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Value Added - True Stories
Chartered Accountant & Business Consultant - Meredith Harington
Value Added - True Stories

We don't just talk a good story without being able to back it up so here are a couple true stories for you.

Tax savings arising from the 2012 budget

The Minister of Finance announced in his budget speech on 22 February 2012 that the new Dividends Tax, replacing the former Secondary Tax on Companies, would be at a rate of 15% - not the 10% advised previously. He also announced an effective one-third increase in all capital gains tax rates.

The Dividends Tax increase was to be effective from 1 April 2012, but capital gains tax was to increase from 1 March 2012 for most taxpayers 5 working days hence.


This was an inter vivos trust housing an investment company. This company in turn owned fixed property and a listed investment portfolio. All of these growth assets would in all likelihood be realised within 10 years at significant capital gains. The company had substantial existing reserves. As the object of the trust was to support the family beneficiaries, all reserves would eventually be distributed.


Succession planning & share value

Succession planning is one of the greatest challenges facing the owners of closely held companies. Without a proper succession plan the business will die when the owner retires, he/she will therefore not be able to unlock the capital value of the business and staff may no longer have a job. Over the years, we have created any number of innovative structures, each unique to the particular situation, that allows for:

  • The identification of potential successors
  • A method of structuring the financing of the transfer of the business/shareholding in a way that is
  • Affordable to the acquirer of the business or the shares
  • Protects the interests of the seller and allows for the realisation of capital
  • Does not impact of the company to carry on business as before
  • Tax efficient to all parties
  • Complies with all relevant legislation

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Telephone:  +27 (0)21 713 8700      Fax:  +27 (0)21 713 8766
Physical Address:  39 Tokai Road, Tokai, 7945      Postal Address:  PO Box 30323, Tokai, 7966

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