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Further amendments to the VAT electronic services regulations
29 March 2019 Tax & Exchange Control

Further amendments to the VAT electronic services regulations

Revised regulations to prescribe and clarify the electronic services (e-services) supplied by foreign suppliers to South African consumers which are subject to VAT were proposed in 2018, which significantly broadened the scope of ‘e-services’. The Minister of Finance, in the 2019 Budget Review then announced that further amendments would be made to the e-services regulations to address certain oversights.

Vexatious litigants
27 March 2019 Dispute Resolution

Vexatious litigants

A vexatious litigant is a person who persistently initiates legal action for the purposes of harassing or subduing an adversary. Unfortunately, the victims of these vexatious litigants cannot simply ignore the frivolous legal proceedings instituted and are forced to respond in accordance with the rules of court regardless of how ridiculous the claims may be.

Section 34 of the Insolvency Act: A ticking time bomb?
27 March 2019 Dispute Resolution

Section 34 of the Insolvency Act: A ticking time bomb?

In many, if not all, commercial transactions, timing is everything, either for a distressed seller or a purchaser stumbling upon a deal that may almost be too good to be true. There is often no time to waste and a deal must be closed as soon as possible. In the haste of closing a deal, whether in the form of a sale of business or a sale of assets, the parties often agree not to comply with the provisions of s34(1) of the Insolvency Act, No 24 of 1936 (Act), each willing to take the risk in not doing so.

Beware of rigid and over-regulated disciplinary procedures
25 March 2019 Employment

Beware of rigid and over-regulated disciplinary procedures

Employers with rigid and over-regulated disciplinary procedures which form part of a collective agreement or employees’ terms and condition of employment, face the risk that non-compliance with these procedures may result in severe consequences including, disciplinary hearings being of no force or effect and/or a finding that they have waived their right to discipline employees.

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Preference share funding structures: An overview of the application of the relevant Companies Act and Income Tax Act provisions
20 March 2019 Corporate & Commercial

Preference share funding structures: An overview of the application of the relevant Companies Act and Income Tax Act provisions

Preference share funding structures contemplate the subscription by a funder for preference shares in the share capital of a company with a pre-agreed dividend rate (often linked to a prevailing interest rate) and capital redemption profile. These types of funding structures are often preferred by banks and other financial institutions because dividends received by certain holders, including banks and other juristic persons, are exempt from income tax. Interest on loans, on the other hand, is taxable in the hands of the recipient and often cannot be deducted from the income of the borrower.

SARS Interpretation Note 17: When will an employer be liable for employees’ tax in respect of an independent contractor?
18 March 2019 Employment

SARS Interpretation Note 17: When will an employer be liable for employees’ tax in respect of an independent contractor?

The South African Revenue Service (SARS) has published an updated Interpretation Note 17 (Interpretation Note) on how to determine whether a person is an independent contractor for employees’ tax purposes. The Fourth Schedule to the Income Tax Act, No 58 of 1962 (Act), requires there to be three elements before employees’ tax can be levied, namely an employer paying remuneration to an employee. As such, determining whether a person is receiving remuneration, as defined in the Act, and whether they are an employee, are important considerations.

The City of Johannesburg Inclusionary Housing Policy, 2019
18 March 2019 Real Estate

The City of Johannesburg Inclusionary Housing Policy, 2019

On 21 February 2019, the City of Johannesburg Metropolitan Municipality (COJ) approved the new policy, Inclusionary Housing: Incentives, Regulations and Mechanisms (Policy), which will come into effect on 22 May 2019. This follows a much less detailed Draft Policy which was published for public comment on 28 February 2018 and thereafter further developed and amended to form the Policy.

Reviewing the Real Estate Investment Trust tax regime
15 March 2019 Tax & Exchange Control

Reviewing the Real Estate Investment Trust tax regime

Finance Minister Tito Mboweni delivered the 2019 Budget Speech (Budget) on 20 February 2019, which contained, amongst the various tax proposals, further clarification as to tax policy and technical and administrative adjustments set out in Annexure C of the Full Budget Review (Annexure C).

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Further clarity on Venture Capital Companies
31 January 2018 Tax & Exchange Control

Further clarity on Venture Capital Companies

On 24 July 2017, the South African Revenue Service (SARS) released binding class ruling 057 (BCR 057) which deals with, inter alia, the eligibility of a partner in an en commandite partnership to claim a deduction in respect of venture capital shares acquired by the partnership.

Harmonising law crucial for economic growth in East Africa
31 January 2018 Mergers & Acquisitions

Harmonising law crucial for economic growth in East Africa

Over more than decade, a combination of globalisation, foreign investment and an increase in multinational co-corporations in Africa has resulted in the rise of cross border transactions taking place on the continent and the much needed foreign investment to fuel growth in Africa.

Cross-border mergers and acquisitions – Charting the regulatory landscape
31 January 2018 Mergers & Acquisitions

Cross-border mergers and acquisitions – Charting the regulatory landscape

Africa is poised for massive urbanisation which will contribute to the continent's economic development. Currently, the continent is experiencing a growth of the middle class and the private sector, which in turn have influenced Africa's economic growth and the implementation of structural and economic regulatory reforms. This article deals with the challenges of investing in Africa and what is required in order to establish an effective regulatory landscape that would facilitate unlocking the continents growth potential.

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Chris Charter comments on the Massmart complaint
26 February 2015 Competition

Chris Charter comments on the Massmart complaint

Massmart has launched a complaint with the Competition Commission targeting Pick n Pay, Spar and Shoprite in a bid to end lease exclusivity clauses. Chris Charter, Head of our Competition practice comments.

Cliffe Dekker Hofmeyr continues to support the Come Together Home
10 October 2014 Pro Bono & Human Rights

Cliffe Dekker Hofmeyr continues to support the Come Together Home

Come Together is a key project in Cliffe Dekker Hofmeyr's Corporate Social Responsibility portfolio. We have seen the Come Together project flourish over the years. We are proud to be part of this worthy initiative, which has and will continue to make a significant difference to the lives of a number of children and adults in the Sebokeng community.

Nicholas Preston comments on Shakes Mashaba and Isegund Gordan having a contract at the same time.
6 August 2014 Employment

Nicholas Preston comments on Shakes Mashaba and Isegund Gordan having a contract at the same time.

Newly appointed Bafana Bafana coach Shakes Mashaba arrives back in South Africa after a tour of Mali as the official coach of the senior national team. Isegund Gordan’s contract with SAFA runs until the end of the month, but a employment lawyer says this is perfectly legal that both men can be contracted for the same position at the same time. Director, Nicholas Preston gives comment.

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