The devil’s in the detail: CIPC issues a notice regarding individualised disclosure requirements in respect of director remuneration and benefits

Tax stability and predictability for economic sustainability

Prior to deciding to introduce or redomicile a business in any country, an investor must always consider how favourable, stable, and predictable the country’s tax system is. The primary rationale for this is the need for certainty and guarantee regarding the future sustainability of investment in the host country. This predictability ensures that the investor can plan for their business, which includes planning ahead for tax liabilities and allocating resources appropriately and efficiently. On the other hand, a tax regime that is unstable and unpredictable has the opposite effect, that is, it hinders an investor’s power to consciously make investment decisions, which would ultimately be a deterrent, leading to capital flight and reduced economic activity. Foreign direct investment (FDI) is particularly sensitive to tax stability and predictability, as investors weigh the risks associated with potential changes in tax laws. Countries with consistent and transparent tax regimes are more likely to attract FDI, contributing to economic development and job creation. 

Fraudulent non-disclosure and misrepresentation of property defects in sale render seller liable

Latent defects are flaws in a property that could not have been identified despite a reasonable inspection prior to the sale. In terms of common law, the purchaser will have a right of recourse after the sale if the seller was aware of latent defects and fraudulently did not disclose the defects to the purchaser.

Business rescue is not simply for the asking

The debate as to whether business rescue or liquidation is appropriate for a company in financial distress ultimately comes down to which process is likely to yield a higher return for creditors and/or stakeholders. We often hear of failed business rescue proceedings where the company ends up being liquidated, but it is seldom the case that liquidation proceedings are converted to a business rescue.

Special Edition Alert | Budget Speech 2024

Concept clarification: Zero-rated vs exempt supplies

“ Confused? Confusion is good. It’s an excellent place to learn something new from .” – Henna Inam Although seemingly simple, the value-added tax (VAT) concept of zero-rated supplies vs exempt supplies is often confused and misused. The importance of distinguishing between these concepts is, however, crucial for purposes of determining the VAT liability of a vendor as well as a vendor’s entitlement to claim input tax deductions in respect of expenses incurred. The distinction between these concepts as well as the importance behind the distinction is unpacked below.

Integrated Energy Planning: Commencement of section 6 of the National Energy Act

The National Energy Act 34 of 2008, assented to by the President in 2008 (Energy Act), is but one of many attempts to ensure uninterrupted supply of energy to South Africa since the inception of loadshedding in 2007. The Energy Act, premised on the Energy White Paper of 1998, aims to cover gaps in the Energy White Paper and other legislation on energy security, using an Energy Security Master Plan prepared by the then Department of Mineral Resources and Energy.