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Online Share Trading

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Monthly statements

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tb50
Not applicable
Regarding OST monthly share trading account statements : Has anyone noticed that the balance c/f in July 2011 is not the same as balance b/f in Aug 2011?
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7 REPLIES 7
babz
Contributor
i have checked mine and its ok
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Not applicable
If you look in the Journal entries, you will see ‘additional interest’. That amount has been added into the Aug b/f amount from March 2011. Thereafter the ‘additional interest’ is included every month. When querying this with OST, they said:- “Kindly note that for IT3(b) purposes, we are required to disclose the gross amount of interest. For tax purposes, the cash management fee can only be deducted in terms of s11(a). S11(a) requires that (1) the expenditure be incurred in the production of "income", (2) that the expenditure not be of a capital nature and (3) from the course of carrying on a trade. An individual, not carrying on some form of trade and earning interest income as a result of the carrying on of that trade, will not be able to deduct the fee. Having said the above, please consult further with your tax consult with regards to our fee forming part of your annual interest exemption.” What I can’t understand is where the ‘additional interest’ comes from and why it should be cancelled out by fees and vat. Any explanation from someone who knows would be appreciated.
0 Kudos
Not applicable
If you look in the Journal entries, you will see ‘additional interest’. That amount has been added into the Aug b/f amount from March 2011. Thereafter the ‘additional interest’ is included every month. When querying this with OST, they said:- “Kindly note that for IT3(b) purposes, we are required to disclose the gross amount of interest. For tax purposes, the cash management fee can only be deducted in terms of s11(a). S11(a) requires that (1) the expenditure be incurred in the production of "income", (2) that the expenditure not be of a capital nature and (3) from the course of carrying on a trade. An individual, not carrying on some form of trade and earning interest income as a result of the carrying on of that trade, will not be able to deduct the fee. Having said the above, please consult further with your tax consult with regards to our fee forming part of your annual interest exemption.” What I can’t understand is where the ‘additional interest’ comes from and why it should be cancelled out by fees and vat. Any explanation from someone who knows would be appreciated.
0 Kudos
Not applicable
If you look in the Journal entries, you will see ‘additional interest’. That amount has been added into the Aug b/f amount from March 2011. Thereafter the ‘additional interest’ is included every month. When querying this with OST, they said:- “Kindly note that for IT3(b) purposes, we are required to disclose the gross amount of interest. For tax purposes, the cash management fee can only be deducted in terms of s11(a). S11(a) requires that (1) the expenditure be incurred in the production of "income", (2) that the expenditure not be of a capital nature and (3) from the course of carrying on a trade. An individual, not carrying on some form of trade and earning interest income as a result of the carrying on of that trade, will not be able to deduct the fee. Having said the above, please consult further with your tax consult with regards to our fee forming part of your annual interest exemption.” What I can’t understand is where the ‘additional interest’ comes from and why it should be cancelled out by fees and vat. Any explanation from someone who knows would be appreciated.
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SimonPB
Valued Contributor
notwithstandign that best answer is likely to be from the call center .. it could be interest earned on margin or even on CFD shorts ..
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Not applicable
Sorry about the multiple entries, but when I tried to reply I got error messages but obviously my reply was sent a few times nonetheless. Thanks Simon but I only trade shares and donÂ’t do futures (would this be where margins come in) or CFDs. Obviously will have to ask them again.
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SimonPB
Valued Contributor
ya if you do no derivatives than I got no idea, woudl think only interest would be on cash balance ..
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