10 Jul 2017
The OECD guidelines for thin capitalisation – Should we be worried?
Companies are funded in two ways, namely through debt and equity. In certain instances interest payments incurred in the production of income are deductible for tax purposes, while distributions are not tax deductible. The way in which a company is structured therefore raises tax concerns regarding the balance between debt and equity. Thin capitalization is governed by the general transfer pricing provisions of the Income Tax Act. The Organisation for Economic Co-operation and Development (OECD) has clear guidelines on thin capitalization.
07 Jul 2017
“People behave in the way they are rewarded to behave. If leaders are incentivised to focus on one goal above all other, they do not necessarily focus on how that goal is achieved. Incentives must be aligned to performance – but performance with integrity.” - Holly tucker
23 Jun 2017
The tax season for individuals to submit their Income Tax returns begins on 1 July 2017. We provide below answers to some of the most common queries individuals may have.
01 Jun 2017
Many family trusts are formed without the appointment of an independent trustee which can prove disastrous in instances where a dispute arises and the validity of the trust is questioned. In South Africa there have been many cases which allowed for the veneer of the trust to be pierced and the trust been deemed to be nothing more than the “alter-ego” of the person controlling such trust and the assets of the trust being deemed to belong to that person.
01 Jun 2017
On 19 April 2017, an amended Currency and Exchange Manual for Authorised Dealers (“the Manual”) was issued to give effect to the further amendments released pertaining to the permissions and conditions applicable to foreign exchange transactions.
01 Jun 2017
Generally for Capital Gains Tax (“CGT”) purposes when an asset is disposed of for more than the base cost, CGT is triggered in the year of the disposal. In the recent judgement of New Adventure Shelf V CSARS (310/2016)  ZASCA 29 the Supreme Court of Appeal confirmed the tax the position where an asset is disposed
01 Jun 2017
While many people immigrate to South Africa, we also see many of our clients emigrating from South Africa. And while formal migration-status is not necessarily linked to tax residency, the time of tax migration often coincides with formal emigration linked to passport or visa status. Many are surprised to learn (often after the fact) that emigration for tax residency purposes gives rise to tax consequences in South Africa, and specifically to capital gains tax (“CGT”) consequences in the form of so-called “exit charges”.
24 May 2017
Where reputational risk is a strong factor in the managing of a business, a strong culture of ethics and compliance will be the cornerstone of the foundation. What has been proved over the years is that “a feel good” culture should be replaced by an ethical and compliant culture which can be defined, measured and improved.
03 Apr 2017
Having discussed how the Managing Partner can create the right tone from the top we now look at how middle management assist in getting this tone from the top through to the rest of the firm.
07 Mar 2017
The Managing Partner, as well as the Management and Executive committees including all the partners, play a vital role in ensuring that the ‘tone from the top’ is spread throughout the firm.