An analysis of the impact of tax changes between 1996 and 2012 on the tax burden of individuals in South Africa
- Authors: Krug, Lee
- Date: 2012
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:885 , http://hdl.handle.net/10962/d1001639
- Description: The objective of the research was to determine whether the changes made to the Income Tax Act, 58 of 1962 between 1996 and 2012, in respect of fringe benefits, allowances, deductions, tax tables and rebates, where these changes apply to individuals, have resulted in relieving the tax burden placed on individuals in South Africa. The research was conducted by means of a critical analysis of documentary data with specific reference to the Income Tax Act, annual amendments to the Income Tax Act, statistics relating to tax collections, the National Budget and the Annual Budget Speeches as tabled by the Minister of Finance. These sources were utilised to analyse the amendments to the Act that have taken place over the last sixteen years, where they impact on the tax liability of an individual. A hypothetical example incorporating all the variables identified in the analysis of the tax amendments was used to provide a detailed analysis of the tax payable by an individual on an inflation-adjusted year-on-year basis. The research found that, whilst personal income tax is still the largest contributor to the national budget of South Africa, its contribution has decreased from 40.2 percent in 1996 to 34.3 percent in 2010. This decrease is partly attributable to the extensive tax reforms undertaken by Government with respect to the tax tables, resulting in a reduction in the marginal tax rates and increased tax rebates which had the effect that the individual taxpayer (as illustrated in the hypothetical example) experienced a decrease in the average rate of tax. In contrast to this, the increase in the taxable income of the hypothetical taxpayer exceeded the average rate of inflation over the period. Furthermore, the actual revenue collected by the government from personal income tax has increased by approximately eleven percent per annum, which far exceeds the average inflation rate of 6.23 percent. The research indicated that this could be the result of the increase in the taxable value of fringe benefits, specifically medical aid contributions and company cars, as well as the inclusion of the full amount of allowances in taxable income and the limits placed on the deductions an individual may claim. The result is a broadening of the tax base of the individual taxpayer. Therefore, although the government may have achieved its goal of a fairer tax system, the amendments made to fringe benefits, allowances and deductions have resulted in an increase in the average taxable income of individuals.
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- Date Issued: 2012
The illegal diamond trade in South Africa and its tax consequences
- Authors: Kumm-Schmidt, Megan
- Date: 2017
- Subjects: Diamond industry and trade -- South Africa , Diamond industry and trade -- Corrupt practices -- South Africa , Diamond industry and trade -- South Africa -- Taxation , Conflict diamonds -- South Africa , Income tax -- Law and legislation -- South Africa , Tax evasion -- South Africa , South Africa. Income Tax Act, 1962 , South Africa. Prevention and Combating of Corrupt Activities Act, 2004 , South Africa. Tax Administration Act, 2011 , South Africa. ǂt Value-Added Tax Act, 1991 , Kimberley Process Certification Scheme
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10962/4389 , vital:20656
- Description: The object of the research was to discuss the taxability of the illegal diamond trade in South Africa and to identify the consequences of not declaring income obtained from the illegal diamond trade to the South African Revenue Services. The research was conducted by means of a critical analysis of documentary data with specific reference to the Income Tax Act, the Value-Added Tax (VAT) Act, the Tax Administration Act and relevant case law. The Income Tax Act and the Value-Added Tax Act were referred to in relation to the tax consequences of the illegal diamond trade and the Tax Administration Act was used to determine the consequences of not declaring income to the South African Revenue Services. It was established that amounts received from the sale of illegal diamonds are to be included in the taxpayer's gross income, whilst in relation to income received from diamond theft it was not as clear. The MP Finance Group case held that the nature of the receipt and the way in which the transaction occurred in each individual situation will be the deciding factor as to whether or not the stolen diamonds will be taxable in the hands of the thief. The buying and selling of "blood" or stolen diamonds can amount to a trade. As there have been no definitive case decisions in South Africa, it remains unclear whether expenses relating to an illegal trade are deductible. Assuming that expenses relating to an illegal trade are deductible, the provisions of section 11(a) will apply to expenses incurred as a result of dealing in illegal diamonds and it was concluded that qualifying expenses will be deductible. A taxpayer buying and selling "blood" or stolen diamonds is required to register for VAT if sales exceed the threshold and would be required to account for VAT on these transactions. If the taxpayer does not declare the income for income tax purposes or register for and pay VAT to the South African Revenue Services from either the sale of illegal diamonds or the theft of diamonds, this will amount to tax evasion and the dealer will be subject to penalties and even imprisonment
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- Date Issued: 2017
“Watch-dogs for an Economy” : a determination of the origins of the South African Public Accountants' and Auditors' Board – as the Regulator of the Profession – principally through an analysis of the debates and related reports to the House of Assembly of the Parliament of the Union of South Africa in the period 1913–1940
- Authors: Lancaster, Jonathan Charles Swinburne
- Date: 2014
- Subjects: Public Accountants' and Auditors' Board (South Africa) , Accounting -- Law and legislation -- South Africa , Accounting -- South Africa -- History , Accounting -- Standards -- South Africa , South Africa -- Economic conditions -- 1918-1961 , South Africa -- Politics and government -- 1909-1948
- Language: English
- Type: Thesis , Doctoral , PhD
- Identifier: vital:922 , http://hdl.handle.net/10962/d1020876
- Description: This thesis concentrates upon a new field of research in South African accounting scholarship – this being, in general terms, accounting history and more specifically an analysis of the origins of the Public Accountants’ and Auditors’ Board as watch-dog in relation to: ● the South African economy in the period 1913–1940; and ● the changing political framework (also in the period 1913–1940). The integration of economy, politics and personal ambition on the part of early 20th Century accounting societies, led to a variety of responses, counter proposals, stalemates and unfocused activity which caused the process of accountants’ registration to extend over 38 years in South Africa. This confusion was in strong contrast to the process of speedy registration of accountants in New Zealand and Australia. The final unification of South African accounting societies in 1951 created the Public Accountants’ and Auditors’ Board. Its creation, at long last, suggested an overarching control and regulation which was mirrored in the final political unification and economic stability of a South Africa dominated by Afrikaner Nationalists. One further element was interwoven into the fabric of the thesis – this being the application of institutional economic theory and its impact upon the accounting concepts of “material irregularity” and “reportable irregularity”.
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- Date Issued: 2014
Informal sector taxation: a lesson for South Africa
- Authors: Ledwaba, Sophy
- Date: 2022-10-14
- Subjects: Informal sector (Economics) Taxation South Africa , Turnover tax South Africa , Informal sector (Economics) Taxation Tanzania , Informal sector (Economics) Taxation Ghana , Informal sector (Economics) Taxation Zimbabwe , Small business Taxation Law and legislation South Africa
- Language: English
- Type: Academic theses , Master's theses , text
- Identifier: http://hdl.handle.net/10962/357571 , vital:64756
- Description: Most informal sector businesses in developing countries participate indirectly in the tax system through paying Value-Added Tax, as well as import and export duties, without being registered as taxpayers. This effectively results in the collection of lower tax revenue than the informal businesses would be liable for if they were registered as taxpayers. Additionally, the nonregistration of informal sector businesses in the tax system perpetuates a culture of non-tax compliance. Countries in sub-Saharan Africa have responded to this challenge by imposing direct taxes on revenue generated in the informal sector. This thesis discussed the informal sector taxation regimes adopted in Tanzania, Ghana and Zimbabwe, with the aim of identifying direct taxes that could be imposed in South Africa on the revenues generated in the informal sector. The goal of the research was to determine the nature of direct taxes that could be imposed in South Africa on the revenues generated in the informal sector, taking lessons from the sub- Saharan countries of Tanzania, Ghana and Zimbabwe. The research was based in the interpretivist paradigm. The data for the research consisted of documentary data dealing with the legislation and experiences of informal sector taxation in South Africa and the countries forming part of this research. The data were analysed using qualitative non-empirical research methods. South Africa has a presumptive tax model in the form of the Turnover Tax system, and it was recommended that this direct tax could be adapted to integrate the informal sector businesses into the tax base. The study made several recommendations to integrate informal sector businesses into the tax base. These recommendations include the implementation of the tax stamp system to tax informal businesses other than minibus taxi businesses, and an income tax sticker specifically designed for the informal minibus taxi industry. , Thesis (MCom) -- Faculty of Commerce, Accounting, 2022
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- Date Issued: 2022-10-14
Earnings quality and equity returns : evidence of the accrual anomaly from the South African equity market
- Authors: Lutchmun, Thashveen
- Date: 2015
- Subjects: Earnings management -- South Africa , Accounting -- Standards
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:915 , http://hdl.handle.net/10962/d1017537
- Description: A key incentive for accounting research is to provide evidence on the usefulness of earnings in making economic decisions. Of particular interest over the last two decades is the issue of the quality of financial reporting, specifically the quality of earnings, given the number of global financial scandals reported during that period. The quality of earnings is driven by the choices, estimates and judgments that the accounting standards make available to managers in order to portray the firm’s economic position and performance in a timely and credible manner. However, this leeway in financial reporting also creates opportunities for earnings management. The objective of this thesis is firstly to establish whether earnings manipulation has had the ability to predict cross-sectional returns in South Africa during the 2007-2014 period. In other words, the purpose of this thesis is to find evidence whether the market reacts to earnings management practices, as measured by accruals, and rewards high earnings quality companies with higher equity returns (a process known as the accrual anomaly). The timeframe selected for the research encompasses the global financial crisis, a period in which accounting manipulation incentives are likely to be strong. Secondly, this study attempts to establish the presence of the accrual anomaly amongst growth and value firms. The motivations for earnings management of the former are expected to be strong. Securities are allocated to portfolios according to accruals and the subsequent equity returns are analysed cross-sectionally to establish the existence of the accrual anomaly and hence assessing the usefulness of earnings manipulation in predicting equity returns. To provide evidence for the presence of the accrual anomaly amongst growth and value shares, securities are independently allocated to portfolios according to their book-to-market ratio and accruals and a cross-sectional analysis is performed on their subsequent equity returns. In order to increase the robustness of the tests, two measures of accruals are used: a balance sheet approach and a cash flow measure. Evidence is provided for the presence of the accrual anomaly among South African listed companies for the balance sheet measure of accruals but not the cash flow approach. Whilst the accrual anomaly is significantly present in a growth-neutral-value construct, statistical significance is not established when growth and value shares are considered individually.
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- Date Issued: 2015
The continued viability of the discretionary Inter vivos trust as an instrument for estate planning
- Authors: Lötter, Therésilda Sieglinde
- Date: 2007
- Subjects: Taxation -- Law and legislation -- South Africa , Trusts and trustees -- South Africa , Trusts and trustees -- Taxation -- South Africa , Estate planning -- South Africa , Estates (Law) -- South Africa
- Language: Afrikaans
- Type: Thesis , Masters , MCom
- Identifier: vital:900 , http://hdl.handle.net/10962/d1006148 , Taxation -- Law and legislation -- South Africa , Trusts and trustees -- South Africa , Trusts and trustees -- Taxation -- South Africa , Estate planning -- South Africa , Estates (Law) -- South Africa
- Description: The purpose of this study is to determine whether a discretionary inter vivos trust is still an effective instrument for estate planning. The process of estate planning, the role the trust plays in it and the background to the trust are described. The taxability and tax saving opportunities when the trust are utilised are discussed in the light of the Estate Duty Act, 45 of 1955, the Income Tax Act, 58 of 1962 (including the Eighth Schedule thereof) and the Transfer Duty Act, 40 of 1949. The opinions of tax and legal authorities in articles and relevant case law are also discussed. The impact of the "letter of wishes" on the stipulations of the trust deed is examined. Amendments to the Income Tax Act have placed a limit on the use of a trust for estate planning through a number of anti-avoidance measures, the introduction of a capital gains tax (in the Eighth Schedule) and the imposition of a high tax rate. The increase in the deduction granted in arriving at the dutiable amount of an estate, in terms of section 4A of the Estate Duty Act, from R1 500 000 to R2 500 000 has imposed a further limit on the use of the trust as an instrument in estate planning. The research demonstrates that, notwithstanding the amendments to the Income Tax Act, the trust still is a viable instrument, mainly because the trust operates as a conduit and because of its potential use in dividing taxable income amongst a number of beneficiaries. The stipulations included in the trust deed and the "letter of wishes" (if one exists), must be thought through carefully when estate planning is done, as it can give rise to the application of the general and specific anti-avoidance provisions as included in sections 7 and 103 of this Act. The research also concludes that, in assessing the effectiveness of the trust as an instrument in tax planning, the disadvantage of paying the higher transfer duty when the immovable asset is transferred to the trust should be weighed up against the possible saving in income tax and estate duty at a later stage. It is also clear that most assets owned by the trust are tax neutral, whilst many of the amendments under discussion deal with the taxability of trust income. The quantitative considerations underlying the use of the trust as part of the estate plan, remain unchanged. The research concludes by providing a framework of quantitative and qualitative criteria that can be used by an estate planner to determine whether it will be advantageous to transfer an asset to the trust to achieve the objectives of the estate plan.
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- Date Issued: 2007
An analysis of the possible success of a tax on sugarsweetened beverages in South Africa
- Authors: Mabaso, Bandla Sazi
- Date: 2019
- Subjects: Nutrition -- Government policy -- South Africa , Value-added tax -- South Africa , Obesity -- South Africa -- Prevention , Excise tax -- South Africa , Taxations of articles of consumption -- South Africa , Tobacco -- Taxation -- South Africa , Alcohol -- Taxation -- South Africa , Carbonated beverages -- Taxation -- South Africa
- Language: English
- Type: text , Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10962/68333 , vital:29240
- Description: The increase in obesity is a global crisis that is prevalent in both the developed and developing economies, including South Africa. It endangers the health and threatens the life of many people. Sugar-sweetened beverages have become the key target in the fight against obesity, in preference to other foodstuffs that contain added sugar, because of the poor nutritional value they contain and harm they cause if consumed excessively. The Minister of Finance announced in the 2016 Budget Speech, that a proposed tax on sugar-sweetened beverages would be introduced in South Africa and would be implemented in April 2017, but the anticipated date is now 1 April 2018. The thesis examined the possible success of this proposed tax in South Africa, using as a benchmark the process followed prior to implementing the tax and the experience of selected foreign countries that have implemented the tax, one country subsequently abolishing it, and another country considering implementing it. Additionally, the research analysed the success of the existing excise taxes levied on tobacco and alcohol in South Africa, in attempting to predict the possible success of the proposed tax. The success of the proposed tax is, however, threatened by the emergence of illegal markets that offer the targeted products inexpensively, particularly if similar restrictions and laws do not exist in bordering countries. The research was carried out by means of the analysis of journal articles, information from the selected countries’ revenue authorities’ websites, National Treasury publications, commentaries by experts and publications by professional organisations and firms. Overall, the proposed tax has been successful in curbing obesity and high sugar intake in other countries. Similarly, the excise taxes on tobacco and alcohol have been successful in reducing the consumption of targeted products in South Africa. These successes have been realized through a collaborated effort and employing a multi-faceted approach, including advertising restrictions. Nevertheless, the proposed tax is popularly criticised for its regressive nature and the potential job losses that are associated with it.
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- Date Issued: 2019
The deductibility of damages and associated legal expenses for the purposes of determining taxable income in South Africa
- Authors: Madovi, Ezekiel
- Date: 2017
- Subjects: Income tax -- Law and legislation -- South Africa , Damages -- Taxation -- South Africa , South Africa. Income Tax Act, 1962
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10962/4344 , vital:20650
- Description: The deduction of damages and the associated legal costs must satisfy the requirements of the preamble to section 11 and section 11(a) of the Income Tax Act 58 of 1962, read with section 23(g) (referred to as the general deduction formula). This research examined under what circumstances a payer of damages and the associated legal costs would be able to claim a deduction from taxable income. This research also considered whether or not the issue of fault is a relevant consideration in determining whether a deduction should be allowed. In some cases the courts appear to have disallowed a deduction if the expenditure or loss was incurred as a result of a negligent or unlawful act. In other instances the courts have allowed the deduction of damages despite the expenditure or loss having been incurred as a result of a negligent or unlawful act. The research concludes that negligence is not a relevant consideration in the deduction of damages and the associated legal costs. In order to secure a claim for damages the taxpayer must prove that the expenditure was incurred in the production of income and it was expended for the purposes of trade. Associated legal costs are only deductible if the damages satisfy the requirements of section 11(c).
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- Date Issued: 2017
Valuation of intellectual capital in South African companies: a comparative study of three valuation methods
- Authors: Maree, Kevin W
- Date: 2002
- Subjects: Accounting
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:877 , http://hdl.handle.net/10962/d1001631
- Description: This study discusses three valuation methods for intellectual capital and considers two of these (Tobin’s “q” and CIV) as suitable valuation methods.
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- Date Issued: 2002
The practical implications of taxing the informal sector in Zimbabwe
- Authors: Mashate, Fredy
- Date: 2022-10-14
- Subjects: Informal sector (Economics) Taxation Zimbabwe , Small business Taxation Law and legislation Zimbabwe , Tax administration and procedure Zimbabwe , Taxpayer compliance Zimbabwe , Taxation Public opinion , Zimbabwe. Revenue Authority , Informal sector (Economics) Taxation Tanzania , Informal sector (Economics) Taxation Ghana
- Language: English
- Type: Academic theses , Master's theses , text
- Identifier: http://hdl.handle.net/10962/357594 , vital:64758
- Description: The taxation of informal sector business is increasingly becoming a topical issue in many developing countries, and Zimbabwe is no exception. The Zimbabwean government has been experiencing shrinking revenue in the wake of an increased informal sector and a declining formal sector. In an effort to broaden the tax base and increase revenue for government in Zimbabwe, presumptive tax levied against certain informal sector activities was first introduced in 2005 and later expanded to other sectors. Despite the effort, the informal sector has responded with low tax morale and non-compliance, which creates the need to reassess the current administrative strategies in a bid to build a successful tax system for the informal sector. The main goal of the research is to establish clear, innovative and practical administrative strategies that can be adopted by the Zimbabwe Revenue Authority in taxing the informal sector in Zimbabwe. An initial investigation was done to identify the current state of affairs in relation to informal sector taxation in Zimbabwe. A number of challenges were recorded and the research the sought to learn from examples of recent innovation in administrative strategies successfully applied in taxing the informal sector in other jurisdictions like Tanzania and Ghana. Learning from these examples, a number of practical administrative strategies that are mindful of the Zimbabwean economic context were proposed. , Thesis (MCom) -- Faculty of Commerce, Accounting, 2022
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- Date Issued: 2022-10-14
The South African income tax implications of a Stokvel
- Authors: Matshego, Katlego
- Date: 2020
- Subjects: Rotating credit associations -- South Africa. , Taxation -- South Africa , Tax deductions -- South Africa
- Language: English
- Type: text , Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10962/143094 , vital:38201
- Description: The term “Stokvel” originates from the rotating cattle auctions of English settlers in the Eastern Cape during the nineteen century. A Stokvel is defined as a credit union where a group of people agree to contribute a fixed amount of money to a common pool and is referred to as a rotating savings and credit association, where the contributions to a fund are given in whole or in part to each member. The goal of the thesis was to determine the “gross income” implications of the fund and its members, as well the deductibility of their expenses. An interpretative research approach was used in the research as it sought to understand and describe. No interviews were conducted for this research and the data used for the research are publicly available. The tax implications of five different types of a Stokvel were considered in relation to the research goals through the application of legislation and case law principles. The study established that a collection burial society, where funds are contributed after death, does not beneficially receive funds and it is not entitled to any deductions. The same applies to the member of that society. A contributing burial society, where funds are contributed over time, beneficially receives funds, which are included in “gross income”, and qualifies for deductions. The receipt by the member is exempt and deductions are prohibited by section 23(f). An entertainment Stokvel does not receive the contributions on its own behalf and benefit. No deductions are available to it. However, the member beneficially receives the contributions from the Stokvel, which are included in “gross income”, and qualifies for deductions. A purchasing power group, where items are purchased on behalf of members, does not receive the funds beneficially and no deductions are available to it. The members simply receive the goods they have paid for. Lastly an investment Stokvel, which invests contributions for the members, beneficially receives contributions and qualifies for various deductions. The member receives the share of income from the Stokvel for his/her own benefit. However, no deductions are available in respect of contributions.
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- Date Issued: 2020
An analysis of the tax consequences of the double tax agreement between South Africa and the Democratic Republic of Congo
- Authors: Mkabile, Nwabisa
- Date: 2015
- Subjects: Double taxation -- South Africa , Double taxation -- Congo (Democratic Republic) , Income tax -- South Africa -- Foreign income , Income tax -- Congo (Democratic Republic) -- Foreign income
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:916 , http://hdl.handle.net/10962/d1017539
- Description: As a result of the different tax systems adopted by countries, foreign-sourced income earned by taxpayers may be subject to double taxation. This may therefore impede cross-border trade and investment. Double taxation relief is provided unilaterally, in terms of a country’s domestic laws or bilaterally in terms of Double Taxation Agreements. South African residents earning income from the Democratic Republic of Congo may be subject to tax in both countries. To eliminate such double taxation the South African Income Tax Act, No 58 of 1962, provides for unilateral relief from double taxation in the form of exemptions, rebates and deductions. The double tax agreement between South Africa and the Democratic Republic of the Congo came into effect recently and double taxation relief for South African residents is now also available in terms of tax treaty law. The objective of the research was to determine whether the combination of the unilateral measures and the double tax agreement provide relief in respect of all types of income earned by South African residents in the Democratic Republic of the Congo. It was concluded that the double tax agreement, together with the unilateral relief provided for in the Income Tax Act will grant relief for all types of income earned by South African residents in the Democratic Republic of the Congo.
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- Date Issued: 2015
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.
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- Date Issued: 2018
An interpretation of the deeming provisions in legislation in the context of a good tax system: a South African perspective
- Authors: Mostert, Tarita
- Date: 2021-10-29
- Subjects: Organisation for Economic Co-operation and Development , Taxation Law and legislation South Africa , South Africa. Income Tax Act, 1962 , Taxpayer compliance South Africa , Tax evasion (International law) , Deeming provisions
- Language: English
- Type: Doctoral theses , text
- Identifier: http://hdl.handle.net/10962/190897 , vital:45039 , 10.21504/10962/190897
- Description: The goal of this thesis is to analyse the relationship between deeming provisions in legislation and the principles of a good tax system. The need for a positive relationship between deeming provisions and the principles of a good tax system is demonstrated in the thesis. The research explains the historical development of deeming provisions, legal principles relevant to the interpretation of tax legislation, as well as the principles of a good tax system. Approaches to the interpretation of legislation are then described and illustrated by means of case law. Following this, the research focuses on a selection of provisions in the South African Income Tax Act, 58 of 1962, to determine whether the deeming provisions included in the Act reflect the application of the principles of a good tax system. In addition to the analysis of the selected statutory provisions, related case law is discussed, again in relation to the deeming provisions. A discussion of deeming provisions in two publications of the Organisation for Economic Co-Operation and Development (OECD) – the OECD Model Tax Convention and the OECD Multilateral Convention to Implement Tax Treaty Measures to Prevent Base Erosion and Profit Shifting – follows, with an analysis of two related deeming provisions in the Income Tax Act, to illustrate the international approach to deeming provisions and the principles of a good tax system. Finally, the administration of tax legislation is discussed, together with organisations whose mission is to promote the principles of a good tax system in tax administration. The research is qualitative in nature and follows a legal doctrinal research methodology. This methodology is both reform-oriented and theoretical and focuses on understanding the application of the legal concepts: deeming provisions, legal principles and principles of a good tax system. The research concludes that, from a theoretical perspective, a positive relationship exists between deeming provisions in the Income Tax Act and the OECD Model Tax Convention and the principles of a good tax system, and therefore creates a positive environment for tax compliance. , Thesis (PhD) -- Faculty of Commerce, Accounting, 2021
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- Date Issued: 2021-10-29
A comparative analysis with selected jurisdictions of structural challenges facing the South African office of the tax ombud
- Authors: Mothiba, Boitumelo Charity
- Date: 2020
- Subjects: South Africa. Office of the Tax Ombud , Tax administration and procdure -- South Africa , Taxpayer advocates -- South Africa
- Language: English
- Type: text , Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10962/140360 , vital:37882
- Description: The Office of the Tax Ombud is critical in the protection of South African taxpayers' rights. The office has only been in existence for a little over five years and to ensure that it fulfils the purpose for which it was established, it must be properly structured. This includes that it ought to be independent from any external influence and manipulation. Any such external influence on the Tax Ombud creates the risk that the general public will lose confidence in the Tax Ombud as an independent recourse. The study, therefore, is designed to review the structure relating to the independence and powers of the South African Tax Ombud. The study assesses and evaluates the legislative safeguards of the structure of the Tax Ombud office in order to determine whether the legislative framework (the Tax Administration Act) safeguarding the Office of the Tax Ombud is adequate to ensure its independence and also to ensure a strengthened structure, without interference in the decision-making process of the office. To achieve this, a comparative analysis was made with selected foreign institutions of Tax Ombudsmen, or equivalent institutions, in order to draw from the best international practice. The study found that the structure of the Office of the Tax Ombud is relatively weak and does not fully provide the legislative powers to protect taxpayers from the well-resourced South African Revenue Service. The study also revealed that most of the institutional features in the structure of the South African Tax Ombud were found to be in line with standard international practice. The study has made recommendations aimed at strengthening the structure of the South African Tax Ombud by suggesting reforms in the legislative framework of the Tax Ombud.
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- Date Issued: 2020
Gains derived from illegal activities :an analysis of the taxation consequences
- Authors: Mtshawulana, Lungiswa Bukeka
- Date: 2009
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:886 , http://hdl.handle.net/10962/d1001640
- Description: Income Tax in South Africa is levied in terms of the Income Tax Act 58 of 1962 on taxable income, which, by definition, is arrived at by deducting from "gross income" receipts and accruals that are exempt from tax as well as deductions and allowances provided for in the Act. The Income Tax Act provides no guidance with regard to the taxation of illegal activities, except to prohibit the deduction of expenditure incurred in paying fines or in relation to corrupt activities, as defined. An analysis of the taxation of income derived from theft, fraud and prostitution and the deductibility of expenses relating to that income, is the question addressed in this thesis. In this thesis, an analysis was made of relevant case law in relation to the provisions of the Income Tax Act in an attempt to provide clarity. A brief comparison was also macie of American, United Kingdom and South African tax law. Similarities were found between the American, United Kingdom and South African tax regimes in relation to the taxation of income, but there appeared to be more certainty in America and the United Kingdom in relation to the deduction of expenses. The thesis concludes that recent case decisions have provided certainty in relation to income from illegal activities, but the tax status of the deduction of expenses remains uncertain.
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- Date Issued: 2009
Benchmarking tax practitioner regulation in Zimbabwe and South Africa against German best practice
- Authors: Munkuli, Charles
- Date: 2023-10-13
- Subjects: Uncatalogued
- Language: English
- Type: Academic theses , Master's theses , text
- Identifier: http://hdl.handle.net/10962/419621 , vital:71660
- Description: The regulation of professionals who offer any type of service to the public is a critical intervention towards protecting the public from unscrupulous behaviour. The regulation of tax practitioners is no exception as it is a critical element in protecting the taxpaying public and the fiscus against improper conduct by tax practitioners, as well as preventing revenue leakages due to inaccurate or incorrect declarations made by taxpayers. A major contributor of regulation would be strengthening or improving compliance. This study analyses the frameworks that regulate tax practitioners in Zimbabwe and South Africa and evaluates them against best practice as is found in Germany. Germany has been regulating tax practitioners for 50 years and can rightly be recognised as best practice. This is achieved by reviewing and evaluating institutional and legislative mechanisms in the regulatory frameworks adopted in the three countries in order to identify possible areas of improvement in Zimbabwe and South Africa. The research is situated in the interpretative paradigm and the research methodology is qualitative in nature, involving the critical review of documentary data. The study concludes that both South Africa and Zimbabwe have room to improve in certain areas and makes recommendations aimed at strengthening their respective regulatory frameworks. Both South Africa and Zimbabwe could promulgate a law that deals exclusively with the regulation of tax practitioners, and institute an independent body that deals exclusively with tax practitioner related issues. In Zimbabwe, the Public Accountants and Auditors’ Board should be replaced with a body dedicated to serving tax practitioners. Informing the taxpaying public is important and, particularly in Zimbabwe, measures should be adopted to inform taxpayers about their rights and obligations, the role of tax practitioners, and the interface with the tax administration. The Zimbabwean regulatory model should also recognise other non-accounting and auditing-oriented professions, such as the law profession, as tax practitioners. , Thesis (MCom) -- Faculty of Commerce, Accounting, 2023
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- Date Issued: 2023-10-13
An evaluation of the use of testamentary and Inter vivos trusts as estate-planning vehicles and the development of holistic estate-planning models involving the use of these trusts
- Authors: Naidoo, Loganathan
- Date: 2013
- Subjects: Commission of Inquiry into Certain Aspects of the Tax Structure of South Africa Income tax -- Law and legislation -- South Africa Taxation -- Law and legislation -- South Africa Trusts and trustees -- South Africa Trusts and trustees -- Taxations -- South Africa Estate planning -- South Africa Estates (Law) -- South Africa Administration of estates -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:904 , http://hdl.handle.net/10962/d1008100
- Description: Trusts are subject to multiple forms of legislative regulation dealing with taxation and governance. Trusts were widely used by planners as tax avoidance shelters. Tax legislation was amended to subject trusts, other than special trusts as defined, to the highest income tax rate of forty percent, in terms of section 5(2) of the Income Tax Act, 58 of 1962. The inter vivos trust is also subject to a wide range of anti-avoidance measures, including those contained in sub-sections (3) to (8) of section 7 of the Income Tax Act and Part X of the Eighth Schedule to the Act, as well as the general anti -avoidance measures in section 103. These measures impact negatively on the use of trusts for estate-planning purposes. The research objective was to evaluate the use of testamentary and inter vivos trusts for estate-planning purposes and to develop a holistic estate-planning model incorporating these planning instruments. Both the testamentary trust and the inter vivos trust were evaluated against broad principles of effective estate planning and the taxes and duties applicable to them. The research also reviewed the writings of financial planners on various techniques and models used for estate planning, as wells as case studies documented in the literature. The research developed and evaluated holistic estate-planning models incorporating testamentary trusts and inter vivos trusts, respectively. By neutralizing the effects of various taxes and duties, it was demonstrated that it is possible to develop an estate plan that satisfies most of the requirements of effective estate planning.
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- Date Issued: 2013
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.
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- Date Issued: 2018
The complexities of transfer pricing methods and the role of advance pricing agreements and tax audits in addressing disputes
- Authors: Ndou, Wavhudi
- Date: 2023-10-13
- Subjects: Uncatalogued
- Language: English
- Type: Academic theses , Master's theses , text
- Identifier: http://hdl.handle.net/10962/419631 , vital:71661
- Description: Base erosion and profit shifting is defined as the use of tax planning strategies by multinational enterprises, often through exploiting gaps and mismatches between the countries in which they operate (OECD, 2021: p. 1). Multinational enterprises exploit these gaps through the use of transfer pricing. Goods and services are exchanged between connected persons or associated enterprises at prices that do not reflect their arm’s length price, in order to shift profits from high tax to low tax jurisdictions. In terms of section 31 of the Income Tax Act, transactions between connected persons or associated enterprises must be reflected at their arm’s length price. Transfer pricing has become an issue due to the difficulties in determining an appropriate arm’s length price. Disputes arise between a taxpayer and a tax administration on the methods to use to determine an appropriate transfer price. The use of Advance Pricing Agreements prevents these disputes from arising and provides tax certainty on the treatment of transactions for both the taxpayer and the tax administration. While the OECD recommends the use of Advance Pricing Agreements as a method to prevent disputes from arising, the OECD also argued that if a country has the resources to conduct an audit, an Advance Pricing Agreement will not lead to increased revenue collection. The research therefore analyses the problems faced in determining an appropriate arm's length price and compares the role that Advance Pricing Agreements and audits play in addressing transfer pricing issues. The possible role of Advance Tax Rulings is also explored, but they are found not to be suitable, except for the most simple transactions. The research applies a legal interpretative, doctrinal research methodology and a qualitative research method. The data comprised of relevant South African tax legislation, OECD Guidelines, the World Bank Handbook, and the UN Manual, together with the writings of acknowledged experts in the field. The study establishes that a proper functioning audit system is crucial to increasing revenue collection once a country implements an Advance Pricing Agreement. The research therefore recommends the adoption of Advance Pricing Agreements in South Africa as a dispute prevention measure. , Thesis (MCom) -- Faculty of Commerce, Accounting, 2023
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- Date Issued: 2023-10-13