Maitland first to market with CGT functionality for SA fund managers
13 January 2014 | People and Companies | News | Willem Badenhorst, Maitland
Maitland, the international advisory and fund administration group, is the first fund administrator in South Africa to offer a new tax calculation functionality to domestic asset manager clients following changes to the capital gains tax (CGT) regime.
Willem Badenhorst, Head of Institutional Clients at Maitland, said: "We run a SunGard application called Asset Arena Taxation specifically to support asset manager clients’ requirements for recording and reporting income tax (most notably section 24 of the Income Tax Act) and CGT.”
In February 2013, the South African government enacted a number of changes to CGT calculations, most significantly via the following amendments:
• Section 29B of Taxation Laws Amendment Act 22 of 2012 - Mark-to-Market Taxation in respect of long-term insurers as detailed in the Taxation Laws Amendment Act, 2012 (Act No. 22 of 2012);
• Share-for-share transactions with no relief (Section 24B of Taxation Laws Amendment Act 22 of 2012); and
• Substitutive share-for-share transactions (Section 43 of Taxation Laws Amendment Act 22 of 2012).
The changes required a major upgrade of the Asset Arena Taxation software. The upgrade commenced on 27 September and completed on 26 November 2013, exactly on schedule.
Mr Badenhorst said: "This new functionality has dramatically reduced the complexity of capital gains calculations through the automation of capital gains event processing, which would otherwise be performed manually with the associated high risk of errors.”
