DESPITE rumblings from SA’s tax authority suggesting that the opposite could be true, Nedbank Private Wealth believes its offer to SABMiller shareholders — which would delay capital gains tax (CGT) liabilities on profit earned in the Anheuser-Busch InBev (AB InBev) takeover — is provided for in the Income Tax Act.The South African Revenue Service (SARS) on Friday warned SABMiller shareholders that entering into transactions that postponed potential CGT liabilities might be considered "impermissible avoidance arrangements" under the Income Tax Act, given that they resulted in a tax benefit and that their main purpose was to obtain such a benefit. Individual shareholders pay CGT on profit made when selling shares.Nedbank Private Wealth, which is among a number of boutique fund managers offering clients a way of delaying CGT, said its action "followed careful consideration of the facts and circumstances relating to the investment, client, business and regulatory contexts".It referred t...
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