Tax Law

by Cornwell Dauds

Should Carried Interests in Private Equity Be Taxed As Capital or Revenue?

Securitisations and their Tax Treatment

  • The Debt/Equity Conundrum”   Cornwell I. Dauds

Published in: The Law Magazine, Nov. 2007, Vol. 7 No. 10

This article explains the increasingly difficult distinction between debt and equity instruments, their use as capital-raising sources for companies, as well as the tax implications of both.


  • Securitisations . . . and the Revenue”    Cornwell I. Dauds

Published in: The Law Magazine, Feb. 2008, Vol. 8 No. 1

This article explains the mechanics of securitisation, its use as a more efficient capital-raising tool for companies and banks, the different securitisable asset types, and the general approach to the taxation of securitisation transactions.


  • The Private Equity Debate”   Cornwell I. Dauds

Published in: The Law Magazine, May 2008, Vol. 8 No. 4

This article explains the mechanics of private equity, the tax treatment of carried interests, as well as criticism of the favourable tax treatment given to private equity.



Competition Law

by Cornwell Dauds

Criminalisation of Cartels

Commercial Law

by Cornwell Dauds

Financial regulation

The SA OTC Derivatives Market: Should It Be Formally Regulated?


Articles due for publication:

Tax Law:

  • Using Derivatives As Tax Planning Tools”   Cornwell I. Dauds

This article looks into how financial derivative instruments may be used in tax planning, especially in cross-border transactions.


  • Corporate Break-ups in SA – Are They Hard To Do?” Cornwell I. Dauds

Measures were incorporated into the Income Tax Act to facilitate corporate unbundlings, i.e. demergers. This article looks into how easy or difficult it is to meet the requirements of the Act for the purpose of executing an unbundling tax-efficiently.


  • The SA Headquarter Company Regime: A Blatant Case of Tax Base Erosion?” Cornwell I. Dauds

This article looks into the rationale for the introduction of the headquarter company regime and the various tax concessions that went along with that. It poses the question whether the country has to date derived much benefit from the regime and whether the tax concessions have simply eroded the country’s tax base.


  • Do CFC Rules Serve Their Purpose?”       Cornwell I. Dauds

This article questions whether, while they were designed to serve as an anti-avoidance measure, the controlled foreign company (CFC) rules are actually able to fulfil that function. The article concludes that tax avoidance remains possible (and provides illustrations) even with the CFC rules in place.


  • SA Taxation of Dividends: Too Complicated A Regime?”       Cornwell I. Dauds

This article deals with the core dividends tax regime in the South African Income Tax Act as well as the dividend-deeming rules scattered all over the Act which operate as anti-avoidance measures. The article suggests that the taxation of dividends in South Africa has (unnecessarily) become too complicated.


  • The Transfer Pricing Issue”   Cornwell I. Dauds

This article deals with transfer pricing, what it means and the motivation for manipulating transfer prices, as well as efforts tax authorities around the world have made to combat the phenomenon.


Financial Regulation:

  • The South African OTC Derivatives Market: Has A Case Been Made For Its Formal Regulation?”       Cornwell I. Dauds

This article deals with National Treasury’s proposed formal regulation of the South African over-the-counter (OTC) derivatives market which is apparent from Treasury’s two draft policy documents, Ministerial Regulations and Board Notices issued under the Financial Markets Act No. 19 of 2012. The article argues that a case may well not have been made for the formal regulation of the OTC derivatives market.