Tax fix backfires

17 Sep 2019 12:00 am

TAX FIX BACKFIRES

The husband signed a deed of donation giving his half share of their property to his wife, on the advice of his auditor, to get a tax break for his business.

Five years later they had forgotten about the donation and started divorce proceedings.

The wife's new attorney found the deed of donation and disputed the husband's half share in the property.

Was the deed of donation really intended to change the ownership of the property?

An instructive case on tacit terms and the bystander test.

View for yourself