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To credit is to pay
Although common in practice, and especially between group companies, not much judicial thought has previously been given to the tax effect of crediting an inter-company loan [...]
Understatement penalties: what is a bona fide inadvertent error?
INTRODUCTION The Tax Administration Act No 28 of 2011 (TAA) introduced the understatement penalty regime with effect from 1 October 2012. Under this regime, penalties [...]
Tax avoidance could be a tax trap
INTRODUCTION In 2016, the Income Tax Act ("the Act") was amended to provide for a further tax burden where (by and large) individuals had advanced [...]
The implementation of the BEPS multilateral instrument in South Africa
INTRODUCTION The implementation of the Base Erosion and Profit Shifting (BEPS) Multilateral Instrument in South Africa is progressing. On 5 October 2015, the OECD released [...]
Exchange control relaxations for Intellectual Property transactions
INTRODUCTION In the recent 2017 Budget Review, the National Treasury proposed the relaxation of the exchange control restrictions surrounding certain Intellectual Property ("IP") transactions as [...]
2017/2018 budget proposals – Tax overview
INTRODUCTION While the increase in the maximum marginal rate for individuals to 45% was widely forecast, with trusts being taxable at the same flat rate, [...]
Further update on the Special Voluntary Disclosure Programme in respect of offshore assets and income
INTRODUCTION In terms of the Explanatory Memorandum on the Special Voluntary Programme ("SVDP"), the SVDP will be deemed to have come into effect on 1 [...]
Tax amendments – 2016
INTRODUCTION The Taxation Laws Amendment Bill, 2015, the Tax Administration Laws Amendment Bill, 2015 and the Rates and Monetary Amounts and Amendment of Revenue Laws [...]
The special voluntary disclosure programme: an update and some practicalities and predicaments
By: The Werksmans Tax Team The Special Voluntary Disclosure Programme (“SVDP”) kicked off on 1 October 2016 and runs until the end of June 2017. The [...]
REITS – some clarification of the taxation of investment vehicles in real estate in the form of REITS and controlled companies
A traffic standstill is rarely the result of retail specials; however, on 28 April 2016 the greater Johannesburg area had a gridlock on major highways on [...]
Special voluntary disclosure and exchange control relief
By: The Werksmans Tax Team INTRODUCTION Following the announcement of the Special Voluntary Disclosure Programme (SVDP) in the 2016 Budget Speech and the [...]
Asset for share transactions – beware of selling your shares within 18 months especially in the context of a share buy-back
To prevent tax considerations from discouraging the incorporation of a business, a specific form of ‘rollover relief’ is available when an asset is exchanged under an ‘asset-for-share transaction’. [...]
SCA judgments: Capstone & Kluh
In our November 2014 edition of Legalwerks, we discussed the decisions of the Full Bench of the High Court of the Western Cape regarding the capital [...]
2016/2017 budget proposals – Tax overview
INTRODUCTION The trend that began three years ago of a reduced number of substantive amendments announced in the Budget continued this year. Contrary to [...]
Tax amendments – 2015
INTRODUCTION The Taxation Laws Amendment Act, 2015 and the Tax Administration Laws Amendment Act, 2015 have now both been passed by Parliament, but await signature by the President. [...]
