1.  Major headwinds in the international offshore sector have been prevalent during 2018. CRS reporting starts on 31 August 2018 in Mauritius, and will be an open invitation for the South African Revenue Services to investigate and challenge Mauritian structures. In addition the Multi-Lateral Initiative (“MLI”) which has been signed by hundreds of countries (including Mauritius) should have the effect of limiting the application of Double Taxation Agreements by preventing foreigners from using Mauritius strictly for the purposes of “tax treaty shopping”. Then the Mauritian Legislature in mid-August 2018 passed the Finance (Miscellaneous Provisions) Bill (No 11 of 2018) into law which substantially changes and in many respects in its current form severely curtails the extent to which foreigners will be attracted to using Mauritius as a location for tax planning purposes.  For Mauritian structures with South African tax resident beneficial owners, the environment has been further challenged with significant revisions to the South African Income Tax Act during 2018.

2.  Given the above landscape Korten Consulting Ltd (“KCL”) is offering a most topical tax focused seminar that will identify and discuss the following-

  • Analysing the effect of the changes introduced by the Mauritian Finance Act 2018, with specific reference to Mauritian entities that have South Africa tax resident beneficial owners. Here, the enquiry will be to identify what tax benefits Mauritius still has to offer to South African tax residents;
  • An explanation of the most relevant 2018 changes to the South African Income Tax Act. The seminar will explain exactly how these revisions will negatively affect the tax position of the South African beneficial owners of most standard Mauritian based structures, particularly concerning Mauritian companies held by trusts, as well as estate planning structures involving loans by settlors to Mauritian trusts and foundations

.  Identifying the future key tax risk areas.  The presenter will not only identify and explain these tax risks areas, but will also propose potential solutions. Again, the case study to illustrate these risks will be that of the South African tax resident beneficial owner, where tax risks areas to be discussed will include-

  • The “Place of Effective Management” of Mauritian trusts and GBC’s, and related “residency” risks
  • Transfer Pricing Rules and the necessity for substance and activity to takes place within Mauritius
  • Local Tax Anti-Avoidance rules, the effect of MLI and the fundamental importance of a commercial motivation, proper substance and avoiding artificial or abnormal arrangements
  • South African Exchange Control Regulations