Anomalies in the anti-avoidance measures for international restructuring transactions are to be addressed. 

Intra-group debt issued to fund section 45 transactions is deemed to have a nil tax cost in terms of section 45(3A), which was introduced several years ago as an anti-avoidance measure. The repayment of such debt is, however, disregarded for tax purposes, so long as such repayment also takes place within an intra-group context.  In effect, section 45(3A) seeks to ensure that intra-group debt arising as a result of a section 45 transaction is also settled within the same group of companies, and not transferred or ceded to a third party.

National Treasury has noted that apparent anomalies exist in the application of this section to cross-border section 45 transactions, which anomalies are to be corrected.