The 80’s was an awesome decade – well at least for me.
The bands were great. Bon Jovi, Duran Duran, U2, Tears For Fears, The Cure, R.E.M, Depeche Mode, The Smiths, The Pixies, Alphaville, A-ha and Def Leppard to name but a few.
TV was absolutely fabulous. Knight Rider, Star Trek, Cheers, Battlestar Galactica, Who’s the Boss, Miami Vice, Married with Children, MacGyver, Murder She Wrote, The Golden Girls, The A-Team and Magnum, P.I. again to name but a few.
TV series’ were translated into Afrikaans and to make the lips and the language work vaguely together a whole new version of Afrikaans was invented to the detriment of purists all around the country. Die Man van Staal, Die Man van Intersek and Die Man van Atlantis were epic. Nearly half the people I know came to within seconds of drowning trying to swim like Patrick Duffy in Die Man van Atlantis.
And then there was Dallas!
Every Sunday the Dominee would have a religious fit in church about Dallas and would angrily bestow promises of eternal damnation and various incurable diseases on any member of the congregation who merely thought of watching Dallas let alone those poor souls who actually did watch it.
Sunday school was no better with Oom Johnny promising instant blindness to all Dallas watchers and gracefully extending that promise for generations to come.
They were both wrong – I still have my vision and so do the two members of the one generation I managed to father.
Then there was Adriaan Nieuwoudt and his Kubus scheme. It involved manufacturing some sort of milk culture which everyone did in their garage. This meant that your car had to be parked outside; subsequently for a short period in the 80’s it was seen as a sign of prosperity if your car were parked outside.
The Kubus scheme came to a spectacular crash with many people losing a lot of money.
In my opinion, with Bitcoin at least your car gets to stay parked in the garage.
Buying and selling of Bitcoin are subject to the general principles of South African tax law and are taxed accordingly.
If you speculate in Bitcoin the full profit needs to be included in taxable income. If Bitcoin is purchased as a long-term investment, the sale will give rise to a capital gain and needs to be treated as such in determining taxable income.
Bitcoin mining is a service rendered and the income earned is a fee or commission and is subject to normal tax. If Bitcoin is received as payment for mining services, the fair market value of the Bitcoin received should be included in taxable income.
All transactions in Bitcoin need to be translated to Rand and this could give rise to an exchange difference which should also be taken into account when determining taxable income.
I don’t understand crypto currencies and probably never will, just like nobody in the 80’s really understood Kubus.
Time will tell which way crypto currencies go, but on the up side – your losses will be treated the same as gains and can hopefully be offset against other gains.
Article by C2M Director, Carel Steenkamp CA (SA) RA. For more information email email@example.com.