Newsletter 2/2004
 26 July 2004

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

The SAFA has held seminars on Anti avoidance and Capital gains tax which were presented by speakers of exceptional standard. The next seminar is detailed hereunder

1 Next evening seminar:
1.1 Topic: “Selected issues from the 2004 Tax Amendments”

The 2004 tax amendments will in all probability be promulgated by Parliament some time in November 2004. As has been the case in recent years, there are once again important changes. Selected issues from the amendments will be discussed.

We are looking for volunteer speakers, both in Cape Town and Johannesburg. Please put your name forward as a speaker on any of the issues listed below or any other issue in the amendments that you believe to be worthwhile. Please notify Marius van Blerck at marius.vanblerck@standardbank.co.za  before the end of October 2004.

At this stage we intend to consider the following issues:

Broad based employee share initiative: The key features of the new rules and how it may effect BEE transactions.

Full taxation of executive equity schemes: The key features and what options remain for employee incentives in the future. The presenter is invited to discuss a financial model comparing the past (mostly no tax deduction and cash outlay for the employer and beneficial tax position for employee) with possible incentives in future, say cash bonuses (tax deduction and cash outlay for employer and full tax in the hands of the employee).

New tax rules for hybrid financial instruments: Key features and implications.

Introduction of SARS system of advance rulings: We hope to get a speaker from SARS to explain the new system and maybe also to give more information on the SARS’s new Large Business Centre.

Amendments to STC: There have been amendments to the group relief exemption in section 64B. There are also current disputes on the interpretation of this section as it read previously, with specific reference to double tax treaties.
2  
2.1 Venue: Johannesburg
KPMG Auditorium,
85 Empire Road, Parktown
  Date: 30 November 2004
  Time: 18h00 to 19h30
  Topic: Selected issues from the 2004 Tax Amendments
  Speakers: To be announced
  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: 2 December 2004
  Time: 18h00 to 19h30
  Topic: Selected issues from the 2004 Tax Amendments
  Speakers: To be announced
  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
   
The 2004 IFA Congress Report back:
6 South Africa fielded a strong contingent of nineteen attendees at Vienna which is indeed a positive sign! The main topics were “Double non-taxation” and “Group taxation” with two break-out sessions on tax planning techniques for groups of companies and EU law aspects of taxation of groups of companies. In addition, there were seminars on the “Place of effective management as a tie breaker rule”; “Estate planning tax opportunities and limitations”; “Recent developments in international tax law””; Societas Europaea (which is a new form of “uniform” company to cater for the EU theatre); “Austria as a business location with special reference to the new EU member countries and lastly “How judges judge international tax cases”.

The information is available on the secure section of the IFA website which may be accessed by members. The main topics are of course canvassed in the IFA “Cahiers” books which are provided as part of your annual membership.

The general council meeting was attended by Charl Du Toit and Basil Newton in their respective capacities, during which matters of common interest were discussed including the question of annual membership fees. This is an issue which will be raised at an executive meeting of the SAFA and communicated to members in due course.

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