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Filter: Preference shares
Treasury halts controversial tax proposal on preference shares

17 September 2025,  Dr Candice ReyndersSimangaliso Sithole

The retracted tax changes bring interim relief for investors relying on preference shares as a financing tool.

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Preference shares may face new tax rules in 2026

01 September 2025,  Ahmed DhupliSimangaliso Sithole

Preference shares may be taxed as debt under new draft rules, prioritising substance over form. 

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Income Tax Act: Keep an eye on the definition of 'exchange item’

22 April 2024,  Tanya Strauss

In the recent 2024 National Budget speech, Finance Minister Enoch Godongwana made mention of a possible change to the definition... of an “exchange item” for determining taxable exchange gains given that certain financial arrangements are eroding the tax base due to a mismatch in exchange losses and gains when it comes to taxable income.

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Preference shares drawing attention from the Receiver

10 November 2020,  Dr Candice Reynders

The Minister of Finance has recently published proposed amendments to section 7C of the Income Tax Act 58 of 1962.... The proposed amendments to section 7C target not only loan-based solutions, which was the original intention of the provision, but also corporate estates that make use of preference share structures.

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