South Africa: The Assumption Of Rehabilitation Liabilities As Consideration Given On The Acquisition Of Mining Property And Capital Assets

During December 2013, SARS released a draft discussion paper in which it set out its application of the relevant tax law, in relation to the tax treatment of the purchaser and seller, with regard to the assumption of contingent liabilities as part settlement of the purchase price of assets acquired as part of a going concern.

SARS states that the document was prepared in light of recent judgments delivered by local and foreign courts as […]

By |October 22nd, 2014|

United States: IRS Issues Notice Providing Additional Guidance Regarding The Meaning Of Important Terms In The Codified Economic Substance Doctrine

The economic substance doctrine is a longstanding judicial doctrine in tax law under which certain tax benefits with respect to a transaction are disallowed if the transaction does not have economic substance or lacks a business purpose. In 2010, the Internal Revenue Service codified the economic substance doctrine in section 7701(o) of the Internal Revenue Code. Under the codified doctrine, a transaction shall be treated as having economic substance only if both the objective […]

By |October 21st, 2014|

Australia: Changes to thin capitalisation and non-portfolio dividend exemption rules

On 16 October 2014, changes to Australia’s thin capitalisation and non-portfolio dividend exemption rules received Royal Assent.

The changes to the thin capitalisation rules represent a significant tightening of the rules for many taxpayers, with a material impact on the availability of interest deductions. Concessional changes to the rules will also impact those taxpayers.

The changes to the non-portfolio dividend exemption for foreign dividends are driven by integrity concerns around the debt/equity divide.

When Will the Changes […]

By |October 21st, 2014|