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Employee Share Schemes - Johannesburg
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New provisions set out in the draft Taxation Laws Amendment Bill 2013 will, when introduced early next year, radically alter the taxation of employees who are the beneficiaries of employee share schemes.

When: 2013/11/14
09:00am - 13:00pm
Where: Hyatt Regency
191 Oxford Road
Johannesburg, Gauteng  2132
South Africa
Contact: Ingrid Erwee

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Preparing for a SARS Audit Presented By Ronel de Kock


New provisions set out in the draft Taxation Laws Amendment Bill 2013 will, when introduced early next year, radically alter the taxation of employees who are the beneficiaries of employee share schemes.The new provisions are to override section 8C of the Income Tax Act when the employee shareholder hold 'restricted equity instruments.' Where the shares qualify as 'restricted equity instruments', dividends paid on the shares will be taxed as ordinary income, and at the employees' marginal rates. The dividends will be deductible at employer level, and will be exempt from the 15% dividend tax.

Unrestricted equity instruments (ie, shares which can be sold without material restrictions) will continue to be governed by section 8C of the Act.

This seminar offers detailed guidance in regard to the tax treatment of both restricted and unrestricted equity instruments.

Programme highlights will include:

  • the issue of partly paid shares (under section 40 of the Companies Act) as an ideal basis for the establishment of senior executives' share schemes;
  • affordable approaches to the establishment of black employees' share trusts, which obviate any need to resort to debt funding and maximize points claimable under the B-BBEE ownership scorecards.

    • close technical analysis of section 8C of the Income Tax Act, focusing on the distinction between restricted and unrestricted equity instruments;
    • how to structure senior executives' share schemes in order to attract a 'nil assessment' under section 8C of the Act, with tax exposures limited to CGT or dividend tax in the event of a sale or buy-back of the shares;
    • how to set up 'self-financing' senior executives' share schemes by using partly paid shares, with the subscription price being payable by way of a set off of dividends;
    • how to set up black employees' share schemes on a simple, affordable and BEE-compliant basis, with detailed guidance regarding the key provisions of the trust deeds.


This programme is a 'must' for all tax professionals advising corporate clients. It will also offer valuable insights to human resource specialists and BEE consultants.
Given the detailed treatment of partly paid shares under section 40 of the Companies Act, and the close guidance in regard to the key provisions of trust deeds governing black employees' share schemes, the seminar will also be of particular interest to commercial lawyers involved in the drafting of employee share scheme documentation.


Wouter Scholtz
Advocate Wouter Scholtz has :

    • directed tax training for Deloittes (Australia);
    • served as a Senior Manager (Mergers and Acquisitions) with Pricewaterhouse-Coopers in Sydney;
    • conducted training in Capital Gains Tax for both SARS and Deloittes (South Africa);
    • taught tax on post-graduate programmes at Sydney University, the University of New South Wales and (as an Adjunct Professor) at the University of Cape Town.

Wouter's authorship includes Australian Corporate Taxation : Dividends and Imputation; Tax Planning for Business; the Empowermentor BEE Service and Broomberg on Tax Strategy.
Wouter, having previously served as a director at Mazars, has recently (in association with Andrew Duncan, a former director of Walkers Attorneys) established the Flagship Trust, offering specialised services to the trustees of family discretionary trusts and related companies.


Attendance will secure 4 hours verifiable CPD points/units, incl. other professional bodies.


SAIT Members: R1390.00
Affiliated Members R1590.00
Non-Members: R1790.00



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.

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