Delusionsofgrandeur has a problem now. He closed his FNB account and moved overseas. Then he decided to send money on a regular basis back to SA and had a family member open an account in that family members name and Delusion has paid R200k into it. Now it gets tricky as he also wants to trade it.
Firstly, his family member will be liable for tax on any interest on the R200k for his own account.
He can trade the money if his family member hands in a Power of Attorney letter allowing Delusion to trade it.
Now once again, any gains he makes will be for his family members account tax wise.
When he decides to come back to SA and his family member transfers everything into Delusion's new account, this family member will in effect be making a donation to Delusion and Delusion will have to pay donation tax.
My reply to him would be to reopen his old account as it should still be available and FICA'd with the help of his family here. Then he will make life much easier for himself and his family member.
Am I correct?