The Section 12J Venture Capital Company (VCC) sector is fast approaching its moment of reckoning, as a sunset clause comes into effect in June 2021.

"According to the SA Revenue Service’s (Sars’s) ‘External Guide’ on VCCs, the purpose of this clause is to ‘allow a review of the effectiveness of the VCC regime’. It says: ‘a decision will be made as to whether it should be continued’," explains Natasha Wilkinson, tax attorney at Tax Consulting SA.

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