As from 1 March 2017 S7C of the Taxation Laws Amendment Act will come into effect.
There will be some important changes which will come into effect. S7C will apply to any loan, advance or credit provided directly or indirectly to the trust by certain persons.
The persons referred to are any natural person who is a connected person in relation to the trust or a company that is a connected person in relation to that natural person, i.e. a company in which that natural person, either individually or together with a connected person or persons, holds an interest of at least 20%.
These changes add to the anti-avoidance provisions that are already in S7 and 8 of the Act.
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