Author: Heinrich Louw – DLA Cliffe Dekker Hofmeyr Author page » Judgment was handed down by a full bench of the High Court, Western Cape Division, in the matter of Capstone 556 (Pty) Ltd v Commissioner for the South African Revenue Service, on 26 August 2014. The matter was on appeal from the Tax Court (ITC 1867 75 SATC 273), on which we reported in our Tax Alert of 5 July 2013.
Author: Nyasha Musviba
Debt restructuring – practical considerations
With effect from 1 January 2013, new rules were introduced in the Income Tax Act No. 58 of 1962 (‘the Act’) governing the tax consequences flowing from the reduction or waiver of debts. According to the Explanatory Memorandum, the amendments were prompted in response to the global financial crisis and the unusually large number of companies facing financial distress. The intention was therefore to establish a mechanism which facilitated debt reductions without creating an additional obligation to pay further tax.
The importance of documentation in tax disputes highlighted in the new dispute resolution rules
Authors: Stephen Lavetan and Taryn Solomon of ENSafrica With effect from 1 January 2013, new rules were introduced in the Income Tax Act No. 58 of 1962 (‘the Act’) governing the tax consequences flowing from the reduction or waiver of debts. According to the Explanatory Memorandum, the amendments were prompted in response to the global financial crisis and the unusually large number of companies facing financial distress. The intention was therefore to establish a mechanism which facilitated debt reductions without creating an additional obligation to pay further tax.
Collection and exchange of tax related information by tax authorities
Tax authorities across the globe are working aggressively to collect taxes which they believe are collectable in their respective jurisdictions. States are entering into bilateral and multilateral agreements aimed at assisting each other in the collection of information and taxes. South Africa has actively taken part and in some respects been a regional leader in issues relating to the gathering of information and sharing thereof with other states to
Securities transfer tax and earnout provisions
Introduction Often the parties to a sale of shares agreement agree to an earnout clause – a provision that part of the price will be paid in future if certain conditions are met. For example, the parties may agree that while the seller must transfer ownership of all the shares to the purchaser at the time of the sale, the purchaser will pay part of the purchase price only if the company reaches specified financial targets in future.
Contentious international corporate restructuring ruling
Author: Andrew Lewis (Cliffe Dekker Hofmeyr) The corporate tax rollover relief provisions contained in section 41 to section 47 of the Income Tax Act, No 58 of 1962 (Act) were recently expanded to cater for international corporate restructurings. The South African Revenue Service (SARS) released Binding Private Ruling 178 (BPR 178) on 14 August 2014 where the applicant sought clarity on the tax consequences of an international corporate restructuring in terms of section 42 (asset-for-share transactions) and s45 (intra-group transactions).
How to calculate your medical tax credit
Author: Ingé Lamprecht (Moneyweb) New system less beneficial to higher income earners. JOHANNESBURG – In an effort to improve the fairness and equity of the tax system, tax deductions for medical aid contributions and expenses have gradually been replaced with a tax credit system over the last few years.
Potential tools in a well-structured estate plan
Author: Anton Maskowitz (Moneyweb) Offshore trusts and companies could be essential. Although recent statistics have shown a steady decrease in the volume of offshore trusts and companies being established by South Africans for tax planning purposes, their value is just as relevant today for estate planning purposes as it had been in years gone by.
Nine things to know about tax-free savings
Author: Ingé Lamprecht (Moneyweb) JOHANNESBURG – Over the past six months, Moneyweb has published a number of articles about National Treasury’s proposal to introduce tax-free savings accounts from March 1 next year. Each time we have been flooded with e-mails asking for more information. This column gives an overview of these accounts and tries to answer a couple of these questions.
Which medical expenses are tax deductible?
Author: Ingé Lamprecht (Moneyweb) Deductions soon to be replaced by credits. JOHANNESBURG – The current tax filing season, which covers the 2014 tax year, marks the last time individuals will be able to claim a tax deduction for qualifying medical expenses.( From next year, this deduction will be replaced with a medical tax credit, similar to the one already applicable to medical aid contributions for taxpayers below the age of 65.