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October 21, 2005
Accountants ask SARS to lighten BEE burden
CAPE TOWN — Shareholders forced to sell their shares in listed companies to facilitate black economic empowerment transactions should be given a break from capital gains tax, the South African Institute of Chartered Accountants (Saica) says.
In a submission to Parliament’s finance committee yesterday, Saica argued that capital-gains tax should not be applied to forced share sales where the taxpayer reacquired the same or a similar asset within a 45-day period...
Saica tax director Jackie Arendse said taxpayers often repurchased shares in the same company on the open market after the forced sale to restore their holdings. They were then required to pay capital gains tax a second time when they sold their replacement shares.
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Posted by bernievn at October 21, 2005 8:53 PM