The submission presents SAIT’s Corporate and International Tax Technical Work Group’s recommendations for legislative amendments to be considered in Annexure C of the 2026 Budget Review, highlighting several technical issues currently creating unintended tax consequences, uncertainty, administrative burden, or inequitable outcomes. It addresses the need to amend section 23N to halt interest-limitation rules when a section 45 de-grouping occurs; proposes clarifying amendments to paragraph 43A and section 22B to prevent excessively broad application of dividend-stripping rules, especially in liquidations; recommends adjusting section 42 to avoid multiple layers of tax in asset-for-share transactions; calls for reform of section 9H exit tax to allow deferral until actual disposal to prevent double taxation and the “economic prisoner” effect; proposes enabling funding PBOs under section 18A(1)(b) to support other hospital-infrastructure PBOs while retaining their ability to issue tax-deductible receipts; raises concerns about the definition of “company” affecting hedge fund collective investment schemes and creating unintended CFC exposure; and suggests a new section 12NB to allow taxpayers contributing to Eskom infrastructure to claim deductions over ten years.
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