STEPHEN CRANSTON: A look at how to navigate the 12J switch-off
Possible pre-deadline investors should weigh up various factors and have confidence in company fundamentals
In the last national budget finance minister Tito Mboweni announced that the Section 12J tax deduction would end on June 30, less than two weeks from now. He said the deduction was not being used for the purpose for which it was intended.
Section 12J was introduced in 2009, modelled on the UK’s venture capital tax break, and offers investors a 100% tax reduction for making an investment in SMMEs in selected industries. Yet many of the 12J projects cannot be described as either innovative or high risk. There is now a glut of hotels, for instance, particularly in the Rosebank area. ..