The importance of confidentiality

Could this movie have a happier ending

Renewable energy tax incentives to be re-energised

Section 12B of the ITA deals with, amongst other things, renewable energy tax incentives. It assists companies investing in renewable energy assets with cash flow constraints through an accelerated capital depreciation allowance on qualifying assets and supporting infrastructure. Given South Africa’s critical energy shortage and the global move to a greener energy mix, this tax incentive is a cornerstone of South Africa’s current fiscal policy.

Beneficial ownership information disclosure

Pursuant to Section 93A of the Kenyan Companies Act, 2015, every company is required to keep a register of its beneficial owners. To give effect to this amendment, the Government published the Companies Beneficial Ownership Information Regulations, 2020 (Regulations), which came into effect on 13 October 2020. Companies are hence required to update their beneficial ownership E-register.

SARS giveth and SARS taketh away

The alarmingly high unemployment rate in South Africa has given rise to several tax incentives for employers to grow their workforces. One of these is the Employment Tax Incentive (ETI) contained in the ETI Act 26 of 2013 (ETI Act). However, with new incentives come new issues, and in recent years SARS and National Treasury have clamped down on what they perceive to be abuses of the ETI Act by some employers.

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. 

What would the “reasonable employer” do?

On 8 July 2024 the High Court of South Africa, Free State Division, Bloemfontein delivered judgment in the decade-long case of Louw v Fourie NO and Another (3074/2016) ZAFSHC137.  The matter involved Tilana Alida Louw, a theatre manager at Netcare Universitas Hospital in Bloemfontein who was pursuing a claim for damages under the actio iniuriarum in the amount of R627,000 (with interest and costs) against Dr S P Grobler, the first defendant, and Netcare Universitas Hospital, the second defendant. Grobler had conducted a private practice at Netcare and had performed surgeries at the hospital’s surgical theatres, making use of its staff