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Five things making headlines in South Africa today

Sars casting net wider, EOH to dispose 70% stake in Construction Computer Software, Investec appoints new executives and more.

Here’s what caught our attention on Tuesday:

1. Sars is casting its net wider

The 2019 tax filing season kicked off on Monday, which saw the commissioner, Edward Kieswetter issue warnings to taxpayers against non-compliance, adding that penalties will apply. Specifically pertaining to rental income, Kieswetter told Moneyweb that taxpayers often do not disclose taxable income received in this regard. He added that the tax agency is collaborating with the deeds office to determine taxpayer profiles and their correlating property ownership to ensure citizens pay what is owed.

Read: The taxman is coming for your rent

2. EOH disposes of 70% stake in Construction Computer Software

EOH subsidiary, EOH Mthombo announced via Sens on Tuesday that it has entered into a share purchase agreement with RIB, a subsidiary of RIB Software, in terms of which EOH will dispose of a 70% interest in the issued ordinary share capital of Construction Computer Software for a consideration of R444 million. RIB Software is a German listed company. For the remaining 30% of the issued ordinary share capital, EOH has entered into a reciprocal put and call option in terms of the shareholders’ agreement. The transaction is due to close on or around July 29, 2019, subject to the fulfilment or waiver of the conditions precedent on or before 26 July 2019.

3. Investec to appoint new executives

Investec is reportedly set to appoint former MTN Group executive, Philisiwe Sibiya and former Bank of America investment banker, Henrietta Baldock to its board in August. Bloomberg is reporting that the new appointments will serve as replacements for former politician Cheryl Carolus and Laurel Bowden, a partner from 83North, who, according to Bloomberg, will not make themselves available for reelection at the asset manager’s AGM in August. 

Read: Investec set to appoint ex-MTN, BofA executives to its board

4. Court rules banks can no longer take your money without permission

A case between the National Credit Regulator (NCA) and Standard Bank at the South Gauteng High Court last week saw a ruling indicating that banks are no longer allowed to take money from your account in settlement of debts falling under the NCA unless you specifically authorise it.

The ruling was made in favour of the National Credit Regulator. Moneyweb is reporting that the judgement means that it is now illegal for a bank to take money, which it considers validly due to it, for example mortgage bond, legal costs and admin fees, out of your account without authorisation. The new ruling indicates that ‘the debtor must authorise the payment, and funds are required to be deposited specifically for the purpose of settling the debt,’ Moneyweb is reporting.

Read: Court rules banks can no longer grab money out of your account

5. Truworths subsidiary Office to undergo debt restructuring 

In a Sens announcement on Tuesday, Truworths says its UK subsidiary, Office Holdings, has entered into discussions with lenders over potential debt restructuring options. According to the statement, Office has circa £45 million of debt which is due to be repaid. A significant portion of the debt is to be settled through a lump sum payment at maturity in December 2020. Alvarez & Marsal Europe and Deloitte have been appointed as professional advisors to Office.

Read: Truworths in talks to restructure debt at British shoe chain Office

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