Tag ArchivesSchoemanlaw Inc.

Writing off debt in dormant companies

Writing off debt, or better phrased, debt waiver is dealt with in Section 19 and paragraph 12A of the Eighth Schedule in the Income Tax Act 58 of 1962 (“ITA”).  When debts are waived, written off or reduced, there are tax implications on the part of both Debtor and Creditor in many instances. For example, […]

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What is a bona fide inadvertent error?

Section 222 (1) of the Tax Administration Act (the “TTA”) provides that where there has been an understatement, the taxpayer must pay the understatement penalty determined unless the understatement resulted from a bona fide inadvertent error. In terms of Section 221, an ‘understatement’ means any prejudice to SARS in respect of a tax period as […]

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BBBEE Fronting Practices – Recent Clarification

According to the Department of Trade and Industry (“DTI”), fronting means a deliberate circumvention or attempted circumvention of the Broad-Based Black Economic Empowerment Amendment Act No. 46 of 2013, as amended, (the “Act”) and the Codes. The Act introduced the definition of “fronting”, a concept which had previously been based on the common law criminal concept of […]

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Court Annexed Mediation

South Africa is seeking a more cost and time effective resolution in resolving disputes. Society has become prone to institute legal action, or threaten to institute legal action, against another individual, without knowing the extent of law applicable.  As a result, the legal system in South Africa is experiencing large backlogs in case management at […]

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Financial Intelligence Centre Amendment Act – Key Amendments To Look Out For (Part 2)

The FICA Amendment Act No 2 of 2017 (“the Act”), published in the Government Gazette on 2 May 2017, strengthens the provisions of FICA by introducing a risk-based approach to customer due diligence, among other things. In this article, we will deal in short with the sections that relate to customer due diligence measures. Customer […]

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