Registering 2 companies to avoid VAT registration

[Wildsniper911]

Company A will Reach R1 mil within 12 months so the owner registers Company B and splits the income 50/50. Is this tax avoidance?

Which articles in the act support this I think there was a court case about this?

[Andromeda]

I'm sure you mean tax evasion (illegal) and not tax avoidance (usually legal).

Anyway, I think that applies more to Income Tax than to VAT.

If the scheme operates at arms length then I doubt that there is any problem.

But I may be wrong.