Ask a tax advisor on the topic of Capital assets

South African zero bonds

March 5, 2012 | 20,00 EUR | answered by RAin/StBin Henriette Regulla-Schiessl

I sold 1 South African zero bond in 2010. I no longer have the purchase receipt for the bond. The purchase was made in 1997.
In the tax assessment for 2010, the replacement basis of the bank and the corresponding tax incurred were accepted. Now they want the purchase receipt from me. Otherwise, they want to set the purchase price at 0, or the sales proceeds should be considered as 100% taxable profit.
I can only prove the emission price at best.

RAin/StBin Henriette Regulla-Schiessl

Dear questioner,

Thank you for your inquiry, which I would like to answer in the context of an initial consultation, taking into account your input as well as the rules of this platform. The response will be based on the information you have provided. Adding, omitting, or changing information, ambiguities, or inaccuracies in the facts may affect the tax result.

First of all, I would like to know: If the tax assessment for 2010 has already been issued, why are they now asking for the purchase receipt from you? Have you lodged an objection against the decision? If so, then the assessment is still open, and the tax office can request receipts from you in principle. Since the acquisition cost is a fact that is tax-advantageous, you generally bear the consequences of being unable to provide proof. If you can no longer present the purchase receipt, the question arises of how you can otherwise prove the acquisition cost. If you purchased the zerobonds through a financial institution, there may still be a copy of the purchase receipt there. Otherwise, in my opinion, it should be sufficient if you can prove the issuance price. According to the burden of proof rule, the tax office should accept this value.

I hope this information has been helpful to you.

Best regards,
Henriette Regulla
Attorney/ Tax Advisor/ Tax Office for Tax Law