Category: Uncategorized

Personal tax consequences for South African executives on foreign boards – the Netherlands as an example

Nyasha Musviba

Introduction South African companies are increasingly looking to global expansion to build their capabilities and expand their operations into foreign jurisdictions. Where South Africans serve on the boards of foreign companies and render services to foreign entities, they typically do so in terms of split employment contracts in respect of their services rendered within and outside of South Africa. In addition to the remuneration, they may also receive directors’ fees for services rendered to the boards. Their employment contracts with the foreign company and the requirement that such services must be rendered outside of South Africa, are essential to ensure that these foreign entities are effectively managed in the countries where they are registered, and not in South Africa.

Tax implications of debt instruments with equity features

Nyasha Musviba

The 2013 draft Taxation Laws Amendment Bill (“DTLAB”) was issued by National Treasury for public comment on 4 July 2013. In accordance with the Explanatory Memorandum to the DTLAB, the tax legislation currently contains an anti-avoidance rule that deals with debt instruments that have equity features (“hybrid debt instruments”). The anti-avoidance rule denies a deduction in respect of any amount paid or payable in terms of a hybrid debt instrument. However, the hybrid debt instrument remains a debt instrument for all other purposes of the Income Tax Act 58 of 1962 (the “Act”).

Job Incentive Bill To Include ‘Tough Penalties’

Nyasha Musviba

Author: Linda Ensor (BDlive) The proposed employment tax incentive would include tough penalties to prevent abuse by employers, Treasury officials said in Parliament on Tuesday. The incentive, which will ensure that government shares the initial cost of hiring with the employer to boost job creation among the youth, will come into effect from January 1 2014 but will apply to workers who are eligible from October 1.

Shares Issued in BBBEE Arrangements Are these Transactions Tax Free?

Nyasha Musviba

Author: Pieter van der Zwan (The University of North-West Many South African companies are involved in transactions in which previously disadvantaged persons acquire ownership interests in such companies for purposes of complying with broad-based black economic empowerment (BBBEE) requirements applicable in the particular industries in which the entity operates or to enhance the BBBEE status of the entity in order to facilitate further growth.

Carbon tax: Be proactive

Nyasha Musviba

      What businesses should consider.   JOHANNESBURG – Although there is still a lot of uncertainty surrounding the introduction of a local carbon tax, businesses already have to take steps to try and mitigate its impact. According to a second policy paper published earlier this year, National Treasury is proposing that a carbon tax be levied on emissions from January 1, 2015 onwards.

5 Top Tips to Understanding the Work of the Tax Ombud

Nyasha Musviba

Judge Bernard Ngoepe inaugurated as South Africa’s first Tax Ombudsman. Stiaan Klue, Chief Executive of the SA Institute of Tax Practitioners (SAIT), takes a closer look at this vital position and explains how the Ombud’s office can assist the general tax payer in resolving their disputes with Sars. Why a Tax Ombud? The Tax Ombud serves to protect tax payer’s rights and operates as a counter balance to the far reaching powers which the 2012 Tax Administration Act entrusted to Sars.