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I think we got off lightly, when they start seriously upping divi and CGT I'll get an exit plan ready...

I hardly think we got off lightly - tax increased against the backdrop of rampant theft of tax payer monies and no penalties or prosecutions on the cards. Petrol will go up at least 90 cents a litre from next month and then in April by a further 80.5 cents per litre for levies, and whatever increase in the fuel price. Then to top it off there is no change in the budget to accommodate a reduction in e toll fees.
So I don't believe tax payers have been fairly dealt with in this budget at all, it merely says the government will continue to waste tax payer monies, and take no action against corruption, fraud and theft.
There should be a revolt by the people who receive old age pensions, and, grants - because their pensions/grants are compromised by the theft of state funds by the employees in state organisations

A few guys here called this one well...

http://www.fin24.com/Tech/Companies/Gijima-to-delist-from-JSE-20150218

So I see these guys are going the same route as Edcon, maybe they should speak to Edcon because they have experienced disaster after disaster since going private. Hope the benefactors of Gijima have deep pockets

Hi,

Just a correction on the above posts.  In simple terms (and based on your facts), there is no need to for you to treat it as a revenue (or trading) gain.  You will however need to include it as a capital gain, and can apply the CGT exemption against it.

The detail is however more complex, (and at the risk of boring you), there is essentially two tests under south african tax law to determine whether it is a capital gain (taxed as capital gains) or as a revenue/trading profit (treated as normal income).  These tests are

1. What was your intention when you bought the share (or sold the share)?    Did you for example indulge in the business of trading, or did you have a more longterm (investing) view?  (Case law and precedent is complex in this regard, and i'll return to it later)

Fully concur with this analysis - its the principles I apply when submitting my tax return
2.Any result obtained in 1 above will be overriden if you hold the instrument for longer than 3 years.  In which case you are obliged to treat any profit as a capital gain (or loss).  I.e. you are essentially deemed to have a long term intention, and any profit is taxed as a capital gain.

In your case, as you've only held the shares for 1 year, point 2 above isn't relevant.  And the intention question is key.  The traditional tests to confirm intention is things like
- Number of trades
- Frequency of trades
- Length held etc.
- Reasons for sales

In your case, i'm adamant that your intention was capital (i.e. long term), based on the following;
- You only ever purchased one instrument
- You held it for a relatively long period of time (1 year)
- Frequency of trades is minimal.
- The instrument you purchased, unit trusts (even more so a balanced fund), is not traditionally an instrument used by traders.  An indicates a long term intention
- You are selling the instrument to re-balance your portfolio  (very NB)
- (never admit you are selling to take profit).

From the evidence, i'd say you always had a long term investing intention, and thus you're gains should be taxed as capital gains.  My view of the risk of SARS differing in view as being low to non-existent. 

Note.  Above is based on the info that you have given.

Miserable and rainy here keeping us indoors.

Sounds like typical Cape Town weather you having

Hi all,

I used to post under forward curve (and previously contango, which is a shape of a forward curve) but thought I would start the year with this name. I've traded most physical commodities for banks and trading companies in London but now I run Thebe Ventures and am trying to create jobs here in SA. So if anyone has any great business ideas that need backing then get in touch.

Anyway, back to topic. From time to time I'll try and post some thoughts on the markets and give some insight into commodities etc. Right now it looks like equities are getting ready to break out to the upside (see Dow daily chart below). This should get everyone yakking on about how bullish the year is going to be and that maybe QE will extend forever. At least in Europe we know they have to do QE unless the Germans are somehow able to block it.

But, I'm sure that the Fed will end QE mid year and the Dollar will then weaken, yes weaken. Right now FX traders are "buying the rumour" that QE will end and interest rates will rise (meaning they are buying and strengthening the USD i.e. markets are always forward looking). When QE actually does end then traders will "sell the fact" and the Dollar will weaken and thus commodities will rise and equities will fall.

For now however, expect equities to have a nice little run and commodity prices to remain subdued. Although I do expect crude oil to return to a marginal production cost of around US$60 to US$70 quite quickly, possibly by end Jan / mid Feb.

Enjoy and good luck. And remember that the bull walks up the stairs whilst the bear jumps out the window. Study Pythagorus, Gann and the Masonic liberal arts for more insights. So being long around 90% is probably the right position, just try to avoid being "caught and short" for that crucial 10%.

P.S. Thanks to Patrick for creating this space and running the competition. Great work sir.

Is this Keith returning to the fold

Markets going nowhere - funds managers squaring off books

I know who the underwriter is. , im not the biggest fan , Im just thinking that would he put 100M off his own cash into a sinking business ?

If he was so confident then why a rights issue, maybe he needs others to share some of his pain and that he doesn't have to put all his capital at risk. Certainly would have been cheaper to put the funds in himself now you have horrendous fees for the rights issue

Personally the way this company is run and the bad publicity they have gained from their failed installation I would not take up  let alone buy any of these shares. If you have access to historic sens notifications scroll through the sens announcements and then make a decision