Author: Moore Stephens Mauritius has been a popular location for international investors.One of the main reasons is the favourable tax conditions prevailing in Mauritius, including: a vast array of treaties with various countries avoiding double taxation the absence of capital gains tax a low effective company tax rate no withholding taxes on interest, dividends, royalties
Category: GAAR
Global Tax Information Exchange a Step Closer
Author: Beric Croome (ENS) During the course of September, 2013, the leaders of the G20 nations met in St Petersburg to deal with a number of matters. Pursuant to that meeting, a tax annex to the St Petersburg G20 Leaders’ Declaration was released. At the outset, it is appropriate to point out that the members of the G20 comprise the European Union together with the following 19 countries: Argentina, Australia, Brazil, Canada, China, France, Germany, Italy, India, Indonesia, Japan, Mexico, the Republic of Korea, Russia, Saudi Arabia, South Africa, Turkey, the United Kingdom and the United States.
Another section 103 Defeat for SARS in the Cape Tax Court
Author: Frank Mosupa (PwC) The judgment of the Western Cape Tax Court in ITC 1862 (2013) 75 SATC 34 concerns the general anti-avoidance provision contained in the now-repealed section 103 of the Income Tax Act 58 of 1962 (the “Income Tax Act”) as applied to the implementation of a particular employee share incentive scheme. The case concerned transactions entered into prior to the coming into force of the new general anti-avoidance rule on 2 November 2006 and now contained in Part IIA of the Income Tax Act.
Taxation of Foreign Dividends
Author: Tarryn Spearman(Grant Thornton) Significant changes were introduced to the way foreign dividends, received by South African residents, are treated for tax purposes. The purpose of these changes is to eliminate the disparity between the tax treatment of domestic and foreign dividends.
Cyprus: A Further Step Towards Ratification Of The Cyprus – Spain Double Taxation Agreement
Authors: Andreas Neocleous & Co LLC The double taxation agreement between Cyprus and Spain, which was signed in Nicosia on 14 February 2013, has taken another step towards ratification. On 2 August the Spanish cabinet approved the agreement and forwarded it the Spanish parliament for consideration. The new agreement follows the OECD Model Convention
A Departure From ‘Adequate Reasons’ and Common Sense
Author: Daniel Areias & Johan Kotze (Bowman Gilfillan) All taxation , in one way or another, may impact upon fundamental human rights. However, to ensure that the imposition is not absolute, section 5 of the Promotion of Administrative Justice Act provides that every person, whose rights may have been materially and adversely affected by administrative action, may request written reasons for that action from the administrator responsible.
Krok heir faces R228m tax bill
Pretoria – Mark Krok, billionaire heir to an apartheid-era skin-lightening company, will be about R228m poorer if the SA Revenue Service (Sars) and the Australian Tax Office (ATO) have their way. The Sunday Times reported that Sars, on behalf of the ATO, is seeking an order to ring-fence Krok’s local assets – including a R37.5m mansion in Clifton, Cape Town, as well as vast chunks of pharmaceutical company Aspen and casino company Tsogo Sun. In 2006, Australia kicked off Operation Wickenby, targeting high-profile tax evaders – and their lawyers and accountants – who have set up shell companies and trusts in tax havens to evade the Australian tax office. Maxim Krok, Mark’s estranged half-brother, has also come under the spotlight. In 2010, the ATO unleashed investigators to scrutinise his tax records.
High Court Rejects Challenge of Exchange Control Ruling
Billionaire entrepreneur Mark Shuttleworth emigrated from the Republic in February 2001. Following his emigration, he made applications to transfer portions of his blocked funds from the Republic. In the second of these (in 2008) he was permitted to remit funds subject to a levy equal 10% of the amount remitted.
Status Overviews of International Treaties and Agreements Updated
Author: SARS Legal and Policy On the 7th of August 2013 SARS released updated overviews of various international treaties and agreements. To view the update on “Double taxation agreements & protocols” click here: To view the update on “Customs MAA’s” click here: To view the update on “Exchange of Information Programs” click here: To view the update on “One-Stop-Border-Post Agreements” click here:
Anti-tax Avoidance Exchange of Information Agreement With Gibraltar
Author: Professor Peter Surtees & Andrew Wellsted On 11 July 2013 South Africa and Gibraltar signed an exchange of information agreement relating to tax matters. This is part of a growing practice, in which South Africa is an active participant. It reflects a global policy between fiscal authorities to address perceived tax avoidance by multi-national corporations.