2017 Taxation Laws Amendments

I have just read through the final bill [27 of 2017]. Section 7C is still wrong. It refers to companies in which a beneficiary of a trust has a 20% equity shareholding. This means that if you are a beneficiary of any trust (local or overseas), any interest-free or low-interest loan you make to any company, in which you own 20% or more of the shares (even if a trust has absolutely no interest), will be hit by section 7C, even if there is no donations tax or estate duty avoidance (i.e. no transfer of wealth). This was not the purpose of section 7C. Maybe lenders should either charge interest at the accepted rate, or remove themselves as beneficiaries of all trusts until National Treasury fix their error.