Re-organizations & anti-avoidance provisions

Anti-avoidance provisions for re-organizations

When the tax commissioner is not satisfied that a re-organization is carried out for real commercial or genuine economic reasons but rather for avoidance or reduction of taxes, then the tax commissioner is given the right to reject the re-organization scheme.

Also the tax commissioner has the right to impose conditions on the number of shares that can be issued as part of the re-organization and the period for which such shares should be held.

Such restrictions cannot apply for PLCs and transfer of shares as a result of succession. The change applies from 1 January 2016.

On 10th of December 2015, the House of Representatives voted a number of significant tax law amendments that were published in the Government Gazette on 17 December 2015.

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