Calculating a capital gain: current case law

Capital Gains Tax (CGT) is payable on the disposal of capital assets that were in the seller’s possession on, or were acquired after, 1 October 2001. In the recent Supreme Court of Appeal (“SCA”) judgement of The Commissioner for the South African Revenue Service v Stepney Investments (Pty) Ltd, the SCA considered the various valuation methods available in determining the value of a capital gain, namely the discount cash flow method (“DCF”) and the net asset value method (“NAV”).

National Treasury forges ahead with carbon tax plans

 Author: Ingé Lamprecht (Moneyweb). National Treasury has signaled its intention to forge ahead with the introduction of a controversial carbon tax, with the publication of a draft bill on Monday. It said however that it has taken the current state of mining and other distressed sectors into account. The combined effect of the exemptions in the carbon tax and the reduction in the electricity levy “will be designed to ensure that such sectors are not adversely affected when the carbon tax is implemented”. “The tax and revenue recycling measures are also designed to be revenue neutral from a macroeconomic perspective, but will not necessarily be neutral for (scope one) companies with significant emissions.”

Proposed gas emissions tax will not impact electricity prices, says Treasury

SA’S proposed taxes on gas emissions will not impact already high electricity prices, nor will it add pressure to sectors such as the mining industry, the Treasury said on Monday. The carbon tax, part of government efforts to reduce harmful emissions in Africa’s worst polluter, was postponed two years ago to 2016 after fears from industry that it would hurt profits already eroded amid a global commodities slump and higher electricity tariffs. In the draft bill, Treasury lists a number of allowances to mitigate the impact the tax would have on industries. Tax-free exemptions would range between 60% and 95% of total emissions, Treasury said.

Draft Carbon Tax Bill for public comment

Author: National Treasury The National Treasury has publishes the Draft Carbon Tax Bill for public comment. Briefly, the carbon tax seeks to price carbon by obliging the polluter to internalise the external costs of emitting carbon, and contribute towards addressing the harm caused by such pollution. The publication of the Draft Carbon Tax Bill provides an opportunity for further comments on the design and technical details of the carbon tax policy and administration. Written comments should be submitted by the close of business on 15 December 2015 to Dr.  Memory Machingambi, email: Please click here to view media statement, Draft Carbon Tax Bill for comment and Draft Explanatory Memorandum on the Carbon Tax Draft Bill

South Africans already pay three carbon taxes, so why is government imposing another one?

With no real focus on behaviour change, CO2 Tax is just another taxation scheme to make up for the national budget deficit Taxes now make up one-third of the retail price of fuel after Finance Minister Nene raised the levy by 80.5 cents ($0.07) a litre (0.26 gallon) in the 2015/2016 Budget. He also increased electricity levies by 2 cents to 5.5 cents per kilowatt-hour to help curb power demand and will phase these out when the carbon tax is implemented – or so he says.

Treasury stands firm over carbon tax

Author: Linda Ensor (BDlive) The Treasury is sticking to its guns about implementing the carbon tax from next year, dashing the hopes of business that there might be further delays to the unpopular measure it believes will add another burden to an economy already reeling from load shedding and low growth. Treasury deputy director-general Ismail Momoniat confirmed on Tuesday that the 2016 implementation date was still on track and that it would “hopefully” be releasing a draft bill within the next two months for public comment. This would allow enough time to get the bill promulgated by next year.

Carbon tax looms as Treasury and department finalise plans

Author: Paul Vecchiatto (BDlive) The Department of Environmental Affairs and the Treasury are finalising an approach to a carbon tax, says department deputy director-general Judy Beaumont. Addressing a media conference on Tuesday, Ms Beaumont said the introduction of a carbon tax was still considered one of the means to reduce SA’s high levels of greenhouse emissions. Last year, the Treasury issued a discussion document on the possible implementation of a carbon tax. The first phase of the tax will be for five years, from January 1 next year to December 31 2019, followed by phase 2 for another five years, from 2020 to 2025.

Uncertainty to greet tax on multinationals’ profits

Author: Amanda Visser (BDlive) Businesses globally are facing a period of great uncertainty following the publication of seven action plans that countries will be implementing in the next year to address the shifting of profits by multinationals in efforts to reduce their tax liabilities and depriving countries of much needed revenue. Jeffrey Owens, former head of the Organisation of Economic Co-operation and Development (OECD) Centre for Tax Policy and Administration, anticipated a “tsunami” of tax disputes between multinationals and tax authorities because there was certainly going to be inconsistencies in the application of the steps announced this week.

Global economies must lower carbon emissions at five times the levels currently achieved

PwC analysis of economic growth rates and greenhouse gas emissions data for G20 economies PwC’s climate change analysts estimate that the global economies need to cut their energy related carbon emissions for every $ of GDP by 6.2% every year from now to 2100. That is more than five times the rate currently achieved.

Aviation industry may face carbon taxes in South Africa in 2015

Author: Fabio Miceli (NortonRoseFulbright)  If recent events between the European Union and the airlines of China, the USA and Russia are any guide, South Africa would do well to consider very carefully the impact of the carbon tax on the airline industry. The updated carbon tax policy paper, published in March 2013, is informed by the following framework: a rate of R120 per ton of CO2 equivalent, increasing at 10% per year for the first five years. The objective is that a portion of the revenues generated through the carbon tax will be directed towards funding the energy efficiency savings incentive.