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

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. Charl du Toit, partner in the Tax Advisory practice o...