POPIA deadline looming and regulations about to take effect

“I own a local store making custom items for our clients. Because of the nature of some of the client requests I have to use other suppliers and have to share basic information about my clients with them. I am aware of POPIA and I understand that we need to comply including to new regulations that I understand have been issued. My question is to what extent and by when will I need to meet all these requirements?”

You are correct in assuming that you will need to comply with the Protection of Personal Information Act (POPIA) if you obtain and use personal information of your clients, including also ensuring that third parties that you pass such information on to, also comply. 

POPIA took effect on 01 July 2020, with other provisions coming into force on 30 June 2021. Businesses have been provided with a one-year grace period, until 01 July 2021, to become POPIA compliant or face the consequences set out in the Act. Additionally, regulations may also be published in relation to POPIA from time to time and these regulations will provide additional rules and requirements which businesses may need to comply with. POPIA compliance is therefore not a once-off thing but a process that will need to be regularly reviewed to ensure compliance. 

It is important to take note of the fact that regulations may also be published in relation to POPIA from time to time. These serve to provide further arrangements, rules, processes and context in relation to the Act. Recently, the Information Regulator announced the imminent commencement of certain regulations in terms of POPIA, relating to the protection of personal information. 

With effect from 1 March 2021, the provisions of the regulations in relation to the application for issuing a code of conduct became effective. This allows private or public bodies that are sufficiently representative of various entities in an industry, to apply for a code of conduct to be considered for that specific industry.

With effect from 01 May 2021, the regulations in relation to the responsibilities of information officers will take effect. This is significant for businesses, since every entity that must comply with POPIA must have an information officer – the person responsible within the business for POPIA compliance, privacy and data governance. These regulations supplement the responsibilities set out in POPIA and emphasize the obligation to develop a compliant PAIA manual, as well as internal processes and procedures to advance data subject participation and internal POPIA training.

With the deadline for attaining POPIA compliance approaching fast and potentially further regulations and requirements being imminent, it is vital that compliance be prioritized given the hefty consequences for a failure to be compliant.

It is difficult to exactly state what areas of compliance you would need to have in place, but it would be highly advisable to enlist the help of your attorney or POPIA specialist to help you and review what you have in place and what would still need to be done before the Act and regulations take full effect.

April 16, 2021
Section 8C explained: Tax tips for employee share schemes

Section 8C explained: Tax tips for employee share schemes

Employee share schemes are often introduced to reward, retain, or align employees with long-term business growth. However, under section 8C of the Income Tax Act 58 of 1962 (the “Income Tax Act”), these arrangements can create significant and unexpected tax liabilities for employees when equity instruments vest. This article explains how section 8C operates, what qualifies as an “equity instrument,” and why careful structuring of share schemes is essential to avoid punitive tax outcomes.

The costly consequences of backdated share transactions

The costly consequences of backdated share transactions

The South African legislative framework regards backdated shares as a suspicious and illegal practice, as it arises when a share issue or transfer is recorded as having occurred on an earlier date than the actual transaction. While backdating may be viewed as an administrative oversight, the consequences may constitute compliance risk, serious misconduct on directors, beneficial owners and compliance officers who authorise the backdating of share transactions. This is because backdated shares may manipulate the timing of funds, obscure the source of funds, and distort a company’s beneficial ownership structure.

Tax transparency matters: Are your deals reportable?

Tax transparency matters: Are your deals reportable?

Some deals come with hidden reporting duties. Find out when your transactions could trigger SARS disclosure rules, and how to stay compliant. You may have heard the term “reportable arrangement” in tax conversations around commercial transactions. It sounds technical, and it is, but at its core, it’s about transparency. The South African Revenue Service (“SARS”) seeks information on certain transactions that could be used to avoid or reduce tax. If you enter a reportable arrangement, you may be legally required to report it. Failure to comply can result in significant penalties.

Sign up to our newsletter

Pin It on Pinterest