Opco claimed a deduction in terms of section 11(a) of the Act in respect of its contribution to the share incentive trust, which it spread over the vesting period in respect of the Newco shares held by its employees in terms of section 23H of the Act.
The company developed a prototype of the machine, which has passed several tests set by KRA after being submitted to the authority for tests on its efficacy, and now awaits licensing if it passes final test phases.
Below, please find issue 73 of ENSafrica’s tax in brief, a snapshot of the latest tax developments in South Africa.
In the article, it is stated that among other things, the Mauritius Revenue Authority (MRA) is targeting foreign trusts no longer exempt from income taxes.
There are several tax considerations which need to be kept in mind by taxpayers where the business is in financial distress and is no longer able to operate, or once liquidation proceedings have commenced and compromises are entered into with creditors.
This equates to 2,500 PPS clients in the last year alone – while an estimated 9,000 taxpayers in the R750,000+ tax bracket have left the country over the last two years.
“Narrowing the scope of the current grant to only those seeking active employment, not making it eligible for existing grant recipients, could be one such compromise.”
Against this backdrop, the Middle Eastern economies are battling lower oil prices and budget deficits, which in turn increase the pressure for fiscal receipts.