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The legalisation of cannabis
8 November 2019 Dispute Resolution

The legalisation of cannabis

Andrew MacPherson, an Associate in the Dispute Resolution practice, joined SAFM's The Talking Point to discuss the legalisation of cannabis.

Out-of-court settlements and VAT…don’t settle for less
7 November 2019 Tax & Exchange Control

Out-of-court settlements and VAT…don’t settle for less

Parties to a legal dispute may often find themselves opting for an ‘out-of-court’ settlement as opposed to a protracted court battle where the outcome is uncertain and the legal costs high. On some level, an out-of-court settlement should represent a win for both parties. However, where the parties are VAT vendors, it is often the party receiving the settlement payment that is left with a slightly bitter taste in its mouth if VAT was not taken into consideration when agreeing on the settlement amount payable.

Are sureties still liable for a debt if the original causa is based on an invalid contract?
6 November 2019 Dispute Resolution

Are sureties still liable for a debt if the original causa is based on an invalid contract?

The Constitutional Court dealt with this question in Shabangu v Land and Agricultural Development Bank of South Africa & Others [2019] ZACC 42. The applicant and others stood as sureties for a loan agreement entered into between the Land and Agricultural Development Bank of South Africa (Land Bank) and Westside Trading 570 (Pty) Ltd (Westside) for the development of urban property.

The Big Catch: They’ve resigned. Can they compete with my company?
6 November 2019 Corporate & Commercial

The Big Catch: They’ve resigned. Can they compete with my company?

So they’ve resigned – now what? Can the fiduciary duties as a director of a company extend post-resignation, and if so, to what extent? Are they prohibited from then re-entering the industry as a competitor of your company? This article looks to address these common concerns that companies often have in respect of departing directors.

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Supreme Court of Appeal confirms its decision regarding trading stock obsolescence
31 October 2019 Tax & Exchange Control

Supreme Court of Appeal confirms its decision regarding trading stock obsolescence

There have been various jurisprudential and legislative developments over the past 12 months regarding section 22 of the Income Tax Act 58 of 1962 (Act), which, in its simplest form is a timing provision which ensures that the cost of trading stock in the hands of a taxpayer matches the income earned in respect of that trading stock sold, or otherwise disposed of. We previously wrote about the Supreme Court of Appeal (SCA) judgment handed down last year in C:SARS v Volkswagen South Africa (Pty) Ltd 81 SATC 24 as well as the proposed amendments to section 22 that were published for public comment on 21 July of this year. In this alert we discuss the most recent judgment handed down by the SCA on the same issue on 27 September 2019 in C:SARS v Atlas Copco South Africa (Pty) Ltd (834/2018) [2019] ZASCA 124.

Seeing eye-to-eye: The National Credit Act’s applicability to settlement agreements
30 October 2019 Dispute Resolution

Seeing eye-to-eye: The National Credit Act’s applicability to settlement agreements

It is no secret that the National Credit Act, No 34 of 2005 (Act) has its problems. Courts have been called upon numerous times to interpret what should be simple provisions that confuse contracting parties. A measurable portion of the court cases involving the Act and its interpretation concern the application of the Act to agreements.

Setting aside dispositions – a practical approach
30 October 2019 Dispute Resolution

Setting aside dispositions – a practical approach

In winding-up proceedings, the commencement date of the winding-up and the establishment of the concursus creditorum (meaning the coming together of the creditors) play an important role. The purpose behind the establishment of a concursus is to ensure that the company’s property is collected and distributed amongst its creditors in the prescribed order of preference.

Shareholder self-help and the board’s refusal to convene a meeting
30 October 2019 Corporate & Commercial

Shareholder self-help and the board’s refusal to convene a meeting

In the case of Heatherview Estate Extension 24 Home Owners Association v Mahlatse Trading Enterprise CC and Others (22616/2019) [2019] ZAGPPHC 180 (20 May 2019), the High Court considered the meaning and effect of s61 of the Companies Act, No 71 of 2008 (Companies Act), and whether a meeting convened by certain members of a non-profit company themselves, in instances where the board failed to do so upon having received written demand by such members in terms of s61(3), was a lawfully constituted meeting.

To deem or not to deem: Tax Court judgment on section 13<em>quin</em> of the Income Tax Act
25 October 2019 Tax & Exchange Control

To deem or not to deem: Tax Court judgment on section 13quin of the Income Tax Act

On 28 June 2019, the Tax Court (sitting in Johannesburg) handed down judgment in the matter of XYZ CC v The Commissioner for the South African Revenue Service Case No: IT14434/2019 (as yet unreported), in which it had to decide whether the appellant (Taxpayer) was entitled to claim a commercial building allowance in terms of s13quin of the Income Tax Act, No 58 of 1962 (Act). The Tax Court also had to decide whether certain interest imposed should be remitted.

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Interest paid to the non-resident beneficiary of a trust
22 February 2018 Tax & Exchange Control

Interest paid to the non-resident beneficiary of a trust

Section 50B of the Income Tax Act, No 58 of 1962 (Act) provides for the levying of a withholding tax on interest, calculated at the rate of 15% of the amount of any interest paid by any person to or for the benefit of any foreign person, to the extent that the amount is regarded as having been received or accrued from a source within South Africa.

What legal recourse is available to South African cybercrime victims?
5 February 2018 Technology, Media & Telecommunications

What legal recourse is available to South African cybercrime victims?

Following the largest data breach of private citizens in South Africa’s history, which saw the personal data of over 30 million people leaked online, South Africans are increasingly at risk of falling victim to identity theft, fraud, and other forms of cybercrime.

Relief for innocent property owners, but maybe not so much for innocent mortgagees.
5 February 2018 Real Estate

Relief for innocent property owners, but maybe not so much for innocent mortgagees.

There is cause for celebration for new property owners in light of the recent constitutional court judgment in Jordaan and Others vs City of Tshwane Metropolitan Municipality and Others [2017] ZACC 31, however new owners were not the only ones who stood to lose in the application and interpretation of Section 118(3). The question thus arises: where do mortgagees stand in respect of the section?

The right partnership can help investors flourish in Africa
5 February 2018 Finance & Banking

The right partnership can help investors flourish in Africa

Africa remains an attractive investment destination for investors looking to unlock maximum returns on their outlay. However, doing business in Africa requires a thorough understanding of the cultural, economic and political nuances that exist across the African continent. Failure to take into account each country's individual circumstances is likely to lead to challenges for any potential investor.

How low can we go?
5 February 2018 Environmental

How low can we go?

As the Western Cape’s rainy season draws to a close, and dam levels are at just above half of what they were at this time last year, the City of Cape Town has announced Level 5 water restrictions in an effort to ease the devastating situation. Despite these restrictions and various other methods of supplementing water supply that are currently being considered, the implementation of a large-scale, long-term solution will take time that the City no longer has.

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Samiksha Singh discusses labour law issues
13 March 2019 Employment

Samiksha Singh discusses labour law issues

Samiksha Singh, Director in the Employment Practice featured on Cape Pulpit discussing poor performance in the workplace. She discusses performance management hearings and the importance of engagement between employer and employee.

The forth Industrial Revolution
8 March 2019 Employment

The forth Industrial Revolution

Anli Bezuidenhout, Senior Associate in the Employment Law Practice, discusses how employers should start evaluating the impact that the 4th Industrial Revolution will have on their businesses Cape Talk's Early Breakfast show.