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Win for the employer: Judgment on the Employment Tax Incentive Act
8 February 2019 Tax & Exchange Control

Win for the employer: Judgment on the Employment Tax Incentive Act

In the recent case of ABC (Pty) Ltd v The Commissioner for the South African Revenue Service (Case No 14426) (as yet unreported), the Tax Court was required to decide whether ABC (Pty) Ltd (Taxpayer) could claim the employment tax incentive (ETI) in terms of the Employment Tax Incentive Act, No 26 of 2013 (Act) in respect of certain periods. In deciding the matter, the court not only considered the provisions of the Act, but also considered and applied various principles of South African labour law.

Mitigating Political Risk for Foreign Investment
7 February 2019 Dispute Resolution

Mitigating Political Risk for Foreign Investment

Political Risk broadly refers to a political event within a country that may materially affects the projected profitability or legal framework of an investment or a particular project. The most common political risk factor is usually the risk of expropriation or nationalisation.

The impact of carbon regulation on the mining industry
6 February 2019 Mining & Minerals

The impact of carbon regulation on the mining industry

The Department of Environment (DEA) recently released its Low Emission Development Strategy (LEDS) which builds on over a decade of research to “articulate the path going forward in order to place the country on a low-carbon trajectory, while at the same time ensuring broader socio-economic development.”

Expropriation without compensation: The Expropriation Bill
6 February 2019 Dispute Resolution

Expropriation without compensation: The Expropriation Bill

The notion of expropriation without compensation has elicited much discourse, among both South Africans and foreign investors. Despite many divergent views on the issue, recent parliamentary developments indicate that expropriation without compensation in South Africa may no longer be a distant prospect.

A stronger ‘say on pay’ for South Africa?
6 February 2019 Corporate & Commercial

A stronger ‘say on pay’ for South Africa?

Senior executives’ remuneration remains a sensitive and somewhat controversial topic in South Africa. However, significant organisational ‘pay gaps’ are a global issue, as jurisdictions all over the world have adopted ‘say on pay’ measures to mitigate the agency problem arising between directors and shareholders; and the potential conflict of interest in directors determining the remuneration of executives.

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One less issue when issuing tax invoices
25 January 2019 Tax & Exchange Control

One less issue when issuing tax invoices

A tax invoice plays a pivotal role in the VAT system for suppliers and recipients alike. In terms of the Value-Added Tax Act, No 89 of 1991 (VAT Act), a supplying vendor is obliged to issue a tax invoice that complies with the requirements of the VAT Act within 21 days of making a taxable supply to a recipient. Similarly, a recipient vendor will only be entitled to claim an input tax deduction in respect of a VAT cost incurred for the purpose of making taxable supplies, to the extent that he or she is in possession of a valid tax invoice at the time of claiming the deduction.

Dutch Supreme Court hands down long-awaited judgment in ‘most favoured nation’ clause dispute
25 January 2019 Tax & Exchange Control

Dutch Supreme Court hands down long-awaited judgment in ‘most favoured nation’ clause dispute

The wait is finally over. On 18 January 2019 the Dutch Supreme Court (Hoge Raad) found in favour of the taxpayer in its judgment under case number 17/04584, (Hoge Raad Judgment) pertaining to the interpretation of the ‘most favoured nation’ provision (Dutch MFN Clause) in the double taxation agreement (DTA) between South Africa (SA) and the Netherlands dated 10 October 2005, as amended by the Protocol concluded on 8 July 2008 and which entered into force on 28 December 2008 (SA/Netherlands DTA).

“I will only move when you pay me my damages”
23 January 2019 Corporate & Commercial

“I will only move when you pay me my damages”

In what circumstances can a party in breach justify its failure to adhere to the contract based on the other party’s breach? This is one of the more interesting questions in contractual law. In Ritz Plaza Proprietary Limited v Ritz Hotel Management Company Proprietary Limited 2018 JDR 0728 (WCC), a lessee attempted to use the lessor’s alleged breach as a defence for its non-performance.

Update: No more silent big short positions
22 January 2019 Finance & Banking

Update: No more silent big short positions

South Africa has, and continues to trail other countries in its regulation of short sales. However, late last year, the Financial Sector Conduct Authority (FSCA) published its discussion paper on the implementation of a short sale reporting and disclosure framework, in order to remedy this regulation shortfall. Market participants have until 15 February 2019 to respond to the discussion paper with their comments. The question that remains is whether this proposed reporting mechanism is adequate and suitable for the South African market.

A special dispensation: SARS ruling about special trusts
18 January 2019 Tax & Exchange Control

A special dispensation: SARS ruling about special trusts

In recent times, the issue of mental health and the importance of caring for vulnerable persons with mental illnesses has become more prominent. Of course, the effect of mental illness on persons may differ depending on the nature of the illness. In the case of very serious forms of mental illness, a person may not be able to look after their own affairs any longer. From a tax perspective, the Income Tax Act, No 58 of 1962 (Act), makes provision for the creation of so-called special trusts, where the trust is created for the benefit of a person who cannot take care of his own affairs due to a disability (Beneficiary), including as a result of a serious mental illness.

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The Sun International CEO Sleepout
19 July 2016

The Sun International CEO Sleepout

Gasant Orrie, Cape Managing Partner, shares CDH's involvement in the Sun International CEO Sleepout initiative and challenges other corporates in the industry to partake in the project.

Retrenchment processes by employers
2 June 2016 Employment

Retrenchment processes by employers

Aadil Patel, director and national practice head for the Employment practice talks about ways for companies to retrench and cut costs within the right side of the law.

Employee behaviour on social media
16 May 2016 Employment

Employee behaviour on social media

Samiksha Singh, a Partner in the Employment practice at Cliffe Dekker Hofmeyr (CDH) provides critical insights into the employer-employee relationship; and how an employee's improper behaviour on-line may result in their employer taking action against them. Samiksha, a social media legal expert, provides a stimulating and current insight into this rapidly changing landscape and how both employers and employees need to proceed to avoid costly pitfalls.

Signing of  the tax legislation into law
16 May 2016 Tax & Exchange Control

Signing of the tax legislation into law

The Congress of South African Trade Unions (Cosatu) has criticised Jacob Zuma for signing the controversial tax legislation into law. Cosatu has threatened that this approach by government will complicate the campaign for upcoming local government elections. Interviewed is Cosatu National spokesperson, Mr Sizwe Pamla. Ruaan van Eeden, director in the Tax and Exchange Control practice, gives further perspective on this issue.