Shares Issued in BBBEE Arrangements Are these Transactions Tax Free?

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 [...]

Shareholders can be hit with tax bill

Author: Amanda Visser (Businessday, bdlive.co.za) Shareholders will in certain circumstances be held responsible for the tax debt of a company when there is a voluntary winding up, even if they are not involved in the day-to-day management of the company. Some tax experts have argued the provision in the Tax Administration Act (TAA) that allows [...]

Shareholders Liable for Tax Debts of Companies on Winding Up

Author: Ben Strauss (Cliffe Dekker Hofmeyr) Among other things, the TAA makes third parties liable for the tax debts of taxpayers, under certain circumstances. In terms of s181 of the TAA, shareholders of a company can be liable for the tax debts of a company on winding up. In terms of s181(1) of the TAA the provision applies “where [...]

Multinational companies seeking investment opportunities in Congo may be in for hefty costs

Issued by PWC Multinational companies seeking to take advantage of the potential vast wealth in mineral rich Republic of Congo may be in for hefty costs of up to 40% if they do not consider the tax laws before entering into new business ventures, warns Professional Services Firm PwC. Elandre Brandt, International Tax Director and [...]

Tax on odd-lot offers

www.moneywebtax.co.za Dear MoneywebTax Is capital gains tax payable on MMI’s odd-lot-offer? Dear MoneywebTax MMI Holdings Ltd has made an odd-lot offer to shareholders to clean up its share register.

The circular to shareholders has a section on “Tax consequences for shareholders selling their shares in MMI in terms of the offer” which says:

”In general, the cash [...]

Implementing requirements for new dividends tax

Statement from Sars issued by www.moneywebtax.co.za Pretoria, 25 April 2012 – Companies and regulated intermediaries that need to submit tax returns and make payments to the South African Revenue Service (Sars) for the new dividends tax have been able to do so from 20 April 2012. Sars eFiling or a Sars branch office may be [...]

South Africa Issues Tax Guide For Shareholders

by Lorys Charalambous, Tax-News.com, Cyprus The South African Revenue Service (SARS) has issued a new tax guide for shareholders, in which it attempts to provide general guidance for the increasing number of South Africans who have become owners of shares. In recent years, an increasing number of South Africans have become shareholders. With interest rates [...]

New dividend tax will have significant impact on companies, shareholders

Issued by FTI Consulting – Strategic Communications Division on behalf of Grant Thornton South Africa Shareholders, trusts and companies need to ensure they are aware of the looming changes to dividends tax legislation as the new Dividend Withholding Tax (DWT) will be effective from 1 April 2012. “The new way dividends will be taxed can [...]

Nationalisation: Costs of state ownership are more than meet the eye

Bobby Godsell, Chairman and Michael Spicer, CEO of Business Leadership SA, www.businessday.co.za LAST week the youth league of our country’s ruling party adopted two sets of policy proposals to shape our country’s future: nationalising the mines and expropriating without compensation. Below is a response focused on the proposal for mines nationalisation and the ideas associated [...]