List of Titles

Quick View

The distiction between debt and equity from an income tax perspective

- Duna, Nomfundo

Authors: Duna, Nomfundo
Date: 2020
Subjects: Income tax -- South Africa
Language: English
Type: Thesis , Masters , MCOM
Identifier: http://hdl.handle.net/10948/47791 , vital:40375
Description: The debt bias gives rise to real and disadvantageous consequences for many jurisdictions. South Africa is by no means any safer from its dilutive and evasive effect. This bias in favour of debt arises as a result of the difference in the tax treatment of debt and equity which is found in the South African tax legislation. At the centre of the difference in tax treatment is that under the domestic tax legislation, interest incurred on debt is deductible to the extent that the debt was used to fund income generating assets which dividends payable to equity investors is not. From a South African perspective, the classification of a funding as debt or equity funding for tax purposes is not exhaustively dealt with within the tax legislation as it is not always that these terms are defined in the tax legislation. In some instances, common law is relied upon to classify funding as debt or equity funding. Furthermore, this classification and the resultant tax treatment of funding as either debt or equity becomes even more complicated when you consider the various tax avoidance mechanisms that taxpayer corporations use to take advantage of the debt bias. Tax avoidance mechanisms such as the uptake of excessive debt to increase interest deductions and the use of hybrid debt instruments has necessitated the inclusion of targeted anti-avoidance provisions that operate to either reclassify the nature of the funding or the return on such funding, or in some instances deny interest deductions. These targeted anti-avoidance provisions contain definitions of the type of funding that they apply to. In the South African context, the South African tax legislation contains provisions in respect of anti-excessive debt rules contained in section 23M and 23N as well as hybrid instruments contained in sections 8E,8EA, 8F and 8FA that aim to counter the extent to which taxpayers exploit the debt bias to avoid tax.
Full Text:
Date Issued: 2020

Quick View

Volatility spillovers and determinants of contagion: a case of BRICS equity and foreign exchange markets

- Nyopa, Tšepiso

Authors: Nyopa, Tšepiso
Date: 2020
Subjects: Uncatalogued
Language: English
Type: thesis , text , Masters , MCOM
Identifier: http://hdl.handle.net/10962/164590 , vital:41146
Description: This study investigates the relationship between the equity markets and foreign exchange markets in Brazil, Russia, India, China and South Africa (BRICS) using Diebold-Yilmaz spillover index. The study also identifies macroeconomic fundamentals that can enhance contagion in these markets using panel dynamic ordinary least squares regressions. The study spans the period from 1997 to 2018. We find that there are interdependencies between BRICS equity markets and foreign exchange markets, except for China, whose markets are relatively isolated from other BRICS markets. Brazil is the largest contributor of volatility spillovers to other BRICS markets. The spillover indexes also indicate significant increases in volatility spillovers associated with turmoil periods in domestic and global markets. This provides evidence for contagion during crises periods. We also find that fundamental indicators and trade linkages are major drivers of increased volatility spillovers (contagion) in BRICS; and global risk indicators, such as VIX and oil prices, explain volatility spillovers in BRICS. These results hold across both equities and foreign exchange markets. , Thesis (MSc)--Rhodes University, Faculty of Commerce, Economics and Economic History, 2020
Full Text:
Date Issued: 2020

Showing items 1 - 3 of 3