The Minister of Finance Mr Pravin Gordhan delivered South Africa’s much anticipated 2012 Budget speech to Parliament this afternoon. This year’s...
Parliament has passed several pieces of legislation since 1994 to promote black economic empowerment (“BEE”). The foundation of BEE is the Broad-based Black Economic Empowerment Act 53 of 2003 (the “BEE Act”), and the Codes of Good Practice promulgated under it (“the BEE Codes”). The BEE Act and the Codes are administered by the Department of Trade and Industry (“DTI”).The BEE Act and Codes of...
This article examines the incentives motivating whistleblowers when tipping off the competition authorities about cartel conduct. It suggests that, following the guidance of the European Courts, the statements that whistleblowers provide should be assessed cautiously and supported by corroborative evidence.Cartels are by their nature secretive. Cartel members are unlikely to keep any documentary...
The Taxation Laws Amendment Act No. 24 of 2011 (“the Act”) was published on 10 January 2012 under Government Gazette No. 34927. The Act has introduced some controversial and wide ranging amendments to the already complex South African tax landscape. The most significant changes impact the corporate sector with reforms that spread across a wide spectrum of areas including: intra-group transactions...
IntroductionThe Companies Act 71 of 2008 (“New Companies Act”) became part of our law on 8 April 2009 and is intended to be the modern corporate law for the modern corporate South Africa. Subsequent to various delays in the approval process, the New Companies Act came into force on 1 May 2011.The New Companies Act will has some implications for public benefit organisations that were registered as...
The Tax Administration Bill is an incorporation of generic administrative provisions contained in various pieces of tax legislation; and has been branded as a step towards the re-drafting of the Income Tax Act. It is an effort by the National Treasury to provide a foundation for the updating and modernisation of tax collection and administration in the South African tax system. The second...
Over the past few years the Courts have become increasingly intolerant of arrangements that are designed to look like legitimate commercial transactions but which are in fact complicated ruses by which the parties collude to secure a tax advantage. The Supreme Court of Appeal recently took this intolerance a notch higher by holding not only that the transactions in question were fake, but by...
Deductibility of Marketing and Management Fees between Local Group Companies Challenged in Tax Court
One of the issues dealt with in a recent Tax Court decision was the deductibility of certain marketing and management fees paid by the taxpayer, to its local holding company. The Commissioner for the South African Revenue Service disallowed both deductions when assessing the taxpayer on the grounds that they were excessive. The Tax Court found in favour of the taxpayer and allowed the deduction...
Despite a recent decision of the Supreme Court of Appeal, exchange control approval will still be required in respect of the assignment of intellectual property to a non-resident.The Supreme Court of Appeal was recently called upon to, in essence, rectify a trade mark register to reflect Oilwell (Pty) Ltd (“Oilwell”) as proprietor of the trademark ‘Protec’ instead of Protec Auto Care Ltd (“Auto...
In terms of the ‘pay now and argue later principle’ taxpayers are obliged to pay the South African Revenue Service any taxes due; albeit any pending court decisions or objections against any assessments.This principle has been challenged on constitutional grounds but the Constitutional Court in Metcash Trading Ltd v C: SARS affirmed its validity. The Constitutional Court held that the pay now and...