Taxpayers contributing to the maintenance of another person may not be aware that the value of property (cash or assets) donated does not necessarily have to be capped at the current threshold of R100,000 per year of assessment.
Tax News
Dividends now taxable in certain share incentive schemes
Companies must ensure that dividends declared to their employees after 1 January 2011 as part of their employee share incentive schemes are still exempt from income tax otherwise companies and their employees may be in for a surprise.
Share incentive schemes vs equity shares – round 2
In a previous article we drew attention to the proposed amendments to section 10(1)(k) of the Income Tax Act, 1962 (“the Act”), in terms of which the legislature sought to tax all dividends declared on any “restricted equity instrument” for purposes of section 8C of the Act.
A new era for mergers and amalgamations
The coming into effect of the new Companies Act 71 of 2008 (“the New Companies Act”), which is likely to be in September of this year, will unveil a new chapter in South African corporate law. Valid criticism may be leveled against many aspects of the new Companies Act, but the introduction of amalgamations and mergers into our corporate practice, is largely a welcomed innovation. Section 113 of the New Companies Act allows profit companies (state-owned, public, private and personal liability companies) to amalgamate and merge. An amalgamation or merger will entail two or more profit companies combining or sharing their commercial efforts and economic resources, in whole or in part. It will result in either the restructuring of one or more of the existing merging companies (whether relating to their shareholdings and or their asset composition), the creation of a new company or a combination of the two. Although Read More …