Tax law changes open BEE doors for charities
Changes to income tax laws will allow public-benefit and non-profit organisations to participate more easily in unlisted BEE transactions, says a tax expert quoted in Business Day.
The changes, recently passed by both the National Assembly and National Council of Provinces, will not only have an effect on charities, but also individuals who have set up their own charitable trusts to run family foundations or corporate social investment programmes. The new laws will give non-profit bodies investment freedom to invest in empowerment transactions and private equity deals through the purchase of shares in unlisted companies. However, Anna Vayanos, business development manager at TBS Consulting, a division of BoE Private Clients, says that they will still be regulated under the common law and other legislation relating to trusts and Section 21 companies. Full Business Day report