Commercial Law

VAT on digital service imports, a shift of onus from the consumer to foreign companies

As it stands there are no regulatory measures in place regarding the levy and collection of tax on digital service imported from foreign companies who are not resident in South Africa. This article serves to discuss the newly proposed regulations which aim to bring digital services, obtained from foreign companies for South African consumers, fully within the ambit of the [...]

By | 5th March, 2014|Commercial Law, Company Law, PPM Attorneys|

Costly arbitration clauses

AB Company and Bob conclude a settlement Agreement (“the Agreement”) and his employment relationship with AB Company terminates. The Agreement includes an arbitration clause which provides as follows: “Any controversy / claim arising in terms of this Agreement shall be resolved in terms of binding arbitration by a sole arbitrator in Durban in terms of the Labour Relations Act.” Should [...]

By | 1st October, 2013|Commercial Law, Labour law, PPM Attorneys|

Certifying paper copies of original electronic documents: recommendations on how commissioners of oaths can stay on the right side of the law

The past few years have seen the increased adoption of electronic documents by banks, private industry and Government.  If you are “with it”, you probably get your bank statements, satellite TV and Telkom invoices electronically. If South Africa’s Draft Broadband Policy, published for comment in April 2013, is finalised and implemented, we are all going to be spending much more [...]

By | 30th May, 2013|Commercial Law, PPM Attorneys, Technology Law|

Customers’ frustrations due to the inefficiencies of the CIPC

The newly formed Companies and Intellectual Property Commission (“CIPC”), established “with the aim of promoting growth, employment, innovation, stability, good governance, confidence and international competitiveness.” Further stated on the CIPC’s website, is that it “seeks to assert the commission as a credible independent and transparent regulator, on par with the rest of the world.” We have to use CIPC to [...]

By | 1st March, 2013|Commercial Law, Company Law, Consumer Law, IP Law, Legal Practice, PPM Attorneys|

Small business and legal contracts – The consequences of that blasé approach

More often than not, contractual litigation and dispute always involve small businesses you often opt to do business with, resulting from poorly drafted service level agreements or none at all. Very often you hear a business owner saying: “…why should I sign a contract if I am only doing work with people I know and trust?” Well, think again!! Imagine [...]

By | 1st March, 2013|Commercial Law, PPM Attorneys|

What is a widely held company in terms of the companies act, 61 of 1973 (as amended by the corporate laws amendment act, 24 of 2006)?

Section 1(h) of the Corporate Laws Amendment Act, 24 of 2006 (the “Act”) inserts a new subsection 6 into the Companies Act, 61 of 1973 (the “Companies Act”) and provides that a company is a widely held company if: its articles provide for an unrestricted transfer of its shares; it is permitted by its articles to offer shares to the [...]

By | 1st July, 2008|Commercial Law, Company Law, PPM Attorneys|

Section 31 of the income tax act 58, 1962 (“ita”) – A definition of transfer pricing and thin capitalisation

Section 31 of the ITA provides special anti-avoidance rules to regulate certain international transactions and this article intends to define and explain the two concepts referred to in this Section of the ITA being transfer pricing and thin capitalisation. The Katz Commission’s interim report found that general anti-avoidance provisions were not sufficient to counter practices where prices for the supply [...]

By | 11th July, 2006|Commercial Law, PPM Attorneys|

A brief overview through a series of articles on the anti-avoidance provisions of the income tax act 58, 1962

This is the first of a series of short articles on the anti-avoidance provisions of the Income Tax Act[1] (“the ITA”) including specifically the provisions of section 31 (which deals with thin capitalisation), together with its effect on section 64C (3) (e) of the ITA. Thin capitalisation provisions were introduced into the ITA in 1996 when it became clear that [...]

By | 2nd November, 2005|Commercial Law, PPM Attorneys|