Original Research

Die verkoop van 'n besigheid as lopende saak: Belasting en arbeidsreg probleme met “voorsienings”

Suzanne Kieviet
Journal of Economic and Financial Sciences | Vol 4, No 2 | a330 | DOI: https://doi.org/10.4102/jef.v4i2.330 | © 2018 Suzanne Kieviet | This work is licensed under CC Attribution 4.0
Submitted: 29 June 2018 | Published: 31 October 2011

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Suzanne Kieviet, University of Stellenbosch, South Africa

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The amounts set aside for the provision for employee-related contingent liabilities, such as the provision for leave pay, are often considerable. According to current Income Tax law, it is highly unlikely that the former employer (seller) will enjoy a tax deduction. Furthermore, it is also unlikely that the prospective employer (buyer) will enjoy a tax deduction. In contrast to this, both the former and prospective employers are held liable according to the Labour Relations Act in cases where a business is sold as a going concern. This article concludes that the Draft Taxation Laws Amendment Bill 2011, as envisioned, finally provides clear tax legislation, but still needs to be aligned with the objectives of the Labour Relations Act. In doing so, contradictory legislation will be avoided, thus facilitating the transfer of businesses and achieving the protection of employees’ work security.


belastingaftrekbaarheid; onderneming; inkomstebelastingwet; lopende saak; voorwaardelike aanspreeklikhede; voorsienings; werknemerverwante


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