The relationship between stock market development and economic growth in Africa
- Authors: Mkhize, Siyanda
- Date: 2019
- Subjects: Stock exchanges -- Africa , Africa -- Economic conditions -- 21st century , Economic development -- Africa -- 21st century , Capital market -- Africa , Finance -- Africa -- 21st century , Developing countries -- Economic conditions -- 21st century
- Language: English
- Type: text , Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10962/115149 , vital:34082
- Description: Over the years there has been a substantial increase in the number of African stock markets. This has generated much interest from local and foreign investors, as these stock markets have had high returns. These conditions have created an interesting scenario for investigating the relationship between stock market development and economic growth. However, this opportunity has largely been neglected as the research on African stock market development is limited in developing economies relative to research conducted in developed countries. Furthermore, the research that has been conducted on the relationship between stock market development and economic growth in Africa, has generated inconclusive and conflicting results, in addition to this, the institutional quality of African countries is disregarded in most studies when the stock market development and economic growth nexus is analysed. Therefore, this study aims to explore the relationship between stock market development and economic growth, incorporating institution variables to account for the institutional quality of African countries to provide clarity in this context. To achieve this, two sets of research hypotheses were created the first set aims to determine whether stock development has an influence on economic growth. The second set is to determine if there is any causal relationship between stock market development and economic growth. The study utilizes System Generalized Method of Moments models to examine the effect of stock market development on economic growth, in 18 African countries for the period 2003- 2016. The results indicate that market capitalization has a positive influence on economic growth whilst, contrastingly liquidity in the form of value traded has a negative effect on economic growth. The study further analyses the causal relationship between stock market development and economic growth, by employing the recently developed PVAR-Granger causality test. However, before this is done several Pedroni cointegration tests were first conducted to establish whether a long-term relationship exists between stock market development and economic growth, which revealed that no strong evidence of cointegration exists necessitating the use of a PVAR-Granger causality test. The PVAR-Granger causality test reveals that stock market development granger causes economic growth, irrespective of the stock market development measure used and there is no feedback effect from economic growth. The unilateral causality established in this study flowing from stock market development to economic growth supports the supply-leading hypothesis. The overall results of this study demonstrate that there is ambiguity on the impact of stock market development on economic growth, as the measures of stock market development have contrasting impacts on economic growth. The size component of stock market development in the form of market capitalization has positive influence whilst, liquidity in form of total value traded has a negative effect. However, the causal relationship is clearly shown to be unilaterally flowing from stock market development to economic growth.
- Full Text:
- Date Issued: 2019
- Authors: Mkhize, Siyanda
- Date: 2019
- Subjects: Stock exchanges -- Africa , Africa -- Economic conditions -- 21st century , Economic development -- Africa -- 21st century , Capital market -- Africa , Finance -- Africa -- 21st century , Developing countries -- Economic conditions -- 21st century
- Language: English
- Type: text , Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10962/115149 , vital:34082
- Description: Over the years there has been a substantial increase in the number of African stock markets. This has generated much interest from local and foreign investors, as these stock markets have had high returns. These conditions have created an interesting scenario for investigating the relationship between stock market development and economic growth. However, this opportunity has largely been neglected as the research on African stock market development is limited in developing economies relative to research conducted in developed countries. Furthermore, the research that has been conducted on the relationship between stock market development and economic growth in Africa, has generated inconclusive and conflicting results, in addition to this, the institutional quality of African countries is disregarded in most studies when the stock market development and economic growth nexus is analysed. Therefore, this study aims to explore the relationship between stock market development and economic growth, incorporating institution variables to account for the institutional quality of African countries to provide clarity in this context. To achieve this, two sets of research hypotheses were created the first set aims to determine whether stock development has an influence on economic growth. The second set is to determine if there is any causal relationship between stock market development and economic growth. The study utilizes System Generalized Method of Moments models to examine the effect of stock market development on economic growth, in 18 African countries for the period 2003- 2016. The results indicate that market capitalization has a positive influence on economic growth whilst, contrastingly liquidity in the form of value traded has a negative effect on economic growth. The study further analyses the causal relationship between stock market development and economic growth, by employing the recently developed PVAR-Granger causality test. However, before this is done several Pedroni cointegration tests were first conducted to establish whether a long-term relationship exists between stock market development and economic growth, which revealed that no strong evidence of cointegration exists necessitating the use of a PVAR-Granger causality test. The PVAR-Granger causality test reveals that stock market development granger causes economic growth, irrespective of the stock market development measure used and there is no feedback effect from economic growth. The unilateral causality established in this study flowing from stock market development to economic growth supports the supply-leading hypothesis. The overall results of this study demonstrate that there is ambiguity on the impact of stock market development on economic growth, as the measures of stock market development have contrasting impacts on economic growth. The size component of stock market development in the form of market capitalization has positive influence whilst, liquidity in form of total value traded has a negative effect. However, the causal relationship is clearly shown to be unilaterally flowing from stock market development to economic growth.
- Full Text:
- Date Issued: 2019
The role of agricultural support programmes on the livelihoods of smallholder maize farmers in Lesotho: asset utilisation, productivity and perceptions
- Authors: Mohlahatsa, Taole
- Date: 2019
- Subjects: Agriculture and state -- Lesotho , Agriculture -- Economic aspects -- Lesotho , Farms, Small -- Government policy -- Lesotho , Farms, Small -- Lesotho , Agricultural assistance -- Lesotho , Rural development -- Lesotho
- Language: English
- Type: text , Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10962/71580 , vital:29914
- Description: The agricultural sector is widely considered an important contributor to economic development in least developed countries. It plays an important role in Lesotho and has been the backbone of rural activities and the prime employer of Basotho citizens. Smallholder farming is recognised by the government of Lesotho as a vehicle for addressing food security and poverty reduction. Maize is the principal staple crop produced by about 90 percent of farmers in Lesotho and it constitutes about 80 percent of the Basotho diet. Maize production is highly affected by climate change and is characterised by fluctuating yields because of erratic rainfall. In addition to unfavorable climate change, smallholder farmers in Lesotho experience challenges such as lack of farming inputs, limited access to markets and limited financial capital. These constraints confine them to a life of subsistence farming with low production and increased incidences of poverty. The government of Lesotho has intervened in the smallholder agricultural sector to stimulate production and productivity by introducing some agricultural programmes such as (i) the National Fertiliser and Input subsidy, (ii) the Smallholder Agricultural Development Programme, (iii) the National Block Farming, and (iv) the Integrated Watershed Management Programme. However, despite such government interventions, production in the smallholder agricultural sector continues to face recurring constraints. Studies on the National Block Farming Programme have showed that the programme has had limited impact on the livelihoods of smallholder farmers. Furthermore, farmers believe the Integrated Watershed Management Programme has a biased selection criteria as selection of areas is influenced by politicians who favour areas where they have a large political following and marginilise other areas. These concerns have also led to low participation rates in such programmes as wealthier, large scale farmers capture most of the benefits of government programmes. Disproportionate benefits of agricultural programmes to smallholder farmers imply that they continue to face the same constraints in production and have to find alternative ways of maintaining production and selling excess produce to sustain their livelihoods. The main goal of this research is therefore to study the livelihoods of smallholder maize farmers in Lesotho and how agricultural support programmes influence their production of maize. The study adopted a pragmatic mixed methods approach with a qualitative dominant sequential design. Accordingly, both quantitative and qualitative data was used to address the research goal. Quantitative data collected from the Lesotho Bureau of Statistics and the World Bank was used for trend analysis on maize productivity, temperature and rainfall over the period 1980-2016. Qualitative primary data was collected by conducting focus group discussions with smallholder maize farmers and key stakeholder interviews using the sustainable livelihood framework as a conceptual guide. The study comprised of a total of 85 research participants consisting of 75 smallholder maize farmers and 10 key stakeholders. Farmers were selected from 10 key maize producing areas in Leribe and Mafeteng districts in Leribe. Results revealed fluctuating maize productivity and productivity growth rates where such fluctuations are caused by government intervention and natural calamities in the form of erratic rains and dry spells. Droughts and late arrival of subsidised inputs are the chief constraints to maize production. In relation to livelihood assets, human and social assets are the more available assets relative to other assets (financial, natural and physical) of the sustainable livelihood framework. Furthermore, the National Fertiliser and Input subsidy Programme and the Smallholder Agricultural Development Programme are the most beneficial programmes to farmers livelihoods as they increase the accessibility of limited livelihood assets and therefore allowing farmers to achieve their livelihood goals. In contrast, the National Block Farming and the Integrated Watershed Management Programme are the least beneficial programmes to farmers’ livelihoods and are biased in their geographical targeting criteria. The study recommends that the government revises all selected support programmes in this study in areas warranting improvements so as to fairly and efficiently allocate resources that meet the needs of farmers. The study also recommends that farmers put more effort in adopting new technologies and strategies to improve production of maize in areas where government intervention has failed.
- Full Text:
- Date Issued: 2019
- Authors: Mohlahatsa, Taole
- Date: 2019
- Subjects: Agriculture and state -- Lesotho , Agriculture -- Economic aspects -- Lesotho , Farms, Small -- Government policy -- Lesotho , Farms, Small -- Lesotho , Agricultural assistance -- Lesotho , Rural development -- Lesotho
- Language: English
- Type: text , Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10962/71580 , vital:29914
- Description: The agricultural sector is widely considered an important contributor to economic development in least developed countries. It plays an important role in Lesotho and has been the backbone of rural activities and the prime employer of Basotho citizens. Smallholder farming is recognised by the government of Lesotho as a vehicle for addressing food security and poverty reduction. Maize is the principal staple crop produced by about 90 percent of farmers in Lesotho and it constitutes about 80 percent of the Basotho diet. Maize production is highly affected by climate change and is characterised by fluctuating yields because of erratic rainfall. In addition to unfavorable climate change, smallholder farmers in Lesotho experience challenges such as lack of farming inputs, limited access to markets and limited financial capital. These constraints confine them to a life of subsistence farming with low production and increased incidences of poverty. The government of Lesotho has intervened in the smallholder agricultural sector to stimulate production and productivity by introducing some agricultural programmes such as (i) the National Fertiliser and Input subsidy, (ii) the Smallholder Agricultural Development Programme, (iii) the National Block Farming, and (iv) the Integrated Watershed Management Programme. However, despite such government interventions, production in the smallholder agricultural sector continues to face recurring constraints. Studies on the National Block Farming Programme have showed that the programme has had limited impact on the livelihoods of smallholder farmers. Furthermore, farmers believe the Integrated Watershed Management Programme has a biased selection criteria as selection of areas is influenced by politicians who favour areas where they have a large political following and marginilise other areas. These concerns have also led to low participation rates in such programmes as wealthier, large scale farmers capture most of the benefits of government programmes. Disproportionate benefits of agricultural programmes to smallholder farmers imply that they continue to face the same constraints in production and have to find alternative ways of maintaining production and selling excess produce to sustain their livelihoods. The main goal of this research is therefore to study the livelihoods of smallholder maize farmers in Lesotho and how agricultural support programmes influence their production of maize. The study adopted a pragmatic mixed methods approach with a qualitative dominant sequential design. Accordingly, both quantitative and qualitative data was used to address the research goal. Quantitative data collected from the Lesotho Bureau of Statistics and the World Bank was used for trend analysis on maize productivity, temperature and rainfall over the period 1980-2016. Qualitative primary data was collected by conducting focus group discussions with smallholder maize farmers and key stakeholder interviews using the sustainable livelihood framework as a conceptual guide. The study comprised of a total of 85 research participants consisting of 75 smallholder maize farmers and 10 key stakeholders. Farmers were selected from 10 key maize producing areas in Leribe and Mafeteng districts in Leribe. Results revealed fluctuating maize productivity and productivity growth rates where such fluctuations are caused by government intervention and natural calamities in the form of erratic rains and dry spells. Droughts and late arrival of subsidised inputs are the chief constraints to maize production. In relation to livelihood assets, human and social assets are the more available assets relative to other assets (financial, natural and physical) of the sustainable livelihood framework. Furthermore, the National Fertiliser and Input subsidy Programme and the Smallholder Agricultural Development Programme are the most beneficial programmes to farmers livelihoods as they increase the accessibility of limited livelihood assets and therefore allowing farmers to achieve their livelihood goals. In contrast, the National Block Farming and the Integrated Watershed Management Programme are the least beneficial programmes to farmers’ livelihoods and are biased in their geographical targeting criteria. The study recommends that the government revises all selected support programmes in this study in areas warranting improvements so as to fairly and efficiently allocate resources that meet the needs of farmers. The study also recommends that farmers put more effort in adopting new technologies and strategies to improve production of maize in areas where government intervention has failed.
- Full Text:
- Date Issued: 2019
The role of Information and Communication Technology in developing entrepreneurial skills in marginalised communities: the case of Grahamstown
- Authors: Mabika, Vinia Ruvimbo
- Date: 2019
- Subjects: Occupational training -- South Africa , Entrepreneurship -- South Africa , Vocational education -- South Africa , Information technology -- Study and teaching -- South Africa , Businesspeople, Black -- South Africa -- Makhanda , Businesspeople -- South Africa -- Makhanda , Non-governmental organizations -- South Africa -- Makhanda
- Language: English
- Type: text , Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10962/94169 , vital:31012
- Description: A call to meet the Sustainable Development Goals by 2030 was made by the United Nations in 2015 after the expiry of the Millennium Development Goals. This has led to the need for youth entrepreneurship studies in marginalised communities that are burdened by poverty. The marginalised communities in South Africa, where most poor unemployed people live face numerous challenges. These range from a shortage of skilled people, inequality, poverty, poor infrastructure and lack of formal and informal skills development for communities. Employing information and communication technologies (ICTs) has the potential to improve socio-economic activities, aid comprehensive human development and empower communities. To ensure human development, provision of ICTs to communities should be accompanied by approaches and guidelines that can be used to empower them through entrepreneurship. This requires investigating how ICTs can lead to the empowerment of unemployed citizens within a community. Specifically, the types of tailored ICT skills that are needed to access such empowerment opportunities and are typically taught at skills development programmes (SDPs). An interpretivist, qualitative case study approach was employed during the investigation of four skills development programmes in Grahamstown (Eastern Cape). The participants included programme directors, managers, trainees who had become entrepreneurs after attending training and those who had not started a business yet. Semi-structured interviews were employed for data collection and thematic analysis was used to analyse the data; while making use of absorptive capacity theory (ACT) as a theoretical framework. The researcher sought to answer the following main question: How should ICT-based skills development programmes be applied to enhance entrepreneurial skills within marginalised communities? To answer this, the research contributes by proposing a guideline that can be implemented to address the skills shortage in Grahamstown. The first stage requires a community needs assessment, looking at the community members prior and related knowledge. Secondly, the SDPs should create a culture of learning by transforming participants’ mindsets through core programmes. Thirdly, the core programmes should be linked with ICT skills training. After training is completed, the SDPs and external world bodies should assist with follow up support courses. During all these stages monitoring and evaluation should be implemented, and all key stakeholders should be involved.
- Full Text:
- Date Issued: 2019
- Authors: Mabika, Vinia Ruvimbo
- Date: 2019
- Subjects: Occupational training -- South Africa , Entrepreneurship -- South Africa , Vocational education -- South Africa , Information technology -- Study and teaching -- South Africa , Businesspeople, Black -- South Africa -- Makhanda , Businesspeople -- South Africa -- Makhanda , Non-governmental organizations -- South Africa -- Makhanda
- Language: English
- Type: text , Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10962/94169 , vital:31012
- Description: A call to meet the Sustainable Development Goals by 2030 was made by the United Nations in 2015 after the expiry of the Millennium Development Goals. This has led to the need for youth entrepreneurship studies in marginalised communities that are burdened by poverty. The marginalised communities in South Africa, where most poor unemployed people live face numerous challenges. These range from a shortage of skilled people, inequality, poverty, poor infrastructure and lack of formal and informal skills development for communities. Employing information and communication technologies (ICTs) has the potential to improve socio-economic activities, aid comprehensive human development and empower communities. To ensure human development, provision of ICTs to communities should be accompanied by approaches and guidelines that can be used to empower them through entrepreneurship. This requires investigating how ICTs can lead to the empowerment of unemployed citizens within a community. Specifically, the types of tailored ICT skills that are needed to access such empowerment opportunities and are typically taught at skills development programmes (SDPs). An interpretivist, qualitative case study approach was employed during the investigation of four skills development programmes in Grahamstown (Eastern Cape). The participants included programme directors, managers, trainees who had become entrepreneurs after attending training and those who had not started a business yet. Semi-structured interviews were employed for data collection and thematic analysis was used to analyse the data; while making use of absorptive capacity theory (ACT) as a theoretical framework. The researcher sought to answer the following main question: How should ICT-based skills development programmes be applied to enhance entrepreneurial skills within marginalised communities? To answer this, the research contributes by proposing a guideline that can be implemented to address the skills shortage in Grahamstown. The first stage requires a community needs assessment, looking at the community members prior and related knowledge. Secondly, the SDPs should create a culture of learning by transforming participants’ mindsets through core programmes. Thirdly, the core programmes should be linked with ICT skills training. After training is completed, the SDPs and external world bodies should assist with follow up support courses. During all these stages monitoring and evaluation should be implemented, and all key stakeholders should be involved.
- Full Text:
- Date Issued: 2019
The taxation of the “sharing economy” in South Africa
- Authors: Gumbo, Wadzanai Charisma
- Date: 2019
- Subjects: Corporations -- Taxation Taxation -- South Africa Value-added tax -- Law and legislation -- South Africa Double taxation -- South Africa Tax evasion -- South Africa Income tax -- Law and legislation -- South Africa Tax administration and procedure -- South Africa
- Language: English
- Type: text , Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10962/64045 , vital:28525
- Description: The research examined whether the services provided by the “sharing economy” platforms are adequately dealt with by the current South African tax systems. In addressing this main goal, the research analysed how the South African tax systems deal with the income and expenses of Uber, Airbnb and their respective service providers. The research also investigated how South Africa could classify “sharing economy” workers and how this would affect the deductibility of the worker’s expenses. A brief analysis was made of the taxation of the “sharing economy” businesses in Australia and the United States of America. These countries have implemented measures to effectively deal with regulating the “sharing economy” businesses. An interpretative research approach was used to provide clarity on the matter. Documentary data used for the research consists of tax legislation, case law, textbooks, commentaries, journal articles and theses. The research concluded that the current taxation systems have loopholes that are allowing participants in the “sharing economy” to avoid paying tax in South Africa. The thesis recommends that the legislature could adopt certain measures applied in Australia and the United States of America to more effectively regulate “sharing economy” in South African and remedy the leakages the current tax systems suffer, causing SARS to lose potential revenue.
- Full Text:
- Date Issued: 2019
- Authors: Gumbo, Wadzanai Charisma
- Date: 2019
- Subjects: Corporations -- Taxation Taxation -- South Africa Value-added tax -- Law and legislation -- South Africa Double taxation -- South Africa Tax evasion -- South Africa Income tax -- Law and legislation -- South Africa Tax administration and procedure -- South Africa
- Language: English
- Type: text , Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10962/64045 , vital:28525
- Description: The research examined whether the services provided by the “sharing economy” platforms are adequately dealt with by the current South African tax systems. In addressing this main goal, the research analysed how the South African tax systems deal with the income and expenses of Uber, Airbnb and their respective service providers. The research also investigated how South Africa could classify “sharing economy” workers and how this would affect the deductibility of the worker’s expenses. A brief analysis was made of the taxation of the “sharing economy” businesses in Australia and the United States of America. These countries have implemented measures to effectively deal with regulating the “sharing economy” businesses. An interpretative research approach was used to provide clarity on the matter. Documentary data used for the research consists of tax legislation, case law, textbooks, commentaries, journal articles and theses. The research concluded that the current taxation systems have loopholes that are allowing participants in the “sharing economy” to avoid paying tax in South Africa. The thesis recommends that the legislature could adopt certain measures applied in Australia and the United States of America to more effectively regulate “sharing economy” in South African and remedy the leakages the current tax systems suffer, causing SARS to lose potential revenue.
- Full Text:
- Date Issued: 2019
Timing of the incidence of tax in suspensive sale agreements and agreements with suspensive conditions
- Authors: Zondi, Bonginkosi
- Date: 2019
- Subjects: Tax administration and procedure -- South Africa , Taxation -- Law and legislation -- South Africa Taxation -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10948/44269 , vital:37144
- Description: This study critically examines suspensive sale agreements and agreements subject to suspensive conditions in the South African taxation system. It examines challenges associated with the application of the disposal rules in the context of the Income Tax Act No. 58 of 1962, which includes capital gains tax, and Value-Added Tax Act No. 89 of 1991 relating to these types of agreements. The study also looks at those aspects in which these agreements generally differ and concur. As one of its areas of focus, the study inter alia makes a comparison of the South African approach to the timing of the tax incidence under these agreements, to the approaches adopted by other countries, namely Canada, Zimbabwe and the United States of America (USA).
- Full Text:
- Date Issued: 2019
- Authors: Zondi, Bonginkosi
- Date: 2019
- Subjects: Tax administration and procedure -- South Africa , Taxation -- Law and legislation -- South Africa Taxation -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10948/44269 , vital:37144
- Description: This study critically examines suspensive sale agreements and agreements subject to suspensive conditions in the South African taxation system. It examines challenges associated with the application of the disposal rules in the context of the Income Tax Act No. 58 of 1962, which includes capital gains tax, and Value-Added Tax Act No. 89 of 1991 relating to these types of agreements. The study also looks at those aspects in which these agreements generally differ and concur. As one of its areas of focus, the study inter alia makes a comparison of the South African approach to the timing of the tax incidence under these agreements, to the approaches adopted by other countries, namely Canada, Zimbabwe and the United States of America (USA).
- Full Text:
- Date Issued: 2019
Vacancy and unemployment analysis in South Africa
- Authors: Hamman, Nicolene
- Date: 2019
- Subjects: Job vacancies -- South Africa , Unemployment -- South Africa Job hunting -- South Africa Labor supply -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10948/39621 , vital:35333
- Description: Ever since the transition post-1994, the South African economy have been faced with increasing unemployment rates, and an increasing labour force but not sufficient job opportunities to absorb these new entrants. Labour market conditions in South Africa can be considered tight after taking into account the high rates of unemployment and labour force participation. A unique empirical relationship surfaced within the macroeconomics context which had a significant impact on economic thinking. Beveridge (1944) postulated that there is a negative relationship between job vacancies and unemployment, and it is depicted by the Beveridge curve. This study therefore analysed the relationship between vacancies and unemployment in South Africa from 2008 to 2016. An autoregressive distributive lag (ARDL) model was employed to carry out the objectives of this study and the results suggested that there is a positive relationship between these two variables; which imply that the Beveridge curve theory does not apply to labour market of South Africa. This in turn suggests that labour demand and labour supply exists concurrently in this particular market. Thus, it is commendable for policy makers to have an in-depth introspection at the skills-supply, and the policies examining unemployment in South Africa to ensure that the unemployed fill the unfilled vacancies.
- Full Text:
- Date Issued: 2019
- Authors: Hamman, Nicolene
- Date: 2019
- Subjects: Job vacancies -- South Africa , Unemployment -- South Africa Job hunting -- South Africa Labor supply -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10948/39621 , vital:35333
- Description: Ever since the transition post-1994, the South African economy have been faced with increasing unemployment rates, and an increasing labour force but not sufficient job opportunities to absorb these new entrants. Labour market conditions in South Africa can be considered tight after taking into account the high rates of unemployment and labour force participation. A unique empirical relationship surfaced within the macroeconomics context which had a significant impact on economic thinking. Beveridge (1944) postulated that there is a negative relationship between job vacancies and unemployment, and it is depicted by the Beveridge curve. This study therefore analysed the relationship between vacancies and unemployment in South Africa from 2008 to 2016. An autoregressive distributive lag (ARDL) model was employed to carry out the objectives of this study and the results suggested that there is a positive relationship between these two variables; which imply that the Beveridge curve theory does not apply to labour market of South Africa. This in turn suggests that labour demand and labour supply exists concurrently in this particular market. Thus, it is commendable for policy makers to have an in-depth introspection at the skills-supply, and the policies examining unemployment in South Africa to ensure that the unemployed fill the unfilled vacancies.
- Full Text:
- Date Issued: 2019
Values and workplace expectations of young graduates in the private sector
- Authors: Kriel, Caylin Jade
- Date: 2019
- Subjects: Generation Y -- Employment , Generation X -- Employment Intergenerational relations Group relations training Teams in the workplace Personnel management
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10948/40500 , vital:36177
- Description: Understanding the values and workplace expectations of young South African graduates, referred to in this study as Millennials, is vital for the future success of organisations. Organisations gain a competitive advantage by attracting, engaging and retaining top talent. Millennials are not always positively received in the workplace, due to the prevailing stereotypes held about this group. However, the Millennial generation has an important role to play in the workplace, both in contributing towards organisational success, and as future leaders. A greater understanding of this generation, more particularly in terms of their values and workplace expectations, is thus necessary for ensuring effective talent acquisition and management strategies. The aim of the study was to identify the values of Millennials, both within their personal and working lives. This is important; as individuals take their values into the workplace. Secondly, the expectations that Millennials have of their employers and workplaces in general was explored. With this understanding in mind, the purpose of the study was to advise organisations on how to better prepare for and accommodate Millennials’ values and workplace expectations, in order to enhance their role in contributing towards organisational success, as well as contributing towards their levels of engagement and job satisfaction. The study adopted a qualitative and phenomenological research design. The sample comprised eight young South African graduates working within the private sector, and residing in Port Elizabeth, within the Eastern Cape province of South Africa, who possessed an undergraduate tertiary qualification, and held at least one year’s work experience. It was further required that the participants fall within the Millennial generational cohort, aged between 22 and 30 years. The sampling technique used was non-probability purposive convenience sampling. One-on-one semi-structured interviews formed the data-collection instrument; and thematic analysis was used for the data processing and analysis. Congruence was identified between the values and the workplace expectations of young South African graduates in the private sector through the semi-structured interviews and the literature review; and between the identified values and the workplace expectations of the eight participants. This study contributes towards the field of knowledge used in describing the nature of the values and the workplace expectations of Millennials; and provides recommendations in terms of workplace implications.
- Full Text:
- Date Issued: 2019
- Authors: Kriel, Caylin Jade
- Date: 2019
- Subjects: Generation Y -- Employment , Generation X -- Employment Intergenerational relations Group relations training Teams in the workplace Personnel management
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10948/40500 , vital:36177
- Description: Understanding the values and workplace expectations of young South African graduates, referred to in this study as Millennials, is vital for the future success of organisations. Organisations gain a competitive advantage by attracting, engaging and retaining top talent. Millennials are not always positively received in the workplace, due to the prevailing stereotypes held about this group. However, the Millennial generation has an important role to play in the workplace, both in contributing towards organisational success, and as future leaders. A greater understanding of this generation, more particularly in terms of their values and workplace expectations, is thus necessary for ensuring effective talent acquisition and management strategies. The aim of the study was to identify the values of Millennials, both within their personal and working lives. This is important; as individuals take their values into the workplace. Secondly, the expectations that Millennials have of their employers and workplaces in general was explored. With this understanding in mind, the purpose of the study was to advise organisations on how to better prepare for and accommodate Millennials’ values and workplace expectations, in order to enhance their role in contributing towards organisational success, as well as contributing towards their levels of engagement and job satisfaction. The study adopted a qualitative and phenomenological research design. The sample comprised eight young South African graduates working within the private sector, and residing in Port Elizabeth, within the Eastern Cape province of South Africa, who possessed an undergraduate tertiary qualification, and held at least one year’s work experience. It was further required that the participants fall within the Millennial generational cohort, aged between 22 and 30 years. The sampling technique used was non-probability purposive convenience sampling. One-on-one semi-structured interviews formed the data-collection instrument; and thematic analysis was used for the data processing and analysis. Congruence was identified between the values and the workplace expectations of young South African graduates in the private sector through the semi-structured interviews and the literature review; and between the identified values and the workplace expectations of the eight participants. This study contributes towards the field of knowledge used in describing the nature of the values and the workplace expectations of Millennials; and provides recommendations in terms of workplace implications.
- Full Text:
- Date Issued: 2019
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