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Testamentary Reservations in Trust Deeds

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 [...]

By |2020-07-29T15:05:04+00:00July 29th, 2020|Uncategorized|1 Comment

An introduction to Capital Gains Tax

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 [...]

By |2020-07-29T14:59:05+00:00July 28th, 2020|Uncategorized|0 Comments

Capital Gains Tax in Trusts

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 [...]

By |2020-07-29T14:53:59+00:00July 28th, 2020|Uncategorized|0 Comments

The Cannabis in the workplace debate

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; [...]

By |2020-07-29T14:48:52+00:00July 27th, 2020|Uncategorized|0 Comments

Can community trusts still be used for B-BBEE ownership purposes?

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”), [...]

By |2020-07-29T14:40:32+00:00July 26th, 2020|Uncategorized|0 Comments

Must a Shareholder be actively involved in the management of the business and affairs of a Private Company?

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 [...]

By |2020-07-27T05:38:09+00:00July 25th, 2020|Uncategorized|0 Comments

An introduction to liquidations

WINDING-UP OF SOLVENT AND INSOLVENT COMPANIES BACKGROUND Companies experiencing financial distress may not necessarily qualify for business rescue and must therefore resort to liquidation, which is also know as winding-up. A distinction must be drawn between the winding-up of a solvent and insolvent company. The winding-up of insolvent companies is governed by the provisions of [...]

By |2020-07-27T05:25:07+00:00July 22nd, 2020|Uncategorized|0 Comments

POPIA, MUCH AWAITED!

The buzzword on many lips these days, following the Presidency’s announcement on 22 June 2020, is the Protection of Personal Information Act (Act No. 4 of 2013) (“the Act”), which more commonly goes by the somewhat catchy acronym “POPIA”, or “POPI” as it is sometimes referred to. The reason for the excitement is that South [...]

By |2020-07-15T14:06:44+00:00July 15th, 2020|Uncategorized|0 Comments

An alter-ego trust – What it is and its risks

WHAT IS AN ALTER-EGO TRUST? An alter-ego trust is when all the necessary requirements for a valid trust are present and the trust is established, but the trustees act as puppets, mainly under the instruction of the creator or another trustee.  It is also present when the trust property is treated by the creator or [...]

By |2020-07-15T13:31:21+00:00July 4th, 2020|Uncategorized|0 Comments