The SAIT International Tax Technical Work Group’s submission on the Draft Taxation Laws Amendment Bill, 2025 highlights key concerns and recommendations regarding proposed international tax amendments. The WG cautions that the revised definition of “equity share” could retrospectively disqualify foreign shares from various exemptions and reliefs since 2012, urging that the change be applied retrospectively or treated as a clarification of original intent. On Controlled Foreign Company (CFC) rules, the WG acknowledges the need to correct gaps but warns the amendment may unfairly penalise taxpayers in high-tax jurisdictions, suggesting a more balanced mechanism. Concerns were also raised about ambiguity in the proposed deferral of exchange differences on related-party debt, with calls for clearer terminology. Finally, the WG questioned the growing reliance on IFRS in tax legislation, noting risks of uncertainty and a shift away from legislative clarity. The group urges National Treasury and SARS to refine the wording, provide retrospective clarity, and ensure reforms align with both policy intent and commercial realities.
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