News reports suggest that South Africa will publish its long awaited new anti-avoidance legislation next week.
This is good news. The legislation should be a full blown general anti-avoidance principle. Reports suggest that:
Transactions will need to have intrinsic "commercial substance" to pass muster with SARS and must be aligned with the spirit of the legislation or have "statutory purpose".
If South Africa can get the wording of this right it's another great story from there this week - because they'll then be blazing a path for others to follow, including, one hopes those who are seeking to create the objective tests on controlled foreign companies that are needed in the wake of the Cadbury Schweppes decision.
Thanks for reading this post.
You can share this post on social media of your choice by clicking these icons:
You can subscribe to this blog's daily email here.
And if you would like to support this blog you can, here:
It’s interesting to see that a country which in the past has had so much global publicity about corruption is probably going to end up being one of the first to lead the way with a tax system that makes avoidance pretty hard to achieve, I wonder, any other governments paying attention?
It’s not about thinking up new or more devious (read as back door) ways of taxing everyone, it’s about ensuring you collect the correct tax take from all in the first place, sorry, I keep going back to the constant waste of time reviews that are conducted here in the UK!
We’re in agreement again Jason!