Spotlight on mining tax

This Spotlight gives a brief summary of the proposed 1991 tax amendments of relevance to mines and mining houses. It should be read together with the author's article South African mining tax in the 1990's', which appeared in the August 1990 issue of this Journal. A number of tax amendments of relevance to the mining industry were proposed by the Minister of Finance in his March 1991 budget speech. In addition, certain other measures that may be implemented were set out in the budget review document released at the same time. A word of caution is necessary: these measures will become law only if and when they are enacted in the appropriate legislation. When this legislation is tabled in June, it may not contain all of the measures discussed below, some of the measures may appear in modified form, and other measures not discussed at the time of the budget may well appear. Unless otherwise stated, the 1991 tax amendments will affect companies with years of assessment ending in the twelve-month period to 31st March, 1992.