Page 22 - Robin Twaddle PTG 2017 Digital

THE PROTECTION OF PERSONAL INFORMATION ACT

◆◆ The Protection of Personal Information Act (4 of 2013), otherwise known as POPI,
promotes the protection of personal information by public and private bodies.

◆◆ Estate agents, intermediaries, property companies and other institutions conducting
business in the property sector, are required to comply with the Regulations of the
Act, which includes obtaining approval from the consumer or client before any of their
private information is used or distributed, and collecting and storing client information in
such a way that only individuals with the necessary authorisation are able to access it.

◆◆ The Information Regulator and its members were appointed in December 2016. The
Regulator is responsible for education, monitoring, enforcement and compliance, as
well as the handling of complaints, performing research and facilitating cross-border
co-operation.

◆◆ The commencement date of the Act has not yet been proclaimed. It is anticipated to
commence by no later than May 2017. There will be a one year grace period from the
date of commencement, following which, POPI will be enforced.

TAX IMPLICATIONS ON THE LEASING OF PROPERTY

For the landlord:
◆◆ All income received from rental of a property is of a revenue nature and has to be

declared as part of a landlord’s gross income.
◆◆ Deductions are available, such as: interest on bond repayments, repairs and

maintenance, municipal rates and taxes, letting agent’s fees (if applicable), and
expenses not recovered from the tenant, such as security, utilities or garden services. In
the case of a sectional title scheme, the levy is also deductible.
◆◆ In order for the deductions to be allowed the expenditure must have been actually
incurred in the production of income and not be of a capital nature. The landlord must
effectively be able to satisfy SARS that he is carrying on a bona fide trade through the
rental of his property.
◆◆ The cost of improvements, reconstructions or additions to the property cannot be deducted,
as these expenses are of a capital nature. Improvements made to leasehold property in
terms of a lease agreement by the tenant must be included in the income of the landlord.
Either the stipulated amount or a fair and reasonable value will be included. There may
be relief available for the landlord, in terms of Section 11(h) of the Income Tax Act.

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