DJIBOUTI: International Free Trade Zone launchedThe first phase of the Djibouti International Free Trade Zone (“DIFTZ”), expected to be the largest free trade zone in Africa, was launched on 5 July 2018. The DIFTZ will house a variety of manufacturing plants and offer investors various incentives, including tax exemptions ...
In an interesting and (as yet) unreported judgment handed down by the Labour Court, which considered an appeal against a Commission for Conciliation, Mediation and Arbitration (“CCMA”) award (rather than a review), the court confirmed the principle that an employer cannot be held liable in terms of the Employment Equity Act, 1998 (the “EEA”) for unfair discrimination resulting from actions towards one of its employees by one of its customers ...
Under South African corporate reorganisation rules, tax consequences are deferred and do not crystalise at the time of the transaction, but a carefully planned restructuring transaction may result in hardship due to subsequent events. A recently proposed amendment illustrates this risk.Tax relief under the existing corporate reorganisation rules may be neutralised if assets acquired in terms of these rules are disposed of within 18 months ...
In a previous ENSight, we discussed the decision of the Labour Court in Mtati v KPMG Services (Pty) Ltd. In this case, it was decided that employees may not be disciplined if they have resigned “with immediate effect”. The resignation is regarded as terminating the contract of employment immediately and the consequence is that the employer is denied the opportunity to pursue disciplinary action against the employee. A subsequent dismissal will be null and void ...
The South African Revenue Service (“SARS”) issued Binding General Ruling No. 48 (“BGR 48”) on 25 July 2018, which provides much needed clarification for residential property developers following the recent cessation of relief under section 18B of the Value-Added Tax Act, 1991 (the “VAT Act”) ...
The new MIACThe London Centre for International Arbitration (the “LCIA”) and the Government of Mauritius have come to a mutual agreement to terminate the joint venture that had led to the establishment of the LCIA-MIAC Arbitration Centre in Mauritius in 2011. The effective date of termination was 27 July 2018. The Mauritius International Arbitration Centre (the “MIAC”) will thereafter commence operations as an independent arbitration centre ...
The primary remedy for a substantively unfair dismissal is reinstatement, which aims to place an employee into the position he or she would have held had it not been for the substantively unfair dismissal. Generally speaking, reinstatement awards are coupled with orders for back pay, that is, payment of the remuneration that the employee would have enjoyed over the period between the dismissal and the reinstatement order ...
During the course of recent months, South African Parliament has considered four bills proposing significant changes to South Africa’s labour legislation. These are the National Minimum Wage Bill, the Basic Conditions of Employment Amendment Bill (the “BCEA Bill”), the Labour Relations Amendment Bill (the “LRA Bill”) and the Labour Laws Amendment Bill ...
It’s been widely reported that Roger Federer has signed a 10-year, USD300-million sponsorship deal with the clothing brand UNIQLO. The new deal was announced with some style when Roger walked out on Wimbledon Centre Court in his fancy new threads on the first day of the 2018 championships. The UNIQLO deal is interesting in a number of respects ...
The recent Kenyan High Court judgment in the case of Sony Corporation v Sony Holdings Limited (a decision of Judge Tuiyoyy dated 29 May 2018) has attracted considerable attention. Much of the talk has been around the fact that Sony, arguably one of the best known brands in the world, was denied protection as a well-known trade mark. But there’s more to this judgment than that ...
We don’t often discuss Korean trade mark cases, but a recent registry decision is worth a look because it shines a spotlight on a particularly interesting aspect of trade mark law: character merchandising.Kakao Corp is Korea’s largest mobile service provider. One of its offerings is KakaoTalk, a mobile messaging service that’s apparently used by some 154-million people around the globe ...
On 27 July 2018, the newly established Financial Sector Conduct Authority (“FSCA”) published the final Conduct Standard, No 1 of 2018, setting out the Criteria for Authorisation of OTC Derivatives Providers (“ODPs”). The Regulations under the Financial Markets Act, 2012 (the “FMA Regulations”) were promulgated in February of this year, effectively setting a deadline of 8 August 2018 for ODPs to apply for licences ...
In addition to providing guidance on a number of transfer pricing related issues relating to aligning transfer pricing outcomes with value creation, the 2015 final report on Base Erosion and Profit Shifting - Actions 8 to 10 mandated follow-up work on the transfer pricing aspects of financial transactions. The Organisation for Economic Co-operation and Development’s (“OECD’s”) Committee on Fiscal Affairs Working Party No ...
Section 198A of the Labour Relations Act, 1995 (the “LRA”) provides that a person assigned to a client by a temporary employment service (“TES”) for a period of more than three months, and who earns less than the threshold amount set in section 6(3) of the Basic Conditions of Employment Act, 1997, is deemed to be the employee of the client for the purposes of the LRA. There are two exceptions to this deeming provision ...
Section 23(1)(d) of the Labour Relations Act, 1995 (“LRA”) enables an employer and a trade union (or trade unions acting jointly), that enjoy majority support in the employer’s workplace, to conclude a collective agreement and to extend the collective agreement to employees who are not members of the trade union that concluded the collective agreement ...
On 1 December 2017, the Minister of Economic Development announced the release of the Competition Amendment Bill, 2017 (the “Competition Bill”) for public comment. Following the closure of the period for public comments in the first quarter of 2018, a revised Competition Bill (the “Revised Competition Bill”) was tabled before Parliament on 11 July 2018 ...
South African tax resident individuals may consider, whether for estate planning purposes or otherwise, to advance funds to offshore trusts for investment abroad. The South African tax implications arising from the terms of the loan funding arrangement with the offshore trust should, however, also be taken into account ...
Recent case law has shown that the South African courts are prepared to hold employers liable for conduct amounting to sexual harassment perpetrated by their employees. The basis for such liability arises from two sources. The first is the common law duty imposed on employers to create and maintain a safe working environment free from the danger of being sexually harassed ...
Recently, there have been a number of interesting judgments of the South African Labour Court regarding cost orders and new approaches have been adopted which signal a change as to how cost orders are approached in the Labour Court. Section 162 of the Labour Relations Act, 1995 (“LRA”) states that the Labour Court has discretion regarding the granting of cost orders, which is not dependent of the nature of the claim brought before the court ...
In 2016, South African National Treasury introduced an exemption from securities transfer tax (“STT”) for listed securities that are transferred outright (as opposed to pledged) as collateral, provided that such transfers adhere to a number of conditions that were outlined in the definition of a “collateral arrangement” in the Securities Transfer Tax Act, 2007 ...
The fast-changing landscape of competition law in AfricaAt the turn of the century, only a handful of Africa’s 54 nation states had operational competition legislation and enforcement. However, in line with developments in the rest of the world, many African countries have since enacted competition legislation and established working competition authorities ...
