South African finance minister Trevor Manuel has said the government will close a loophole allowing banks to pay a tax rate of 6%, rather than the standard corporate rate of 30%. Under the existing rules, banks can defer their taxes through structured asset-based finance deals. Manuel said the issue would be addressed immediately, but Pravin Gordhan, head of the South African Revenue Service, admitted it could take up to a year for new rules to be enforced.
March 18 2001