• Home
  • News
    • People moves
    • Africa
    • Asia
    • Australia
    • Canada
    • Caribbean
    • Domicile
    • Europe
    • Latin America
    • North America
    • Middle East
    • US
    • US
    • UK
  • Products
    • Funds
    • Pensions
    • Platforms
    • Insurance
    • Investments
    • Private Banking
    • Citizenship
    • Taxation
  • Fintech
  • Regulation
  • ESG
  • Expats
  • In Depth
  • Special Reports
  • Directory
  • Video
  • Advertise with us
  • Directory
  • Events
  • European Fund Selector
  • Newsletters
  • Follow us
    • Twitter
    • LinkedIn
    • Newsletters
  • Advertise with us
  • Directory
  • Events
    • Upcoming events
      event logo
      International Investment Nordic Forum 2021

      International Investment is delighted to announce the 2021 International Investment Nordic Forum which will take place on Tuesday March 9, at 9am (GMT). This curated virtual event will be broadcast live and will feature a series of fund manager interviews and presentations, as well as interviews with some of the Nordic regions top fund selectors.

      • Date: 09 Mar 2021
      • ONLINE, ONLINE
      View all events
  • European Fund Selector
International Investment
International Investment

Sponsored by

Sharing Alpha
  • Home
  • News
  • Products
  • Fintech
  • Regulation
  • ESG
  • Expats
  • In Depth
  • Special Reports
  • Video
  • Regulation

Time running out for companies in South Africa to prove 'economic substance'

Time running out for companies in South Africa to prove 'economic substance'
  • Pedro Gonçalves
  • @PeterHSG
  • 24 September 2020
  • Tweet  
  • Facebook  
  • LinkedIn  
  • Send to  

South African companies operating in low- or no-tax jurisdictions will soon have to demonstrate that they have staff, premises, expenses and activities aligned with the company's nature in said jurisdiction.

South Africa's 'economic substance' legislation came into force last year but gave companies some time to make sure they could comply with the requirements. As the reporting dates are now becoming due, companies are rushing to demonstrate that they are not artificially shifting  taxable profits away from where value is created.

Related articles

  • Bahamas removed from EU's blacklist
  • EU poised to blacklist Bahamas, Mauritius and Panama for money-laundering
  • Bahamas 'disappointed' by EU's blacklist proposal
  • Mauritius caught in offshore scandal

Charl du Toit, partner in the Tax Advisory practice of Stonehage Fleming warned about the consequences for those companies that won't comply.

Failure to meet the requirements can result in the exchange of information between the relevant jurisdiction and other countries’ tax authorities"

"Failure to meet the requirements can result in the exchange of information between the relevant jurisdiction and other countries' tax authorities, financial penalties and, ultimately, striking off the companies register," he told local media.

He added that there are sigs to suggest that a great number of companies, subject to the new rules have not fully dealt with it yet.

Du Toit South said African HNWI "love" their offshore trusts, and companies in places like Mauritius or the Bahamas. He mentioned one South African group that has well over 100 such companies.

The main aim was to prevent base erosion and profit-shifting from high-tax jurisdictions to low-tax jurisdictions.

 

Subscribe to International Investment's free, twice-daily, newsletter

  • Tweet  
  • Facebook  
  • LinkedIn  
  • Send to  
  • Topics
  • Regulation
  • South Africa
  • Stonehage Fleming
  • Mauritius
  • Bahamas
  • Economic Substance

More on Regulation

FCA hands £3.4m back to unauthorised investment scheme victims

  • Regulation
  • 24 February 2021
EU removes Barbados from blacklist of 'non-cooperative' jurisdictions

  • Regulation
  • 23 February 2021
Jersey regulator fines three firms for breaching money laundering rules

  • Regulation
  • 17 February 2021
FCA partners with Jersey regulator to probe new Woodford venture

  • Regulation
  • 17 February 2021
CISI launches anti-money laundering partnership with Qatari regulator

  • Regulation
  • 16 February 2021
Back to Top

Most read

EU removes Barbados from blacklist of 'non-cooperative' jurisdictions
EU removes Barbados from blacklist of 'non-cooperative' jurisdictions
Global UHNWI population to grow by 27% over the next five years: Knight Frank
Global UHNWI population to grow by 27% over the next five years: Knight Frank
J.P. Morgan Asset Management launches Global Income Sustainable Fund
J.P. Morgan Asset Management launches Global Income Sustainable Fund
Comment: Four key issues powering the renewable energy revolution
Comment: Four key issues powering the renewable energy revolution
Amati Global Investors launches strategic metals fund
Amati Global Investors launches strategic metals fund
  • Contact Us
  • Marketing solutions
  • About Incisive Media
  • Terms and conditions
  • Policies
  • Careers
  • Twitter
  • LinkedIn
  • Newsletters

© Incisive Business Media (IP) Limited, Published by Incisive Business Media Limited, New London House, 172 Drury Lane, London WC2B 5QR, registered in England and Wales with company registration numbers 09177174 & 09178013

Digital publisher of the year
Digital publisher of the year 2010, 2013, 2016 & 2017
Loading