The clock is ticking on the section 12J tax incentive for venture capital investment. This is a valuable tax planning tool as it offers a 100% deduction in the year in which an investment is made, capped at R2.5m for individuals.But section 12J has not been without controversy: while it was established to encourage investment into new ventures, more often than not it has served as a generous tax concession to the wealthy. It means this tax break might not be renewed after the sunset date of June 2021, given the extent of abuse. It was not unusual for people to invest in their own holiday homes and miraculously turn them into nonfunctioning bed and breakfasts, for example.Such abuses have now been largely stamped out. So far, section 12J investments have attracted about R10bn.Dino Zuccollo, head of the 12J Association, argues that part of the thinking behind 12J was job creation. And the association still believes that when the funds are fully invested it will create 45,000 jobs, if ...

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