Johnny is a Senior Associate in the Commercial Practice Group at the firm's Sandton branch, where he focuses on providing corporate, commercial, business, taxation and estate planning related services to clients. He is also experienced in legal matters pertaining to trusts, wills and the administration of estates.

Johnny is a Senior Associate in the Commercial Practice Group at the firm's Sandton branch, where he focuses on providing corporate, commercial, business, taxation and estate planning related services to clients. He is also experienced in legal matters pertaining to trusts, wills and the administration of estates.

At university, Johnny excelled academically, finalising his B.Com (Law) degree before achieving his LL.B degree cum laude while simultaneously receiving numerous academic awards. In an effort to expand his knowledge and better serve his clients, Johnny also obtained a Postgraduate Diploma in Financial Planning.

Right from the start, Johnny had a keen interest in corporate and commercial matters, frequently assisting clients with advice and support relating to corporate strategies, effective structures and appropriate commercial guidance. Johnny also developed extensive knowledge in estate planning and fiduciary work and became involved in the firm’s strong estate planning and fiduciary services division, where he is intimately involved with assisting private clients with their estate planning, the administration of deceased estates and the provision of fiduciary services to family trusts and companies.

With a calm personality and the ability to gain the trust of his clients, Johnny enjoys working at a personal level with clients and assisting them with their future planning. He understands that this requires high standards and absolute attention to detail as clients place their faith in you.

To stay focused, Johnny enjoys a regular game of golf, an open water swim or a mountain bike event.

2022 Budget speech: the most important tax changes you should know about

24 February 2022,  Johnny Davis

“Now is not the time to increase taxes and put the recovery at risk! Accordingly, we have decided to keep money in the pockets of South Africans”.

Finance Minister Enoch Godongwana’s budget speech on Wednesday brought welcome news to South Africans from a tax perspective, with the ongoing impact of the Covid-19 pandemic and the resulting financial strain that most South Africans are struggling with being the reason for the most significant tax changes implemented.

The most important tax proposals and amendments tabled, are as follows:

1. Personal Income Tax

The personal income tax brackets and rebates will be adjusted by 4.5%, in line with inflation. This allows for above-inflation increases in tax brackets, effectively decreasing personal income tax rates. Here is a summary of the tax rates applicable from 01 March 2022 to 28 February 2023:

Taxable income (R) Rates of tax (R)
 1 – 226 000 18% of taxable income
 226 001 – 353 100 40 680 + 26% of taxable income above 226 000
 353 101 – 488 700 73 726 + 31% of taxable income above 353 100
 488 701– 641 400 115 762 + 36% of taxable income above 488 700
 641 401 – 817 600 170 734 + 39% of taxable income above 641 400
 817 601 – 1 731 600 239 452 + 41% of taxable income above 817 600
 1 731 601 and above 614 192 + 45% of taxable income above 1 731 600

 

Medical tax credits will increase from R332 to R347 per month for the first two members, and from R224 to R234 per month for additional members. 

2. Employment tax incentive

The employment tax incentive will be expanded through a 50% increase in the maximum monthly value, to R1 500.

3. Corporate Tax

Minister Godongwana correctly stated that “restructuring the corporate income tax system is an important part of our efforts to create a conducive environment for businesses to grow, increase investment and employ more people.”

As alluded to in the 2021 budget, the corporate tax rate is to reduce to 27% for tax years ending on or after 31 March 2023.

The following rates remained unchanged;

VAT at 15%

Dividends withholdings tax

at 20% 

All inclusion rates for

Capital Gains Tax (CGT) 

Interest and royalty withholding

tax rates at 15% 

 

4. Excise duties  

Excise duties on alcohol and tobacco will increase by between 4.5% and 6.5%.

5. Fuel Levies

To provide some relief to households, no increases will be made to the general fuel levy on petrol and diesel for 2022/23.

6. Retirement reform

Minister Godongwana announced that draft legislation that proposes partial access to retirement funds, while encouraging a preservation of a bulk of individual retirement savings, will be published by mid-year.

“Government has also proposed a fundamental restructuring of the retirement system for individuals to allow for greater preservation and partial access to funds through a 'two-pot' system.

“Part of this proposal includes the possibility of short-term access, which would be dependent on the approval by trustees of each fund,” he stated.

Overall, the 2022 Budget Speech focused on collective participation and buy-in that will enable South Africa to steer the ship in the right direction.

Though as Minister Godongwana reminds us, “a swallow does not a summer make”. The journey to recovery may still be long, but it seems as though we are off to a good start.

As soon as the new financial year starts, we will keep a close eye on exactly how these changes are implemented and bwill further advise on how this may affect you. Watch this space!

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Blog

How long is a proxy valid for?

14 September 2021,  Johnny Davis

I was recently appointed as a proxy to represent a shareholder at an upcoming shareholders meeting. Unfortunately, the meeting has been rescheduled two months later, and I was wondering if the proxy will still be valid then or would I need to have a new proxy issued by the shareholder for the meeting?

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132
Article

Can a testator rule from the grave?

16 March 2021,  Johnny Davis

I was recently appointed as the executor of a deceased estate of a family member. The provisions of the deceased’s last will and testament are very strict and every bequest is subject to some form of condition. Do I have to adhere to the provisions of the last will and testament or did the deceased exceed his right to rule from the grave? 

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176
Article

Validity of lock-in provisions in BEE transactions

11 September 2020,  Johnny Davis

A few years ago, our company entered into a BEE transaction with BEE partners to address our ownership. In the transaction documents, restrictions were imposed on the BEE partners that they could not sell or encumber their shares for a period of at least ten years. These lock-in provisions were a necessary part of the financing and overall transaction. With the current difficult economic times, our partners want to sell a portion of their shares and are disputing the validity of our lock-in provisions. Are lock-in provisions legally enforceable?

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152
Article

The legal implications of the Covid-19 outbreak

23 March 2020,  Johnny Davis

As businesses worldwide navigate the challenges brought on by the rapid spread of COVID-19, it is now more essential than ever that businesses be ready with solutions to address risks associated with the coronavirus outbreak.

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120
Article

Who inherits the estate - the new wife or the ex?

16 October 2019,  Johnny Davis

My husband has just passed away. We were married in community of property. It has however now transpired that his will still determines that his ex-wife is the sole heir of his estate. Where does this leave me, and does she have a right to his whole estate?

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148
Article

When do you have to appoint an auditor for your company?

10 September 2018,  Johnny Davis

I’ve just started my own private IT company. As a new business, I want to limit unnecessary expenses. I know there will be accounting costs but am not sure if I already have to appoint an auditor for the business. I would like to avoid this cost if I can?

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157
Article

How should I plan for my minor child to inherit?

07 February 2018,  Johnny Davis

My wife and I have a young daughter. We are planning to update our estate planning to provide that our daughter inherits everything should both of us pass, but have been wondering what will happen if this happens while she is a minor? Can we plan for this eventuality?

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149
Article

Because you care, estate planning is a must

11 September 2017,  Johnny Davis

I recently spent days planning a perfect beach holiday and it got me thinking about how much time I spend on planning for events in the near future, but barely give any thought to what will become of all the assets I have accumulated and will still accumulate during my life time should something happen to me. Is estate planning really that important?

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