Compliance likely to be tightened for section 12J companies, says Anuva
At the moment, section 12J companies do not have to provide detailed financial and integrated reports
The National Treasury is likely to start forcing section 12J companies to report publicly about their operations and investments as their popularity among investors grows, says co-founder and CEO at Anuva Investments, Neill Hobbs. Because they are not listed, section 12J companies do not have to provide detailed financial and integrated reports like listed companies do. “I think Sars will be asking for stronger reporting and will ask for private details in the next two years. We, as the industry, ought to provide those details because investors should know what the underlying investments are when they invest their money. But it’s also about accountability back to government,” said Hobbs. Section 12J companies invest in early-stage small and medium businesses as well as junior mining companies. The government introduced a tax incentive in 2009, and sweetened it in 2015 to encourage investors to put more money into these ventures. It is the only investment that allows people who have ...
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