A common law view of "carrying on a trade"
- Authors: Mkonza, Qhinga Aidan
- Date: 2018
- Subjects: Business , Common law -- South Africa , Income tax -- South Africa , Agriculture -- Taxation -- South Africa , Property tax -- South Africa , Moneylenders -- Taxation -- South Africa
- Language: English
- Type: text , Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10962/60888 , vital:27883
- Description: The term “trade” is defined in very wide terms in the Income Tax Act and includes a “business” and a “venture”. For a taxpayer to claim certain deductions in arriving at taxable income, the taxpayer must be carrying on a trade. The expression “carrying on a trade” is not defined in the Income Tax Act. Whether or not a taxpayer is carrying on a trade is a matter of fact. Case law has established certain principles and tests to be applied in determining whether a taxpayer is carrying on a trade. The goal of the thesis was to determine to what extent an activity can be considered as carrying on a trade. This research focused on the letting of property, money-lending, or farming operations in relation to carrying on a trade or business or engaging in a venture. The thesis also discussed at what stage a taxpayer ceases to carry on a trade and what the tax consequences are of ceasing to trade. An interpretative research approach was used in the research as it sought to understand and describe. No interviews conducted for this research and the data used for the research are publicly available. It was established that “carrying on a trade”, including a business, requires an active step taken by the taxpayer to trade. It involves regularity of buying and selling or rendering of services. The intention to trade is important but it is a subjective matter and cannot be persuasive in determining whether a taxpayer is carrying on a trade; objective factors are also considered. If the stated intention to trade matches the actions of the taxpayer, the taxpayer will be considered to be carrying on a trade. In determining whether a taxpayer is carrying on a trade each case must be considered with its own merits.
- Full Text:
- Date Issued: 2018
- Authors: Mkonza, Qhinga Aidan
- Date: 2018
- Subjects: Business , Common law -- South Africa , Income tax -- South Africa , Agriculture -- Taxation -- South Africa , Property tax -- South Africa , Moneylenders -- Taxation -- South Africa
- Language: English
- Type: text , Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10962/60888 , vital:27883
- Description: The term “trade” is defined in very wide terms in the Income Tax Act and includes a “business” and a “venture”. For a taxpayer to claim certain deductions in arriving at taxable income, the taxpayer must be carrying on a trade. The expression “carrying on a trade” is not defined in the Income Tax Act. Whether or not a taxpayer is carrying on a trade is a matter of fact. Case law has established certain principles and tests to be applied in determining whether a taxpayer is carrying on a trade. The goal of the thesis was to determine to what extent an activity can be considered as carrying on a trade. This research focused on the letting of property, money-lending, or farming operations in relation to carrying on a trade or business or engaging in a venture. The thesis also discussed at what stage a taxpayer ceases to carry on a trade and what the tax consequences are of ceasing to trade. An interpretative research approach was used in the research as it sought to understand and describe. No interviews conducted for this research and the data used for the research are publicly available. It was established that “carrying on a trade”, including a business, requires an active step taken by the taxpayer to trade. It involves regularity of buying and selling or rendering of services. The intention to trade is important but it is a subjective matter and cannot be persuasive in determining whether a taxpayer is carrying on a trade; objective factors are also considered. If the stated intention to trade matches the actions of the taxpayer, the taxpayer will be considered to be carrying on a trade. In determining whether a taxpayer is carrying on a trade each case must be considered with its own merits.
- Full Text:
- Date Issued: 2018
A comparative analysis of the determinants of South Africa bilateral trade flows with the European Union-Southern African development community economic partnership agreement and trade development and cooperation agreement
- Authors: Mhaka, Simbarashe
- Date: 2018
- Subjects: South Africa -- Economic integration , Africa, Southern -- Economic integration , Southern African Customs Union
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10948/31875 , vital:31857
- Description: This research dissertation presents the impact of economic size, market size and exchange rate on South Africa’s trade flows with the European Union under the Trade Development and Cooperation Agreement (TDCA). The Big Five EU members are used to represent the EU trading bloc. The research also examines the effects of economic size, market size and ex-change rate on South African trade flows with members of the Southern African Customs Union and of the European Union in what is called the European Union-Southern African Development Community Economic Partnership Agreement (EU-SADC EPA). The research employs comparative analysis aimed at identifying the differences in the effects of market size, economic size and exchange rate on South Africa’s trade flows with these two trading blocs. The study exploits panel data on international trade of South Africa over the period 2000-’16. A gravity model of trade is used to identify the effect of these three variables on South Africa’s trade flows. The empirical analysis relies on a panel data econometrics framework as an estimation technique for the gravity model of trade between South Africa and the Big Five EU members. This shows the outcomes of the effects of economic size, market size and exchange rate on the trade flows of South Africa in the TDCA. The same technique is applied to estimate the effects of economic size, market size and exchange rate to trade flows of South Africa with the Big Five EU members as well as the other SACU members representing the SADC-EU EPA. In the panel data approach, three models are adopted. These are pooled OLS, fixed effects and random effects that can be estimated. The Hausman tests shows that the random effect is appropriate in the TDCA gravity function and the results indicate a positive relationship be-tween South Africa’s economic/market size and South Africa’s trade flows in the TDCA. In the EU-SADC EPA, the Hausman tests indicated that the fixed effect models are appropriate and the results show a positive relationship between economic size and market size with South Africa’s trade flows in the EU-SADC EPA. However, in the TDCA, the random effect model shows that exchange rate and the trading partner’s market size have a negative outcome on South Africa trade flows. The fixed effect model shows a negative relationship between the exchange rate and South Africa’s trade flows in the EU-SADC EPA. The results also show that it is better for South Africa to trade in the EU-SADC EPA than to remain in the TDCA. This is because the outcomes of economic and market size on South Africa’s trade flows are greater in the EU-SADC EPA than in the TDCA. On the other hand the negative effect of the exchange rate on South Africa’s trade flows is less in the EU-SADC EPA than in the TDCA. The research recommends that policy-makers select trading partners based on the sizes of their markets and economies.
- Full Text:
- Date Issued: 2018
- Authors: Mhaka, Simbarashe
- Date: 2018
- Subjects: South Africa -- Economic integration , Africa, Southern -- Economic integration , Southern African Customs Union
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10948/31875 , vital:31857
- Description: This research dissertation presents the impact of economic size, market size and exchange rate on South Africa’s trade flows with the European Union under the Trade Development and Cooperation Agreement (TDCA). The Big Five EU members are used to represent the EU trading bloc. The research also examines the effects of economic size, market size and ex-change rate on South African trade flows with members of the Southern African Customs Union and of the European Union in what is called the European Union-Southern African Development Community Economic Partnership Agreement (EU-SADC EPA). The research employs comparative analysis aimed at identifying the differences in the effects of market size, economic size and exchange rate on South Africa’s trade flows with these two trading blocs. The study exploits panel data on international trade of South Africa over the period 2000-’16. A gravity model of trade is used to identify the effect of these three variables on South Africa’s trade flows. The empirical analysis relies on a panel data econometrics framework as an estimation technique for the gravity model of trade between South Africa and the Big Five EU members. This shows the outcomes of the effects of economic size, market size and exchange rate on the trade flows of South Africa in the TDCA. The same technique is applied to estimate the effects of economic size, market size and exchange rate to trade flows of South Africa with the Big Five EU members as well as the other SACU members representing the SADC-EU EPA. In the panel data approach, three models are adopted. These are pooled OLS, fixed effects and random effects that can be estimated. The Hausman tests shows that the random effect is appropriate in the TDCA gravity function and the results indicate a positive relationship be-tween South Africa’s economic/market size and South Africa’s trade flows in the TDCA. In the EU-SADC EPA, the Hausman tests indicated that the fixed effect models are appropriate and the results show a positive relationship between economic size and market size with South Africa’s trade flows in the EU-SADC EPA. However, in the TDCA, the random effect model shows that exchange rate and the trading partner’s market size have a negative outcome on South Africa trade flows. The fixed effect model shows a negative relationship between the exchange rate and South Africa’s trade flows in the EU-SADC EPA. The results also show that it is better for South Africa to trade in the EU-SADC EPA than to remain in the TDCA. This is because the outcomes of economic and market size on South Africa’s trade flows are greater in the EU-SADC EPA than in the TDCA. On the other hand the negative effect of the exchange rate on South Africa’s trade flows is less in the EU-SADC EPA than in the TDCA. The research recommends that policy-makers select trading partners based on the sizes of their markets and economies.
- Full Text:
- Date Issued: 2018
A comparative study of South Africa's vat rate
- Authors: Pieterse, Marli
- Date: 2018
- Subjects: Value-added tax -- South Africa , Value-added tax -- Law and legislation -- South Africa Taxation -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10948/23049 , vital:30401
- Description: This treatise compared South Africa's VAT rate to the VAT rate trends of other developing counties (such as Brazil and India), as well as international VAT rate developments. Brazil introduced VAT in 1965 and currently has a multi-dimensional VAT rate system consists of five types of VAT, each type of taxing consumers a t different rate depending on the type of product, the municipality or the consumer's turnover. Brazil's average VAT rate is currently 19%. India moved from an origin-based VAT rate system to a GST rate system in 2017. Their GST system levies VAT on a federal level. as well as a state level and on all interstate transactions. India's GST rates varies depending on the luxurious nature of the supply and their average GST rate is currently 15%. South Africa VAT in 1991 and it comprises of a single-rate VAT system where goods and services of vendors are taxed at 14%, unless the specific goods or services fall under the list of exepted or zero-rated items. South Africa's VAT rate remained unchanged since 1993. Per the research it was noted that despite facing similar political, economical and social dilemmas, developing countries such as India and Brazil changed their VAT rates numerous time since its inception, where South Africa only increased their VAT rate once. Brazil and India furthermore have higher average VAT rates than South Africa, despite correlation with the respective poverty levels indicating otherwise.
- Full Text: false
- Date Issued: 2018
- Authors: Pieterse, Marli
- Date: 2018
- Subjects: Value-added tax -- South Africa , Value-added tax -- Law and legislation -- South Africa Taxation -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10948/23049 , vital:30401
- Description: This treatise compared South Africa's VAT rate to the VAT rate trends of other developing counties (such as Brazil and India), as well as international VAT rate developments. Brazil introduced VAT in 1965 and currently has a multi-dimensional VAT rate system consists of five types of VAT, each type of taxing consumers a t different rate depending on the type of product, the municipality or the consumer's turnover. Brazil's average VAT rate is currently 19%. India moved from an origin-based VAT rate system to a GST rate system in 2017. Their GST system levies VAT on a federal level. as well as a state level and on all interstate transactions. India's GST rates varies depending on the luxurious nature of the supply and their average GST rate is currently 15%. South Africa VAT in 1991 and it comprises of a single-rate VAT system where goods and services of vendors are taxed at 14%, unless the specific goods or services fall under the list of exepted or zero-rated items. South Africa's VAT rate remained unchanged since 1993. Per the research it was noted that despite facing similar political, economical and social dilemmas, developing countries such as India and Brazil changed their VAT rates numerous time since its inception, where South Africa only increased their VAT rate once. Brazil and India furthermore have higher average VAT rates than South Africa, despite correlation with the respective poverty levels indicating otherwise.
- Full Text: false
- Date Issued: 2018
A comparative study of tax incentives for small businesses and investors in small businesses in South Africa, Australia, New Zealand, Singapore and Ireland
- Authors: Horn, Edward Bennet
- Date: 2018
- Subjects: Small business -- Taxation -- South Africa , Small business -- South Africa -- Finance , Job creation -- South Africa , Government aid to small business -- South Africa , Tax incentives -- South Africa , Tax incentives -- Australia , Tax incentives -- New Zealand , Tax incentives -- Singapore , Tax incentives -- Ireland
- Language: English
- Type: text , Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10962/61669 , vital:28047
- Description: In the South African context, it is accepted that small businesses will be the vehicle for job creation and changing the current business ownership patterns. This is to be achieved by creating access to finance, exploring the role of venture capital and simplifying the tax obligations and the compliance burden. The literature indicates that the current South African tax incentives for small businesses are perceived as unfair and fundamentally ineffective. The objective of this thesis was to compare the tax incentives available to small businesses and investors in small businesses in South Africa to those available in Australia, New Zealand, Singapore and Ireland, in order to identify possible measures that could be introduced in South Africa. In addressing the objective, the research set out to provide, in terms of South African tax legislation, a definition of a small business for tax purposes and document the tax incentives available for start-up and existing small businesses, as well as the tax incentives available for investors in small businesses, either through a venture capital company or a direct investment in small business. It was found that South Africa has a complex and onerous multi-layered approach to classifying a taxpayer as either a “micro business” or a “small business corporation” for the purpose of applying tax incentives. The international jurisdictions included in this research follow a single requirement approach, based on either one or a combination of turnover, balance sheet total or staff headcount. The international jurisdictions provide a wide range of tax incentives to small businesses and investors in small businesses, aimed at reducing taxable income to enable the small businesses to grow and access equity finance. By identifying differences and similarities, a number of possible tax relief measures were recommended that could be introduced in South Africa.
- Full Text:
- Date Issued: 2018
- Authors: Horn, Edward Bennet
- Date: 2018
- Subjects: Small business -- Taxation -- South Africa , Small business -- South Africa -- Finance , Job creation -- South Africa , Government aid to small business -- South Africa , Tax incentives -- South Africa , Tax incentives -- Australia , Tax incentives -- New Zealand , Tax incentives -- Singapore , Tax incentives -- Ireland
- Language: English
- Type: text , Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10962/61669 , vital:28047
- Description: In the South African context, it is accepted that small businesses will be the vehicle for job creation and changing the current business ownership patterns. This is to be achieved by creating access to finance, exploring the role of venture capital and simplifying the tax obligations and the compliance burden. The literature indicates that the current South African tax incentives for small businesses are perceived as unfair and fundamentally ineffective. The objective of this thesis was to compare the tax incentives available to small businesses and investors in small businesses in South Africa to those available in Australia, New Zealand, Singapore and Ireland, in order to identify possible measures that could be introduced in South Africa. In addressing the objective, the research set out to provide, in terms of South African tax legislation, a definition of a small business for tax purposes and document the tax incentives available for start-up and existing small businesses, as well as the tax incentives available for investors in small businesses, either through a venture capital company or a direct investment in small business. It was found that South Africa has a complex and onerous multi-layered approach to classifying a taxpayer as either a “micro business” or a “small business corporation” for the purpose of applying tax incentives. The international jurisdictions included in this research follow a single requirement approach, based on either one or a combination of turnover, balance sheet total or staff headcount. The international jurisdictions provide a wide range of tax incentives to small businesses and investors in small businesses, aimed at reducing taxable income to enable the small businesses to grow and access equity finance. By identifying differences and similarities, a number of possible tax relief measures were recommended that could be introduced in South Africa.
- Full Text:
- Date Issued: 2018
A critical analysis of the deductibility of bad debts for income tax purposes
- Authors: Naidu, Aveshni
- Date: 2018
- Subjects: Collecting of accounts -- South Africa , Tax deductions -- South Africa , South Africa. Income Tax Act, 1962
- Language: English
- Type: text , Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10962/61712 , vital:28051
- Description: The objective of this thesis was to critically analyse the deductibility of bad debts for income tax purposes. This was achieved by applying a doctrinal research methodology to the data, which consisted of local and international legislation and case law, as well as other relevant writings. In setting out to achieve this primary objective, this thesis addressed certain subsidiary goals. The requirements of section 11 (i) of the South African Income Tax Act that provides for the deduction of bad debts were examined with reference to local case law, together with case law from selected international jurisdictions. To clarify the requirement of section 11 (i) that a debt must have become bad, this thesis set out to ascribe a meaning to the term “bad debt” which is currently not defined in the South African Income Tax Act and to ascertain the principles applicable in determining when a debt will be regarded as having become bad. The research also addressed the timing in relation to the identification of a debt as bad, as well as other commercial considerations. This research concluded that there is a need for further guidance in this area and provided brief recommendations that could provide more certainty in relation to the deductibility of bad debts.
- Full Text:
- Date Issued: 2018
- Authors: Naidu, Aveshni
- Date: 2018
- Subjects: Collecting of accounts -- South Africa , Tax deductions -- South Africa , South Africa. Income Tax Act, 1962
- Language: English
- Type: text , Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10962/61712 , vital:28051
- Description: The objective of this thesis was to critically analyse the deductibility of bad debts for income tax purposes. This was achieved by applying a doctrinal research methodology to the data, which consisted of local and international legislation and case law, as well as other relevant writings. In setting out to achieve this primary objective, this thesis addressed certain subsidiary goals. The requirements of section 11 (i) of the South African Income Tax Act that provides for the deduction of bad debts were examined with reference to local case law, together with case law from selected international jurisdictions. To clarify the requirement of section 11 (i) that a debt must have become bad, this thesis set out to ascribe a meaning to the term “bad debt” which is currently not defined in the South African Income Tax Act and to ascertain the principles applicable in determining when a debt will be regarded as having become bad. The research also addressed the timing in relation to the identification of a debt as bad, as well as other commercial considerations. This research concluded that there is a need for further guidance in this area and provided brief recommendations that could provide more certainty in relation to the deductibility of bad debts.
- Full Text:
- Date Issued: 2018
A critical analysis of the provisions taxing maintenance payments in terms of the South African income tax legislation
- Authors: Zulu, Nkosinathi
- Date: 2018
- Subjects: Income tax -- Law and legislation -- South Africa , Income tax -- South Africa Tax planning -- South Africa Taxation -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10948/35885 , vital:33856
- Description: The tax implications of contributions towards maintenance are not always clear to a typical taxpayer. The duty of support is often the driving force behind the contributions made. Donations, payments made by ‘Blessors’, and child maintenance are fundamental objects of attention in this study, although all maintenance payments are considered from a tax perspective with reference to the Income Tax Act No 58 of 1962. The main aim of the study was to illustrate and analyse the interaction of the rules governing the taxation of maintenance payments. Tax abuse was assessed in relation to the anti-avoidance provisions in effect in the legislation. The results were benchmarked against data relating to Australia. In the social context, a fundamental difference in the systems was observed, and the Australian provision may be considered for possible adoption in South Africa. In the context of tax per se, the study found that the operation of the attribution rules in the provisions in South African tax law pertaining to the taxation of child maintenance renders the provisions adequate.
- Full Text:
- Date Issued: 2018
- Authors: Zulu, Nkosinathi
- Date: 2018
- Subjects: Income tax -- Law and legislation -- South Africa , Income tax -- South Africa Tax planning -- South Africa Taxation -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10948/35885 , vital:33856
- Description: The tax implications of contributions towards maintenance are not always clear to a typical taxpayer. The duty of support is often the driving force behind the contributions made. Donations, payments made by ‘Blessors’, and child maintenance are fundamental objects of attention in this study, although all maintenance payments are considered from a tax perspective with reference to the Income Tax Act No 58 of 1962. The main aim of the study was to illustrate and analyse the interaction of the rules governing the taxation of maintenance payments. Tax abuse was assessed in relation to the anti-avoidance provisions in effect in the legislation. The results were benchmarked against data relating to Australia. In the social context, a fundamental difference in the systems was observed, and the Australian provision may be considered for possible adoption in South Africa. In the context of tax per se, the study found that the operation of the attribution rules in the provisions in South African tax law pertaining to the taxation of child maintenance renders the provisions adequate.
- Full Text:
- Date Issued: 2018
A critical analysis of the South African Revenue Service (SARS) dispute resolution process
- Authors: Olivier, Carl Hendré
- Date: 2018
- Subjects: South African Revenue Service , Conflict management Civil procedure -- Trials, litigation, etc Dispute resolution (Law) -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10948/23011 , vital:30294
- Description: The SARS dispute resolution process was developed to ensure disputes are resolved in a constitutional manner (i.e. fair, accountable and efficient). The aim of this study was to investigate whether the dispute resolution process adheres to the constitutional requirements as required in terms of section 195 of the Constitution. The study summarised the rules of the dispute process in the various stages (i.e. assessment / discovery stage, objection stage, appeal stage and the litigation stage). The litigation stage was considered to be out of the scope for the study. Using the summary, the significant processes were identified based on set criteria for detailed analysis. The significant processes identified were:Prescribed form and manner, date of delivery and objection against an assessment and extension of time periods, Reasons for assessment, Appeal against rejection of an objection Each of the significant processes was analysed in detail by considering the treatment of the processes in various cases in the courts. Based on the analysis, the following conclusions were reached on the significant processes:Prescribed form and manner, objection against an assessment and extension of time periods – This process was considered to be flawed since the process does not provide for the SARS to be responsible for clerical or processing errors. It was recommended that the taxpayer should not be bound by the set timelines should the SARS issue an assessment which contains clerical or processing errors. It was also noted that there are no set rules when there is evidence of fraud, misrepresentation or non-disclosure of material facts in the case and it was recommended that set rules be included in the rules and the TAA to address the consequences, prescription period and processes surrounding cases where fraud, misrepresentation or non-disclosure of material facts is present. Reasons for assessment – The process was considered to be adequate, however it was recommended that the process be improved by including a set criteria for the SARS to comply with when providing reasons for an assessment to the taxpayer., Appeal against rejection of an objection – The process was considered to be adequate. Based on the findings, the conclusion was drawn that the dispute resolution process is considered to be adequate and constitutional with some reservations.
- Full Text:
- Date Issued: 2018
- Authors: Olivier, Carl Hendré
- Date: 2018
- Subjects: South African Revenue Service , Conflict management Civil procedure -- Trials, litigation, etc Dispute resolution (Law) -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10948/23011 , vital:30294
- Description: The SARS dispute resolution process was developed to ensure disputes are resolved in a constitutional manner (i.e. fair, accountable and efficient). The aim of this study was to investigate whether the dispute resolution process adheres to the constitutional requirements as required in terms of section 195 of the Constitution. The study summarised the rules of the dispute process in the various stages (i.e. assessment / discovery stage, objection stage, appeal stage and the litigation stage). The litigation stage was considered to be out of the scope for the study. Using the summary, the significant processes were identified based on set criteria for detailed analysis. The significant processes identified were:Prescribed form and manner, date of delivery and objection against an assessment and extension of time periods, Reasons for assessment, Appeal against rejection of an objection Each of the significant processes was analysed in detail by considering the treatment of the processes in various cases in the courts. Based on the analysis, the following conclusions were reached on the significant processes:Prescribed form and manner, objection against an assessment and extension of time periods – This process was considered to be flawed since the process does not provide for the SARS to be responsible for clerical or processing errors. It was recommended that the taxpayer should not be bound by the set timelines should the SARS issue an assessment which contains clerical or processing errors. It was also noted that there are no set rules when there is evidence of fraud, misrepresentation or non-disclosure of material facts in the case and it was recommended that set rules be included in the rules and the TAA to address the consequences, prescription period and processes surrounding cases where fraud, misrepresentation or non-disclosure of material facts is present. Reasons for assessment – The process was considered to be adequate, however it was recommended that the process be improved by including a set criteria for the SARS to comply with when providing reasons for an assessment to the taxpayer., Appeal against rejection of an objection – The process was considered to be adequate. Based on the findings, the conclusion was drawn that the dispute resolution process is considered to be adequate and constitutional with some reservations.
- Full Text:
- Date Issued: 2018
A critical review of the penalty provisions of the Tax Administration Act
- Authors: Mavundla, Dineo Shaleen
- Date: 2018
- Subjects: South Africa -- Tax Administration Act, 2011 , Tax administration and procedure Taxation -- Law and legislation -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10948/31808 , vital:31847
- Description: In previous years SARS faced a challenge of imposing additional taxes and penalties consistently. The Tax Administration Act (TAA) was introduced in order to consolidate the administrative provisions of the various taxation acts and to consistently apply penalty provisions that were previously included in, amongst others, section 75B and 76 of the Income Tax Act and section 60 of the Value Added Tax (VAT) Act. The penalty provisions are contained in chapter 15, 16 and 17 of the TAA. These penalty provisions now apply to all tax types, excluding customs and excise. It could be said that the tax system in South Africa is based on an honesty policy. Taxpayers are expected to submit accurate returns. The main purpose of the penalties is to ensure the accuracy of the returns submitted and to avoid loss to the fiscus. The principle found in ITC 14891 is "a relevant factor in the assessment of a penalty is the loss occasioned to the fiscus.". This study critically analyses the administrative non-compliance penalties contained in chapter 15 and the understatement penalties in chapter 16 of the TAA. This was done through literature and case law (where appropriate), to determine what the legislature intends and to test the provisions against the Constitution and the Promotion of Administrative Justice Act (PAJA). It was found that the introduction of the penalty provisions in the TAA have not completely brought about consistency in the application of the penalties. It was 1 ITC 1489 53 SATC 99 at 108. also found that there were instances where penalty provisions were applied incorrectly, either by the system or by tax officials, which consequently added to taxpayers’ administrative burden. The current study proposes this as an unfair application of the penalty provisions as it deviates from the intention of the legislature.
- Full Text:
- Date Issued: 2018
- Authors: Mavundla, Dineo Shaleen
- Date: 2018
- Subjects: South Africa -- Tax Administration Act, 2011 , Tax administration and procedure Taxation -- Law and legislation -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10948/31808 , vital:31847
- Description: In previous years SARS faced a challenge of imposing additional taxes and penalties consistently. The Tax Administration Act (TAA) was introduced in order to consolidate the administrative provisions of the various taxation acts and to consistently apply penalty provisions that were previously included in, amongst others, section 75B and 76 of the Income Tax Act and section 60 of the Value Added Tax (VAT) Act. The penalty provisions are contained in chapter 15, 16 and 17 of the TAA. These penalty provisions now apply to all tax types, excluding customs and excise. It could be said that the tax system in South Africa is based on an honesty policy. Taxpayers are expected to submit accurate returns. The main purpose of the penalties is to ensure the accuracy of the returns submitted and to avoid loss to the fiscus. The principle found in ITC 14891 is "a relevant factor in the assessment of a penalty is the loss occasioned to the fiscus.". This study critically analyses the administrative non-compliance penalties contained in chapter 15 and the understatement penalties in chapter 16 of the TAA. This was done through literature and case law (where appropriate), to determine what the legislature intends and to test the provisions against the Constitution and the Promotion of Administrative Justice Act (PAJA). It was found that the introduction of the penalty provisions in the TAA have not completely brought about consistency in the application of the penalties. It was 1 ITC 1489 53 SATC 99 at 108. also found that there were instances where penalty provisions were applied incorrectly, either by the system or by tax officials, which consequently added to taxpayers’ administrative burden. The current study proposes this as an unfair application of the penalty provisions as it deviates from the intention of the legislature.
- Full Text:
- Date Issued: 2018
A trust based model for enhanced adoption of diabetes self-management mobile applications
- Authors: Mainoti, Ganizani Fidelis
- Date: 2018
- Subjects: Medical records -- Data processing Medical records -- Management Mobile communication systems
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10353/11041 , vital:37011
- Description: Information technology (IT) trust is an important concept as people today rely more on IT to perform their tasks than before. Extensive research in Information Systems (IS) has explored trust and how it affects clients’ selection of different IT artefacts. Literature found trust to be a key determinant of technology use and an accelerator of understanding user perceptions regarding technology. Users’ perception of a technology’s characteristics influences their initial decision to adopt it; they are less likely to try the technology once they perceive significant risk linked to the technology exploration. The study focused on trust in relation to adoption of mobile applications (apps) for self-management of diabetic treatment regimens. The aim was to identify factors that should be incorporated in these apps to positively influence user perception of trustworthiness for enhanced adoption. According to extant literature, there are a myriad of apps which are available and ready for use, but diabetic patients are not maximising these opportunities to actively participate in managing their conditions. This is in spite of the numerous benefits accruable from using these apps to aid treatment regimens away from clinical settings or with minimal involvement of health personnel. This work is a qualitative study that investigated the reasons behind the low levels of trust in mobile applications for self-management of diabetes. The research design involved a survey and the study employed interviews for primary data collection. Twenty participants were engaged in the intervention. Some of these respondents were diabetic patients on treatment and others were health staff specialising in diabetes treatment. The participants were asked to download and try, for one month or more, the Diabetes:M app from Google play store for android devices or from iTunes for IOS devices. Thereafter, interviews were held with the participants to investigate their perceptions of the diabetes management app. Based on the outcome of the investigation, the researcher put forward a model proposing the attributes of trustworthiness of diabetes self-management mobile apps for enhanced adoption. Research findings showed that the apps for diabetes self-management should be usable, possess sufficient functionalities, give accurate information for decision-making, be reliable, and secure in order to enhance the trust of diabetic patients.
- Full Text:
- Date Issued: 2018
- Authors: Mainoti, Ganizani Fidelis
- Date: 2018
- Subjects: Medical records -- Data processing Medical records -- Management Mobile communication systems
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10353/11041 , vital:37011
- Description: Information technology (IT) trust is an important concept as people today rely more on IT to perform their tasks than before. Extensive research in Information Systems (IS) has explored trust and how it affects clients’ selection of different IT artefacts. Literature found trust to be a key determinant of technology use and an accelerator of understanding user perceptions regarding technology. Users’ perception of a technology’s characteristics influences their initial decision to adopt it; they are less likely to try the technology once they perceive significant risk linked to the technology exploration. The study focused on trust in relation to adoption of mobile applications (apps) for self-management of diabetic treatment regimens. The aim was to identify factors that should be incorporated in these apps to positively influence user perception of trustworthiness for enhanced adoption. According to extant literature, there are a myriad of apps which are available and ready for use, but diabetic patients are not maximising these opportunities to actively participate in managing their conditions. This is in spite of the numerous benefits accruable from using these apps to aid treatment regimens away from clinical settings or with minimal involvement of health personnel. This work is a qualitative study that investigated the reasons behind the low levels of trust in mobile applications for self-management of diabetes. The research design involved a survey and the study employed interviews for primary data collection. Twenty participants were engaged in the intervention. Some of these respondents were diabetic patients on treatment and others were health staff specialising in diabetes treatment. The participants were asked to download and try, for one month or more, the Diabetes:M app from Google play store for android devices or from iTunes for IOS devices. Thereafter, interviews were held with the participants to investigate their perceptions of the diabetes management app. Based on the outcome of the investigation, the researcher put forward a model proposing the attributes of trustworthiness of diabetes self-management mobile apps for enhanced adoption. Research findings showed that the apps for diabetes self-management should be usable, possess sufficient functionalities, give accurate information for decision-making, be reliable, and secure in order to enhance the trust of diabetic patients.
- Full Text:
- Date Issued: 2018
An analysis of systemic risk in the South African banking sector
- Authors: Johnson, Clifford
- Date: 2018
- Subjects: Risk assessment -- South Africa , Finance -- South Africa Banks and banking -- South Africa Financial risk management -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10948/30551 , vital:30959
- Description: The topic of systemic risk has gained prominence over the last three decades, however, renewed interest and discourse on the subject has increased significantly since the global financial crisis of 2007. This dissertation investigates the impact systemic risk has on the South African banking sector and the externalities borne amongst the largest constituent banks during periods of distress. By means of quantile regression, the delta conditional value at risk (ΔCoVaR) as introduced by Adrian and Brunnermeier (2008), banking institutions are ranked according to their systemic risk contributions at horizontal and vertical levels. Using weekly observations from 25 January 2008 until 28 July 2017, the empirical results reveal that a loose link exists between an individual bank’s risk and its systemic contribution. Furthermore, during periods of distress, larger banks contribute the most to systemic risk of the system. However, horizontally – amongst banks – size does not automatically imply systemic importance. The implications of the results, given the study, highlight that regulation of banks at an individual level does not imply that an institution is operating systemically prudent. Furthermore, regulation of banks is welcomed in order to address systemic risk of an institution; however, regulators should be mindful of the vertical and horizontal aspects of systemic externalities.
- Full Text:
- Date Issued: 2018
- Authors: Johnson, Clifford
- Date: 2018
- Subjects: Risk assessment -- South Africa , Finance -- South Africa Banks and banking -- South Africa Financial risk management -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10948/30551 , vital:30959
- Description: The topic of systemic risk has gained prominence over the last three decades, however, renewed interest and discourse on the subject has increased significantly since the global financial crisis of 2007. This dissertation investigates the impact systemic risk has on the South African banking sector and the externalities borne amongst the largest constituent banks during periods of distress. By means of quantile regression, the delta conditional value at risk (ΔCoVaR) as introduced by Adrian and Brunnermeier (2008), banking institutions are ranked according to their systemic risk contributions at horizontal and vertical levels. Using weekly observations from 25 January 2008 until 28 July 2017, the empirical results reveal that a loose link exists between an individual bank’s risk and its systemic contribution. Furthermore, during periods of distress, larger banks contribute the most to systemic risk of the system. However, horizontally – amongst banks – size does not automatically imply systemic importance. The implications of the results, given the study, highlight that regulation of banks at an individual level does not imply that an institution is operating systemically prudent. Furthermore, regulation of banks is welcomed in order to address systemic risk of an institution; however, regulators should be mindful of the vertical and horizontal aspects of systemic externalities.
- Full Text:
- Date Issued: 2018
An analysis, from a South African case law perspective, of the deductibility of losses due to embezzlement, fraud, theft, damages and compensation
- Authors: Jachi, Adelaide Gamuchirai
- Date: 2018
- Subjects: South Africa. Income Tax Act, 1962 , Tax deductions -- South Africa , Taxation -- Law and legislation -- South Africa , Tax courts -- South Africa , Tax administration and procedure -- South Africa , Tax accounting -- South Africa , Income tax deductions for losses -- South Africa
- Language: English
- Type: text , Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10962/60855 , vital:27846
- Description: When calculating the income tax payable for a year of assessment, a taxpayer deducts from his or her or its income, allowable deductions in terms of the preamble to section 11 and section 11(a) as read with section 23(g) of the Income Tax Act, 58 of 1962. Amongst the expenditure and losses incurred by a taxpayer during a year of assessment, a claim may be sought for the deduction of losses incurred due to embezzlement, fraud and theft as well as damages and compensation. The requirements of the preamble and section 11(a) include the requirement that expenditure and losses must be incurred “in the production of the income”. Losses incurred due to defalcations, as well as expenditure on damages and compensation must satisfy this requirement to be allowed as deductions. The objective of the research was to analyse the judicial decisions dealing with “in the production of the income” in granting a deduction for income tax purposes in cases dealing with embezzlement, fraud and theft, and damages and compensation, to establish why the courts grant or disallow the deduction of expenditure and losses. A doctrinal research methodology was applied to the research. The provisions of the Income Tax Act, relevant case law relating to embezzlement, fraud and theft, and damages and compensation, and the contributions of the revenue authority and tax experts in articles of accredited journals, textbooks and other writings were analysed. The major conclusions drawn from the research were that losses due to defalcations are regarded as having been incurred “in the production of the income” if the taxpayer discharges the onus of proof that the risk of the act leading to misappropriation is an incidental risk of the business. Expenditure on damages and compensation is deductible provided the expense is attached to the performance of a business operation bona fide performed for the purpose of earning income and the expense is so closely connected with the business operation as to be regarded as part of the cost of performing it. Where negligence is attached to an expense or loss, the South African courts have held that negligence does not increase the likelihood of disallowing an expense or loss as not having been incurred “in the production of the income”.
- Full Text:
- Date Issued: 2018
- Authors: Jachi, Adelaide Gamuchirai
- Date: 2018
- Subjects: South Africa. Income Tax Act, 1962 , Tax deductions -- South Africa , Taxation -- Law and legislation -- South Africa , Tax courts -- South Africa , Tax administration and procedure -- South Africa , Tax accounting -- South Africa , Income tax deductions for losses -- South Africa
- Language: English
- Type: text , Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10962/60855 , vital:27846
- Description: When calculating the income tax payable for a year of assessment, a taxpayer deducts from his or her or its income, allowable deductions in terms of the preamble to section 11 and section 11(a) as read with section 23(g) of the Income Tax Act, 58 of 1962. Amongst the expenditure and losses incurred by a taxpayer during a year of assessment, a claim may be sought for the deduction of losses incurred due to embezzlement, fraud and theft as well as damages and compensation. The requirements of the preamble and section 11(a) include the requirement that expenditure and losses must be incurred “in the production of the income”. Losses incurred due to defalcations, as well as expenditure on damages and compensation must satisfy this requirement to be allowed as deductions. The objective of the research was to analyse the judicial decisions dealing with “in the production of the income” in granting a deduction for income tax purposes in cases dealing with embezzlement, fraud and theft, and damages and compensation, to establish why the courts grant or disallow the deduction of expenditure and losses. A doctrinal research methodology was applied to the research. The provisions of the Income Tax Act, relevant case law relating to embezzlement, fraud and theft, and damages and compensation, and the contributions of the revenue authority and tax experts in articles of accredited journals, textbooks and other writings were analysed. The major conclusions drawn from the research were that losses due to defalcations are regarded as having been incurred “in the production of the income” if the taxpayer discharges the onus of proof that the risk of the act leading to misappropriation is an incidental risk of the business. Expenditure on damages and compensation is deductible provided the expense is attached to the performance of a business operation bona fide performed for the purpose of earning income and the expense is so closely connected with the business operation as to be regarded as part of the cost of performing it. Where negligence is attached to an expense or loss, the South African courts have held that negligence does not increase the likelihood of disallowing an expense or loss as not having been incurred “in the production of the income”.
- Full Text:
- Date Issued: 2018
An assessment of IDP implementation and sustainable development : the case of the housing sector in Mangaung Metropolitan Municipality
- Authors: Mwatenga, John
- Date: 2018
- Subjects: City planning Sustainable development Housing
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10353/13447 , vital:39667
- Description: This research study assessed the implementation of the Integrated Development Plan and sustainable development in Mangaung Metropolitan Municipality. The study intended to achieve the following objectives: i) to identify factors affecting the provision of dwelling units in the Mangaung Metropolitan Municipality and their effect on sustainable development in the Mangaung Metropolitan Municipality; to assess the perceptions of the municipality and the community on the role of the IDP as a tool for development; iii) to suggest strategies that can be adopted to improve IDP implementation for sustainable development in the area. The literature reviewed in the study was drawn from several researchers. The sustainable development theory, the incremental planning model and the rational planning model underpinned the study. Although three theories were used, the sustainable development theory was the major theory adopted in this study. The mixed research methods are used to collect the primary data for this study. The use of both quantitative and qualitative methods is deemed most appropriate for this research study, as most researchers regard them as best methods in answering the research questions. The use of mixed methods has the assumption that both approaches can complement each other and help in avoiding unnecessary shortcomings. Since the study collected both quantitative and qualitative data, an interview guide and questionnaires were used. Interviews were conducted with three (3) municipal officials as well as (2) councillors from Mangaung metropolitan municipality (MMM), whereas questionnaires were distributed to (90) community members. The analysis of the study made the following conclusions about the IDP implementation and sustainable development in Mangaung metropolitan municipality. Firstly, there is satisfactory majority understanding among the participants regarding Integrated Development Plan and its related processes. The respondents have a common view that the IDP is a key tool that buoys development and that continued implementation challenges halt every form of development within the municipal area. Secondly, there is implementation of the IDP in Mangaung metropolitan municipality (MMM); nevertheless, the extent of implementation has not had the anticipated effect on the general populace in communities, given the ineffectiveness and inefficiencies in resource utilisation. Thirdly, it was also discovered that the municipality currently has serious housing backlogs that have brought auxiliary challenges thus impeding developmental efforts of MMM. Fourthly, the study also concluded that the causes of housing backlogs are: apartheid legacy, influx of foreign nationals, lack of oversight monitoring, heightened poverty, corruption, poor governance, insufficient budget, ineffective IDP implementation, urbanisation, natural population; unemployment and lack of capacity and skills can be regarded as the major contributors to housing shortages currently plaguing MMM. Thus the study recommended that an oversight, monitoring and evaluation policy, good governance, public participation, utilisation of PPPs and implementation of environmental management policy will go a long way in enhancing IDP implementation towards attaining sustainable development in the Mangaung metropolitan municipality.
- Full Text:
- Date Issued: 2018
- Authors: Mwatenga, John
- Date: 2018
- Subjects: City planning Sustainable development Housing
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10353/13447 , vital:39667
- Description: This research study assessed the implementation of the Integrated Development Plan and sustainable development in Mangaung Metropolitan Municipality. The study intended to achieve the following objectives: i) to identify factors affecting the provision of dwelling units in the Mangaung Metropolitan Municipality and their effect on sustainable development in the Mangaung Metropolitan Municipality; to assess the perceptions of the municipality and the community on the role of the IDP as a tool for development; iii) to suggest strategies that can be adopted to improve IDP implementation for sustainable development in the area. The literature reviewed in the study was drawn from several researchers. The sustainable development theory, the incremental planning model and the rational planning model underpinned the study. Although three theories were used, the sustainable development theory was the major theory adopted in this study. The mixed research methods are used to collect the primary data for this study. The use of both quantitative and qualitative methods is deemed most appropriate for this research study, as most researchers regard them as best methods in answering the research questions. The use of mixed methods has the assumption that both approaches can complement each other and help in avoiding unnecessary shortcomings. Since the study collected both quantitative and qualitative data, an interview guide and questionnaires were used. Interviews were conducted with three (3) municipal officials as well as (2) councillors from Mangaung metropolitan municipality (MMM), whereas questionnaires were distributed to (90) community members. The analysis of the study made the following conclusions about the IDP implementation and sustainable development in Mangaung metropolitan municipality. Firstly, there is satisfactory majority understanding among the participants regarding Integrated Development Plan and its related processes. The respondents have a common view that the IDP is a key tool that buoys development and that continued implementation challenges halt every form of development within the municipal area. Secondly, there is implementation of the IDP in Mangaung metropolitan municipality (MMM); nevertheless, the extent of implementation has not had the anticipated effect on the general populace in communities, given the ineffectiveness and inefficiencies in resource utilisation. Thirdly, it was also discovered that the municipality currently has serious housing backlogs that have brought auxiliary challenges thus impeding developmental efforts of MMM. Fourthly, the study also concluded that the causes of housing backlogs are: apartheid legacy, influx of foreign nationals, lack of oversight monitoring, heightened poverty, corruption, poor governance, insufficient budget, ineffective IDP implementation, urbanisation, natural population; unemployment and lack of capacity and skills can be regarded as the major contributors to housing shortages currently plaguing MMM. Thus the study recommended that an oversight, monitoring and evaluation policy, good governance, public participation, utilisation of PPPs and implementation of environmental management policy will go a long way in enhancing IDP implementation towards attaining sustainable development in the Mangaung metropolitan municipality.
- Full Text:
- Date Issued: 2018
An exploration of whether using a global employment company could mitigate the South African tax risks in relation to inbound expatriates in multinational companies
- Authors: Pavey, Janet Gail
- Date: 2018
- Subjects: Double taxation -- South Africa , Corporations, Foreign -- South Africa , Foreign workers -- Taxation -- South Africa , International business enterprises -- South Africa , Corporations -- Taxation -- South Africa , Value-added tax -- Law and legislation -- South Africa
- Language: English
- Type: text , Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10962/61368 , vital:28019
- Description: The main objective of this research paper was to explore whether a multinational company could use a global employment company to employ its expatriates to mitigate, simplify or limit the tax risk for that foreign company when sending expatriates to South Africa. To investigate this topic, an interpretive research approach was used, a doctrinal research methodology was followed, and inductive reasoning was applied. The documentary data used in this research was publicly available. Firstly, the meaning of the term “expatriate” was explored, together with the types of employment arrangements commonly used to employ this type of employee. The South African tax consequences that an inbound expatriate may create for a multinational company were then analysed. These tax consequences were applied to the common types of employment arrangements to determine what the South African tax impact of these arrangements is likely to be and which entity within a multinational group is likely to be affected. It was investigated whether using a foreign global employment company provides any tax simplification or tax mitigation strategies for the multinational company for expatriates inbound to South Africa. The primary conclusions of this research were that it was found that using a global employment company may only provide a tax benefit in South Africa in very specific circumstances: (i) where the economic employer of the expatriate is the South African entity; (ii) where flexibility is required to easily move the expatriate to other jurisdictions; and (iii) where there are multiple home-host country combinations that the multinational group needs to consider when moving its expatriates. It would appear that using a global employment company as the employment arrangement for an inbound expatriate to South Africa may have a fairly limited application if its purpose is to mitigate tax risks. In effect, a global employment company is likely to provide tax benefits only where it acts as an international labour broker for the multinational company of which it is a part.
- Full Text:
- Date Issued: 2018
- Authors: Pavey, Janet Gail
- Date: 2018
- Subjects: Double taxation -- South Africa , Corporations, Foreign -- South Africa , Foreign workers -- Taxation -- South Africa , International business enterprises -- South Africa , Corporations -- Taxation -- South Africa , Value-added tax -- Law and legislation -- South Africa
- Language: English
- Type: text , Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10962/61368 , vital:28019
- Description: The main objective of this research paper was to explore whether a multinational company could use a global employment company to employ its expatriates to mitigate, simplify or limit the tax risk for that foreign company when sending expatriates to South Africa. To investigate this topic, an interpretive research approach was used, a doctrinal research methodology was followed, and inductive reasoning was applied. The documentary data used in this research was publicly available. Firstly, the meaning of the term “expatriate” was explored, together with the types of employment arrangements commonly used to employ this type of employee. The South African tax consequences that an inbound expatriate may create for a multinational company were then analysed. These tax consequences were applied to the common types of employment arrangements to determine what the South African tax impact of these arrangements is likely to be and which entity within a multinational group is likely to be affected. It was investigated whether using a foreign global employment company provides any tax simplification or tax mitigation strategies for the multinational company for expatriates inbound to South Africa. The primary conclusions of this research were that it was found that using a global employment company may only provide a tax benefit in South Africa in very specific circumstances: (i) where the economic employer of the expatriate is the South African entity; (ii) where flexibility is required to easily move the expatriate to other jurisdictions; and (iii) where there are multiple home-host country combinations that the multinational group needs to consider when moving its expatriates. It would appear that using a global employment company as the employment arrangement for an inbound expatriate to South Africa may have a fairly limited application if its purpose is to mitigate tax risks. In effect, a global employment company is likely to provide tax benefits only where it acts as an international labour broker for the multinational company of which it is a part.
- Full Text:
- Date Issued: 2018
An exploratory study of students’ expectations and perceptions of service quality in a South African higher education institution
- Authors: Williams, Alyssa Shawntay
- Date: 2018
- Subjects: SERVQUAL (Service quality framework) , Relationship marketing , Consumer satisfaction , Sampling (Statistics) , College students Attitudes , Universities and colleges South Africa
- Language: English
- Type: text , Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10962/63844 , vital:28496
- Description: Within the past few years, higher education institutions have come under an exorbitant amount of pressure to restructure, increase funding and grow student numbers, whilst still preserving the service quality they offer. The purpose of this study is to measure students’ expectations and perceptions in a higher education institution and establish how significant of a gap exists between what is expected and what is perceived. The instrument utilised within the present study is SERVQUAL. A convenience sampling approach was adopted, furthermore, both descriptive and inferential statistics were used to analyse the data pertaining to the objectives concerning students’ gap between expectations and perceptions and hypotheses regarding the gap between students’ differences in each faculty, respectively. The study found that there were gaps in all dimensions with the order being, from highest to lowest: Reliability – Responsiveness – Assurance – Empathy – Tangibility. In addition, the significant difference in means according to faculty was established and the only dimension with a significant difference was Empathy. These results were used to offer recommendations to management, faculties and departments of the higher education institution under study about where they are deficient, consequently, improving their services to enhance their service quality and increase their competitive advantage but without financial strain. Overall, the conclusions the present study reached was that students and higher education institutions need to have a mutual interest in their relations. This means that as much as higher education institutions need to provide high service quality to students, students need to be willing to provide feedback and interact.
- Full Text:
- Date Issued: 2018
- Authors: Williams, Alyssa Shawntay
- Date: 2018
- Subjects: SERVQUAL (Service quality framework) , Relationship marketing , Consumer satisfaction , Sampling (Statistics) , College students Attitudes , Universities and colleges South Africa
- Language: English
- Type: text , Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10962/63844 , vital:28496
- Description: Within the past few years, higher education institutions have come under an exorbitant amount of pressure to restructure, increase funding and grow student numbers, whilst still preserving the service quality they offer. The purpose of this study is to measure students’ expectations and perceptions in a higher education institution and establish how significant of a gap exists between what is expected and what is perceived. The instrument utilised within the present study is SERVQUAL. A convenience sampling approach was adopted, furthermore, both descriptive and inferential statistics were used to analyse the data pertaining to the objectives concerning students’ gap between expectations and perceptions and hypotheses regarding the gap between students’ differences in each faculty, respectively. The study found that there were gaps in all dimensions with the order being, from highest to lowest: Reliability – Responsiveness – Assurance – Empathy – Tangibility. In addition, the significant difference in means according to faculty was established and the only dimension with a significant difference was Empathy. These results were used to offer recommendations to management, faculties and departments of the higher education institution under study about where they are deficient, consequently, improving their services to enhance their service quality and increase their competitive advantage but without financial strain. Overall, the conclusions the present study reached was that students and higher education institutions need to have a mutual interest in their relations. This means that as much as higher education institutions need to provide high service quality to students, students need to be willing to provide feedback and interact.
- Full Text:
- Date Issued: 2018
Analysis of VAT compliance challenges in municipalities
- Authors: Nkonzombi, Linda
- Date: 2018
- Subjects: Value-added tax -- South Africa , Income tax -- South Africa Income tax -- Law and legislation -- South Africa Taxation -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10948/33429 , vital:32864
- Description: The study was carried out to identify challenges that municipalities have with becoming Value Added Tax (‘VAT’) compliant. This study has been prompted by the ongoing findings reported by the Auditor General (‘AG’) in its audit reports. The increasing demand on the services of tax consultants also suggests that municipalities are having challenges in independently fulfilling their tax obligations. It was found that municipalities are often challenged with the application of the following VAT sections: The VAT apportionment methodology, section 8(27) dealing with unallocated payments, VAT reconciliations and claiming of VAT on invalid documentation and where VAT credits are denied. The main causes of non-compliance were identified as complexity of the tax laws, interpretation issues, behavioural attitude, lack of technical expertise within municipalities, and the fact that VAT is a self-assessed tax. Based on the findings of the study, it is recommended that all municipalities should be required to have a designated tax team to handle the tax matters of a municipality. The municipalities’ governing body, South African Local Government Association (‘SALGA’), should consider introducing penalties to non-VAT compliant municipalities. SARS should establish ‘customer relationships’ with the municipalities.
- Full Text:
- Date Issued: 2018
- Authors: Nkonzombi, Linda
- Date: 2018
- Subjects: Value-added tax -- South Africa , Income tax -- South Africa Income tax -- Law and legislation -- South Africa Taxation -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10948/33429 , vital:32864
- Description: The study was carried out to identify challenges that municipalities have with becoming Value Added Tax (‘VAT’) compliant. This study has been prompted by the ongoing findings reported by the Auditor General (‘AG’) in its audit reports. The increasing demand on the services of tax consultants also suggests that municipalities are having challenges in independently fulfilling their tax obligations. It was found that municipalities are often challenged with the application of the following VAT sections: The VAT apportionment methodology, section 8(27) dealing with unallocated payments, VAT reconciliations and claiming of VAT on invalid documentation and where VAT credits are denied. The main causes of non-compliance were identified as complexity of the tax laws, interpretation issues, behavioural attitude, lack of technical expertise within municipalities, and the fact that VAT is a self-assessed tax. Based on the findings of the study, it is recommended that all municipalities should be required to have a designated tax team to handle the tax matters of a municipality. The municipalities’ governing body, South African Local Government Association (‘SALGA’), should consider introducing penalties to non-VAT compliant municipalities. SARS should establish ‘customer relationships’ with the municipalities.
- Full Text:
- Date Issued: 2018
Artisanal mining and its contribution to sustainable rural livelihoods : a case of Esigodini area, Umzingwane rural district, Matabeleland South Province of Zimbabwe
- Authors: Nkala, Khayelihle
- Date: 2018
- Subjects: Mineral industries Rural poor Sustainable development
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10353/15551 , vital:40458
- Description: This study examined the contribution of artisanal mining to the livelihoods of rural communities. Artisanal mining has over the past decade been taken up by rural communities as an alternative of sustaining their livelihoods due to the collapse of agriculture due to the successive droughts, economic meltdown and the general failure of the fast track land reform program. Hence this study sought to fill this knowledge gap using Esigodini as a case. The study made use of focus group discussions, interviews and documents review to gather information on how artisanal mining activities have contributed to the livelihoods of rural communities. Although artisanal mining has its negative impacts to the environment it does contribute to the livelihoods of communities, as the findings of the study reveal that the Esigodini community has benefited from improved socio-economic activities as a result of the practice.
- Full Text:
- Date Issued: 2018
- Authors: Nkala, Khayelihle
- Date: 2018
- Subjects: Mineral industries Rural poor Sustainable development
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10353/15551 , vital:40458
- Description: This study examined the contribution of artisanal mining to the livelihoods of rural communities. Artisanal mining has over the past decade been taken up by rural communities as an alternative of sustaining their livelihoods due to the collapse of agriculture due to the successive droughts, economic meltdown and the general failure of the fast track land reform program. Hence this study sought to fill this knowledge gap using Esigodini as a case. The study made use of focus group discussions, interviews and documents review to gather information on how artisanal mining activities have contributed to the livelihoods of rural communities. Although artisanal mining has its negative impacts to the environment it does contribute to the livelihoods of communities, as the findings of the study reveal that the Esigodini community has benefited from improved socio-economic activities as a result of the practice.
- Full Text:
- Date Issued: 2018
Breaking the poverty cycle: exploring farmers’ strategies to empower employees in the agricultural sector
- Authors: Venter, Morné
- Date: 2018
- Subjects: Agricultural productivity -- South Africa , Agriculture -- Research -- Economic aspects -- Mathematical models , Industrial productivity , Employee motivation
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10948/36772 , vital:34052
- Description: The primary aim of this research project was to explore the various strategies of specific farmers who have chosen to improve productivity through innovative labour management strategies. In particular, to describe strategies that have empowered employees and will enable them to break the poverty cycle. The potential to highlight a business case for quality jobs in the agricultural sector could add to the understanding of labour-intensive agricultural production systems. Participants in this study empower their employees through various means, which includes intrinsic and extrinsic motivation. The agricultural sector was specifically targeted in this study as farmworkers are some of the most vulnerable employee-populations in South Africa, because they have a relatively small chance of empowering themselves, or their children, as they are often stuck in the poverty cycle. The research method employed in this study was qualitative in order to gain an in depth understanding of labour management systems (LMS). Information was gathered through semi-structured, face-to-face interviews with a number of purposively selected farmers. The participants in this study were selected for a select number of reasons. The main reason being that they employ strategies that empower their employees in various ways to ensure the future employability of these employees. All the participants are committed to ensuring the success of their employees, because this ensures the success of the farms. Farmworkers are one of the cornerstones on which a farming enterprise is built, another cornerstone is the farmer. When these two components understand and respect one another and work with each other, rather than against each other, both will prosper. The approaches that the participants in this study utilise to empower their workers ensure that the poverty cycle for these workers in this semi- and unskilled sector is broken and that they become, not only employable, but invaluable to the farms on which they work. The approaches were categorised from the one end as the point where labour is commodified and treated as a cost factor, the “low road” -this approach aligns with McGregor’s theory X and may be termed “exploitative”. While, at the other end of the continuum of approaches is the view that an employee has potential and investment in the employee will yield commitment and discretionary effort - this approach aligns with McGregor’s theory Y, the “high road”. This includes strategies to improve productivity and empower employees beyond the workplace, and to a certain extent, the community.
- Full Text:
- Date Issued: 2018
- Authors: Venter, Morné
- Date: 2018
- Subjects: Agricultural productivity -- South Africa , Agriculture -- Research -- Economic aspects -- Mathematical models , Industrial productivity , Employee motivation
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10948/36772 , vital:34052
- Description: The primary aim of this research project was to explore the various strategies of specific farmers who have chosen to improve productivity through innovative labour management strategies. In particular, to describe strategies that have empowered employees and will enable them to break the poverty cycle. The potential to highlight a business case for quality jobs in the agricultural sector could add to the understanding of labour-intensive agricultural production systems. Participants in this study empower their employees through various means, which includes intrinsic and extrinsic motivation. The agricultural sector was specifically targeted in this study as farmworkers are some of the most vulnerable employee-populations in South Africa, because they have a relatively small chance of empowering themselves, or their children, as they are often stuck in the poverty cycle. The research method employed in this study was qualitative in order to gain an in depth understanding of labour management systems (LMS). Information was gathered through semi-structured, face-to-face interviews with a number of purposively selected farmers. The participants in this study were selected for a select number of reasons. The main reason being that they employ strategies that empower their employees in various ways to ensure the future employability of these employees. All the participants are committed to ensuring the success of their employees, because this ensures the success of the farms. Farmworkers are one of the cornerstones on which a farming enterprise is built, another cornerstone is the farmer. When these two components understand and respect one another and work with each other, rather than against each other, both will prosper. The approaches that the participants in this study utilise to empower their workers ensure that the poverty cycle for these workers in this semi- and unskilled sector is broken and that they become, not only employable, but invaluable to the farms on which they work. The approaches were categorised from the one end as the point where labour is commodified and treated as a cost factor, the “low road” -this approach aligns with McGregor’s theory X and may be termed “exploitative”. While, at the other end of the continuum of approaches is the view that an employee has potential and investment in the employee will yield commitment and discretionary effort - this approach aligns with McGregor’s theory Y, the “high road”. This includes strategies to improve productivity and empower employees beyond the workplace, and to a certain extent, the community.
- Full Text:
- Date Issued: 2018
Critical assessment of the quality of sustainability disclosures published by public entities in South Africa
- Authors: Nazer, Faith Catherine
- Date: 2018
- Subjects: Sustainable development reporting , Auditing -- South Africa , Finance, Public -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10948/32845 , vital:32372
- Description: This study was performed in light of the limited research available regarding the quality of sustainability reporting in the public sector, and particularly in South Africa; and due to the important role which the public sector should play in enhancing sustainable behaviour and consequently sustainability reporting. There have been definite developments in legislation and guidelines which aim to enhance the quality of published sustainability disclosures. Therefore, in light of these developments, the objective of this study was to evaluate whether there has been an improvement in the quality of sustainability disclosures published by selected South African public entities for the 2014 financial year compared to the 2008 financial year. This study used both qualitative and quantitative methods to collect and analyse data. The content analysis method was used in this study, with the coding frame being developed deductively through the use of existing sustainability reporting guidelines. The guidelines analysed and incorporated into the coding frame for this study were the Global Reporting Initiative (GRI) Generation 4 (G4) guideline and the integrated reporting framework. To ensure that the coding frame contained codes relevant to the South African context, the King III Report on Corporate Governance (King III) and the Johannesburg Stock Exchange Social Reporting Initiative (JSE SRI) were consulted, and reporting requirements incorporated into the coding frame. Ten Schedule 2 reports and twenty Schedule 3 reports were analysed using the coding frame developed. Descriptive statistics were used to summarise the resulting data. The Spearman Rank Order Correlation and the Mann-Whitney U Test were used to test for possible statistical significance of the changes in the data observed. This study found a number of significant improvements in the quality of reporting of sustainability disclosures from 2008 to 2014. Significant improvements were noted in the areas of reporting relating to balanced economic and environmental disclosures as well as comparative social disclosures being made. There were also significantly more annual published reports labelled as integrated reports in 2014 as compared to 2008, and significantly more 2014 reports used the GRI guidelines, integrated reporting framework, King III or a combination of these in the preparation of the annual published report. Significantly more tables, graphs and diagrams were used in the disclosure of social and other related matters in 2014, which enhanced the clarity of the information reported. There were also significant improvements noted in the disclosures relating to strategic focus and future orientation of the 2014 annual published reports and in the number of non-economic performance targets included in the public entities’ performance reports. Significant improvement was also noted in the quality of overall social disclosures and specifically in the quality of social disclosures relating to labour practices and decent working conditions, and disclosures relating to the entity’s impacts on society. The word count used to disclose matters relating to stakeholder engagement and board practices, composition and remuneration saw significant increases from 2008 to 2014. Despite these improvements and consistent with prior literature, it is concluded that more needs to be done in respect of reporting on social and environmental impacts, through the use of sustainability reporting guidelines and effective stakeholder engagement. In addition, it is recommended that annual published reports aim to provide a more balanced picture of the reporting entity and that negative performance be discussed in more detail. More effort needs to be made in enhancing the reliability of the annual published reports as a whole, through obtaining external assurance on the social and environmental disclosures. Finally, politicians and decision-makers in the public sector need to address the key root causes which lead to poor quality reporting. The significant impact of the following factors on the quality of sustainability disclosures was noted: the public entity’s total asset value, its total revenue, its level of social and environmental impact, the form of the report used as well as the guidelines used to prepare the reports.
- Full Text:
- Date Issued: 2018
- Authors: Nazer, Faith Catherine
- Date: 2018
- Subjects: Sustainable development reporting , Auditing -- South Africa , Finance, Public -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10948/32845 , vital:32372
- Description: This study was performed in light of the limited research available regarding the quality of sustainability reporting in the public sector, and particularly in South Africa; and due to the important role which the public sector should play in enhancing sustainable behaviour and consequently sustainability reporting. There have been definite developments in legislation and guidelines which aim to enhance the quality of published sustainability disclosures. Therefore, in light of these developments, the objective of this study was to evaluate whether there has been an improvement in the quality of sustainability disclosures published by selected South African public entities for the 2014 financial year compared to the 2008 financial year. This study used both qualitative and quantitative methods to collect and analyse data. The content analysis method was used in this study, with the coding frame being developed deductively through the use of existing sustainability reporting guidelines. The guidelines analysed and incorporated into the coding frame for this study were the Global Reporting Initiative (GRI) Generation 4 (G4) guideline and the integrated reporting framework. To ensure that the coding frame contained codes relevant to the South African context, the King III Report on Corporate Governance (King III) and the Johannesburg Stock Exchange Social Reporting Initiative (JSE SRI) were consulted, and reporting requirements incorporated into the coding frame. Ten Schedule 2 reports and twenty Schedule 3 reports were analysed using the coding frame developed. Descriptive statistics were used to summarise the resulting data. The Spearman Rank Order Correlation and the Mann-Whitney U Test were used to test for possible statistical significance of the changes in the data observed. This study found a number of significant improvements in the quality of reporting of sustainability disclosures from 2008 to 2014. Significant improvements were noted in the areas of reporting relating to balanced economic and environmental disclosures as well as comparative social disclosures being made. There were also significantly more annual published reports labelled as integrated reports in 2014 as compared to 2008, and significantly more 2014 reports used the GRI guidelines, integrated reporting framework, King III or a combination of these in the preparation of the annual published report. Significantly more tables, graphs and diagrams were used in the disclosure of social and other related matters in 2014, which enhanced the clarity of the information reported. There were also significant improvements noted in the disclosures relating to strategic focus and future orientation of the 2014 annual published reports and in the number of non-economic performance targets included in the public entities’ performance reports. Significant improvement was also noted in the quality of overall social disclosures and specifically in the quality of social disclosures relating to labour practices and decent working conditions, and disclosures relating to the entity’s impacts on society. The word count used to disclose matters relating to stakeholder engagement and board practices, composition and remuneration saw significant increases from 2008 to 2014. Despite these improvements and consistent with prior literature, it is concluded that more needs to be done in respect of reporting on social and environmental impacts, through the use of sustainability reporting guidelines and effective stakeholder engagement. In addition, it is recommended that annual published reports aim to provide a more balanced picture of the reporting entity and that negative performance be discussed in more detail. More effort needs to be made in enhancing the reliability of the annual published reports as a whole, through obtaining external assurance on the social and environmental disclosures. Finally, politicians and decision-makers in the public sector need to address the key root causes which lead to poor quality reporting. The significant impact of the following factors on the quality of sustainability disclosures was noted: the public entity’s total asset value, its total revenue, its level of social and environmental impact, the form of the report used as well as the guidelines used to prepare the reports.
- Full Text:
- Date Issued: 2018
Determining the effect of ocean proximity on residential property prices in Port Elizabeth
- Authors: Hibbers, Vicky
- Date: 2018
- Subjects: Prices -- South Africa -- Port Elizabeth -- Mathematical models , Real property -- Prices -- South Africa -- Port Elizabeth Real estate management -- Prices -- South Africa -- Port Elizabeth Real property -- Valuation -- South Africa -- Port Elizabeth
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10948/22204 , vital:29874
- Description: Economic contribution studies, including those from a maritime perspective, are of great interest to both governmental and non-governmental organisations, as well as researchers. This interest stems from the increased pressure on land-based resources, and it is expected that this interest in maritime economics will increase (Hosking, Lee, Kaczynsky, Hosking, du Preez and Haines, 2014). A few studies have been undertaken in order to investigate the ocean’s economic contribution in South Africa (Hosking et al., 2014). However, there are other, often overlooked, benefits that the ocean may bring to localised economies, namely its contribution to residential property markets. Over the last decade, this area of research has received considerable international attention (Rinehart and Pompe, 1994; Rush and Briggink, 2000; Taylor and Smith, 2000; Boarnet and Chalermpong, 2001; Major and Lusht, 2004; Conroy and Milosch, 2009; Scorse, Reynolds and Sackett, 2015). The studies revealed the existence of an ocean premium, which is an additional amount added to the value of a home due to it being located near the ocean. However, from a South African perspective, there is a lack of studies in this area. This study seeks to contribute to the body of knowledge by determining the effect of ocean proximity on property prices in Summerstrand, a suburb in Port Elizabeth. The hedonic price model is applied in this regard. A sample size of 104 properties was used for the study, and the various characteristics of the properties obtained from multiple sources. Most importantly, sales prices were obtained from the South African Property Transfer Guide (SAPTG). As the houses were sold in different time periods, it was necessary to adjust the prices to constant 2016 rands. The ABSA house price index was used for this, in order to account for any inflationary changes over the various periods. The results of the study revealed that proximity to the ocean had a statistically significant positive effect on adjacent residential property prices in Summerstrand, Port Elizabeth. More specifically, proximity to the ocean is valued at between R133.35 and R329.59 per meter closer to the ocean. From a policy perspective, quantifying this coastal premium in Port Elizabeth may encourage the continued conservation of marine resources within Nelson Mandela Bay. Various studies have shown the positive impact conservation has on property prices, resulting in significant premiums being attached to housing prices, even when property characteristics changed (Leeson, 2012; Chamblee, Colwell, Dehring and Depken, 2011). Economic analysis, which includes hedonic pricing, has also had an impact on the evaluation of environmental policies, with Government agencies being the first to fund studies in order to determine the effects of various externalities on housing prices. On the other hand, litigation has had an even more significant impact on policies, due to it being more tangible evidence (Palmquist and Smith, 2001). The manner in which government, and other bodies, assess and measure property values can also be improved upon. Through the separation of housing characteristics, the true value of the property can be determined. This can result in improved accuracy of property tax calculations, and a more accurate value of future developments (Gilbert, 2013). This can help ensure no unnecessary cost expenditure by both government, and property developers, especially considering the volatile nature of the housing market (Gilbert, 2013). The results of this dissertation are subject to two important qualifications. Firstly, the study does not account for the imperfect information that might be present in the market. Secondly, the relatively small sample size could limit the results.
- Full Text:
- Date Issued: 2018
- Authors: Hibbers, Vicky
- Date: 2018
- Subjects: Prices -- South Africa -- Port Elizabeth -- Mathematical models , Real property -- Prices -- South Africa -- Port Elizabeth Real estate management -- Prices -- South Africa -- Port Elizabeth Real property -- Valuation -- South Africa -- Port Elizabeth
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10948/22204 , vital:29874
- Description: Economic contribution studies, including those from a maritime perspective, are of great interest to both governmental and non-governmental organisations, as well as researchers. This interest stems from the increased pressure on land-based resources, and it is expected that this interest in maritime economics will increase (Hosking, Lee, Kaczynsky, Hosking, du Preez and Haines, 2014). A few studies have been undertaken in order to investigate the ocean’s economic contribution in South Africa (Hosking et al., 2014). However, there are other, often overlooked, benefits that the ocean may bring to localised economies, namely its contribution to residential property markets. Over the last decade, this area of research has received considerable international attention (Rinehart and Pompe, 1994; Rush and Briggink, 2000; Taylor and Smith, 2000; Boarnet and Chalermpong, 2001; Major and Lusht, 2004; Conroy and Milosch, 2009; Scorse, Reynolds and Sackett, 2015). The studies revealed the existence of an ocean premium, which is an additional amount added to the value of a home due to it being located near the ocean. However, from a South African perspective, there is a lack of studies in this area. This study seeks to contribute to the body of knowledge by determining the effect of ocean proximity on property prices in Summerstrand, a suburb in Port Elizabeth. The hedonic price model is applied in this regard. A sample size of 104 properties was used for the study, and the various characteristics of the properties obtained from multiple sources. Most importantly, sales prices were obtained from the South African Property Transfer Guide (SAPTG). As the houses were sold in different time periods, it was necessary to adjust the prices to constant 2016 rands. The ABSA house price index was used for this, in order to account for any inflationary changes over the various periods. The results of the study revealed that proximity to the ocean had a statistically significant positive effect on adjacent residential property prices in Summerstrand, Port Elizabeth. More specifically, proximity to the ocean is valued at between R133.35 and R329.59 per meter closer to the ocean. From a policy perspective, quantifying this coastal premium in Port Elizabeth may encourage the continued conservation of marine resources within Nelson Mandela Bay. Various studies have shown the positive impact conservation has on property prices, resulting in significant premiums being attached to housing prices, even when property characteristics changed (Leeson, 2012; Chamblee, Colwell, Dehring and Depken, 2011). Economic analysis, which includes hedonic pricing, has also had an impact on the evaluation of environmental policies, with Government agencies being the first to fund studies in order to determine the effects of various externalities on housing prices. On the other hand, litigation has had an even more significant impact on policies, due to it being more tangible evidence (Palmquist and Smith, 2001). The manner in which government, and other bodies, assess and measure property values can also be improved upon. Through the separation of housing characteristics, the true value of the property can be determined. This can result in improved accuracy of property tax calculations, and a more accurate value of future developments (Gilbert, 2013). This can help ensure no unnecessary cost expenditure by both government, and property developers, especially considering the volatile nature of the housing market (Gilbert, 2013). The results of this dissertation are subject to two important qualifications. Firstly, the study does not account for the imperfect information that might be present in the market. Secondly, the relatively small sample size could limit the results.
- Full Text:
- Date Issued: 2018
Examining the long-run equilibrium between South African and United States markets
- Authors: Meyiwa, Zenande Mandilakhe
- Date: 2018
- Subjects: Equilibrium (Economics) -- Mathematical models , Economics -- Mathematical models Macroeconomic studies Stock exchanges -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10948/22692 , vital:30058
- Description: The objective of this study is to examine the long-run equilibrium between the markets of South Africa and the United States of America (USA). To achieve this, the study reviews theoretical literature that examines the link between stock market returns, the real effective exchange rate and interest rates. Furthermore, the study provides a review of previous empirical literature. In addition, the study estimates a number of time series econometric techniques to examine the equilibrium between the four variables. The study estimates: The Johansen co-integration test, the Granger causality test in the VAR system; the Impulse Response Function, as well as the Forecast Error Variance Decomposition. The period under review is January 1996 to January 2016. The Granger Causality test revealed that there is a one-way causality from interest rates to the JSE ALSI (South African stock exchange) and the Russell 3000 index (USA stock market indicator), and a unidirectional causality that runs from the Russell 3000 to the real effective exchange rate. Furthermore, the study found that the real effective exchange rate Granger causes interest rates. The results for the Generalised Impulse Response Function and the Forecast Error Variance Decomposition underscore the findings of the Granger Causality test. In addition, the Generalised Impulse Response Function and the Forecast Error Variance Decomposition revealed that each variable experiences a very large response from its own shock. Since interest rates have an influence on stock market returns, the study recommended that companies listed on the JSE should develop appropriate debt management policies that will ensure cash flows are not affected when interest rates rise. The Rand/US Dollar exchange rate and US Stock market movements do not have a material effect on the JSE ALSI performance, therefore, the study recommended that the JSE can be marketed to international investors as a relatively safe market for international portfolio diversification. Lastly, South African businesses, along with local and international investors, should constantly monitor developments on the real effective exchange rate since they have an effect on interest rates.
- Full Text:
- Date Issued: 2018
- Authors: Meyiwa, Zenande Mandilakhe
- Date: 2018
- Subjects: Equilibrium (Economics) -- Mathematical models , Economics -- Mathematical models Macroeconomic studies Stock exchanges -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10948/22692 , vital:30058
- Description: The objective of this study is to examine the long-run equilibrium between the markets of South Africa and the United States of America (USA). To achieve this, the study reviews theoretical literature that examines the link between stock market returns, the real effective exchange rate and interest rates. Furthermore, the study provides a review of previous empirical literature. In addition, the study estimates a number of time series econometric techniques to examine the equilibrium between the four variables. The study estimates: The Johansen co-integration test, the Granger causality test in the VAR system; the Impulse Response Function, as well as the Forecast Error Variance Decomposition. The period under review is January 1996 to January 2016. The Granger Causality test revealed that there is a one-way causality from interest rates to the JSE ALSI (South African stock exchange) and the Russell 3000 index (USA stock market indicator), and a unidirectional causality that runs from the Russell 3000 to the real effective exchange rate. Furthermore, the study found that the real effective exchange rate Granger causes interest rates. The results for the Generalised Impulse Response Function and the Forecast Error Variance Decomposition underscore the findings of the Granger Causality test. In addition, the Generalised Impulse Response Function and the Forecast Error Variance Decomposition revealed that each variable experiences a very large response from its own shock. Since interest rates have an influence on stock market returns, the study recommended that companies listed on the JSE should develop appropriate debt management policies that will ensure cash flows are not affected when interest rates rise. The Rand/US Dollar exchange rate and US Stock market movements do not have a material effect on the JSE ALSI performance, therefore, the study recommended that the JSE can be marketed to international investors as a relatively safe market for international portfolio diversification. Lastly, South African businesses, along with local and international investors, should constantly monitor developments on the real effective exchange rate since they have an effect on interest rates.
- Full Text:
- Date Issued: 2018