The Revenue Laws Amendment Act, 2007, was promulgated on 8 January 2008, and here is a summary by Deloitte of the key amendments to the legislation (note thatthe changes regarding corporate organisations are dealt with in a separate article in this issue).
The provisions of section 9C of the Income Tax Act, which apply to the disposal of shares after October 2007 and make the profits subject to capital gains tax (CGT), rather than income tax, will not apply to speculators who acquire and re-sell shares within three years, says Gerald Seegers, a tax director at PricewaterhouseCoopers.
Conventional wisdom is that if a decision of the Tax Court involved an appeal against the exercise of a discretionary power by the Commissioner, granted to the latter in terms of tax legislation, the High Court will interfere with the Tax Court's decision only if the latter did not bring an unbiased judgment to bear on the question or did not act for substantial reasons or exercised its decision capriciously or upon a wrong principle (see ex parte Neethling 95 (4) SA 331 (A) at 335.) began PricewaterhouseCoopers in a recent Synopsis.
The 2007 Revenue Laws Amendment Act includes several changes to the corporate reorganisation provisions of the Income Tax Act, according to a recent Tax Alert from PricewaterhouseCoopers. These amendments are likely to have implications for groups of companies that have undertaken or are contemplating undertaking reorganisations using the corporate reorganisation relief provisions, says PwC.
My income is much higher than my wife's, and therefore my tax rate is also higher. I'm considering transferring my JSE shares from my name to my wife's name. Will I have to pay CGT the moment I transfer the shares to her, or will we have to pay CGT only when she sells the shares?