by VDT Attorneys | Sep 17, 2025 | Corporate advisors, Corporate structuring, Hybrid equity instrument, Income Tax Act, International Tax Law, Preference shares
Hybrid equity instruments aim to prevent the use of financial instruments masquerading as equity when they have debt-like characteristics. Dividends received by qualifying hybrid equity instruments would then be reclassified as income. The current anti-avoidance...
by VDT Attorneys | Sep 1, 2025 | Corporate structuring, Income Tax Act, International Tax Law, Preference shares
Current anti-avoidance rules under section 8EWhere instruments have the characteristics of debt but are structured as equity, the anti-avoidance provisions embodied in section 8E of the ITA become applicable. The taxing event envisaged by section 8E of the ITA is that...
by VDT Attorneys | Apr 22, 2024 | Currency gain, Exhange Item, Preference shares, SARS, Taxable gain, Taxable loss
Section 24I of the current Income Tax Act subjects realised and unrealised gains or losses on “exchange items” to normal income tax. As the act currently stands, an “exchange item” is confined to one of the following: a unit of foreign currency a debt in a foreign...
