I had hoped that the section 12J tax concession would be continued. This is mainly because I agree with the argument put by Dino Zuccollo, chair of the 12J Association of SA, that the bulk of the R8.5bn that was invested in these schemes would otherwise have gone overseas.

Section 12J provides an immediate tax deduction of up to R2.5m every tax year as long as the money was retained in a venture capital company for at least five years. There was a catch, of course — considerably higher capital gains tax has been charged, payable from zero and not from the original book value of the investment...

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