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Stories from Down Under: Income tax provisions applicable to documentaries
11 July 2019 Tax & Exchange Control

Stories from Down Under: Income tax provisions applicable to documentaries

When South Africans think about Australian television, many may remember the television soap opera, Neighbours, featuring the famous Kylie Minogue, which aired in South Africa during the 1990s. Whereas South African tax law contains an income tax incentive for qualifying films and documentaries in s12O of the Income Tax Act, No 58 of 1962 (Act), effective from 1 January 2012. Australian tax law also contains specific provisions that apply to qualifying documentaries. We discussed the provisions of s12O of the Act in our Tax and Exchange Control Alert of 8 September 2017.

Double trouble: The limited application of the in duplum rule
10 July 2019 Corporate & Commercial

Double trouble: The limited application of the in duplum rule

Literally translated, “in duplum” means “double the amount”. The in duplum rule prevents arrear interest accumulating beyond an amount equal to the outstanding capital obligation. Such interest ceases to accrue once the sum of the unpaid (accrued) interest equals the amount of the outstanding capital, whether or not any capital and/or interest is payable at the time, thereby limiting the debtor’s aggregate liability to double the capital amount. The rule is concerned with public interest and protects borrowers from exploitation by lenders who permit interest to accumulate.

One suretyship, two agreements – are both covered?
10 July 2019 Dispute Resolution

One suretyship, two agreements – are both covered?

In the recent case of Moss & another v KMSA Distributors (673/2018) [2019] ZASCA 81, the Supreme Court of Appeal (SCA) considered whether a suretyship agreement, attached as an annexure to a certain agreement, also provided security to the creditor for debts incurred by the debtor under an earlier separate agreement concluded between the same parties.

AI ownership and machines as creators
8 July 2019 Technology, Media & Telecommunications

AI ownership and machines as creators

In a previous article entitled “AI Regulation in South Africa”, we discussed that although no specific laws yet exist in South Africa to regulate AI, it is regulated under existing legal principles. In this article, we explore issues around ownership.

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Applications for new positions during a retrenchment – selection criteria or a measure to avoid retrenchment?
24 June 2019 Employment

Applications for new positions during a retrenchment – selection criteria or a measure to avoid retrenchment?

The latest case in determining fair and objective methods of selecting employees for dismissal during a retrenchment process has struck fear in the hearts of employers who plan on embarking on retrenchment processes. In Mweli and Nakedi v MTN Group Management Services (Pty) Ltd, the respondent dismissed two applicants following a restructuring process of its Group Business Risk Management division.

SARS issues binding class ruling regarding unbundling transaction
21 June 2019 Tax & Exchange Control

SARS issues binding class ruling regarding unbundling transaction

Section 46 of the Income Tax Act, No 58 of 1962 (Act) provides tax relief where a company (Unbundling Co) wishes to unbundle its shareholding in a subsidiary (Unbundled Co), to the company’s own shareholders. The Unbundling Co’s shareholders’ indirect shareholding in the Unbundled Co is converted to a direct shareholding, in proportion to their shareholding in the Unbundling Co.

When are the winds of change justified? Determining dismissals where employees refuse an employer's proposal
20 June 2019 Employment

When are the winds of change justified? Determining dismissals where employees refuse an employer's proposal

With the recent amendments to the Labour Relations Act, No. 66 of 1995 (LRA) there has been much anticipation as to how the application of the newly amended sections would ultimately be interpreted and implemented by the courts. In the case of National Union of Metalworkers of South Africa (NUMSA) obo members and Aveng Trident Steel (A division of Aveng Africa (Pty) Ltd) (2019) (Aveng) the courts were tasked with determining the application of the amended provision of s187(1)(c) of the LRA, setting precedential headway on whether an organisational restructure, culminating in amendments to terms and conditions of employment, will always be automatically unfair if dismissals ultimately ensue.

Karoo lamb, rooibos tea, Bapsfontein… What’s in a name?
20 June 2019 Agricultural

Karoo lamb, rooibos tea, Bapsfontein… What’s in a name?

On 22 March 2019, the Minister of Agriculture, Forestry and Fisheries published regulations to the Agricultural Product Standards Act (1990) relating to the registration and protection of geographical indicators (GIs) used in respect of agricultural products intended for sale in South Africa.

Sureties and business rescue - you can run but you can’t hide
19 June 2019 Dispute Resolution

Sureties and business rescue - you can run but you can’t hide

It is trite law that the liability of a surety is unaffected by the business rescue of the principal debtor, unless the business rescue plan makes specific provision for the situation of sureties. However, in practice, sureties continue to try to avoid liability under their suretyship agreements.

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