Page 2 - P6 Slide Taxation - Lecture Day 5 - Groups

Introduction

• SA tax legislation does not allow for group

taxation. However, the South African Income Tax

legislation does allow for certain corporate re-

organizations to be done on a tax neutral basis.

• These tax neutral provisions are known as

corporate rules.

• Corporate rules allow founding shareholders

and/or group companies to restructure active

businesses on a tax neutral basis.

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