oa Journal of Economic and Financial Sciences - Die verkoop van 'n besigheid as lopende saak : belasting en arbeidsreg probleme met "voorsienings"
|Article Title||Die verkoop van 'n besigheid as lopende saak : belasting en arbeidsreg probleme met "voorsienings"|
|© Publisher:||University of Johannesburg|
|Journal||Journal of Economic and Financial Sciences|
|Affiliations||1 University of Stellenbosch|
|Publication Date||Oct 2011|
|Pages||433 - 448|
|Keyword(s)||Belastingaftrekbaarheid, Inkomstebelastingwet, Lopende saak, Onderneming, Voorsienings, Voorwaardelike aanspreeklikhede and Werknemerverwante|
The amounts set aside for the provision for employee-related contingent liabilities, such as the provision for leave pay, are often considerable. According to current Income Tax law, it is highly unlikely that the former employer (seller) will enjoy a tax deduction. Furthermore, it is also unlikely that the prospective employer (buyer) will enjoy a tax deduction. In contrast to this, both the former and prospective employers are held liable according to the Labour Relations Act in cases where a business is sold as a going concern. This article concludes that the Draft Taxation Laws Amendment Bill 2011, as envisioned, finally provides clear tax legislation, but still needs to be aligned with the objectives of the Labour Relations Act. In doing so, contradictory legislation will be avoided, thus facilitating the transfer of businesses and achieving the protection of employees' work security.
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