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Real Estate Investment Trusts – REIT

In order for a company to qualify as a Real Estate Investment Trust (REIT), and to be eligible to apply the REIT tax provisions, it must be a tax resident in South Africa and its shares must be listed as shares in a REIT in terms of the JSE Limited listing requirements. Points to consider […]

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What is Minister Gordhan going to say during the 2014 Budget Speech?

The 2014 Budget Speech will be presented by Minister Pravin Gordhan on 26 February 2014. The contents of the speech, together with the State of the Nation Speech delivered by President Jacob Zuma on 13 February 2014, are considered critical in the run up to the general election on 7 May 2014. So the big […]

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Initiatives to curb corporate tax evasion

Multi-national tax avoidance a global problem Tax evasion or avoidance is as hot a topic as ever, and top of the list is large multi-national corporations. Companies and other legal structures that are anonymously owned and controlled are a key mechanism of tax avoidance which can seriously undermine many countries’ development efforts. One of the […]

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The effect of corruption on tax morality

  Much of South Africa Revenue Services attention focuses on increasing collection, to fund government activity. This debate internationally and in South Africa centres primarily around closing tax loopholes and increasing self-assessment through vigorous audits by SARS. This focuses on only one end of the taxation equation. In pursuing this goal, Judge Davis has been […]

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European Financial Transaction Tax impact on financial services companies

The EU’s proposed financial transaction tax continues to trace its tortuous path towards implementation. Some form of new, harmonized tax is likely to be agreed among core member states eventually. But its final shape and form remain uncertain. This uncertainty is casting a long shadow over how companies can plan to respond. Financial transaction taxes […]

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Tax changes affecting long term insurers

  The shift toward automating tax reporting processes, for the benefit of both internal and external stakeholders, has increased significantly over the last few years. The South African Revenue Service (SARS) has become focussed on analysing systems and data used in reporting capital gains, as well as interest and dividends tax information. It frequently requires […]

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New clarity on SARS views regarding drafting of sales of going concern agreements

  The South African Revenue Service (SARS) released a detailed discussion paper, on 4 December 2013, presenting SARS’ initial views regarding the tax implications for the seller and purchaser in relation to the assumption of contingent liabilities (specifically “free-standing contingent liabilities”) in part settlement of the purchase price of assets acquired as part of a […]

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Too Few Tax Payers: What are the implications?

  South Africa’s personal income tax payers are a minority of around 5 million, with the rest of the population’s 48 million dependent upon someone else. This includes more than 16 million South Africans living on social grants, a number that is increasing by 400,000 every year. Presently the country battles with unemployment, poor social […]

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VAT changes present challenges for insurers

  SARS recently issued BGR 14, effective 1 November 2013, in respect of the VAT treatment of supplies made and received by short-term insurers. Insurers will need to make the necessary adjustments to their systems and processes to ensure compliance with the ruling. BGR 14, however, does not contain transitional measures, especially considering the effective […]

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Understanding proposed amendments to the Royalty Act

Released in July of this year, the Taxation Laws Amendment Act included some amendments to certain important provisions of the Mineral and Petroleum Royalty Act 2008, also referred to as the Royalty Act.

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