Avoid the “Chase” following the purchase of a business
When you intend to buy a business from a seller as a going concern, it is important to do your homework in respect of the business you intend to acquire to make sure that no unpleasant surprises await you after the fact. Notwithstanding the obvious research about the good name, the turnover, the customer base, […]
Transferring assets from persons to companies
Many business transactions are concluded in terms of section 42 of the Income Tax Act. This section essentially allows a transfer of an asset by a person to a company, in exchange for equity shares in that company, allowing for a tax neutral transaction. The South African Revenue Service has recently issued Binding Private Ruling […]