Taxing inherited property

Everyone calls on the government to clamp down on abuses. Yet, the moment the government acts all hell breaks loose. A case in point is the law regarding the sale of property inheritance.

In my opinion those heirs who declare a realistic succession value of the property should have no fear of being excessively taxed when they sell their property, as the difference between the succession value and the sale value would be minimal.

On the contrary, those heirs who undervalue their property to avoid payment of the succession duty will have to pay 35 per cent income tax on the difference between the two values when they sell their property. That is 35 per cent of the profit made.

I think this is only just and reasonable. It goes some way in curbing the many abuses made in the real estate business.

Knowing that there is always those who are ready to sow confusion, the government information machine once again failed to explain clearly the implication of this law and set many minds at rest.