February 2011


From My Window - February 2011 From My Window February 2011

Do I personally believe there is such a phenomenon as climate change? Absolutely. Do I ascribe climate change to human intervention? No, I do not. Efforts to label climate change as anthropogenic have been dealt knockout blows by the very academics seeking to advance this thesis. Whatever else one may believe, we have certainly witnessed an extraordinary concatenation of climatic events across the southern hemisphere, all of which relate to excessive rainfall.

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Editor's Note - February 2011 Editor's Note February 2011

This year is without prejudice's 10th birthday – in October 2001 we published the first issue of what we believe has become an invaluable tool for, but not exclusive to, the legal fraternity. Our aim continues to be to provide information that is current, pertinent and analytical so that readers are able to keep abreast of changes in law. The style of the magazine is such that details can be easily accessed and information uickly absorbed in an era characterised by information overload and increasingly less time in which to complete tasks.

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Independent? They must be joking Communications Law February 2011

The ostensible purpose of the proposed amendment to the ICASA Act is, according to the Department of Communications (DOC), to address the operational and administrative inefficiencies at ICASA. It is debatable whether or not the ICASA Amendment Bill achieves this purpose but what is clear is that the Bill will deprive ICASA of its independence.

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Costly words Financial Law February 2011

A recent court case, The Abraham Krok Trust v SARS (Case No 58/2010), concerning a Trust housing some of the wealth of the Krok dynasty – themselves no strangers to the media – had the legal and tax fraternity abuzz.

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Sequestrations and the NCA Financial Law February 2011

A credit provider need not comply with the debt recovery procedure provided for in s129(1)(a) of the National Credit Act before instituting sequestration proceedings against a consumer.

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Income earned by a minor – a case study Tax February 2011

Mr X decides to provide financial assistance to his 16 year old daughter, G, to enable her to enter into the housing construction business. He makes an interest-free loan of R2 million to her, repayable in 10 years' time. He then helps her to construct a flat in Soweto from which she earns R300 000 as rental income.

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Claiming VAT on marketing expenditure Tax February 2011

Should expenditure incurred by a vendor be classified as 'entertainment' for purposes of The Value-Added Tax Act (VAT Act)? Where expenditure is classified as 'entertainment' input tax may not generally be claimed, unless it is an enterprise that operates within the entertainment industry in the normal course of business.

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Squeezing out the benefits of R&D Tax February 2011

handsS11D of the Income Tax Act (58 of 1962, as amended) was introduced to encourage and incentivise private sector investment in the research and development of scientific or technological activities. This assists in ensuring that research and development activities are conducted within South Africa, and this will ultimately result in positive economic growth.

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Is karaoke music? Not The Law Reports February 2011

Foss-Harbottle J: The plaintiff, Mrs Stone, visited a licensed establishment appropriately known as The Whine Bar. Unadvertised, and unknown to Mrs Stone, karaoke commences at the Whine Bar an hour before closing time. Before Mrs Stone had time to react, the first patron stepped forward and seized the microphone to deliver her attempt at singing.

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Efficiency and the maize industry Competition Law February 2011

The problems facing the South African maize industry illustrate the difficulties in balancing economic efficiency with the development objectives of the Competition Act.

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Uneasy lies the head . . . Competition Law February 2011

The Competition Amendment Act (1 of 2009) was signed into law in August 2009. It introduces criminal liability for directors and managers who cause a firm to engage in cartel conduct or who knowingly acquiesced in the firm engaging in cartel conduct.

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I’m late, I’m late, for a very important date Medical Law February 2011

The debate about a national health insurance scheme continues, but does so in primarily economic terms. The concept has been explored in the media, but very little has been said about what a national health insurance scheme will look like once it has been established.

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Application of governance by medical schemes Company Law February 2011

The governance framework of medical schemes consists of applicable legislation and regulations (in particular the Medical Schemes Act no 131 of 1998, as amended), the medical schemes' rules and internal charters and policies, as well as voluntary governance codes (such as King III ) and guidelines issued by the Council for Medical Schemes.

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The new South African headquarter regime doesn’t quite cut it Company Law February 2011

Internationally there are many jurisdictions, such as Austria, Luxembourg, The Netherlands, Switzerland and Singapore which are popular for purposes of establishing holding and headquarter companies for multinational groups. Closer to home Mauritius has established itself as a favourable jurisdiction for these purposes, especially for investments into African countries. Up to now, the South African tax and exchange control system has prevented South Africa from being suitable for this purpose.

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YOGI refers to yoghurt – right? Intellectual Property February 2011

In an opposition hearing before the Registrar of Trademarks, Clover SA (Pty) Limited (Clover) opposed the registration of a trade application for YOGI-YO in the name of Dairy World (Pty) Limited (Diary World). While the Registrar has not yet handed down a written decision with reasons for his finding, he dismissed Clover's opposition with costs at the end of the hearing.

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