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A funeral services company has enquired whether payments for cremation or burial services carried out by a municipal company can be considered disbursements. The DGT has ruled that, provided legal requirements are met, these amounts do not form part of the taxable base.
This ruling clarifies the tax treatment of funeral service costs, confirming that when services are paid on behalf of a client under specific conditions, they are treated as disbursements rather than taxable income for the service provider.
The tax team reviews your specific situation.
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