BPR 186 - Asset-for-share transaction between a resident private company and a collective investment scheme (CIS) in securities
SARS has published a binding private ruling 186 on asset for share transactions between a resident private company and a CIS security. This ruling deals with the tax treatment of the conversion of an existing portfolio of assets into participatory interests in a CIS under section 42 of the Income Tax Act and the immediate disposal of the participatory interests.
Please click here to access the binding private ruling 186.
Section 240A of the Tax Administration Act, 2011 (as amended) requires that all tax practitioners register with a recognized controlling body before 1 July 2013. It is a criminal offense to not register with both a recognized controlling body and SARS.