Far-Reaching Tax Amendment Bills Published For Comment

Earlier this month the proposed draft Taxation Laws Amendment Bill 2012 (TLAB) and Tax Administration Amendment Bill 2012 were published. It has been several years since South Africans have seen such a volume and scope of proposed tax amendments.

Many of the proposed amendments are specifically aimed at cross-border activity, both incoming (affecting foreign investment entities and headquarter companies) and outgoing (including changes to the controlled foreign companies (CFC) provisions, participation exemption and the exit charge).

There are also far-reaching amendments that will affect both domestic and cross-border activity, including a new definition of equity share; new rules for distinguishing between debt and equity; and new rules for hybrid instruments.