Contact

Expansion of reportable arrangements?

Back to top

Expansion of reportable arrangements?

Currently taxpayers are obliged to report certain transactions which may be seen to be abusive in certain circumstances.

21 Feb 2019 1 min read Special Edition Budget Speech Alert 2019 Article

There are, for instance, the following:

  • a company buys back shares from one or more shareholders for an aggregate amount exceeding R10 million and new shares are issued by the company within 12 months;
  • the acquisition of shares in a company with an assessed loss exceeding R50 million;
  • arrangements pertaining to consultancy and related services between a resident and a non-resident to the extent that the expenditure is anticipated to exceed R10 million.

However, there are still a number of offshore structures that do not need to be reported. This especially relates to the creation of foreign trusts in circumstances where the argument is that the control of the foreign trust does not vest in a South African resident. It has been announced that mandatory disclosure rules will be introduced to identify these type of structures and that they also need to be reported. Penalties will be imposed to the extent that these arrangements are not reported.

The information and material published on this website is provided for general purposes only and does not constitute legal advice. We make every effort to ensure that the content is updated regularly and to offer the most current and accurate information. Please consult one of our lawyers on any specific legal problem or matter. We accept no responsibility for any loss or damage, whether direct or consequential, which may arise from reliance on the information contained in these pages. Please refer to our full terms and conditions. Copyright © 2023 Cliffe Dekker Hofmeyr. All rights reserved. For permission to reproduce an article or publication, please contact us cliffedekkerhofmeyr@cdhlegal.com.

You might also be interested in

27 Jun 2023

by Bridget Witts-Hewinson

Navigating the compliance and regulatory requirements of going solar: Have you got it all covered?

As the frustration of loadshedding grows, so does the interest in alternate means of keeping the lights on. From convenience and lower long-term costs to tax incentives, there are a multitude of factors encouraging South Africans to consider alternative means of keeping the lights on.

Real Estate Law

4 min read

16 Mar 2023

by Nicholas Carroll

Killed by its own kindness

The South African Revenue Service (SARS) wields enormous power in its ability to raise assessments and collect tax. However, this power is not without its limits – it exists within the bounds of legislation, most notably the Tax Administration Act 28 of 2011 (TAA). This was recently highlighted in the decision of Lance Dickson Construction CC v Commissioner for SARS JDR 0259 (WCC) ( LDC ), on appeal from the Tax Court, where SARS’ own leniency when levying an understatement penalty proved to be its own undoing.

Tax & Exchange Control

5 min read

31 Oct 2023

What is the status of parental leave?

The parental leave provisions of the Basic Conditions of Employment Act 75 of 1997 were declared invalid because of inconsistency with the Constitution. The declaration of invalidity is suspended for two years to allow Parliament to remedy the defect. The Court has provided interim relief by amending the legislation to provide all parents 4 consecutive months' parental leave collectively. However, the Constitutional Court has to make the final decision on whether the order of invalidity is confirmed before it has any force. Watch our webinar discussion on the impact of this judgment and the way forward.

Employment Law

35:08 Minutes

12 Oct 2023

by Nicholas Carroll

Adjusting a definition

The circular reference error is a scourge that has plagued many tax practitioners’ spreadsheets since the amendment to section 20 of the Income Tax Act 58 of 1962 (ITA) at the end of 2021. This amended section 20 dictates that it can only be applied once all other sections of the ITA have been applied. However, a similar provision appears in the definition of “ adjusted taxable income ” in section 23M, the result being a conflict between the two sections and the question of which to apply first?

Tax & Exchange Control

2 min read

15 May 2023

by Desmond Odhiambo and Kevin Kipchirchir

The concept of lockouts and how employers may respond to a strike

A lot of discourse within employment circles in Kenya has been about strikes. However, very little has been said about the right of employers to lockout employees.

Employment Law

19:21 Minutes

25 Jul 2023

by Lucinde Rhoodie, Kara Meiring and Luke Kleinsmidt

How ‘appealing’ is an automatic right of appeal to the next highest court

An appeal involves an application to a higher court for the reversal of a decision of a lower court. For a court’s decision to be suspended pending the outcome of an automatic appeal, it is important to know which court is competent to hear the appeal and overrule the current decision of the court, and which would thereby be known as the next highest court.

Dispute Resolution

6 min read

This website uses cookies to enhance the browsing experience. For more information, please see our Cookie Policy.

Accept Decline