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A comparative analysis of the new behaviours and terms introduced in the understatement penalty table in section 223 of the Tax Administration Act

  • Authors: Doolan, Kim
  • Date: 2017
  • Subjects: South Africa. Tax Administration Act, 2011 , Taxation -- South Africa , Taxation -- Law and legislation -- South Africa , Tax administration and procedure -- Law and legislation -- South Africa , Tax penalties -- Law and legislation -- South Africa , Taxpayer compliance -- South Africa
  • Language: English
  • Type: Thesis , Masters , MCom
  • Identifier: http://hdl.handle.net/10962/5802 , vital:20977
  • Description: The Tax Administration Act became effective on the 1 October 2012 and in Chapter 16 introduced the understatement penalty regime which replaced section 76 of the Income Tax Act. The understatement penalty is calculated by applying a percentage in terms of the table included in section 223 of the Tax Administration Act to the shortfall in tax giving rise to the imposition of the penalty. There are five behaviours reflected in the understatement penalty table in section 223, namely, “substantial understatement”, “reasonable care not taken in completing return”, “no reasonable grounds for tax position taken”, “gross negligence” and “intentional tax evasion”. “Substantial understatement” is the only behaviour defined in the Tax Administration Act. Section 222(1) of the Tax Administration Act requires SARS to impose the penalty reflected in the table in the event of an “understatement”, unless the “understatement” results from a “bona fide inadvertent error”. The term “bona fide inadvertent error” is not defined in the Tax Administration Act; neither is the term “obstructive”. The Memorandum on the Objects of the Tax Administration Laws Amendment Bill confirmed that guidance would be developed in this regard for the use of taxpayers and SARS officials. This guidance has not yet been released. Media reports express the view that the lack of definition of the behaviours is problematic for both SARS and taxpayers as the table is new and there is still room for interpretation and understanding of the meaning of each of the behaviours. The primary goal of this study was is to obtain a better understanding of the meaning of the new behaviours and terms introduced in the understatement penalty table. In addressing this main goal, the penalty tables and behaviours in legislation in New Zealand were compared to South Africa’s understatement penalty. The similarities and differences between the understatement penalty imposed in terms of Chapter 16 of the Tax Administration Act and the additional tax previously imposed in terms of section 76 of the Income Tax Act were also discussed to determine whether this would be of assistance in enabling a better understanding of the meaning of the behaviours and terms in section 223. Guidance on the interpretation of the various behaviours and terms was developed and a definition was proposed for the meaning of “bona fide inadvertent error” and “obstructive” to assist in the objective and consistent application of the understatement penalty table in relation to each shortfall identified. The proposed definition for “bona fide inadvertent error” is as follows: “An honest mistake made or simple oversight, which the taxpayer was not aware of, despite taking reasonable care and displaying a prudent attitude while making a genuine attempt to comply with all applicable tax obligations.” The definition for “obstructive” is proposed as: “Deliberately interfering with, causing difficulties (impeding) or delays in, or preventing the progress of a SARS audit or review.”
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  • Date Issued: 2017

A comparative study between the Seychelles and Singapore as a tax haven for the incorporation of a foreign structure of a resident company

  • Authors: Wagener, Petrus Johannes Crous
  • Date: 2017
  • Subjects: Tax havens , Banks and banking, Foreign -- Taxation -- Seychelles , Banks and banking, Foreign -- Taxation -- Singapore , Taxation -- Seychelles , Taxation -- Singapore
  • Language: English
  • Type: Thesis , Masters , MCom
  • Identifier: http://hdl.handle.net/10948/21208 , vital:29456
  • Description: Companies in South Africa will generally attempt to reduce their tax burden, and over the last ten years the use of Singapore and the Seychelles as tax haven jurisdictions’ have increased significantly. Singapore and the Seychelles are well known for their low or zero tax rates and for their confidentiality policies in respect of providing information to foreign tax authorities. It is because of these policies that individuals and businesses invest huge amounts in these countries. There is however uncertainty as to what type of foreign structure a resident company in South Africa may incorporate in the above-mentioned tax haven jurisdictions in order to receive the most effective tax benefit. The aim of this treatise was to identify the different foreign structures in Singapore and the Seychelles which a South African resident company may incorporate. Resulting from this research certain issues have been identified relating to the type of foreign structure and a major one is summarised below: The concept of “place of effective management” used to determine tax residence or as the tie-break clause concept under a double tax agreement. As stated in the case of Oceanic Trust Co Ltd NO v C: SARS (2012) 74 SATC 1275 which is in line with foreign precedents, the test is one of substance over form and the approach to determine “place of effective management” may be to attribute human characteristics to a structure to establish where it is effectively managed. Thus, South African companies can make use of Singapore or the Seychelles as tax havens and incorporate a foreign structure which will be seen as not being resident in South Africa to distribute passive income sources out of South Africa, without paying taxes in the country (withholding taxes may be levied in the tax havens). This should be of concern from the point of view of the South African government. Another issue noted in this treatise related to the use of offshore trusts as a foreign structure for a South African resident company may be the more effective option seeing that the controlled foreign company legislation is not applicable on offshore trusts, reducing the risk of taxation on foreign income of a South African resident company when it is held in an offshore trust. The above issues that have been identified present opportunities to South African resident companies to take advantage of the current tax legislation. It is further recommended that resident companies need to consider the South African domestic tax law implications, respective double tax agreements with both Singapore and the Seychelles as well as the domestic tax laws of these tax haven jurisdictions when planning on incorporating a foreign structure.
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  • Date Issued: 2017

A critical analysis of the income tax implications of loan account funding in the small and medium-sized enterprises (SMEs) environment

  • Authors: Van Zyl, Gideon Pieter
  • Date: 2017
  • Subjects: Income tax -- South Africa Small business -- Taxation -- South Africa , Debt -- Management Small business -- Finance -- Management
  • Language: English
  • Type: Thesis , Masters , MCom
  • Identifier: http://hdl.handle.net/10948/21230 , vital:29459
  • Description: The global economy is still recovering from the effects of the sub-prime crisis. The economic downturn has created international tax policies that seem to encourage debt funding. Some commentators are of the view that debt and equity should have a uniform tax treatment. South Africa has not escaped the aftermath of the economic meltdown and had three credit downgrades since the second half of 2009. The first objective of this treatise was to determine whether loan funding still has a role to play in a SME environment. This was considered in the context of interest-free or low-interest rate loans advanced by companies to shareholders or other connected persons and interest-bearing loans due by companies that in substance clearly have equity features. The primary enquiry pertaining to debit loans is whether the debt arose by virtue of any share held in the company. It is submitted that a causal connection is required between any share in that company and the advance made. Where a company parts with funds for no quid pro quo a deemed dividend in specie is triggered. Conversely, where a loan was made on commercial grounds the company will not be in breach, even if the loan is interest-free. A loan that lacks a reasonable redemption period is more akin to equity and to this extent a deemed dividend will be triggered where a loan owing by a company to a shareholder or other connected person is not redeemable within 30 years. There is ambiguity with regards to the inception of the 30-year period for pre-existing loan agreements. Taking the contra fiscum rule into account, it is submitted that the 30-year period should only commence from the effective date due to the impracticalities involved and because the concept of an ‘instrument’ did not previously exist. It is submitted that shareholder and other connected person loans are not by default equity, to the extent that the transaction is on commercial grounds and in substance a loan. It is further submitted that loan funding still has a role to play in a SME environment and that South Africa has no need for uniform tax rules pertaining to debt and equity, due to the anti-avoidance provisions highlighted above. The poor state of the local economy prompted Treasury to introduce new debt relief rules to assist distressed debtors. The second objective of this treatise was to analyse whether the new rules will provide tangible relief to distressed debtors as this was one of the short comings of the previous system. It is submitted that the new ordering rules delay the incurrence of an immediate tax as trading stock held and not disposed of, the base cost of an asset or the balance of an assessed capital loss is first reduced compared to the old rules where it instantly triggered a recoupment or a deemed disposal for CGT purposes. Tangible relief is provided to distressed debtors as a tax debt reduced has no normal tax consequences. This provides an opportunity for companies under business rescue because SARS rank on par with concurrent creditors. As a result, the tax debt reduced is likely to be higher under business rescue than liquidation.
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  • Date Issued: 2017

A privacy management framework for mobile personal electronic health records in South Africa

  • Authors: Els, Floyd Nathaniel
  • Date: 2017
  • Subjects: Medical records -- Data processing Medical records -- Access control Electronic records -- Security measures
  • Language: English
  • Type: Thesis , Masters , MCom
  • Identifier: http://hdl.handle.net/10353/12733 , vital:39316
  • Description: South Africa’s health status is in constant dismay, especially while under the strain of the quadruple burden of disease. The adoption of personal electronic health records (PEHRs) can be seen as a means to improve this status by empowering patients to manage their health and lifestyle better. While from the healthcare provider’s perspective, PEHRs has the ability to reduce medical errors; provide better communication channels and enhance the monitoring of patients. Despite these benefits for both healthcare providers and patients, there are three distinct information security threats relating to PEHRs. These threats refer to the individual, data in transit, and at rest. South Africa is still considered to be inexperienced with PEHRs, and consider it a relatively new concept to the healthcare system. The National e-Health Strategy and Protection of Personal Information Bill were discussed and compared to international standards in order to ascertain South Africa’s current standing on mobile healthcare privacy. However, there are no specific privacy and security controls in place to protect patients that access personal electronic health records through mobile devices. Therefore, the aim of this study is the development of a privacy management framework (PMF) to mitigate these privacy concerns. Following an interpretivistic approach to research, qualitative data was analysed from literature, and the privacy framework evaluated through expert reviews. The proposed PMF consists of 3 tiers, beginning with the top tier. The first tier relates to an organisations interpretation and understanding of data privacy laws and regulations, and in ensuring compliance with these laws. The second tier refers to two support pillars to maintain the first tier. These pillars are based on elements of operational privacy, as well as auditing and reviewing. The third tier serves as the basic foundation upon which the PMF was developed. It is mainly focused with creating privacy awareness amongst healthcare providers and patients by creating: training regimes on security and privacy threats, efficient communication standards, and constant ongoing support from top level management.
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  • Date Issued: 2017

A water footprint assessment of dryland pasture based dairy enterprise in the Eastern Cape: a case study

  • Authors: Jenje, Paige
  • Date: 2017
  • Subjects: Water supply, Agricultural -- South Africa , Water supply, Agricultural -- Government policy -- South Africa , Water consumption -- Measurement -- South Africa , Water demand management -- South Africa , Water-supply -- Accounting -- South Africa , Cattle -- Water requirements -- South Africa -- Cast studies
  • Language: English
  • Type: Thesis , Masters , MCom
  • Identifier: http://hdl.handle.net/10962/5362 , vital:20917
  • Description: Water scarcity continues to pose a threat to South Africa, with severe water scarcity predicted within the next fifty years. As a result, national interest has been sparked over the development of market based water resource allocation strategies to alleviate pressures on South Africa's freshwater resources, and ensure compliance with the National Water Act. Agriculture is the largest water user internationally and within South Africa, highlighting the importance of improving the water use efficiency within the industry. This study performed a full water footprint assessment (WFA) of a dryland pasture based dairy enterprise in the Eastern Cape. Following the guidelines of the WFA, this study calculated the blue, green and grey water footprints of dryland pasture based dairy production from crop- to-farm gate by assessing the water footprints of pasture production, bought in feed and concentrates, drinking water and servicing water processes over a period of five years. Following the accounting the of the water footprint, economic and environmental sustainability indicators were used along with the incorporation of the Water Risk Filter tool. This revealed that the case study farm was operating efficiently with the enterprise's highest water related risk being governmental regulation. Water footprint accounting results highlighted that green water was largest contributor to the overall water footprint of over 80%, and grey water contributed the least to the water footprint of dryland pasture based dairy production. Economic productivity results indicated that milk production is highly correlated with annual rainfall due to the breeding strategy undertaken by the farm. Results also indicated little correlation between the monthly water footprint and milk production, with the majority of the enterprise's milk production occurring in the last quarter regardless of the water footprint. The study demonstrated the relationship between the water footprint and economic land and water productivity, along with the value of milk to costs ratio which indicated that approximately R1.00 worth of costs generates between R1.80 and R2.06 value of milk. The sustainability indicators suggested that the farm's management of its effluent dam requires attention to meet the Department of Water and Sanitations effluent waste quality guidelines. The overall analysis of the water footprint suggested that the highest water related risk to dryland dairy production was regulatory risk. This risk suggests that the government cannot be relied upon for the management of freshwater resources within the study area, leaving the onus on the individual dairy farmers. As such, farmers should utilise the water footprint to formulate water stewardship programmes which have the potential to influence the regulation and protection of freshwater resources.
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  • Date Issued: 2017

An analysis of the impact of financialization on commodity markets

  • Authors: Ndawona, Takudzwa Maitaishe
  • Date: 2017
  • Language: English
  • Type: Thesis , Masters , MCom
  • Identifier: http://hdl.handle.net/10962/7113 , vital:21218
  • Description: An unprecedented increase in real commodity prices from 2002-2011 fuelled an intense debate as to the causes of the steep rise in prices and its possible implications for producers and consumers. On the one hand, the prolonged and dramatic rise in almost all commodity prices is attributed to growing demand from emerging market economies, supply shocks such as adverse weather conditions, export bans as well as other macroeconomic factors. Collectively these are known as the fundamental (demand and supply) factors. On the other hand, there is a growing body of evidence that suggests these fundamental factors alone are not sufficient enough to explain recent commodity price developments. It is noted that alongside changes in the fundamental factors, there was a major shift in trading activities on commodity derivative markets related to the increasing presence of financial investors, institutional investors and hedge funds. This had important effects, it is argued, on the microstructure of these markets and on price dynamics in a process termed “fmancialization”. Most of the empirical literature covers the period of rising commodity prices from 20022011. This study seeks to add to the existing literature by examining, in addition, the impact of financialization when commodity prices were falling from 2011-2015. Whereas the literature focuses mainly on the rise of agricultural commodity prices, the focus of this study is on metals, oil and bulk commodities (coal and iron ore). Two techniques are employed, namely the calculation of rolling correlations for futures and spot returns. Granger causality tests are then performed to examine the relationships between futures and spot prices. Rolling return correlations are calculated for i) different exchange- traded commodities and ii) exchange-traded commodities and bulk commodities not traded on exchanges. This is done to establish whether the increased correlations between different commodities found in the literature still hold now that commodity prices across all categories are falling. Granger causality tests are used in order to establish the link between the futures prices and spot prices both during the upswing period (2002-2011) and downswing period (2011-2015). It is found that rapidly growing indexed-based investment in commodity markets (financialization) during the upswing period is concurrent with increasingly correlated returns on the prices of unrelated commodities in both the futures and spot markets. These correlations decline during the period of falling commodity prices (2011-2015). This was a period in which the total amount of commodity assets under management fell sharply. This supports the a priori expectation that if the increased correlations of previously seemingly correlated and unrelated commodities during the upswing had been driven by financialization, the correlation would decline in the downturn. Granger causality results reveal statistically significant evidence of futures prices (returns) driving spot prices (returns) during the financialization period. However, post-financialization there is a shift to more bidirectional relationships. The study therefore concludes that, in addition to changing fundamental and macroeconomic factors, the financialization of commodity markets further drove the excessive and volatile price levels in commodity markets from 2002 to 2011.
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  • Date Issued: 2017

An analysis on role of judges in interpreting tax legislation

  • Authors: Chanhuwa, Mildred Kudzanai
  • Date: 2017
  • Subjects: Taxation -- Law and legislation -- South Africa , Law -- South Africa , Judicial discretion -- South Africa , Judicial opinion -- South Africa , Judges -- Attitudes -- South Africa , South Africa. Constitution of the Republic of South Africa, 1996
  • Language: English
  • Type: Thesis , Masters , MCom
  • Identifier: http://hdl.handle.net/10962/4289 , vital:20644
  • Description: This thesis focusses on the role of judges as interpreters of tax legislation. It examines the role of judges by analysing how the perceptions of judges can impact on how they interpret legislation. It also analyses various other factors that play a role when judges interpret legislation, in an effort to answer the question to what extent do philosophical theories and interpretative approaches explain the role of judges as interpreters? Jurisprudential theories such as the natural law theory, positivist theories, and American realist theories are used to analyse how judges interpret and how theorists think judges should play their interpretational role. It is noted that in pre-constitutional South Africa the courts followed a positivist paradigm; as a result, the judges used a strict literal approach to interpretation. The new Constitution brought a change in the jurisprudential paradigm accepted in South Africa and has transformed how judges perceive and carry out their role as interpreters of legislation. Judges have now adopted the purposive value-laden approach as authoritative. As custodians of the Constitution, judges should interpret provisions against the values imposed by it. The purposive value-laden interpretational approach allows judges to take into account more considerations and to weigh a provision against the constitutional values. Other issues discussed pertain to how institutional guidelines such as the doctrine of precedent and separation of powers, to a lesser extent, play a role in how judges interpret the law. It is demonstrated that the doctrine of precedent does not limit the role of judges but rather contributes to maintaining certainty, predictability and coherence in the legal system. It is also noted that judicial discretion is the mechanism by which judges use extra-legal factors such as public policy and moral considerations to assist in interpreting legislation.
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  • Date Issued: 2017

An evaluation of appreciative inquiry as an alternative organisation development approach

  • Authors: Van der Merwe, Schalk Willem
  • Date: 2017
  • Language: English
  • Type: Thesis , Masters , MCom
  • Identifier: http://hdl.handle.net/10962/5925 , vital:20990
  • Description: The research provides an insight into the main challenges of previous Organisation Development processes, and Appreciative Inquiry is explored to establish the value it can offer as an alternative which minimises these challenges in today’s organisations. Organisation Development originated during the early 1950s and has evolved, adapted and changed dramatically since then. Two classical Organisation Development processes, Lewin’s 3-Step model and the Action Research spiral, are described, and typical challenges of applying them in today’s organisations are outlined. To remain competitive, organisations need to identify, adjust, and adapt to changing circumstances. These changing circumstances are constant and are due to increasingly complex demands from technological, economic, managerial, and cultural needs. Appreciative Inquiry as an approach is explored as an alternative Organisation Development process: it shifts the question from ‘what is going wrong’ to ‘what is going right in the organisation’. Appreciative Inquiry consists of the Discovery, Dream, Design and Destiny stages, and searches for the best in people and their organisations. In accordance with the constructionist paradigm, the research offers conclusions through the confirmation of past practices, conversations and relationships combined with creative new methods or experimentation of a positive intended future. The One- Group Pretest-Posttest, as a design, was selected to explore the effect of the variable (the Appreciative Inquiry intervention) in relation to the pre- and post-experimental evaluation. The design consists of an initial engagement (Pretest), the influencing variable (an Appreciative Inquiry intervention) and final engagement (Posttest) with the same group. The research was supported by a mixed method approach, with qualitative data supported by quantitative data. The quantitative data provided a general understanding of how participants experienced the change interventions. The qualitative data provided the information on how respondents experienced Organisation Development before an Appreciative Inquiry intervention and their views after an Appreciative Inquiry intervention. A South African secondary school was selected as a research site. Limited research is available regarding the application of Organisation Development and especially Appreciative Inquiry as a process in schools in general, and in South African schools in particular. A survey questionnaire was the instrument for collecting the quantitative data regarding the participants’ biographical information and change process perceptions. For the collection of qualitative data, interview questionnaires were used. The findings indicate that whereas previous change processes appear to have regarded the various staff levels of the school as separate entities, during the Appreciative Inquiry approach all staff were included as being an integral part of the organisation. The main finding after completion of the Appreciative Inquiry intervention was that collectively discussing and defining issues in a positive light instead of a problem to be solved changes the perspective of participants. Through the application of the Appreciative Inquiry’s four stages, participants were invited to think in a new way by applying innovation, enhancing participation, maintaining a positive core, and providing practical solutions through provocative statements. Conclusions reached from the research are that Appreciative Inquiry is a viable alternative for minimising Organisation Development challenges in contemporary organisations. The conclusions are based on factors such as understanding the reason for change; strong leadership; defining what is a successful intervention; understanding the Appreciative Inquiry process, the value of provocative statements; and the sustainability of change.
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  • Date Issued: 2017

An Internet of things model for field service automation

  • Authors: Kapeso, Mando Mulabita
  • Date: 2017
  • Subjects: Internet of things Manufacturing processes -- Automation , Automation
  • Language: English
  • Type: Thesis , Masters , MCom
  • Identifier: http://hdl.handle.net/10948/18641 , vital:28698
  • Description: Due to the competitive nature of the global economy, organisations are continuously seeking ways of cutting costs and increasing efficiency to gain a competitive advantage. Field service organisations that offer after sales support seek to gain a competitive advantage through downtime minimisation. Downtime is the time between service requests made by a customer or triggered by equipment failure and the completion of the service to rectify the problem by the field service team. Researchers have identified downtime as one of the key performance indicators for field service organisations. The lack of real-time access to information and inaccuracy of information are factors which contribute to the poor management of downtime. Various technology advancements have been adopted to address some of the challenges faced by field service organisations through automation. The emergence of an Internet of Things (IoT), has brought new enhancement possibilities to various industries, for instance, the manufacturing industry. The main research question that this study aims to address is “How can an Internet of Things be used to optimise field service automation?” The main research objective was to develop and evaluate a model for the optimisation of field services using an IoT’s features and technologies. The model aims at addressing challenges associated with the inaccuracy or/and lack of real-time access to information during downtime. The model developed is the theoretical artefact of the research methodology used in this study which is the Design Science Research Methodology (DSRM). The DSRM activities were adopted to fulfil the research objectives of this research. A literature review in the field services domain was conducted to establish the problems faced by field service organisations. Several interviews were held to verify the problems of FSM identified in literature and some potential solutions. During the design and development activity of the DSRM methodology, an IoT model for FSA was designed. The model consists of:The Four Layered Architecture; The Three Phase Data Flow Process; and Definition and descriptions of IoT-based elements and functions. The model was then used to drive the design, development, and evaluation of “proof of concept” prototype, the KapCha prototype. KapCha enables the optimisation of FSA using IoT techniques and features. The implementation of a sub-component of the KapCha system, in fulfilment of the research. The implementation of KapCha was applied to the context of a smart lighting environment in the case study. A two-phase evaluation was conducted to review both the theoretical model and the KapCha prototype. The model and KapCha prototype were evaluated using the Technical and Risk efficacy evaluation strategy from the Framework for Evaluation of Design Science (FEDS). The Technical Risk and Efficacy strategy made use of formative, artificial-summative and summative-naturalistic methods of evaluation. An artificial-summative evaluation was used to evaluate the design of the model. Iterative formative evaluations were conducted during the development of the KapCha. KapCha was then placed in a real-environment conditions and a summative-naturalistic evaluation was conducted. The summative-naturalistic evaluation was used to determine the performance of KapCha under real-world conditions to evaluate the extent it addresses FSA problems identified such as real-time communication and automated fault detection.
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  • Date Issued: 2017

Carbon credit restoration projects in the Eastern Cape province of South Africa: considerations for sustainable local economic development

  • Authors: Polak, James Samuel
  • Date: 2017
  • Language: English
  • Type: Thesis , Masters , MCom
  • Identifier: http://hdl.handle.net/10962/8069 , vital:21349
  • Description: Although global climate change has been identified as a serious global economic, social, and environmental threat to society, national governments have been slow to respond on a global scale. Environmental economic theory offers market-based solutions to address climate change efficiently through carbon control regimes, such as carbon taxation and cap-and-trade policy. A major political milestone was reached when an international agreement entered into force in 2008, known the Kyoto Protocol, which incorporated a market-based solution to address climate change on a global scale. This allowed a global market for emissions to form through the Clean Development Mechanism. Although the Kyoto Protocol aimed to address a global issue on a global scale through a single global market for emissions, fragmented sovereign cap-and-trade schemes have since emerged in the form of national and regional emission markets, commonly referred to as carbon markets. The Clean Development Mechanism offered the opportunity to generate carbon credits through carbon offset projects, such as carbon restoration projects. Although the Kyoto Protocol did not achieve the objective of forming an internationally accepted global carbon control regime, it seems to have set a trend of including offset programs in newly emerging carbon control regimes, such as South Africa’s proposed carbon tax. This study set out to assess the extent to which carbon control regimes are enabling sustainable local economic development, based on carbon restoration projects in the Eastern Cape province of South Africa using Portulacaria afra, commonly known as spekboom. As a starting point, this study assessed the current state of the international carbon markets using significant international cap-and-trade based markets as examples. Based on Newell et al.’s (2013) selection of significant carbon markets and data availability, the United States’ Regional Greenhouse Gas Initiative and the European Union’s Emission Trading Scheme were selected. Historical, current and forecasted supply and demand data were gathered from Thomson Reuters’ Point Carbon research division. Further, historical futures and spot market price and volume data were gathered from the markets to compare how prices have fared over time. The Clean Development Mechanism’s market for Certified Emission Reduction credits was used for comparative purposes. The markets were found to be systemically oversupplied, leading to systemically low prices. The systemic oversupply in credits provides a limited incentive to initiate carbon offset projects, however, South Africa’s proposed carbon tax may be able to stimulate demand for domestic offset projects. Key success factors established through a comparative literature review on local economic development theory were incorporated into key informant interviews. The results were then analysed through the lens of Connelly’s (2007) model for sustainable development to provide recommendations for sustainable local economic development, regarding carbon restoration projects in the Eastern Cape using P. afra. The following opportunities were identified: the planting of P. afra on degraded land has the potential to mitigate climate change, offer water benefits to the surrounding communities, and promote biodiversity regeneration. There is potential for economic growth through job creation and the economic multiplier effect. Government funding is available and voluntary offset agreements do exist, eliminating a large portion of the cumbersome accreditation requirements. These projects also offer potential for social justice through the government funding requirements which stipulate that youth and women should be given preference for employment, potentially helping to alleviate inequality. The funding further stipulates that employees should be trained in transferable skills, offering potential for capacity building and social capital accumulation through education. These transferable skills include skills geared towards encouraging entrepreneurialism. Corresponding challenges were also found: excessive overgrazing through pastoralism has rendered some land degraded beyond restoration. Opportunists may resort to planting P. afra outside of the subtropical Albany Thicket biome to which it is endemic, leading to potential biodiversity loss rather than gains. Sufficient buy-in is required from private landowners for these projects to be sustainable, however, the projects entail a large opportunity cost to farmers as returns take at least 5 to 6 years. This may render these projects undesirable to most landowners and provides scope for free-riding, should pastoralists not have to bear the full costs of the project and property rights not be enforced through land user agreements. The projects require an exorbitant amount of upfront funding. Cash flow received from the projects does not extend in perpetuity. Requirements for social justice pertain only to government funded projects. A working model, generating and selling carbon credits through land restoration using P. afra, has not yet been established. As it stands, these carbon restoration projects are still highly speculative and carry a significant amount of investment risk, given the high mortality and low growth rates associated with the current planting method. The current systemic oversupply of carbon. credits in the international markets signal that returns from carbon credits are set to be low, at least until the oversupply issues are resolved. Should these challenges be overcome, carbon restoration projects using P. afra may have the potential to bolster sustainable local economic development in the impoverished regions of province as well as provide a locally-driven adaptation and mitigation strategy to address global climate change.
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  • Date Issued: 2017

Community engagement principles for implementation of information technology for development by higher education institutions in South Africa

  • Authors: Nkombachoto, Jacquiline
  • Date: 2017
  • Subjects: Information technology Telecommunication Community development
  • Language: English
  • Type: Thesis , Masters , MCom
  • Identifier: http://hdl.handle.net/10353/13171 , vital:39471
  • Description: Community engagement in South Africa is now recognised as an integral part of Higher Education Institutions’ (HEIs) educational system. The South African Council on Higher Education requires HEIs to become equitable institutions of higher learning, whereby the activities of the HEI are mutually beneficial for both learners and their communities. This entails that, community engagement activities undertaken by HEIs should be reciprocal in nature. The HEIs should help solve issues affecting their communities, whilst also gaining knowledge through experiential learning. One such way is through undertaking Information and Communication Technology for Development (ICT4D) projects in communities outside the physical boundaries of the HEI. Over the years, HEIs in South Africa have been involved in undertaking ICT4D projects aimed at benefiting their communities. This is because ICTs have the potential to improve and contribute to the development of individuals, businesses, and communities in various ways, be it socially or economically. However, the ICT4D projects have failed or partially succeeded to attain their goals. This study, thus proposes a model for HEI researchers for the successful implementation of ICT4D projects through application of community engagement principles. The proposed model was formulated using the case study approach. Four cases of ICT4D projects were used as sample to help identify factors required for the successful implementation of ICT4D projects by HEIs. Data was collected using semi structured interviews, observations and literature. The data was then analysed using cross case analysis in the form of themes. The findings were that operational community engagement policies, understanding user needs, creation of long term partnerships, synchronisation of timelines and monitoring and evaluation are vital for the successful implementation of ICT4D projects by HEI researchers in the communities.
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  • Date Issued: 2017

Competition factors influencing client switching behaviour within the commercial banking industry

  • Authors: Mathiyase, Kholiswa
  • Date: 2017
  • Subjects: Banks and banking -- South Africa , Competition -- South Africa , Financial services industry -- South Africa
  • Language: English
  • Type: Thesis , Masters , MCom
  • Identifier: http://hdl.handle.net/10948/45366 , vital:38574
  • Description: Banks are faced with challenges of retaining clients and preventing them from switching to competitors. For many years the South African banking industry has been dominated by the big four banks that were not known to be client focused. The banks were also known for serving only the middle and high-income earners, with the banks having a high and non-transparent banking fee structure. As a result, Capitec Bank was established in 2001 and differentiated itself from the traditional ways of providing banking service. One of their value propositions, Capitec Bank provided low and transparent banking fees, provided a unique personalised service to cater for the unbanked market and is gradually serving the middle and high-income market as well. Capitec Bank managed to establish its presence in the South African banking industry despite the dominance of the big four banks. The banking industry environment has also been subjected to a number of changes, including the entrants of other non-traditional banks, changing client behaviour, technology, regulatory and political reforms and the current depressed economic conditions.
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  • Date Issued: 2017

Credit extension in South Africa: an analysis of the impact of interest rates and income levels on the level of household debt

  • Authors: Widdop, James Stuart Hailstones
  • Date: 2017
  • Language: English
  • Type: Thesis , Masters , MCom
  • Identifier: http://hdl.handle.net/10962/4988 , vital:20750
  • Description: The recent growth in the unsecured lending market and the bankruptcy of African Bank Investments Limited have brought to light concerns regarding credit extension and the level of household indebtedness in South Africa. This study seeks to investigate the relevant aspects of credit extension in both the secured and unsecured lending markets by firstly analysing contemporary literature and then conducting a more formal empirical analysis. A VAR model is estimated to examine the effects household disposable income and interest rates have on the level of household debt in South Africa for the period 1995Q1-2015Q3. The empirical results indicate that there is no significant deterministic relationship between household disposable income and household debt. However, the results show that such a relationship does exist between interest rate and household debt. Finally, impulse response functions obtained from the VAR estimation are examined which indicate that both shocks too household disposable income and interest rates effect the level of household debt, but that this effect returns to equilibrium within six periods.
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  • Date Issued: 2017

Critical success factors for the implementation of an electronic health record system in the public health care sector of South Africa

  • Authors: Katurura, Munyaradzi Caurage
  • Date: 2017
  • Subjects: Medical records -- South Africa -- Data processing Public health -- South Africa Medical records -- Access control -- South Africa.
  • Language: English
  • Type: Thesis , Masters , MCom
  • Identifier: http://hdl.handle.net/10353/13182 , vital:39472
  • Description: South Africa intends to implement a National Health Insurance for its citizens, however, for this to be possible there is a need for registering and tracking all the patients who visit health care institutions. The use of EHRs was identified as the most suitable towards accomplishing the above-mentioned tasks. This study investigated other African countries’ EHR implementation efforts in order to identify the critical success factors for the implementation of EHR in South Africa’s public health system. The study conducted a structured literature review of articles written about EHR implementation in African countries and found that issues such as the high costs of implementation; resistance by health workers; a lack of suitable infrastructure; a lack of skills; political influence and poor government commitment were some of the challenges to the implementation of EHRs in African countries. The study then identified 6 critical factors that could address these challenges and ensure that EHR implementation is successful. Identified factors included Incentivising the health informatics career field to attract and retain ICT professionals; Encouraging participation of all stakeholders in the development process of EHR systems; Investigating and investing in alternative infrastructural facilities; Allocating separate budgets for E-health projects; Developing context relevant E-health implementation strategies and frameworks; and finally, Develop and implement Legislation specific to EHR implementation and continued use. Recommendations were also made on each factor regarding how it could be accomplished.
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  • Date Issued: 2017

Determinants of household debt in South Africa

  • Authors: Zimucha, Tinashe M
  • Date: 2017
  • Subjects: Consumer credit -- South Africa Finance, Personal -- South Africa
  • Language: English
  • Type: Thesis , Masters , MCom
  • Identifier: http://hdl.handle.net/10353/7967 , vital:31325
  • Description: Significant changes have occurred in South Africa during the past decades in household saving and borrowing behaviour. The rapid increase in South Africa’s household debt over the last twenty years has been an international phenomenon. In most countries, household debt increased from the 1990s until the crisis of 2007–2008 before stabilising due to a recession and deleveraging. The study used an ARDL model to investigate the determinants of household debt in South Africa. Pairwise regression is used to select the most relevant variables affecting household regression in the country. The results of the study showed that consumer confidence, the bond market index and the vulnerability index have a positive effect on household debt. As consumers' faith in the performance of the economy increases, household debt also increases as expected, reflecting consumers' belief in increased future wealth. The positive influence of the vulnerability index suggests that households tend to resort to borrowing to smooth consumption when incomes and other related factors decline. It is recommended that national policy should tighten regulations around access to unsecured credit to minimise the stress on already vulnerable households.
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  • Date Issued: 2017

Determinants of rail passenger transport usage : a case of Buffalo City Municipality

  • Authors: Ntlatywa, Kholosa
  • Date: 2017
  • Subjects: Railroads -- South Africa -- Statistical services Transportation -- South Africa -- Eastern Cape Railroads -- South Africa -- Eastern Cape
  • Language: English
  • Type: Thesis , Masters , MCom
  • Identifier: http://hdl.handle.net/10353/8780 , vital:33580
  • Description: The transport sector is an important contributor to South Africa’s economy. This sector have positive effects on South African citizens and the nation as a whole through mobility and accessibility. Rail transport is a suitable mode of transport for both long distance travel and short distances. This study investigated the determinants of rail passengers transport usage. The main objective of the study were to investigate the factors that influence the rail transport usage among passengers in Buffalo City Municipality. The second objective was to determine the incidence of rail transport usage among passengers in Buffalo City Municipality. Descriptive analysis in the form of Pearson-chi square and inferential analysis using Probit regression were used for data analysis in this study. The study used closed-ended questionnaires and the questionnaires were distributed to 100 people. The results of the study revealed that level of income, occupation, level of education, safety, and affordability are the common factors that influence the usage of trains for transport. The frequency of usage based on income was about 44 percent, with about 55 percent of people indicating they make use of trains because they find it a safe mode transport. The income level, safety, occupation and affordability were statistically insignificant. The level of education had a high frequency at 74 percent and it was statistically signifacant.004. The second part of the study assessed the incidence of train usage and results revealed that most of people (about 74 percent) travel by train daily.
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  • Date Issued: 2017

Direct income tax and the digital economy

  • Authors: Mackenzie, Lara
  • Date: 2017
  • Subjects: Income tax Corporations -- Taxation , information technology -- Economic aspects Electronic commerce
  • Language: English
  • Type: Thesis , Masters , MCom
  • Identifier: http://hdl.handle.net/10948/18047 , vital:28568
  • Description: Due to the nature of the digital economy, multi-national entities are able to trade in countries over the internet without a physical presence, they are setting up group structures across the world, housing intellectual property in tax havens and shifting profits between jurisdictions, lowering their group tax rates. This treatise considered the OECD/G20 BEPS Project 2015 Final Report on Action Plan 1 which discusses the nature, risks and proposed options to combat base erosion and profit sharing (BEPS). Although the OECD have made no recommendations in their report many countries have taken action to protect their tax bases. The scope of this treatise is limited to multi-national entities who avoid tax presence in a country or shift profits to off-shore entities in low/no tax jurisdictions. The aim of this treatise is to identify the risks posed by the nature of the digital economy to direct taxation and analyse proposed solutions to respond to these risks. A comparative study of the proposal and changes implemented in the UK, Australia and India was undertaken to gain an understanding of international thinking regarding the best way to combat BEPS. These proposals were then compared to the South African perspective in order to determine which of the proposals would be feasible to combat BEPS in South Africa.
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  • Date Issued: 2017

Exploring counterfeit versus authentic purchases of youth consumers

  • Authors: Koeberg, Richenda
  • Date: 2017
  • Subjects: Brand name products Young consumers
  • Language: English
  • Type: Thesis , Masters , MCom
  • Identifier: http://hdl.handle.net/10948/18805 , vital:28725
  • Description: The purpose of this research was to explore counterfeit versus authentic luxury branded products from the perspective of consumers’ choice and social influence. Africa’s high level of domestic poverty has been one of the crucial factors for encouraging the import of counterfeit products (Meeking, 2013). In 2011, South Africa had estimated the counterfeit industry to be at R3.60 billion; and it is currently viewed as the world’s fastest growing industry (Le Cordeur, 2012; News24, 2011). Research on the purchases of counterfeit and authentic luxury brands has focused primarily on the supply side; however, this assumes that consumers are unaware of counterfeits. The aim was to explore whether consumers are able to distinguish between authentic and counterfeit products. In addition, the research also aimed to explore: 1) Youth consumers’ perceptions of luxury brands; 2) the attitudes of youth consumers towards counterfeit luxury brands; 3) the behaviour of youth consumers towards counterfeit products in general; and 4) the perceived influence of functional or status utility products on purchase behaviour. Therefore To methods of analysis was used; first a discrimination test was conducted and analysed using basic descriptive statistics were used. And second, a qualitative research methodology was adopted, from a social constructionist paradigm. Four focus-group interviews were conducted and analysed using thematic analysis. The results from the thematic analysis identified five themes, namely: 1) The conceptualisation of counterfeits; 2) conceptualising luxury brands; 3) attitudes towards counterfeit-branded products; 4) consumer decision-making styles; 5) status; and 6) post-purchase behaviour. This empirical study forms a foundation for future research on this phenomenon in the current context. Additionally, manufacturers should be aware of the impact of selling defect branded products on consumers’ conceptualisation of counterfeits. Marketers should also focus on the salient role of sneakers as status symbols among youth consumers.
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  • Date Issued: 2017

Exploring the early identification of first year accounting at-risk students

  • Authors: De Villiers, Lorelle
  • Date: 2017
  • Subjects: Accounting -- Study and teaching (Higher) -- South Africa , Accounting -- South Africa -- Students Accounting
  • Language: English
  • Type: Thesis , Masters , MCom
  • Identifier: http://hdl.handle.net/10948/14895 , vital:27897
  • Description: It is well documented that tertiary institutions in South Africa are reporting high failure rates in accounting courses; several calls have been made to address this in recent years. Various reasons are given for this high failure rate, such as an increase in student numbers and diversity, a mismatch between programmes and students, unequal schooling and inequity of access to tertiary institutions, an increase in the number of underprepared students for tertiary education, and difficulties with language. As a result, there is a growing interest in the factors predicting academic performance, and several studies on predicting academic performance have been undertaken both internationally and in South Africa. Scholars have specifically identified several factors that influence failure in accounting in the first year of tertiary education and in first year accounting in particular. However, the focus of the current study was on several biographical and educational factors only, factors that have commonly been found to influence student performance in their first year, namely: Gender, Age, Ethnicity, Home language, School category, School language, Nationality, Degree programme, Repeating (the accounting module), Admission Point Score (APS), Matric LAMN (combined score for Matric language, accounting, mathematics and numeracy), whether the student studied Accounting in Matric, and Matric year. The primary objective of this study was to develop a predictive model based on biographical and educational secondary data for identifying students at risk in first year accounting at Nelson Mandela Metropolitan University (NMMU). A quantitative research design was adopted and a non-experimental, descriptive study of a cross-sectional and deductive nature was undertaken. The non-probability sampling technique of criterion sampling was used and the sample consisted of all students enrolled for the R101, RNC101, R102, RG102 and RNC102 first year accounting modules in the Department of Accounting Sciences at NMMU. Historical data, both biographical and educational, was collected on which to undertake the data analysis. The data was analysed by means of descriptive statistics and logistic regression analyses. A separate logistic regression analysis was undertaken for each module group because of the diversity of curriculum content and participants of each module group. The findings show that as a whole, the levels of model accuracy in predicting the at-risk and not-at-risk categories were high. The R101 model showed the highest overall prediction success rate with 80.10 per cent of students being accurately classified into either the at-risk or not-at-risk category. The RG102 model showed the lowest overall prediction success rate of 73.91 per cent. The predictor variables of Matric accounting and Home language were identified as the most significant factors in predicting at-risk first year accounting students because they predicted at-risk students in three of the five logistic regression models, while School language, APS, Matric LAMN, Gender and Age were significant in predicting at-risk students in two of the five logistic regression models. The findings of the current study are interesting in highlighting that Matric accounting is not a predictor for students who intend majoring in accounting. They also highlight that for students who intend majoring in accounting in order to become CAs, English language proficiency is an important predictor for at-risk students. For students who intend majoring in accounting and becoming a CA, the findings show that African-home-language students are the most likely to be at risk in the first semester of first year accounting, while Afrikaans-home-language students are the least likely to be at risk in first year accounting. Several observations and recommendations are made and those that are of particular importance to the R101 module relate to Matric accounting, language, APS and Matric LAMN, as well as Gender and Age. For the R102 module, it is those relating to language and Matric LAMN, and for the RG102 module, it is those relating to APS. For the RNC101 module, the observations and recommendations that are of particular importance are those relating to Matric accounting and language as well as Gender and Age, while for the RNC102 module, it is those relating to Matric accounting. The ability to identify at-risk students in first year accounting is of great value to universities across South Africa at institutional, faculty and programme level. The predictive model developed assists in identifying at-risk students timeously, and early identification allows for targeted interventions and support, which could assist these students in overcoming their challenges and ultimately improving pass rates.
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  • Date Issued: 2017

Exploring the role of education, income and standard of living in determining food security amongst Mhlontlo Local Municipality citizens in the Eastern Cape

  • Authors: Halam, Khanyiswa
  • Date: 2017
  • Subjects: Income distribution -- South Africa -- Eastern Cape Social security -- South Africa -- Eastern Cape Income -- South Africa -- Econometric models
  • Language: English
  • Type: Thesis , Masters , MCom
  • Identifier: http://hdl.handle.net/10353/4802 , vital:28521
  • Description: The aim of this study was to explore the relationship that exists between education, income, standard of living and food security amongst Mhlontlo local municipality citizens. For this purpose, data was collected from citizens of the Mhlontlo municipality in the Eastern Cape. A sample of 101municipality citizens was drawn from the population. Results of the study indicated that the study variables are significantly negatively correlated with one another. The findings of this study are helpful in providing support to policy makers and social security agencies to have a better understanding of food security and indicate one important avenue to reduce food insecurity in Mhlontlo municipality and the Eastern Cape at large.
  • Full Text:
  • Date Issued: 2017
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