The Budget 2021 questions that haven’t been answered

Finance Minister Tito Mboweni delivered his third annual budget address on 24 February 2021. While there was plenty of information on both income and expenditure issues, as well as proposed tax amendments, some aspects were, concerningly so, not addressed at all. Exchange control In 2020, the Minister indicated that changes would be made to South Africa’s capital flow system regulated through the South African […]

Considerations for dismissal based on refusal to be vaccinated

The distribution of a COVID-19 vaccine is seen as a fundamental component to ending the pandemic. However, mandatory vaccinations in the workplace should be treated with caution by all employers. As it stands, there is currently no legislation in South African law that specifically requires an employee to be vaccinated against COVID-19. As a point of departure, the Occupational Health and Safety Act mandates […]

Trading stock, capital assets and tax considerations

The Income Tax Act contains various provisions in terms of which transactions can occur between specified parties without adverse tax consequences being incurred in respect of those transactions. These provisions are contained in sections 41 to 47 of the Income Tax Act and are generally known as the “group relief provisions”. Apart from certain value-shifting and general […]

SARS’s disallowance of losses distributed from trust to beneficiary

On 18 March 2021, the Supreme Court of Appeal delivered judgment in the case of Massmart Holdings Limited v The Commissioner for the South African Revenue Service. The case dealt with losses which were incurred within the broader Massmart group in respect of the investing of equity instruments as part of an employee share incentive scheme.  The mechanism of the scheme was that shares allocated to the designated employees would be […]

How to lead when the only certainty is uncertainty

Humankind has always been known for its innovation and ability to advance in technology and science. Most of human development and technology is the product of the last 200 years of history. In fact, we are developing technology and innovation at an exponentially increasing rate. Yet for all the progress we have made, the world currently seems to find […]

Claiming maintenance from a life partnership estate

On 28 September 2020, the Cape Town High Court handed down judgment in favour of Ms Bwanya directing that section 1(1) of the Intestate Succession Act 81 of 1987 (“the ISA”) is unconstitutional and invalid insofar as it excludes Ms Bwanya, a surviving life partner in a permanent opposite-sex life partnership, from inheriting from her deceased fiancé’s estate. The Facts Ms Bwanya and Mr […]

Anti-avoidance rules take preference in zero or low-interest loans

The in duplum rule originated from the South African common law and has been applied through South African case law for over 100 years. The rule aims to protect borrowers from exploitation by lenders that allow and, in some cases, cause interest to accumulate unabated: leading borrowers into further indebtedness. In terms of the common law, the interest charged on a […]

Think twice before you simply accept those Ts & Cs

In recent years the internet has transformed the commercial landscape and redefined the way we do business. The movement away from traditional paper and ink has led to the electronification of everything, including the conclusion of contracts. Online shopping, signing up for Uber, creating a Facebook profile – all subject to the familiar “I have read […]

How technology is influencing the financial world

Accounting has moved from pen and paper to the cloud, monthly payments can be done through online banking apps, and big purchases like houses and other property can be completed using cryptocurrency. For a business to be successful, it is important that is keeps up with the tech and digital world, which has shown financial […]

Employee share ownership plan – Part I

Binding Class Ruling 069 was issued on 23 October 2019 and relates to the tax implications that arise in respect of proposed employee share schemes (“the Schemes”) in terms of the Income Tax Act and the Eighth Schedule.[1] The applicant is a listed resident company that intends to implement new share incentive schemes, which will […]