Private Equity and Venture Capital: Local Opportunities in Challenging Times (Panel Discussion)
Despite the current period of economic difficulty, private equity and venture capital funds are still seeking opportunities. At issue is where these opportunities lie and whether the current tax instruments and incentives have any meaningful commercial impact on the decision-making process.
Caoilfhionn van der Walt
Regan van Rooy
09:30 to 10:30
Black Economic Empowerment Transformation of Share Ownership: BEE Scorecard, Finance and Tax Perspectives (Panel Discussion)
The transfer of ownership as part of the empowerment process remains at the centre of the transformation agenda (especially in light of the stated government desire for “radical transformation”). This session will cover the overall direction of the transformation agenda in terms of share ownership and its associated tax implications.
Government has had share buybacks in the spotlight for some time now with SARS initially seeking to curtail this avoidance through its system of reportable arrangements. At issue is whether the recent Treasury announcements have put this scheme to an end and / or unfairly stopped commercially-driven transactions.
Cliffe Dekker Hofmeyr
Dawid van der Berg
11:45 to 12:30
Borrowing Money to Acquire Domestic and Foreign Company Shares: A Tax, Finance and Company Law Perspective (Panel Discussion)
Obtaining funding for the acquisition of domestic and foreign shares remains a challenge because the general rule of section 11(a) prohibits the deduction of interest when acquiring shares. This session covers the override of section 24O as well as the continued use of preference share funding to obtain exemption on the funding yield.
Dr Ferdie Schneider
Allen & Ovary
12:30 to 13:30
13:30 to 14:00
Debt Versus Preference Shares (Solo Speaker)
Given the different tax effects of debt and preference shares, knowing the rules associated with both sets of instruments is critical for all tax professionals. In this session, the core elements of both forms of financing will be discussed, including issues relating to the new hybrid share and hybrid debt anti-avoidance rules.
Given the tough economic climate, many opportunities exist relating to the acquisition of troubled businesses. At issue is whether the losses associated with these businesses will be available for use by new owners.
Dawid van der Berg
14:30 to 15:00
The Big Incentives: A Tax and DTI Perspective (Solo Speaker)
Foreign investors continue to seek government support when investing locally as part of their overall investment decision. This session covers the large tax and government grants that could be used to influence their decision.
15:00 to 15:30
15:30 to 16:30
Risk Identifiers – Feeling the Audit Heat (Town Hall Discussion)
Certain taxpayers have developed a number of techniques that they have repeatedly used over the years to undermine the tax base, and SARS has learned to identify many of these schemes. In this session, discussion will revolve around perceived areas of heavy audit and the various levels of proof required to demonstrate commercial validity.