The Fund – Benefits
Individuals, corporate investors and trusts will be entitled to deduct the full amount of their investment into the fund from their taxable income in the tax year in which the investment is made (the tax year ending 28 February for individuals).
- Effect on a R10 000 000 investment is shown below:
|Initial Investment||R 10 000 000||R 10 000 000|
|Tax relief (in the tax year of initial investment)||(R4 500 000)||(R2 800 000)|
|Net Investment||R5 500 000||R7 200 000|
|Effective tax relief||45%||28%|
The investment in The JSS Empowerment Mining Fund needs to be held for at least 5 years to retain the tax benefit received, as shown above.
Investment into the fund counts for Enterprise Development (ED) and Supply Development (SD) spend which qualifies toward the B-BBEE scorecard if certain criteria are met.
Section 400 B of the B-BBEE Act states 70% of once off investment is counted towards B-BBEE scorecard, which can be claimed every year while invested in the fund while the Qualifying Company meets the definition of a QSE or EME (including the year the Qualifying Company ceases to meet the QSE or EME definition).
Investors in The JSS Empowerment Mining Fund, who subscribe for ED and SD Shares will be exposed to share portfolios which will allow the investors (as “Measured Entities” for B-BBEE purposes) to claim ED and SD points for their B-BBEE scorecard.
The Fund Manager will assist in the procurement of B-BBEE certification for ED Shareholders and SD Shareholders from the verification agency Empowerdex.
Targeting pre-tax return (gross of fees) of CPI + 10% on investment amount (i.e. up to a pre-tax return (gross of fees) of CPI + 20% on risk capital)
The JSS Empowerment Mining Fund will earn returns through dividends from investee companies and capital gains by disposing of shares once the mines/projects have a proven track record.
IMPACT & SUSTAINABILITY
- Junior miners will benefit from access to Stefanutti Stocks’ industry experience
- The goal is to assist the junior mining companies to establish and implement systems and procedures, that will assist them to operate in a sustainable manner
- Stefanutti Stocks will look for opportunities to sub-contract portions of the work out to emerging contractors, and, over time, assist them to operate independently
- On average 150-200 direct employment opportunities are created per mine
- 90% of these positions are locally sourced
- Community skills development programmes are implemented