Beverly Chandler, Opalesque London:
Writing in South Africa’s IOL, Bruce Cameron explains that more tax is likely for 'frequent’ switching of collective investments in South Africa.
"You will not be able to switch in and out of collective investment schemes – mainly unit trust funds and exchange traded funds (ETFs) – at will without considering the tax consequences if a proposal published in the Taxation Laws Amendment Bill is adopted" he writes.
The bill also:
The IOL piece explains that according to a National Treasury document issued with the Taxation Laws Amendment Bill, which gives effect to the proposals announced in the Budget earlier this year, the "three-year rule" for determining tax will apply to collective investment schemes in the future.
- Proposes a date on which the changes to tax deductions for retirement fund contributions will take effect;
- Provides for the phasing out of provident funds; and
- Provides for the removal of the tax deduction for premiums paid on income protection policies.
The document also proposes that, from next year, hedge funds be brought within the ambit of the Collective Investment Schemes Control Act and be subject to the same tax regime as collective investment schemes.
"The "three-year rule"......................
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