For the first time in history, entrepreneurs and many business owners (who do not fall into the “Essential Services” category) have had to temporarily cease business operations and many are taking this opportunity to innovate and develop new businesses, business lines and technologies.
Section 12 J of the Income Tax Act (“ITA”) has got the attention of many people in the Venture Capital, Private Equity and a number of other industries including renewable energy, technology, engineering, procurement, construction, hospitality and even mining. For investors, this sector is now far more developed and offers a range of alternative investment options with a significant tax advantage. Section 12 J provides a tax incentive aimed to encourage private sector investors who might normally invest in traditional investments such as listed equities to invest into smaller businesses, specifically venture capital companies (“VCCs”).
The tax submission deadline has come and gone. For the tax year under review in order to make the process of submitting tax returns seamless and quick, the South African Revenue Service (“SARS”) implemented an auto-assessment process in which a select number of taxpayers will have their tax returns auto-assessed. The auto-assessed figure is not set in stone as the taxpayer is able to amend the return.