The South African tax implications of Black Economic Empowerment transactions [electronic resource]

Abstract

The aim of this dissertation is to research the existing South African income tax legislation that is available for use by various parties when conducting equity transactions aimed at compliance with the ownership element of the Black Economic Empowerment (BEE) scorecard and to suggest recommendations when possible to the Income Tax Act 58 of 1962 that may be necessary to encourage an increased focus on making a success of BEE within South Africa. To achieve this, existing income tax legislation applicable to each party in the transaction is considered separately as the tax consequence differ depending on whose perspective is being considered. This dissertation represents tax legislation applicable as at 8 January 2008, including all amendments up to this date.