Law and disorder: Sense check on litigation

Voltaire famously said that “ Common sense is not so common ” and there are some court stories that support that. Like the infamous McDonald’s coffee matter in 1994 where Stella Liebeck, having been burned by a cup of spilled coffee, claimed that McDonald’s coffee was defective and more likely to cause serious injury than coffee served at any other establishment. She was awarded $2,9 million in a jury trial.

P.O.V: Your partner ends the partnership but at least there’s no tax payable: BPR 391

At common law, a partnership is not considered to be a legal entity or persona with legal personality separate from its partners. Rather, a partnership has been defined as a legal relationship between two or more persons who carry on a lawful business or undertaking, to which each contributes either money or labour, or anything of value with the object of making a profit, and of sharing that profit between them. As such, all legal consequences flowing from a partnership accrue to the partners in their personal capacities. This is also the position under the Income Tax Act 58 of 1962 (Act). Therefore, any property of the partnership is co-owned by the partners in undivided shares. Each partner therefore has a proportionate interest in the partnership, and by acquiring an interest in the partnership, each partner acquires an undivided share in the assets of the partnership.

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. 

Antenuptial contracts: I do/I don’t

In terms of the Matrimonial Property Act 88 of 1984 (Matrimonial Property Act), all marriages and civil unions entered into between parties are at present automatically deemed as being in community of property. In terms of this matrimonial property regime, the parties’ assets are pooled together to form one joint (communal) estate. The parties therefore become the owners of an undivided one-half share in and to each other’s respective estate, which is inclusive of all their assets and liabilities (debts).

CDH extends a warm welcome to Lydia Owuor, our latest Partner addition in Nairobi

Lydia joins us as a distinguished advocate and seasoned commercial real estate professional, bringing with her a wealth of expertise and accomplishments.

The significant impact of our Pro Bono & Human Rights practice in 2023