March 17, 2016


The Income Tax Act, 58 of 1962, contains several so-called ‘group relief’ provisions in terms whereof corporate restructures can take place on a tax neutral basis.  One of these is if a transaction comprises an ‘asset-for-share transaction’, or put simply:  where a company purchases an asset in exchange for which that company agrees to issue shares to the seller. The term ‘group relief’ is somewhat of a misnomer in that not all of the group relief provisions necessarily involve groups of companies.  The ‘asset-for-share transaction’ is one such an example where company groups are not necessarily involved.  In fact, the […]
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