Property Developers Beware: Deemed Accruals Can Seriously Disrupt Your Cash Flow

A recent Supreme Court of Appeal (SCA) judgment of Milnerton Estates Limited v Commissioner for the South African Revenue Service (1159/2017) [2018] ZASCA 155 has confirmed that when a property developer enters into an agreement with a buyer to transfer the property, even if the developer only actually gets paid in a subsequent tax year, the income is deemed to have accrued to the developer at that date. The developer must therefore include the full proceeds of the sale in its income tax return for the year the agreement was signed. This has the effect of the property developer paying tax before receiving…
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Victims of Corruption Take Heart – “Big Chief” Gets 15 Years Behind Bars

We are all of us tired of reading about the rampant corruption in our society, and even if you aren’t one of the many businesses or individuals directly affected, everyone is ultimately a victim. Let’s take heart then from two recent Supreme Court of Appeal (SCA) decisions. Firstly, to set the scene – Minimum sentences for corruption Corruption in terms of the Prevention and Combating of Corrupt Activities Act is an offence which, when more than R500,000 is involved, carries a minimum sentence of 15 years’ imprisonment, even for first offenders, “unless there are substantial and compelling reasons justifying a…
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Beware the Building Deadlines When Buying-to-Build

The case of Walker and Another v Cilantro Residential Estate Homeowners Association (A3067/16) [2016] ZAGPJHC 299 is yet another warning from our courts to take seriously the building deadlines commonly imposed on buyers of plots in residential estates. Failure to comply with them could expose you to heavy fines, recurring penalties and even the risk of losing your plot altogether. A Home Owners Association (HOA) imposed “double levy” penalties totalling R105k on the owners of a plot when they failed to start development of their house before the deadline. Taken to court, the owners challenged the validity of the penalties on a variety of…
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Paternity Leave and Minimum Wages – How Will The New Laws Affect You?

Employers and employees need to know about four new Acts which will usher in important changes to our labour laws. The summary below is a short one of only those changes likely to affect a significant number of people and businesses, so take advice on your specific circumstances. In a nutshell – Parental leave extended Until now, mothers have been entitled to unpaid leave when welcoming a new child into the world, in the form of 4 consecutive months’ “maternity leave”. Plus they can claim maternity benefits from the UIF if they are contributors. New fathers however have been limited…
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