It is very often the case that a company extends an interest free or low interest loan to a director. This manifests either as a true incentive or benefit to that director (mostly the case in larger corporate environments) or in a small business environment in lieu of salaries paid. The latter is especially the […]
PAYE and directors’ (and members’) remuneration from 1 March 2017
Many would have noted reports in the national media that the Taxation Laws Amendment Act, 16 of 2016, was signed into law by President Zuma on 11 January 2017. One of the many changes that the Act brings into effect is the repeal of paragraph 11C of the Fourth Schedule to the Income Tax Act, […]
The Companies Act’s solvency and liquidity test
The solvency and liquidity test in section 4 of the Companies Act, 71 of 2008, presents arguably one of the most important requirements of that Act. Without a company satisfying this test, it company cannot declare dividends, cannot provide loans and other forms of financial assistance to directors or to prospective shareholders to enable the […]