Overview  

SARS has issued a draft guide on venture capital companies (VCCs). This draft guide provides users with general guidance on VCCs and investments in such companies as governed by section 12J. 

Join us for this webinar to receive an update on the latest developments, and amendments that you need to know to advice clients applying Section 12J. 

Section 12J allows your clients to either claim a tax deduction whilst investing, or obtaining funding from a VCC. Attorney Jonty Sacks provide a roadmap to setting your practice up for Section 12J. 

Learning objectives 

By the end of the webinar the participant should have full knowledge on: 

• Understanding the provisions of Section 12J,
• Advising clients on how to apply Section 12J,
• How to avoid the risks inherent on alternative financing models,
• How to obtain tax deductions for clients using Section 12J,
• Selecting the best Venture Financing Company to work with, and
• Appreciating the size of the funding available.

Course content 

The following topics will be covered in detail during the event:

• What is Section 12J and why did was it added to the Income Tax Act. 
• How your firm can get involved in Section12 J funding and tax deductions,
• The detailed requirements to establish a VCC,
• The role and functions of a VCC,
• Tax deduction, and funding available to your clients,
• Requirements for a "qualifying company":
  • Residency;
  • Controlled company status;
  • Unlisted or junior company classification;
  • Impermissable trades;
• Anti-avoidance provisions; 
  • Limitation of a deduction;
  • Deemed taxpayer at risk;
• Recoupments;
• Withdrawal of a VCC approval;
  • 80% and 20% tests;
  • Effect of withdrawal status;
• VCC investor certificate; and
• Various tax administration requirements.

Obtaining your CPD certificate

Attendance of this 2-hour webinar will accrue 2 CPD hours for members of a relevant professional body such as ACCA, SAICA, AAT, SAIPA, SAIBA, IAC, CIS, ICBA, LSSA, FPI, and the IBA. The SAAA CPD policy is compliant with IFAC IES7 and is recognised by SAICA, AAT, SAIPA, SAIBA, IAC, CIS and others.

Complete the free online assessment at the end of the event and receive an additional 1 CPD hours.

Who should attend:

This event is suitable for: 

• Professional Accountants including: RA(SA), CA(SA),PA(SA) and BAP(SA),
• Tax practitioners
• Business Advisors
• Financial Advisors
• Entrepreneurs
• Venture capitalists
• High net-worth individuals