SAQA All qualifications and part qualifications registered on the National Qualifications Framework are public property. Thus the only payment that can be made for them is for service and reproduction. It is illegal to sell this material for profit. If the material is reproduced or quoted, the South African Qualifications Authority (SAQA) should be acknowledged as the source.
SOUTH AFRICAN QUALIFICATIONS AUTHORITY 
REGISTERED UNIT STANDARD THAT HAS PASSED THE END DATE: 

Demonstrate knowledge and insight into the Capital Gains Tax Legislation as it applies to insurance and investment 
SAQA US ID UNIT STANDARD TITLE
12167  Demonstrate knowledge and insight into the Capital Gains Tax Legislation as it applies to insurance and investment 
ORIGINATOR
SGB Financial Services 
PRIMARY OR DELEGATED QUALITY ASSURANCE FUNCTIONARY
-  
FIELD SUBFIELD
Field 03 - Business, Commerce and Management Studies Finance, Economics and Accounting 
ABET BAND UNIT STANDARD TYPE PRE-2009 NQF LEVEL NQF LEVEL CREDITS
Undefined  Regular  Level 4  NQF Level 04 
REGISTRATION STATUS REGISTRATION START DATE REGISTRATION END DATE SAQA DECISION NUMBER
Passed the End Date -
Status was "Reregistered" 
2004-12-02  2007-02-21  SAQA 1657/04 
LAST DATE FOR ENROLMENT LAST DATE FOR ACHIEVEMENT
2008-02-21   2011-02-21  

In all of the tables in this document, both the pre-2009 NQF Level and the NQF Level is shown. In the text (purpose statements, qualification rules, etc), any references to NQF Levels are to the pre-2009 levels unless specifically stated otherwise.  

This unit standard is replaced by: 
US ID Unit Standard Title Pre-2009 NQF Level NQF Level Credits Replacement Status
243146  Demonstrate knowledge and insight into provisions relating to Capital Gains Tax (CGT) contained in the Income Tax Act as it applies to insurance and investment  Level 4  NQF Level 04  Complete 

PURPOSE OF THE UNIT STANDARD 
This unit standard is intended for learners who give financial advice where Capital Gains Tax applies.

The qualifying learner is capable of:
  • Explaining the rationale for capital gains tax.
  • Explaining the concepts used in the capital gains tax legislation.
  • Explaining the impact of capital gains tax on a client and provider in terms of the different product classes available in financial services.
  • Explaining the responsibilities of the provider to the client and the South African Revenue Service. 

  • LEARNING ASSUMED TO BE IN PLACE AND RECOGNITION OF PRIOR LEARNING 
    There is open access to this unit standard. Learners should be competent in Communication, Financial Literacy and Mathematical Literacy at Level 3. 

    UNIT STANDARD RANGE 
    The typical scope of this unit standard is:
  • Disposal includes, but is not limited to sale, cession, donation, death, divorce, surrender, alienation, redemption and transfer.
  • Events that do not trigger capital gains tax include, but are not limited to loans, pledges cessions and the issue of participatory interest in collective investment scheme portfolios.
  • Disposals include, but are not limited to, death, donation, liquidation, emigration and sequestration.
  • Product classes include, but are not limited to, endowment type life products, 1st and 2nd hand policies, collective investment scheme portfolios, retirement type funds, annuities, post retirement funds, short term medical schemes and structured funds. 

  • Specific Outcomes and Assessment Criteria: 

    SPECIFIC OUTCOME 1 
    Explain the rationale for capital gains tax 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    1. The reasons for the introduction of capital gains tax are explained in terms of equality in the levying of taxes and broadening the tax base. 

    ASSESSMENT CRITERION 2 
    2. The links between the Income Tax Act and the Capital Gains Tax legislation are explained with reference to the stage when capital gains tax is introduced in the income tax process. 

    ASSESSMENT CRITERION 3 
    3. The date from which capital gains tax is calculated is identified with examples of how the date affects the disposal of assets. 

    SPECIFIC OUTCOME 2 
    Explain the concepts used in the Capital Gains Tax legislation and their practical implications 
    OUTCOME NOTES 
    Explain the concepts used in the Capital Gains Tax legislation and their practical implications for the tax-payer. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    1. The difference between capital and income are explained with reference to their different treatment under the two Acts. 

    ASSESSMENT CRITERION 2 
    2. Events that trigger capital gains tax are named in terms of disposal. 

    ASSESSMENT CRITERION 3 
    3. Disposals that do not trigger capital gains tax are named and an explanation is given as to why such events are not deemed to be a capital gain. 

    ASSESSMENT CRITERION 4 
    4. Liability for capital gains tax of residents and non-residents is explained in terms of place of residence. 

    ASSESSMENT CRITERION 5 
    5. The concept of an asset is explained and examples are given of the types of assets that would incur capital gains tax on disposal. 

    ASSESSMENT CRITERION 6 
    6. The basis for valuing assets for capital gains tax purposes is explained with reference to the valuation date. 

    ASSESSMENT CRITERION 7 
    7. The process by which taxable gains are determined is explained diagramatically. 

    ASSESSMENT CRITERION 8 
    8. The concepts of proceeds, disposals, base cost, capital gain v capital loss, annual exclusions, taxable capital gain, assessed capital loss, net capital loss and aggregate are explained using an example. 

    ASSESSMENT CRITERION 9 
    9. The addition of taxable capital gain to taxable income is demonstrated in the rendition of an income tax return. 

    ASSESSMENT CRITERION 10 
    10. Events that are deemed to be disposals are identified in terms of their capacity to trigger capital gains tax events. 

    ASSESSMENT CRITERION 11 
    11. Disposal as a result of death or donation of a spouse is explained in terms of non liability for capital gains purposes. 

    SPECIFIC OUTCOME 3 
    Explain the impact of Capital Gains Tax on a client and provider in terms of different products 
    OUTCOME NOTES 
    Explain the impact of Capital Gains Tax on a client and provider in terms of different product classes available in financial services. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    1. Product classes available in financial services are classified in terms of whether the liability for capital gains tax lies with the client, the provider or is excluded. 

    SPECIFIC OUTCOME 4 
    Explain the responsibility of the provider to the client and the South African Revenue Service. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    1. Documentation that the provider is required to issue to the client as a tax record is described in terms of the circumstances of issue. 

    ASSESSMENT CRITERION 2 
    2. Returns that the provider is required to issue to the South African Revenue Service are described and an indication is given of the implications of non-compliance in the rendition of a tax return. 

    ASSESSMENT CRITERION 3 
    3. The use of the forms in submission to the South African Revenue Service is demonstrated and an indication is given of the different alternatives that are open to the taxpayer. 

    SPECIFIC OUTCOME 5 
    Explain the rationale for capital gains tax. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    1. The reasons for the introduction of capital gains tax are explained in terms of equality in the levying of taxes and broadening the tax base. 

    ASSESSMENT CRITERION 2 
    2. The Capital Gains Tax Act is explained with reference to the stage when capital gains tax is introduced in the income tax process. 

    ASSESSMENT CRITERION 3 
    3. The date from which capital gains tax is calculated is identified with examples of how the date affects the disposal of assets. 

    SPECIFIC OUTCOME 6 
    Explain the concepts used in the Capital Gains Tax legislation. 
    OUTCOME NOTES 
    Explain the concepts used in the Capital Gains Tax legislation and their practical implications for the taxpayer. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    1. The difference between capital and income is explained with reference to their different treatment under the two Acts. 

    ASSESSMENT CRITERION 2 
    2. Events that trigger capital gains tax are named in terms of disposal. 

    ASSESSMENT CRITERION 3 
    3. Disposals that do not trigger capital gains tax are named and an explanation is given as to why such events are not deemed to be a capital gain. 

    ASSESSMENT CRITERION 4 
    4. Liability for capital gains tax of residents and non residents is explained in terms of place of residence. 

    ASSESSMENT CRITERION 5 
    5. The concept of an asset is explained and examples are given of the types of assets that would incur capital gains tax on disposal. 

    ASSESSMENT CRITERION 6 
    6. The basis for valuing assets for capital gains tax purposes is explained with reference to the valuation date. 

    ASSESSMENT CRITERION 7 
    7. The process by which taxable gain is determined is explained diagrammatically. 

    ASSESSMENT CRITERION 8 
    8. The concepts of proceeds, disposals, base cost, capital gain v capital loss, annual exclusions, taxable capital gain, assessed capital loss, net capital loss and aggregate are explained with examples. 

    ASSESSMENT CRITERION 9 
    9. The addition of taxable capital gain to taxable income is indicated in the relevant section of an income tax return. 

    ASSESSMENT CRITERION 10 
    10. Events that are deemed to be disposals are identified in terms of their capacity to trigger capital gains tax events. 

    ASSESSMENT CRITERION 11 
    11. Disposal as a result of death, or donation of a spouse is explained in terms of non liability for capital gains purposes. 

    SPECIFIC OUTCOME 7 
    Explain the impact of Capital Gains Tax on a client and provider. 
    OUTCOME NOTES 
    Explain the impact of Capital Gains Tax on a client and provider in terms of different product classes available in financial services. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    1. Five product classes available in financial services are classified in terms of whether the liability for capital gains tax lies with the client, the provider or is excluded. 

    SPECIFIC OUTCOME 8 
    Explain the responsibility of the provider to the client and the South African Revenue Service. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    1. Documentation that the provider is required to issue to the client as a tax record is described in terms of the circumstances of issue. 

    ASSESSMENT CRITERION 2 
    2. Returns that the provider is required to issue to the South African Revenue Service are described and an indication is given of the implications of non-compliance in the rendition of a tax return. 

    ASSESSMENT CRITERION 3 
    3. Electronic files and documents required by the South African Revenue Service (SARS) are identified and an indication is given of why SARS requires the information. 


    UNIT STANDARD ACCREDITATION AND MODERATION OPTIONS 
    This unit standard will be internally assessed by the provider and moderated by a moderator registered by INSQA or a relevant accredited ETQA. The mechanisms and requirements for moderation are contained in the document obtainable from INSQA, INSQA framework for assessment and moderation. 

    UNIT STANDARD ESSENTIAL EMBEDDED KNOWLEDGE 
    N/A 

    UNIT STANDARD DEVELOPMENTAL OUTCOME 
    N/A 

    UNIT STANDARD LINKAGES 
    N/A 


    Critical Cross-field Outcomes (CCFO): 

    UNIT STANDARD CCFO COMMUNICATING 
    Learners can communicate effectively when explaining the concepts contained in the Act. 

    UNIT STANDARD CCFO DEMONSTRATING 
    Learners can demonstrate an understanding of the world as a set of related systems in understanding the links between the documents issued to the client and the implications of non-compliance with the South African Revenue Service. 

    UNIT STANDARD CCFO CONTRIBUTING 
    Participate as a responsible citizen in the life of local, national and global communities by complying with the requirements of the South African Revenue Service. 

    UNIT STANDARD ASSESSOR CRITERIA 
    N/A 

    UNIT STANDARD NOTES 
    This unit standard has been replaced by unit standard 243146, which is "Demonstrate knowledge and insight into provisions relating to Capital Gains Tax (CGT) contained in the Income Tax Act as it applies to insurance and investment", level 4, 2 credits. 

    QUALIFICATIONS UTILISING THIS UNIT STANDARD: 
      ID QUALIFICATION TITLE PRE-2009 NQF LEVEL NQF LEVEL STATUS END DATE PRIMARY OR DELEGATED QA FUNCTIONARY
    Elective  49649   Further Education and Training Certificate: Long-term Insurance  Level 4  NQF Level 04  Reregistered  2023-06-30  INSETA 
    Elective  20638   National Certificate: Collective Investment Schemes  Level 4  NQF Level 04  Passed the End Date -
    Status was "Registered" 
    2004-12-05  INSETA 
    Elective  48640   National Certificate: Financial Services Management  Level 4  Level TBA: Pre-2009 was L4  Reregistered  2023-06-30  INSETA 
    Elective  48493   National Certificate: Financial Services: Wealth Management  Level 4  NQF Level 04  Passed the End Date -
    Status was "Registered" 
    2007-02-11  Was INSETA until Last Date for Achievement 
    Elective  20773   National Certificate: Long Term Insurance  Level 4  NQF Level 04  Passed the End Date -
    Status was "Registered" 
    2004-12-05  INSETA 
    Elective  24396   National Certificate: Risk Management  Level 4  NQF Level 04  Passed the End Date -
    Status was "Registered" 
    2006-10-08  Was INSETA until Last Date for Achievement 
    Elective  23973   National Certificate: Financial Services: Wealth Management  Level 5  Level TBA: Pre-2009 was L5  Passed the End Date -
    Status was "Registered" 
    2006-08-13  Was INSETA until Last Date for Achievement 


    PROVIDERS CURRENTLY ACCREDITED TO OFFER THIS UNIT STANDARD: 
    This information shows the current accreditations (i.e. those not past their accreditation end dates), and is the most complete record available to SAQA as of today. Some Primary or Delegated Quality Assurance Functionaries have a lag in their recording systems for provider accreditation, in turn leading to a lag in notifying SAQA of all the providers that they have accredited to offer qualifications and unit standards, as well as any extensions to accreditation end dates. The relevant Primary or Delegated Quality Assurance Functionary should be notified if a record appears to be missing from here.
     
    1. CKP Development Agency (Pty) Ltd. 
    2. Discovery Life Ltd 
    3. Faisit (Pty) Ltd 
    4. Intec College 
    5. Invuya Institute of Learning (Pty) Ltd 
    6. Masifunde Training Centre (Pty) Ltd 
    7. Sanlam Life Insurance Ltd 
    8. Sanlam Life Insurance Ltd. 



    All qualifications and part qualifications registered on the National Qualifications Framework are public property. Thus the only payment that can be made for them is for service and reproduction. It is illegal to sell this material for profit. If the material is reproduced or quoted, the South African Qualifications Authority (SAQA) should be acknowledged as the source.