Category: Finance
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MSI Global Alliance appoints two new member firms in Brazil and Denmark
MSI Global Alliance, one of the world’s leading international associations of independent legal and accounting firms, is delighted to announce the appointment of two new member firms to its international membership as of 1 July 2017. MSI’s presence in Brazil will be strengthened by the addition of DDSA – De Luca, Derenusson, Schuttoff e Azevedo…
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Interest free loans to directors
It is very often the case that a company extends an interest free or low interest loan to a director. This manifests either as a true incentive or benefit to that director (mostly the case in larger corporate environments) or in a small business environment in lieu of salaries paid. The latter is especially the…
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Interest free loans cross border
A consideration of the tax consequences of interest free loans will be incomplete if not also considered in the context of interest free debt funding being provided cross-border. Typically, when “cheap debt” is encountered it is in the form of low interest or interest free loans being provided to related parties (or “connected persons” as…
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Interest free loans with companies
The latest annual nation budget presented in Parliament proposed the dividends tax rate to be increased with almost immediate effect from 15% to 20%. The increased rate brings into renewed focus what anti-avoidance measures exist in the Income Tax Act[1] that seeks to ensure that the dividends tax is not avoided. Most commonly, the dividends…
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Interest free loans and trusts
The recent introduction of section 7C to the Income Tax Act[1] brought the taxation of trusts, and the funding thereof specifically, under the spotlight again. Briefly, section 7C seeks to levy donations tax on loans owing by trusts to connected parties (typically beneficiaries or the companies they control). To the extent that interest is not…
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Capital gains and cancelled sales
Many transactions in terms in which assets are sold are subject to suspensive conditions. In terms of such agreements, the sales transaction will only take place once all the suspensive conditions have been met.[1] Many other agreements may however be subject to a resolutive condition. A resolutive condition involves one whereby an agreement is cancelled…
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Are Retirement Annuities still useful?
Retirement annuities are often misunderstood and many people, or their parents, have had bad experiences with tem in the past. This sentiment often relates to the investment performance and possibly also the charges related with these products. Some facts need to be considered before you discard this very useful investment vehicle for yourself. When talking…
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12 Tips to be Financially Fit
Enough talk of financial doom and gloom. Try these 12 practical ideas to take your money status from out of shape to financially fit. 1. Prioritise your financial needs Without a sense of priorities, you’ll have limited success in planning your budget. Decide what you most critically need to spend your money on, and develop…
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Financial assistance and the Companies Act
One of the more significant changes that the “new” Companies Act, 71 of 2008, brought about was that a company may now provide financial assistance to prospective shareholders to subscribe for shares in that company. In other words, it may lend persons money to enable them to subscribe for shares in the lender (although other…
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Financial assistance to directors
A company lending money to its directors may not be as simple a process as it may initially appear to be – not even in the case of so-called “one-man” companies. There are various requirements in the Companies Act, 71 of 2008, to be adhered to, as well as certain potential pitfalls in the Income…
