South Africa

Details

  • Service: Tax
  • Type: Regulatory update
  • Date: 2011/03/28

Corporate Tax Services

KPMG’s Corporate Tax services in South Africa comprises 102 highly-skilled and professional staff who are experienced to give advice on corporate tax issues.

Competition Act - Commission announces fast track settlement process 

Pursuant to the Competition Commission identifying the construction industry as a priority sector, the Commission announced on 1 February 2011 that a fast-track settlement process has been made available to construction firms.

This invitation is aimed at incentivising construction firms to fully disclose to the Commission their involvement in price fixing, market division and bid rigging in return for a favourable settlement in so far as penalties are concerned.

 

Why is this a good offer? 


Ordinarily the Commission is entitled to recommend to the Competition Tribunal that a penalty of up to 10% of previous financial year turnover in imports and exports from South Africa be imposed in respect of each contravention of the Competition Act.  In terms of the settlement offer, a construction firm may now look forward to a maximum penalty of 4% of turnover for one to four contraventions, 7% of turnover for five to 12 contraventions, 10% of turnover for 13 to 22 contraventions and 12% of turnover for 23 or more contraventions.

 

Applications must reach the Commission by no later than Friday, 15 April 2011 at 12:00pm.