We are busy with a group restructure for a client in terms of s41-s46. I cannot find exact clarity on the definition of a group company where individuals are the shareholders. e.g. Company A is owned by 2 individual shareholders 50/50 Company A transfers
Important:
This answer is based on tax law year ending 28 February 2017.
Answer:
For purposes of the special rules (section 41 – 47), ‘group of companies’ means a group of companies as defined in section 1(1) of the Income Tax Act – see section 41. In terms of the definition in section 1(1), “group of companies” means two or more companies in which one company (hereinafter referred to as the ‘controlling group company') directly or indirectly holds shares in at least one other company (hereinafter referred to as the ‘controlled group company') …
Relevant to your request is the words in which one company (hereinafter referred to as the ‘controlling group company') directly or indirectly holds shares in at least one other company...
No group can therefore, based on this definition, exist where the shares are not held by a company. So, where the holders of shares are individuals or trusts, there will not be a “group of companies”.