Newsletter 2/2004
 26 July 2004

Dear members of the South African Fiscal Association (“SAFA”)

Next evening seminar: “CGT – three years on”

1 CGT was meant to be a simple tax. This turned out not to be the case. Almost three years after the introduction of CGT in South Africa there is still uncertainty on some fundamental issues regarding CGT. For example: The extreme width of the “asset” and “disposal” definitions raise questions on whether personal rights arising from a contract are also subject to CGT; The Act provides specific time of disposal rules but there is no certainty on the time of accrual of proceeds in instances where delivery only takes place at a later stage - do proceeds accrue at the time of disposal or at the time of delivery?; How does one deal with (including determine the value) proceeds and base cost in case of in specie transactions?; All valuations must be completed by 30 September 2004. How does one value (and report to SARS on) a bundle of assets, which is difficult to value separately (say intellectual property)? Is it sufficient if an expert (say an estate agent) simply states on a valuation certificate that “in my opinion the value is R X”, or is it necessary to provide further support for the opinion?”; What is the meaning of arm’s length?; What is the market value of an unsecured interest free loan?; How does one deal with CGT in a partnership?; What about all the issues arising from the interaction between CGT and foreign exchange differences?; etc.
2 We are fortunate to have secured the services of some of the foremost experts on these issues. Our presenters (see below) recently completed a very successful week long intensive CGT training course both in Johannesburg and Cape Town together with Rand Afrikaans University.
     
2.1 Venue: Johannesburg
KPMG Auditorium,
85 Empire Road, Parktown
  Date: 23rd August 2004
  Time: 18h00 to 19h30
  Topic: CGT – three years on
  Speakers: Prof Lynette Olivier (RAU)
Wouter Scholtz (Deloitte)
Duncan McAllister (SARS: author of the SARS Comprehensive Guide to CGT)
  Bookings: Lolitha.Samlal@kpmg.co.za
  Cost: Members - No charge
Non-Members - R500-00
     
2.2 Venue: Cape Town
Pricewaterhouse Coopers
No 1 Waterhouse Place
Century City
  Date: 26th August 2004
  Time: 18h00 to 19h30
  Topic: CGT – three years on
  Speakers: Prof Lynette Olivier (RAU)
Wouter Scholtz (Deloitte)
Duncan McAllister (SARS: author of the SARS Comprehensive Guide to CGT)
  Bookings: jolandie.james@za.pwcglobal.com
  Cost: Members - No charge
Non-Members - R500-00
   
Cost for attending seminars
3 The cost for the seminar is therefore as follows:
Individual members no charge
Corporate members first four attendees, no charge, thereafter subject to availability of seats.
Students no charge, subject to availability of seats
Non-members R 500-00 per person
   
Booking procedure for Members
4 This remains unchanged, simply e-mail Jolandie James in Cape Town or Lolitha Samlal in Johannesburg as mentioned under the venue details.
   
Booking procedure for non-members
5 Bookings for non-members will be confirmed once payment has been effected. There will be no refund for any cancellation one week prior to the seminar. Cheques must be deposited and cleared 10 days before the seminar. Alternatively, cash may be tendered and all deposits must be effected to the following account:
Account Name: South African Fiscal Association
Bank: Standard Bank of SA Limited
Branch: Sandton City Branch, Code 018105
Account No. 021545375
  Deposit slips with clear details regarding identity must be faxed to:

Johannesburg seminar: Lolitha Samlal : 011 647 5819

Cape Town seminar: Jolandie James : 021 529 3309
   
SAFA executive committee
6 We wish to extend a warm welcome to new appointments to the SAFA executive committee for 2004. They are the following persons:
1. Bernard Sacks - Moores Rowland - Cape Town
2. Michael Honiball - KPMG - Johannesburg
3. Ray Eskinazi - Sasol - Johannesburg
4. Robyn De Kock - Moss Morris - Johannesburg
   
Ray and Robyn will be backing Marius Van Blerck up on the scientific committee and we await feedback from them on their plans for the remainder of this year.

In addition, the previous members of the executive committee will serve another term for 2004 with the exception of Danie Folscher who resigned due to other commitments. The existing members are:
1. Charl Du toit
2. Emil Brincker
3. Lynette Olivier
4. Marius Van Blerck
5. Basil Newton
   
Advertising on SAFA’s website
6 See the new SAFA website (http://www.ifa-safa.org/). We also plan to route all future correspondence with members via the website. Any member interested in “sponsoring” an advertising slot may still contact Basil Newton. SAFA has entered into an international initiative with the IMF to provide information to inbound investors which will be routed through our website thereby creating an international exposure for sponsors. A brochure with more detail on the cost and other implications of advertising on the website is available.
   
The 2004 IFA Congress
7 Last year about twelve SAFA members attended the IFA Congress in Sydney. This year the Congress will be in Vienna. For more information visit the SAFA website under “Forthcoming Events”.
   

In closing, please feel free to direct any query to Marius van Blerck (marius.vanblerck@standardbank.co.za), who will deal with it or direct it to the appropriate persons.

Charl du Toit
President: SAFA