Company law reform
Sean Kleynhans The promulgation in 2010 of the Companies Act (2008) has given rise to missmatch in relation to tax. This is particularly the case with regard to reorganisations and other share restructurings where inter alia the Companies Act provides for amalgamation transactions and reorganisations not envisaged by the Income Tax Act. Government’s proposes to review the company reorganisation provisions and has suggested that it will hold a series of workshops to review the nature of company mergers, acquisitions and other restructurings to better understand their practical use. These workshops will lay the foundation for tax/company law changes over a proposed two-year period. The Minister in his speech indicated that an immediate focus area will be share-for-share recapitalisations of a single company.
