Mining and agriculture to be hardest hit by latest tax bills

The cyclical nature of both the mining and agriculture industries places businesses in these industries at risk of being hardest hit by the draft 2021 tax bills which seek to restrict assessed losses for SA businesses. Director at ENS Africa’s tax division, Kristel van Rensburg, explains that the amendments will result in a change in section 20 of the Income Tax bill, limiting assessed losses that can be carried over to 80% of a business’s taxable income. Van Rensburg says not only does this stand to hurt limping businesses on the back of Covid-19, but it also stands to disadvantage cyclical industries that require lots of investment and time to start reaping rewards. Listen further below.