Contingent liabilities associated with the sale of business operations
Sean Kleynhans In the 2011 budget speech, concerns were raised by the Minister about the tax effect of the sale of a business subject to “contingent liabilities”. These “liabilities” gave rise to concerns of potential double taxation or double non-taxation. Legislation was proposed in the draft taxation laws amendment bill issued in June 2011, the proposed legislation was withdrawn, we understand after public debate, in favour of an interpretative approach. It is proposed that interpretative guidance, with legislative refinements will be issued during the year.
