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SOUTH AFRICAN QUALIFICATIONS AUTHORITY 
REGISTERED UNIT STANDARD: 

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 
SAQA US ID UNIT STANDARD TITLE
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 
ORIGINATOR
SGB Insurance and Investment 
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
Reregistered  2018-07-01  2023-06-30  SAQA 06120/18 
LAST DATE FOR ENROLMENT LAST DATE FOR ACHIEVEMENT
2024-06-30   2027-06-30  

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 replaces: 
US ID Unit Standard Title Pre-2009 NQF Level NQF Level Credits Replacement Status
12167  Demonstrate knowledge and insight into the Capital Gains Tax Legislation as it applies to insurance and investment  Level 4  NQF Level 04   

PURPOSE OF THE UNIT STANDARD 
This Unit Standard is intended for learners who give financial advice where Capital Gains Tax applies. It will be useful for Intermediaries and Trainee Financial Planners.

The qualifying learner is capable of:
  • Explaining the rationale for Capital Gains Tax.
  • Explaining the concepts used in the Capital Gains Tax (CGT) schedule of the Income Tax Act and their practical implications for the tax-payer.
  • Explaining the impact of Capital Gains Tax on a client and a 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 
    It is assumed that learners are competent in Communication 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, transfer, emigration, liquidation, sequestration and donation of a spouse.
  • 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.
  • 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 
    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 
    The Income Tax legislation as amended is explained with reference to the stage when Capital Gains Tax is introduced in the income tax process. 

    ASSESSMENT CRITERION 3 
    The date from which Capital Gains Tax is calculated is identified with examples of how the date affects the calculation of capital gains or losses on the disposal of assets. 

    SPECIFIC OUTCOME 2 
    Explain the concepts used in the Capital Gains Tax (CGT) schedule of the Income Tax Act and their practical implications for the tax-payer. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    The difference between capital and income is explained with reference to their different treatment with regard to CGT. 

    ASSESSMENT CRITERION 2 
    The concept of disposal is explained with reference to events that trigger Capital Gains Tax. 

    ASSESSMENT CRITERION 3 
    Liability for Capital Gains Tax of residents and non residents is explained in terms of place of residence. 

    ASSESSMENT CRITERION 4 
    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 5 
    The basis for valuing assets for Capital Gains Tax purposes is explained with reference to the valuation date. 

    ASSESSMENT CRITERION 6 
    The process by which taxable gain is determined is explained with examples. 

    ASSESSMENT CRITERION 7 
    The concepts of proceeds, base cost, capital gain vs capital loss, annual exclusions, net capital loss and aggregate are explained with examples. 

    SPECIFIC OUTCOME 3 
    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 
    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. 

    ASSESSMENT CRITERION 2 
    The impact of CGT in the financial planning of a client is identified for different scenarios. 

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

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 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 
    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 
    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 
  • Anyone assessing a candidate against this Unit Standard must be registered as an assessor with the relevant ETQA or ETQA where a Memorandum of Understanding (MOU) exists with the relevant ETQA.
  • Any institution offering learning that will enable achievement of this Unit Standard must be accredited as a provider through the relevant ETQA or ETQA where a Memorandum of Understanding (MOU) exists with the relevant ETQA.
  • Moderation of assessment will be overseen by the relevant ETQA according to the moderation guidelines and the agreed ETQA procedures. 

  • 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 
    The learners can communicate effectively when explaining the concepts contained in the CGT legislation. 

    UNIT STANDARD CCFO DEMONSTRATING 
    The 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 and explaining the impact of CGT in the financial planning of a client. 

    UNIT STANDARD CCFO CONTRIBUTING 
    The learners can 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 

    REREGISTRATION HISTORY 
    As per the SAQA Board decision/s at that time, this unit standard was Reregistered in 2012; 2015. 

    UNIT STANDARD NOTES 
    This unit standard replaces unit standard 12167, "Demonstrate knowledge and insight into the Capital Gains Tax Legislation 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  66613   Further Education and Training Certificate: Wealth Management  Level 4  NQF Level 04  Reregistered  2023-06-30  As per Learning Programmes recorded against this Qual 


    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. African Resources & Financial Training (Pty) Ltd 
    2. CKP Development Agency (Pty) Ltd 
    3. De Vries Management & Training Services cc 
    4. Faisit (Pty) Ltd 
    5. Investmentwise (Pty) Ltd 
    6. Ray Strodl Consulting (Pty) Ltd 
    7. RJM Educational Consulting (Pty) Ltd 
    8. Sanlam Life Insurance Ltd 
    9. The Graduate Institute of Financial Sciences (Pty) Ltd 
    10. Umfolozi FET College - Central Office 



    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.