The Preference Share Dilemma
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Recent legislative efforts to limit the use of secured preference share funding could have serious tax and financial consequences. South African companies need to know that, while the change impacts the taxation of dividends from years of assessment commencing 1 January 2024, the tax could be triggered by transactions undertaken long before this date. Bowmans Corporate Tax specialists share their insights into this critical matter.
ABOUT THE EXPERTS:
Roné la Grange is a partner in Bowmans’ Johannesburg office Tax Practice. She specialises in corporate tax and has significant experience in financial services tax matters in key sectors such as banking, insurance, and private equity. Her expertise extends to exchange-traded funds, collective investment schemes, hedge funds, property funds and treasury operations. She has BLC (cum laude) and LLB (cum laude) degrees from the University of Pretoria, an LLM in Tax from the University of the Witwatersrand, as well as a Diploma in Company Law from the University of Johannesburg and a Diploma in Financial Markets.
Jan Kruger is a partner at Bowmans’ Cape Town office Banking and Finance Department. He specialises in banking and finance law and advises clients on large, complex and cross-border transactions. He has advised most South African financial institutions, several international banks as well as borrowers. Jan is an expert in preference share funding transactions, including BEE transactions, other forms of structured finance as well as asset finance, leveraged finance, syndicated lending and property finance. He has BCom, LLB (both awarded cum laude) and LLM degrees from the University of Pretoria and an LLM from the University of the Witwatersrand.
Michael Swartland is a partner in Bowmans’ Cape Town office Finance Practice. He has significant experience in preference share and BEE funding, structured finance, secured and syndicated lending, capital markets and private equity, as well as general corporate and commercial matters. He regularly advises major local and international financial institutions and corporates on aspects of bilateral and syndicated lending arrangements and preference share funding, including exchange control, taking of security under South African law and related regulatory matters. He has BA and LLB degrees from the University of Cape Town.
ABOUT THE EXPERTS:
Roné la Grange is a partner in Bowmans’ Johannesburg office Tax Practice. She specialises in corporate tax and has significant experience in financial services tax matters in key sectors such as banking, insurance, and private equity. Her expertise extends to exchange-traded funds, collective investment schemes, hedge funds, property funds and treasury operations. She has BLC (cum laude) and LLB (cum laude) degrees from the University of Pretoria, an LLM in Tax from the University of the Witwatersrand, as well as a Diploma in Company Law from the University of Johannesburg and a Diploma in Financial Markets.
Jan Kruger is a partner at Bowmans’ Cape Town office Banking and Finance Department. He specialises in banking and finance law and advises clients on large, complex and cross-border transactions. He has advised most South African financial institutions, several international banks as well as borrowers. Jan is an expert in preference share funding transactions, including BEE transactions, other forms of structured finance as well as asset finance, leveraged finance, syndicated lending and property finance. He has BCom, LLB (both awarded cum laude) and LLM degrees from the University of Pretoria and an LLM from the University of the Witwatersrand.
Michael Swartland is a partner in Bowmans’ Cape Town office Finance Practice. He has significant experience in preference share and BEE funding, structured finance, secured and syndicated lending, capital markets and private equity, as well as general corporate and commercial matters. He regularly advises major local and international financial institutions and corporates on aspects of bilateral and syndicated lending arrangements and preference share funding, including exchange control, taking of security under South African law and related regulatory matters. He has BA and LLB degrees from the University of Cape Town.
