provisions may disallow losses if SARS views them as tax-driven arrangements.
  • Get clarity on Section 20A “ring-fencing” rules for individuals, including updates in the 2026 TLAB proposal.
  • See how deferred tax recognition interacts with the 80% limitation and what this means for your clients.
  • Avoid compliance risks by understanding SARS’s stance and recent case law on what qualifies as “trade”.

Event breakdown

  • Overview of Assessed Losses – Definition and scope under Section 20
  • 80% Rule & Deferred Tax – Practical examples and impact on compliance
  • Section 103(2) Anti-avoidance – When SARS can disallow assessed losses
  • Section 20A Ring-Fencing Rules – Who is affected and what changes in 2026
  • SARS Guidance & Case Law – “Trade” vs “income from trade” requirements
  • Q&A Session
Category: TaxationType: CPD CourseCPD category: Tax

Description

Assessed losses remain one of the most complex and heavily scrutinised areas in South African tax. With SARS tightening its approach and amendments limiting how losses may be utilised, accountants in practice cannot afford to get it wrong. In this focused, practical session, Johan Heydenrych, will unpack Sections 20, 20A, and 103(2) of the Income Tax Act, SARS guidance, and the implications for deferred tax. You’ll walk away knowing exactly what is allowed, what is ring-fenced, and how to protect your clients from unnecessary risk while positioning yourself as a trusted tax adviser.

Presenters

Johan Heydenrych

Johan Heydenrych — Johan Heydenrych is a Chartered Accountant and tax specialist with more than 30 years of experience in taxation. He was a Tax Partner at KPMG from 1997 to 2020 and is currently a Partner in the Kreston SA network. Johan holds an MCom in Taxation (Cum Laude) and advises clients across a wide range of industries on tax governance, compliance, disputes, technical tax matters, restructurings, mergers and acquisitions.

You will earn a certificate

On successful completion you will receive a certificate for 1 CPD unit in Tax.

Requirements

  • Laptop, desktop, or mobile device with internet access
  • Microsoft Edge, Google Chrome, Safari, or Firefox browser