THE RISK OF SECTION 3(3)(d) OF THE ESTATE DUTY ACT WHAT IS A TESTAMENTARY RESERVATION IN A TRUST DEED? A testamentary reservation is a stipulation which is often found in trust deeds for especially family trusts in terms of which the founder or one of trustees will have the power to prescribe the distribution of [...]

WHAT IS CAPITAL GAINS TAX? Capital Gains Tax (“CGT”) is the portion of normal income tax attributable to the inclusion in your taxable income of a taxable capital gain. Simply put, CGT is a tax levied on profit from the sale of property or another asset held as a capital asset or an investment. The [...]

HOW TO MINIMIZE CAPITAL GAINS TAX USING THE FLOW-THROUGH PRINCIPLE, AND DOES YOUR TRUST PROVIDE FOR IT? AN INTRODUCTION TO CAPITAL GAINS TAX IN TRUSTS Since a trust is not a natural person, 80% of any capital gain arising from a disposal of an asset by the trust must be included in the trust’s taxable [...]

It has been more than a year since the Constitutional Court decriminalised the use of cannabis by an adult person in his or her private dwelling.  The effect of the Court’s ruling is twofold: It decriminalises the use or possession of cannabis by an adult in private, for that adult person’s personal consumption in private; [...]

INTRODUCTION Much has been said in the media about the use of community trusts as part of Broad-Based Black Economic Empowerment (“B-BBEE”) ownership schemes not complying with the law and therefore constituting fronting practices. This was largely as a result of comments made by the Commissioner of the Broad-Based Black Economic Empowerment Commission (“B-BBEE Commission”), [...]

Many private companies in South Africa, especially in the SME market, are traditionally owned and managed by the same individuals. With the increase in black ownership transactions as part of B-BBEE compliance initiatives by businesses, the share ownership structures of many of these private companies have now changed, raising the issue of shareholder participation in [...]