Treasury withdraws proposals on collective investment schemes until 2019
The Treasury has agreed to withdraw its tax proposals for collective investment schemes and to reconsider them in the 2019 legislative cycle after further discussions with the industry. The proposals are contained in the draft Taxation Laws Amendment Bill and have elicited strong protests from the collective scheme industry. Treasury’s chief director of legal tax design Yanga Mputa told parliament’s finance committee on Wednesday that the proposals will be withdrawn for later consideration. This will give the government and industry more time to find solutions that have a less negative impact on the industry. The proposals were aimed at frequent trading of shares and some financial instruments by some collective schemes, and would have treated this as income rather than as being of a capital nature. The Treasury proposed that distributions from collective investment schemes to unit holders derived from the disposal of financial instruments within 12 months of their acquisition shoul...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.