South Africa: Receiver 'Taking Softer View' On Contractor Tax

Johannesburg — THE South African Revenue Service (SARS) is softening its view of legal structures used by employers to escape the net of employees' tax, with new draft laws that narrow the definition of entities entering employment contracts, says Gerald Seegers, a tax director at PricewaterhouseCoopers.

Proposals to amend the income tax laws will water down the definition of legal structures such as "personal service companies" and "personal service trusts", commonly used by employers and employees to avoid tax.

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