Servitudes are very common in the agriculture industry and are mostly required to provide for a right of way, access to water use for different farming purposes and / or extraction of certain materials from agricultural land.
Servitudes are very common in the agriculture industry and are mostly required to provide for a right of way, access to water use for different farming purposes and / or extraction of certain materials from agricultural land.
Section 7(1)(a) of the Value-Added Tax Act, Act 89 of 1991 (the “Act”) provides for the levy of value-added tax (“VAT”) on the supply of goods or services by a vendor. Where there is no supply of goods or services, or where cash is supplied, no output VAT can be levied.
The businesses of farmers are often conducted through the use of juristic entities such as companies, close corporations and trusts. Their personal assets such as vehicles, property and movables are often owned in their own name.
A very tax efficient manner in which companies / a disposing shareholder normally structure an envisaged share sale is by instead of the disposing shareholder selling the said shares to a third party, it enters into a buyback agreement with the company in which it owns the shares (in terms of section 48 of the Companies Act). The said buyback is then followed by a subscription of shares in the company by a third party.
Section 9 of the Trust Property Control Act, Act 57 of 1988.(the “Act”) provides that a trustee shall in the performance of his / her duties and in the exercise of his / her powers act with the care, diligence and skill which can reasonably be expected of a person who manages the affairs of another.
Converting debt to equity is a common occurrence in the business sector and entails the conversion of an existing loan to equity. Such conversion increases solvency and liquidity position of a company and improves the potential to raise further funding should it be required.
When immovable property is sold, the questions that will in all likelihood first arise are: whether Transfer Duty or VAT will be payable on the transfer; and should VAT be payable, whether it will qualify as a zero-rated taxable supply.
Competition Commission of South Africa v Hosken Consolidated Investments Limited and Another (CCT296/17) 2019
If members of a Company transact on behalf of a Company, the Company will be deemed to close the transaction and not its respective members. Due to Company's separate legal personality, the liability of a Company's members is therefore limited.
Contracting parties often enter into written agreements, including a cause that generally states that parties to the contract should behave honestly and fairly in their dealings with one another (i.e. the good faith clause). According to our law of contract, where persons enter into a legally enforceable contact, their rights and duties are defined by the agreement they sign.
Employees' rights are strongly enshrined in South African legislation.
In the case decided by the Supreme Court of Appeal, Pexmart CC and Others v H Mocke Construction (Pty) Ltd. 2019, the principles of unlawful competition were considered.