An overview by ENS Africa
Although repurchase arrangements (repos) and collateral arrangements may yield similar economic outcomes, they differ in their legal nature and South African tax implications.
Repos involve the sale and subsequent repurchase of shares or bonds, whereas collateral arrangements function as funding agreements, backed by the transfer of shares or bonds as security. South African tax law offers specific dispensations for collateral arrangements, but repos do not receive the same treatment, resulting in distinct tax considerations.
For a comprehensive overview and analysis of this distinction in the South African context, Michael Reifarth from ENS Africa provides insights in the full article, which can be accessed here.
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