A conjoint choice experiment analysing water service delivery in three Eastern Cape Municipalities
- Authors: Hosking, Phillipa
- Date: 2011
- Subjects: Municipal service -- South Africa -- Eastern Cape -- Marketing , Water Supply -- South Africa -- Eastern Cape
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:9357 , http://hdl.handle.net/10948/1378 , Municipal service -- South Africa -- Eastern Cape -- Marketing , Water Supply -- South Africa -- Eastern Cape
- Description: This study considers the nature of South African municipal water service delivery, and how marketing strategies can provide a framework for better management of this service. It reflects on the elements that guide municipal decision making and evaluates user preferences for levels of the municipal “water service mix” by employing conjoint analysis. Particular attention is paid to consumer willingness to pay for improvements in the “water service mix”. The study argues that the values municipal consumers attach to the variables of the water service mix need to be better incorporated into decision making regarding water service delivery, and that conjoint analysis is an informative method to assist in generating this information. The study outlines a water service marketing challenge and methods of research followed to deal with it (Chapter One) and the nature of the laws and institutions governing water service provision in South Africa (Chapter Two). The task of providing water services is delegated to Water Service Providers (municipalities). The key variables of the water service mix from the consumers perspective include; quality of the water, rate of flow from tap, interruption of water flow, sewerage disposal, assurance of supply, and water service tariffs (Chapter Three). The study covers the areas of Amathole, Kouga and Nelson Mandela Bay Municipalities' (Chapter Five). The method of marketing analysis applied is conjoint analysis, alternatively known as choice experiment analysis. An overview of the method is provided and its application to three samples of one hundred residents at each of the study sites is described in Chapter Four. The responses of the three hundred residents provide the basis for the results. Respondents were requested to make a series of choices between alternative water service mixes consisting of six variables differentiated by three levels (Chapter Three). In making these choices they implicitly compared and weighed up the relative worth of the selected variables against each other. The findings of the analysis were diverse (Chapter Six); two of the three estimated models did not yield significant results. An interpretation of these results showed that the respondents of the Kouga municipality were willing to pay R65.05 more (per 10 xii Kilolitres of water) than their current monthly tariff for a marginal improvement in water quality, R57.29 more (per 10 Kilolitres of water) per month for a marginal improvement in sewerage disposal and R21.90 (per 10 Kilolitres) per month for marginal improvements in assurance of water supply. Findings showed that willingness to pay for reduced interruptions and improved flow rates was lower and not as highly valued as the abovementioned variables. Most of these findings were consistent with similar international and national studies showing their reliability. Although there has been significant improvement in extending the reach of the network since 1994, the standards of water service provision in South African municipalities do not appear to have improved. The results of this study mirror a number of concerns that have been expressed about the standards of service, particularly sanitation (in publications like the Green Drop Report). Municipal service delivery in these areas would appear to be constrained by a number of issues including a lack of public involvement, legislation, limited financial resources and institutional capabilities. However, it is a service that is too vitally important to be allowed to deteriorate. Marketing analyses can make a valuable contribution to allocating and managing the scarce resources to best satisfy the consumers of water services (Chapter Seven). When consumer orientation is formally introduced as the main objective into the thinking of the service provider, it becomes untenable to offer poor service delivery. But that is exactly what many municipalities appear to be doing. There is a need to get back to the basics – where the consumer is king. This analysis concludes that consumers want, above all else, assurance of water supply, a high quality of water, and safe environmentally sensitive disposal of waste water. It is recommended that municipalities not lose sight of the fact that price is an important part of the marketing mix. From the paying consumers perspective, when the government incorporate too many other considerations into pricing of water services they are, in effect, disengaging price from the marketing mix by not being sensitive to consumer needs. This approach shows a weak marketing strategy, and may result in dissatisfied consumers who may become unwilling to pay for their water services – an outcome that the researcher would discourage.
- Full Text:
- Date Issued: 2011
- Authors: Hosking, Phillipa
- Date: 2011
- Subjects: Municipal service -- South Africa -- Eastern Cape -- Marketing , Water Supply -- South Africa -- Eastern Cape
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:9357 , http://hdl.handle.net/10948/1378 , Municipal service -- South Africa -- Eastern Cape -- Marketing , Water Supply -- South Africa -- Eastern Cape
- Description: This study considers the nature of South African municipal water service delivery, and how marketing strategies can provide a framework for better management of this service. It reflects on the elements that guide municipal decision making and evaluates user preferences for levels of the municipal “water service mix” by employing conjoint analysis. Particular attention is paid to consumer willingness to pay for improvements in the “water service mix”. The study argues that the values municipal consumers attach to the variables of the water service mix need to be better incorporated into decision making regarding water service delivery, and that conjoint analysis is an informative method to assist in generating this information. The study outlines a water service marketing challenge and methods of research followed to deal with it (Chapter One) and the nature of the laws and institutions governing water service provision in South Africa (Chapter Two). The task of providing water services is delegated to Water Service Providers (municipalities). The key variables of the water service mix from the consumers perspective include; quality of the water, rate of flow from tap, interruption of water flow, sewerage disposal, assurance of supply, and water service tariffs (Chapter Three). The study covers the areas of Amathole, Kouga and Nelson Mandela Bay Municipalities' (Chapter Five). The method of marketing analysis applied is conjoint analysis, alternatively known as choice experiment analysis. An overview of the method is provided and its application to three samples of one hundred residents at each of the study sites is described in Chapter Four. The responses of the three hundred residents provide the basis for the results. Respondents were requested to make a series of choices between alternative water service mixes consisting of six variables differentiated by three levels (Chapter Three). In making these choices they implicitly compared and weighed up the relative worth of the selected variables against each other. The findings of the analysis were diverse (Chapter Six); two of the three estimated models did not yield significant results. An interpretation of these results showed that the respondents of the Kouga municipality were willing to pay R65.05 more (per 10 xii Kilolitres of water) than their current monthly tariff for a marginal improvement in water quality, R57.29 more (per 10 Kilolitres of water) per month for a marginal improvement in sewerage disposal and R21.90 (per 10 Kilolitres) per month for marginal improvements in assurance of water supply. Findings showed that willingness to pay for reduced interruptions and improved flow rates was lower and not as highly valued as the abovementioned variables. Most of these findings were consistent with similar international and national studies showing their reliability. Although there has been significant improvement in extending the reach of the network since 1994, the standards of water service provision in South African municipalities do not appear to have improved. The results of this study mirror a number of concerns that have been expressed about the standards of service, particularly sanitation (in publications like the Green Drop Report). Municipal service delivery in these areas would appear to be constrained by a number of issues including a lack of public involvement, legislation, limited financial resources and institutional capabilities. However, it is a service that is too vitally important to be allowed to deteriorate. Marketing analyses can make a valuable contribution to allocating and managing the scarce resources to best satisfy the consumers of water services (Chapter Seven). When consumer orientation is formally introduced as the main objective into the thinking of the service provider, it becomes untenable to offer poor service delivery. But that is exactly what many municipalities appear to be doing. There is a need to get back to the basics – where the consumer is king. This analysis concludes that consumers want, above all else, assurance of water supply, a high quality of water, and safe environmentally sensitive disposal of waste water. It is recommended that municipalities not lose sight of the fact that price is an important part of the marketing mix. From the paying consumers perspective, when the government incorporate too many other considerations into pricing of water services they are, in effect, disengaging price from the marketing mix by not being sensitive to consumer needs. This approach shows a weak marketing strategy, and may result in dissatisfied consumers who may become unwilling to pay for their water services – an outcome that the researcher would discourage.
- Full Text:
- Date Issued: 2011
A contingent valuation of river water inflows into the Swartkops, Kariega, Mngazi and Mngazana Estuaries in the Eastern Cape
- Authors: Mlangeni, Moses Mbendela
- Date: 2007
- Subjects: Contingent valuation -- South Africa -- Eastern Cape , Water quality management -- South Africa -- Eastern Cape , Swartkops Estuary (Eastern Cape, South Africa) , Kariega Estuary (Eastern Cape, South Africa) , Mngazi Estuary (Eastern Cape, South Africa) , Mngazana Estuary (Eastern Cape, South Africa)
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:9004 , http://hdl.handle.net/10948/569 , http://hdl.handle.net/10948/d1011690 , Contingent valuation -- South Africa -- Eastern Cape , Water quality management -- South Africa -- Eastern Cape , Swartkops Estuary (Eastern Cape, South Africa) , Kariega Estuary (Eastern Cape, South Africa) , Mngazi Estuary (Eastern Cape, South Africa) , Mngazana Estuary (Eastern Cape, South Africa)
- Description: Many South African estuaries are currently believed to be generating lower levels of services than they used to in the past due to substantially reduced inflow of river water, among other reasons. The basis by which river water is allocated in South Africa has had to be re-examined. Local authorities are now required to integrate into their development planning sensitivity to the ways estuaries work; the relevant legislation being the Municipal Systems Act No. 32 of 2000. Sound water resource management requires that the benefits and costs of different water allocations be compared and an optimum determined. The Contingent Valuation Method (CVM) is used in this study to estimate the benefits of changing allocations of river water into estuaries. This study builds on a CVM pilot project done at the Keurbooms Estuary in the Southern Cape in year 2000 (Du Preez, 2002). Further CVM studies were conducted at the Knysna, Groot Brak and Klein Brak estuaries (Dimopolous, 2004). The CVM is a valuation technique based on answers given to carefully formulated questions on what people are willing to pay for specified changes of freshwater inflows into estuaries. The CVM depends on there being a close correspondence between expressed answers given to hypothetical questions and voluntary exchanges in competitive markets that would be entered into if money did actually change hands. The fact that it has proved very difficult to establish this correspondence has led to CVM being subject to criticism. However, many aspects of this criticism have been addressed in the form of methods to reduce biases, and the application of the technique has grown steadily in popularity during the past 25 years. Four estuaries, the Swartkops, Kariega, Mngazi and Mngazana, were surveyed as part of this study in order to determine users’ willingness to pay (WTP) for changes in freshwater inflows. Considerable research time was devoted at the estuaries getting to know how things worked around and in the estuaries. The Swartkops estuary is a permanently open system within the Nelson Mandela Bay metropolitan area. The estuary has the third largest salt marsh in South Africa. Its banks are highly developed with residential and industrial property and it is heavily used for both recreation and subsistence fishing by locals. The Kariega estuary is located near the semi-rural town of Kenton-on-sea, between Port Elizabeth and East London. Although it is permanently open, the Kariega estuary has very low inflows of river water. It is mainly used by retired pensioners living in holiday houses at Kenton-on-sea. The Kariega is not heavily used for recreation and subsistence fishing, except during holidays and the festive season because of its proximity to other estuaries such as the Bushmans and the Kleinemond. The Mngazi and the Mngazana estuaries are located in the Wild Coast area of the Eastern Cape, in the Port St Johns Municipal district. The Mngazi is a temporarily open/closed system which does not have high botanical ratings, although it is heavily used by visitors to the well known Mngazi River Bungalows, a highly rated hotel near the mouth of the Mngazi River. The Mngazana estuary is a permanently open system renowned for its Mangrove forests and excellent fishing spots. Both the Mngazi and Mngazana estuaries are located in rural areas and are heavily used by local village residents for subsistence purposes.
- Full Text:
- Date Issued: 2007
- Authors: Mlangeni, Moses Mbendela
- Date: 2007
- Subjects: Contingent valuation -- South Africa -- Eastern Cape , Water quality management -- South Africa -- Eastern Cape , Swartkops Estuary (Eastern Cape, South Africa) , Kariega Estuary (Eastern Cape, South Africa) , Mngazi Estuary (Eastern Cape, South Africa) , Mngazana Estuary (Eastern Cape, South Africa)
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:9004 , http://hdl.handle.net/10948/569 , http://hdl.handle.net/10948/d1011690 , Contingent valuation -- South Africa -- Eastern Cape , Water quality management -- South Africa -- Eastern Cape , Swartkops Estuary (Eastern Cape, South Africa) , Kariega Estuary (Eastern Cape, South Africa) , Mngazi Estuary (Eastern Cape, South Africa) , Mngazana Estuary (Eastern Cape, South Africa)
- Description: Many South African estuaries are currently believed to be generating lower levels of services than they used to in the past due to substantially reduced inflow of river water, among other reasons. The basis by which river water is allocated in South Africa has had to be re-examined. Local authorities are now required to integrate into their development planning sensitivity to the ways estuaries work; the relevant legislation being the Municipal Systems Act No. 32 of 2000. Sound water resource management requires that the benefits and costs of different water allocations be compared and an optimum determined. The Contingent Valuation Method (CVM) is used in this study to estimate the benefits of changing allocations of river water into estuaries. This study builds on a CVM pilot project done at the Keurbooms Estuary in the Southern Cape in year 2000 (Du Preez, 2002). Further CVM studies were conducted at the Knysna, Groot Brak and Klein Brak estuaries (Dimopolous, 2004). The CVM is a valuation technique based on answers given to carefully formulated questions on what people are willing to pay for specified changes of freshwater inflows into estuaries. The CVM depends on there being a close correspondence between expressed answers given to hypothetical questions and voluntary exchanges in competitive markets that would be entered into if money did actually change hands. The fact that it has proved very difficult to establish this correspondence has led to CVM being subject to criticism. However, many aspects of this criticism have been addressed in the form of methods to reduce biases, and the application of the technique has grown steadily in popularity during the past 25 years. Four estuaries, the Swartkops, Kariega, Mngazi and Mngazana, were surveyed as part of this study in order to determine users’ willingness to pay (WTP) for changes in freshwater inflows. Considerable research time was devoted at the estuaries getting to know how things worked around and in the estuaries. The Swartkops estuary is a permanently open system within the Nelson Mandela Bay metropolitan area. The estuary has the third largest salt marsh in South Africa. Its banks are highly developed with residential and industrial property and it is heavily used for both recreation and subsistence fishing by locals. The Kariega estuary is located near the semi-rural town of Kenton-on-sea, between Port Elizabeth and East London. Although it is permanently open, the Kariega estuary has very low inflows of river water. It is mainly used by retired pensioners living in holiday houses at Kenton-on-sea. The Kariega is not heavily used for recreation and subsistence fishing, except during holidays and the festive season because of its proximity to other estuaries such as the Bushmans and the Kleinemond. The Mngazi and the Mngazana estuaries are located in the Wild Coast area of the Eastern Cape, in the Port St Johns Municipal district. The Mngazi is a temporarily open/closed system which does not have high botanical ratings, although it is heavily used by visitors to the well known Mngazi River Bungalows, a highly rated hotel near the mouth of the Mngazi River. The Mngazana estuary is a permanently open system renowned for its Mangrove forests and excellent fishing spots. Both the Mngazi and Mngazana estuaries are located in rural areas and are heavily used by local village residents for subsistence purposes.
- Full Text:
- Date Issued: 2007
A cost-benefit analysis of electricity supply in a developing country, with reference to Venda
- Authors: Themeli, Tshimangadzo Booi
- Date: 1992
- Subjects: Electrification -- Economic aspects -- South Africa -- Venda , Electric utilities -- South Africa -- Venda , Cost effectiveness , Electrification -- Cost effectiveness
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:1022 , http://hdl.handle.net/10962/d1002757 , Electrification -- Economic aspects -- South Africa -- Venda , Electric utilities -- South Africa -- Venda , Cost effectiveness , Electrification -- Cost effectiveness
- Description: This study concentrates specificaUy on assessing those elements of private and external costs and benefits which need to be accounted for in analyzing the role of electricity supply in a developing region. To facilitate this aim, three interrelated questions are addressed. The first question examines the reasons why a critical need for electrification in developing areas exists. In this regard, a selective review of the literature on development economics is offered, illuminating the previous neglect of the rural dimension in development and the associated problems of poverty and inequality, a lack of infrastructure and the general inability to fulfill basic needs. The second question is devoted exclusively to an economic analysis of the supply of electricity in developing areas. A broad theoretical review on whether an unregulated or regulated (private or public) sector should be responsible for the provision of electrification is presented. This evaluation highlights the various welfare implications and efficiency considerations that appear to be relevant in the present context. The final question, which constitutes the central proposition of the thesis, establishes how electrification should be supplied in developing areas. To this end, the conditions specific to a region in Venda are discussed. An attempt is made to identify the private and external costs and benefits relating to electricity supply and the corresponding costs and benefits pertaining to alternative sources of energy. Since the incidence and nature of these costs and benefits could only be ascertained from individual households, it was deemed necessary to undertake a questionnaire study of residents in Makwarela township and its periurban settlement of Lufule-Tshisele. A number of basic trends were evident from the research results. As far as the various benefits are concerned, respondents tended to place a much higher value on both the private and external benefits associated with electricity than its alternatives. At the same time, the survey found that although the private (or monetary) cost of electricity far exceeded the corresponding cost of alternative energy sources, the external costs were significant in the case of alternative energy sources, but virtually non-existent in the case of electricity. On the whole, the Venda survey seems to suggest that an economic case can be made for involving the broader community in subsidising the supply of electricity in Makwarela, Lufule-Tshisele and other areas. While such a subsidy can perhaps be justified on distribution grounds alone, and more specifically in terms of the rapid and pronounced effect it is likely to have on the quality of life in the region, its real worth lies in the fact that it may confer certain external benefits on the community.
- Full Text:
- Date Issued: 1992
- Authors: Themeli, Tshimangadzo Booi
- Date: 1992
- Subjects: Electrification -- Economic aspects -- South Africa -- Venda , Electric utilities -- South Africa -- Venda , Cost effectiveness , Electrification -- Cost effectiveness
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:1022 , http://hdl.handle.net/10962/d1002757 , Electrification -- Economic aspects -- South Africa -- Venda , Electric utilities -- South Africa -- Venda , Cost effectiveness , Electrification -- Cost effectiveness
- Description: This study concentrates specificaUy on assessing those elements of private and external costs and benefits which need to be accounted for in analyzing the role of electricity supply in a developing region. To facilitate this aim, three interrelated questions are addressed. The first question examines the reasons why a critical need for electrification in developing areas exists. In this regard, a selective review of the literature on development economics is offered, illuminating the previous neglect of the rural dimension in development and the associated problems of poverty and inequality, a lack of infrastructure and the general inability to fulfill basic needs. The second question is devoted exclusively to an economic analysis of the supply of electricity in developing areas. A broad theoretical review on whether an unregulated or regulated (private or public) sector should be responsible for the provision of electrification is presented. This evaluation highlights the various welfare implications and efficiency considerations that appear to be relevant in the present context. The final question, which constitutes the central proposition of the thesis, establishes how electrification should be supplied in developing areas. To this end, the conditions specific to a region in Venda are discussed. An attempt is made to identify the private and external costs and benefits relating to electricity supply and the corresponding costs and benefits pertaining to alternative sources of energy. Since the incidence and nature of these costs and benefits could only be ascertained from individual households, it was deemed necessary to undertake a questionnaire study of residents in Makwarela township and its periurban settlement of Lufule-Tshisele. A number of basic trends were evident from the research results. As far as the various benefits are concerned, respondents tended to place a much higher value on both the private and external benefits associated with electricity than its alternatives. At the same time, the survey found that although the private (or monetary) cost of electricity far exceeded the corresponding cost of alternative energy sources, the external costs were significant in the case of alternative energy sources, but virtually non-existent in the case of electricity. On the whole, the Venda survey seems to suggest that an economic case can be made for involving the broader community in subsidising the supply of electricity in Makwarela, Lufule-Tshisele and other areas. While such a subsidy can perhaps be justified on distribution grounds alone, and more specifically in terms of the rapid and pronounced effect it is likely to have on the quality of life in the region, its real worth lies in the fact that it may confer certain external benefits on the community.
- Full Text:
- Date Issued: 1992
A critical analysis of selected clauses in selected Double Tax Agreements (DTAs) with South Africa
- Authors: Ndzimakhwe, Vusumzi Allen
- Date: 2020
- Subjects: Double taxation -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10948/49986 , vital:41967
- Description: The purpose of this treatise was to analyse selected clauses in selected double taxation agreements with South Africa. An integrative literature review research method was used. The study commenced with an overview of double tax agreements from both an international and South African perspective. This was followed by a critical analysis of the Mutual Agreement Procedures, the Most-Favoured Nation clause and the Non-discrimination obligation. Selected court cases domestic and foreign court cases were used to illustrate the gaps that sometimes exist between revenue authorities’ and taxpayers’ understanding of the clauses being studied. An analysis was then performed of the measures and their appropriateness that South Africa can implement to close the loopholes arising from the selected clauses. This was informed by the action plans suggested by the OECD and the Davis Tax Committee on base erosion and profit shifting. The study then concluded with a synopsis of the key findings of the selected clauses and their recommendations. Finally recommendations were made for areas of further research which might assist in closing the loopholes arising from the words employed within double tax agreements and the intention of the legislature/the executive can be closed.
- Full Text:
- Date Issued: 2020
- Authors: Ndzimakhwe, Vusumzi Allen
- Date: 2020
- Subjects: Double taxation -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10948/49986 , vital:41967
- Description: The purpose of this treatise was to analyse selected clauses in selected double taxation agreements with South Africa. An integrative literature review research method was used. The study commenced with an overview of double tax agreements from both an international and South African perspective. This was followed by a critical analysis of the Mutual Agreement Procedures, the Most-Favoured Nation clause and the Non-discrimination obligation. Selected court cases domestic and foreign court cases were used to illustrate the gaps that sometimes exist between revenue authorities’ and taxpayers’ understanding of the clauses being studied. An analysis was then performed of the measures and their appropriateness that South Africa can implement to close the loopholes arising from the selected clauses. This was informed by the action plans suggested by the OECD and the Davis Tax Committee on base erosion and profit shifting. The study then concluded with a synopsis of the key findings of the selected clauses and their recommendations. Finally recommendations were made for areas of further research which might assist in closing the loopholes arising from the words employed within double tax agreements and the intention of the legislature/the executive can be closed.
- Full Text:
- Date Issued: 2020
A critical analysis of South Africa's general anti avoidance provisions in income tax legislation
- Authors: Haffejee, Yaasir
- Date: 2009
- Subjects: Tax evasion -- South Africa , Tax planning -- South Africa , Income tax -- Law and legislation -- South Africa , Rule of law -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:8956 , http://hdl.handle.net/10948/1243 , Tax evasion -- South Africa , Tax planning -- South Africa , Income tax -- Law and legislation -- South Africa , Rule of law -- South Africa
- Description: This treatise was undertaken to critically analyse the new general anti avoidance rules (new GAAR) as set out in sections 80A to 80L of the Income Tax Act1. A discussion on the difference between tax evasion and tax avoidance was performed in the first chapter. The goals of this treatise were then set out. An analysis of the requirements for the application of the new GAAR was performed in the second chapter. The courts have historically reviewed the circumstances surrounding an arrangement when determining whether tax avoidance has occurred. The new GAAR requires the individual steps of an arrangement to be reviewed in isolation. Secondly, the courts have historically held that the purpose test, when determining the taxpayer‘s purpose, was subjective. The wording of the new GAAR indicates that this test is now objective. Thirdly, the courts have historically viewed the abnormality of an arrangement based of the surrounding circumstances. The wording of the new GAAR requires an objective view of the arrangement. An analysis of the secondary provisions contained in sections 80I, 80B and 80J of the new GAAR was performed in the third chapter. With regards to section 80B, it was submitted that the Commissioner should issue an Interpretation Note detailing all the methods ―he deems appropriate.
- Full Text:
- Date Issued: 2009
- Authors: Haffejee, Yaasir
- Date: 2009
- Subjects: Tax evasion -- South Africa , Tax planning -- South Africa , Income tax -- Law and legislation -- South Africa , Rule of law -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:8956 , http://hdl.handle.net/10948/1243 , Tax evasion -- South Africa , Tax planning -- South Africa , Income tax -- Law and legislation -- South Africa , Rule of law -- South Africa
- Description: This treatise was undertaken to critically analyse the new general anti avoidance rules (new GAAR) as set out in sections 80A to 80L of the Income Tax Act1. A discussion on the difference between tax evasion and tax avoidance was performed in the first chapter. The goals of this treatise were then set out. An analysis of the requirements for the application of the new GAAR was performed in the second chapter. The courts have historically reviewed the circumstances surrounding an arrangement when determining whether tax avoidance has occurred. The new GAAR requires the individual steps of an arrangement to be reviewed in isolation. Secondly, the courts have historically held that the purpose test, when determining the taxpayer‘s purpose, was subjective. The wording of the new GAAR indicates that this test is now objective. Thirdly, the courts have historically viewed the abnormality of an arrangement based of the surrounding circumstances. The wording of the new GAAR requires an objective view of the arrangement. An analysis of the secondary provisions contained in sections 80I, 80B and 80J of the new GAAR was performed in the third chapter. With regards to section 80B, it was submitted that the Commissioner should issue an Interpretation Note detailing all the methods ―he deems appropriate.
- Full Text:
- Date Issued: 2009
A critical analysis of the administrative issues related to the Health Promotion Levy in South Africa
- Authors: Herbst, Tamryn
- Date: 2020
- Subjects: Health promotion -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10948/48158 , vital:40515
- Description: The purpose of the treatise was to examine the administrative issues that have arisen related to the implementation of the Health Promotion Levy (HPL) in South Africa, and to identify solutions to these issues. The study commenced with a review of what the HPL is and how it is levied. This was followed by a comparative analysis of issues that have been experienced by four countries, as well as any potential issues that have been identified by the four countries. The HPL is often referred to as sugar tax in many jurisdictions, and was referred to as HPL for the purposes of this treatise. A review was then performed of the solutions that were implemented by these countries in responding to the administrative issues that were identified, as well as guidelines issued by the World Health Organisation for the implementation of this levy. The likelihood of these issues arising in South Africa’s implementation of the Health Promotion Levy was examined based on these comparisons. It was found that the issues experienced by other countries in the implementation of the HPL have been experienced in South Africa, or may be relevant in a South African context. Following this, the solutions implemented by other countries and recommended by the World Health Organisation were analysed to determine if these solutions are practical in a South African context. Many of the solutions implemented by the countries analysed, are relevant in a South African context and have, in fact, already been implemented in South Africa The conclusion reached was that South Africa has been successful in administering the implementation of the HPL and that the administrative costs of the implementation and administration of the HPL are outweighed by the benefits of the health awareness raised by the implementation of the HPL.
- Full Text:
- Date Issued: 2020
- Authors: Herbst, Tamryn
- Date: 2020
- Subjects: Health promotion -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10948/48158 , vital:40515
- Description: The purpose of the treatise was to examine the administrative issues that have arisen related to the implementation of the Health Promotion Levy (HPL) in South Africa, and to identify solutions to these issues. The study commenced with a review of what the HPL is and how it is levied. This was followed by a comparative analysis of issues that have been experienced by four countries, as well as any potential issues that have been identified by the four countries. The HPL is often referred to as sugar tax in many jurisdictions, and was referred to as HPL for the purposes of this treatise. A review was then performed of the solutions that were implemented by these countries in responding to the administrative issues that were identified, as well as guidelines issued by the World Health Organisation for the implementation of this levy. The likelihood of these issues arising in South Africa’s implementation of the Health Promotion Levy was examined based on these comparisons. It was found that the issues experienced by other countries in the implementation of the HPL have been experienced in South Africa, or may be relevant in a South African context. Following this, the solutions implemented by other countries and recommended by the World Health Organisation were analysed to determine if these solutions are practical in a South African context. Many of the solutions implemented by the countries analysed, are relevant in a South African context and have, in fact, already been implemented in South Africa The conclusion reached was that South Africa has been successful in administering the implementation of the HPL and that the administrative costs of the implementation and administration of the HPL are outweighed by the benefits of the health awareness raised by the implementation of the HPL.
- Full Text:
- Date Issued: 2020
A critical analysis of the concept and extent of base erosion and profit shifting, and its impact on South Africa versus Australia
- Authors: Basnett, Robyn
- Date: 2016
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10962/4037 , vital:20592
- Description: Tax avoidance by multinational enterprises is the focus of much media and political scrutiny. It is also the subject of a major Organisation for Economic Co-operation and Development (OECD) project called Base Erosion and Profit Shifting (BEPS). The objective of this thesis was to gain a greater understanding of BEPS, particularly in a South African and Australian context, and to determine whether BEPS is as great a problem as the OECD portrays. A detailed analysis of the OECD BEPS Report and Action Plan was undertaken to understand what the term BEPS means. A review of current BEPS literature was then performed toassess the extent of BEPS. This was followed by a comparative analysis of South Africa and Australia, including a comparison of their tax systems and various economic indicators. It was found that there is no simple definition of BEPS. It encompasses the spectrum of international tax planning strategies used by multinational enterprises. Furthermore, these tax strategies are usually legal, which makes measuring the extent of BEPS conceptually difficult. Despite being legal, many observers believe that BEPS behaviour by multinational enterprises is ethically unacceptable. This thesis also discussed the ethics of tax avoidance, and argued that countries should assess BEPS with reference to the many benefits which multinationals bring to a country. The benefits of multinational enterprise activity are especially important to developing countries like South Africa. Despite similar tax systems, South Africa and Australia vary greatly in terms of their economic and social position. This thesis concluded that South Africa, as a developing country, is more likely than Australia to tolerate BEPS behaviour in order to maintain or even attract foreign investment. The OECD Action Plan calls for urgent internationally coordinated actions against BEPS. It appears, however, that much more research is needed on the nature and extent of BEPS before countries formulate their response. This thesis acknowledges that aggressive tax planning by multinational enterprises does exist, but suggests that countries approach BEPS, and any estimates of its extent, with a degree of caution.
- Full Text:
- Date Issued: 2016
- Authors: Basnett, Robyn
- Date: 2016
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10962/4037 , vital:20592
- Description: Tax avoidance by multinational enterprises is the focus of much media and political scrutiny. It is also the subject of a major Organisation for Economic Co-operation and Development (OECD) project called Base Erosion and Profit Shifting (BEPS). The objective of this thesis was to gain a greater understanding of BEPS, particularly in a South African and Australian context, and to determine whether BEPS is as great a problem as the OECD portrays. A detailed analysis of the OECD BEPS Report and Action Plan was undertaken to understand what the term BEPS means. A review of current BEPS literature was then performed toassess the extent of BEPS. This was followed by a comparative analysis of South Africa and Australia, including a comparison of their tax systems and various economic indicators. It was found that there is no simple definition of BEPS. It encompasses the spectrum of international tax planning strategies used by multinational enterprises. Furthermore, these tax strategies are usually legal, which makes measuring the extent of BEPS conceptually difficult. Despite being legal, many observers believe that BEPS behaviour by multinational enterprises is ethically unacceptable. This thesis also discussed the ethics of tax avoidance, and argued that countries should assess BEPS with reference to the many benefits which multinationals bring to a country. The benefits of multinational enterprise activity are especially important to developing countries like South Africa. Despite similar tax systems, South Africa and Australia vary greatly in terms of their economic and social position. This thesis concluded that South Africa, as a developing country, is more likely than Australia to tolerate BEPS behaviour in order to maintain or even attract foreign investment. The OECD Action Plan calls for urgent internationally coordinated actions against BEPS. It appears, however, that much more research is needed on the nature and extent of BEPS before countries formulate their response. This thesis acknowledges that aggressive tax planning by multinational enterprises does exist, but suggests that countries approach BEPS, and any estimates of its extent, with a degree of caution.
- Full Text:
- Date Issued: 2016
A critical analysis of the deductibility for income tax purposes of dual-purpose expenditure
- Authors: Pickup, Richard Kenneth
- Date: 2016
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10962/4155 , vital:20628
- Description: This thesis critically analysed the apportionment of dual-purpose expenditure. In doing so, two categories of dual-expenditure were examined: expenditure that has been incurred for both trade and non-trade purposes, and expenditure that has been incurred to produce both taxable and exempt income. In conducting this analysis, this thesis set out to answer three questions: has the apportionment of dual-purpose expenditure been officially sanctioned in South Africa, when does the need for apportionment arise, and on what basis should a taxpayer apportion expenditure that has been incurred for a dual purpose? A doctrinal methodology was applied to the documentary data which consisted of relevant tax legislation; South African, Australian and English case law; and commentary of experts in the field of tax law. From the analysis performed, it was revealed that the apportionment of dual-purpose expenditure has been officially sanctioned in South Africa. In addition, it was concluded that the applicable legal principles for determining the need for apportionment and for performing the apportionment calculation are clear and well-established. The difficulty which taxpayers, the courts and the South African Revenue Service face, however, is applying these principles in practice. This research therefore concluded that there is a need for further guidance in this complex area of tax law. In addition, this research proposed some recommendations which could provide more certainty and clarity.
- Full Text:
- Date Issued: 2016
- Authors: Pickup, Richard Kenneth
- Date: 2016
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10962/4155 , vital:20628
- Description: This thesis critically analysed the apportionment of dual-purpose expenditure. In doing so, two categories of dual-expenditure were examined: expenditure that has been incurred for both trade and non-trade purposes, and expenditure that has been incurred to produce both taxable and exempt income. In conducting this analysis, this thesis set out to answer three questions: has the apportionment of dual-purpose expenditure been officially sanctioned in South Africa, when does the need for apportionment arise, and on what basis should a taxpayer apportion expenditure that has been incurred for a dual purpose? A doctrinal methodology was applied to the documentary data which consisted of relevant tax legislation; South African, Australian and English case law; and commentary of experts in the field of tax law. From the analysis performed, it was revealed that the apportionment of dual-purpose expenditure has been officially sanctioned in South Africa. In addition, it was concluded that the applicable legal principles for determining the need for apportionment and for performing the apportionment calculation are clear and well-established. The difficulty which taxpayers, the courts and the South African Revenue Service face, however, is applying these principles in practice. This research therefore concluded that there is a need for further guidance in this complex area of tax law. In addition, this research proposed some recommendations which could provide more certainty and clarity.
- Full Text:
- Date Issued: 2016
A critical analysis of the deductibility of bad debts for income tax purposes
- Authors: Naidu, Aveshni
- Date: 2018
- Subjects: Collecting of accounts -- South Africa , Tax deductions -- South Africa , South Africa. Income Tax Act, 1962
- Language: English
- Type: text , Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10962/61712 , vital:28051
- Description: The objective of this thesis was to critically analyse the deductibility of bad debts for income tax purposes. This was achieved by applying a doctrinal research methodology to the data, which consisted of local and international legislation and case law, as well as other relevant writings. In setting out to achieve this primary objective, this thesis addressed certain subsidiary goals. The requirements of section 11 (i) of the South African Income Tax Act that provides for the deduction of bad debts were examined with reference to local case law, together with case law from selected international jurisdictions. To clarify the requirement of section 11 (i) that a debt must have become bad, this thesis set out to ascribe a meaning to the term “bad debt” which is currently not defined in the South African Income Tax Act and to ascertain the principles applicable in determining when a debt will be regarded as having become bad. The research also addressed the timing in relation to the identification of a debt as bad, as well as other commercial considerations. This research concluded that there is a need for further guidance in this area and provided brief recommendations that could provide more certainty in relation to the deductibility of bad debts.
- Full Text:
- Date Issued: 2018
- Authors: Naidu, Aveshni
- Date: 2018
- Subjects: Collecting of accounts -- South Africa , Tax deductions -- South Africa , South Africa. Income Tax Act, 1962
- Language: English
- Type: text , Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10962/61712 , vital:28051
- Description: The objective of this thesis was to critically analyse the deductibility of bad debts for income tax purposes. This was achieved by applying a doctrinal research methodology to the data, which consisted of local and international legislation and case law, as well as other relevant writings. In setting out to achieve this primary objective, this thesis addressed certain subsidiary goals. The requirements of section 11 (i) of the South African Income Tax Act that provides for the deduction of bad debts were examined with reference to local case law, together with case law from selected international jurisdictions. To clarify the requirement of section 11 (i) that a debt must have become bad, this thesis set out to ascribe a meaning to the term “bad debt” which is currently not defined in the South African Income Tax Act and to ascertain the principles applicable in determining when a debt will be regarded as having become bad. The research also addressed the timing in relation to the identification of a debt as bad, as well as other commercial considerations. This research concluded that there is a need for further guidance in this area and provided brief recommendations that could provide more certainty in relation to the deductibility of bad debts.
- Full Text:
- Date Issued: 2018
A critical analysis of the distintion between mining and manufacturing for South African income tax purposes
- Authors: Cloete, Loriaan
- Date: 2010
- Subjects: Mining corporations -- South Africa , Income tax -- South Africa , Income tax -- Law and legislation -- South Africa , Mining law -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:8948 , http://hdl.handle.net/10948/1344 , Mining corporations -- South Africa , Income tax -- South Africa , Income tax -- Law and legislation -- South Africa , Mining law -- South Africa
- Description: "Mining operations" and "mining" are defined in s 1 of the Income Tax Act (ITA). A concept that is of great significance to this definition is the matter of when a mineral is won and the related question of when does the mining process end and the process of manufacture commences. Case law has not established a definitive point that can be used by the mining taxpayer to determine where the mining process ends for income tax purposes. The Supreme Court of Appeal was presented with the perfect opportunity in the Foskor1 case to clearly define the boundaries between these processes. Unfortunately, the court did not seize this opportunity to provide legal certainty. The significance of the distinction lies in the fact that a mining taxpayer is allowed to claim accelerated capital allowances. The objective of these allowances is to provide tax relief to the mining taxpayer taking the immense risk of investing billions of rands in capital expenditure. The capital expenditure incurred will also result in direct foreign investment. This in turn will result in economic growth and job creation. Currently, there is no legal certainty as to which processes will qualify as mining operations for income tax purposes. This may result in mining taxpayers being hesitant to incur capital expenditure as the risk relating to a project would have increased. The accelerated capital allowances may therefore not serve their intended purpose. The gross domestic product (GDP) contribution from gold mining has been decreasing in the last number of years, but this decrease has to a large extent been offset by an increase in the downstream or beneficiated minerals industry. This industry has also been identified by Government as a growth sector. The downstream or beneficiated mineral industry may not be catered for in the current definition of "mining operations" and "mining" and may therefore not qualify for beneficial tax allowances. It is therefore proposed that the term "won" as used in the definition of "mining operations" and "mining" should be defined in s 1 of the ITA as follows: A mineral is "won" when all the requisite and necessary processes, including, amongst other things, refinement, beneficiation, smelting, separation, have been undertaken to the mineral to render it saleable in an open and general market. This extension will provide legal certainty to a mining taxpayer and will ensure that South Africa obtains direct foreign investment and maximum value for its minerals. This will contribute to economic growth for South Africa's developing economy and result in job creation.
- Full Text:
- Date Issued: 2010
- Authors: Cloete, Loriaan
- Date: 2010
- Subjects: Mining corporations -- South Africa , Income tax -- South Africa , Income tax -- Law and legislation -- South Africa , Mining law -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:8948 , http://hdl.handle.net/10948/1344 , Mining corporations -- South Africa , Income tax -- South Africa , Income tax -- Law and legislation -- South Africa , Mining law -- South Africa
- Description: "Mining operations" and "mining" are defined in s 1 of the Income Tax Act (ITA). A concept that is of great significance to this definition is the matter of when a mineral is won and the related question of when does the mining process end and the process of manufacture commences. Case law has not established a definitive point that can be used by the mining taxpayer to determine where the mining process ends for income tax purposes. The Supreme Court of Appeal was presented with the perfect opportunity in the Foskor1 case to clearly define the boundaries between these processes. Unfortunately, the court did not seize this opportunity to provide legal certainty. The significance of the distinction lies in the fact that a mining taxpayer is allowed to claim accelerated capital allowances. The objective of these allowances is to provide tax relief to the mining taxpayer taking the immense risk of investing billions of rands in capital expenditure. The capital expenditure incurred will also result in direct foreign investment. This in turn will result in economic growth and job creation. Currently, there is no legal certainty as to which processes will qualify as mining operations for income tax purposes. This may result in mining taxpayers being hesitant to incur capital expenditure as the risk relating to a project would have increased. The accelerated capital allowances may therefore not serve their intended purpose. The gross domestic product (GDP) contribution from gold mining has been decreasing in the last number of years, but this decrease has to a large extent been offset by an increase in the downstream or beneficiated minerals industry. This industry has also been identified by Government as a growth sector. The downstream or beneficiated mineral industry may not be catered for in the current definition of "mining operations" and "mining" and may therefore not qualify for beneficial tax allowances. It is therefore proposed that the term "won" as used in the definition of "mining operations" and "mining" should be defined in s 1 of the ITA as follows: A mineral is "won" when all the requisite and necessary processes, including, amongst other things, refinement, beneficiation, smelting, separation, have been undertaken to the mineral to render it saleable in an open and general market. This extension will provide legal certainty to a mining taxpayer and will ensure that South Africa obtains direct foreign investment and maximum value for its minerals. This will contribute to economic growth for South Africa's developing economy and result in job creation.
- Full Text:
- Date Issued: 2010
A critical analysis of the income tax implication of income from illegal activities in South Africa
- Authors: Nxumalo,Delani
- Date: 2016
- Subjects: Tax evasion -- South Africa Money laundering -- South Africa , Income tax -- Law and legislation -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10948/12780 , vital:27120
- Description: Moneymaking schemes such as prostitution, drug dealing, fraud, corruption, pyramid schemes and the sale of counterfeit goods have been around for years. The taxing of these transactions/schemes has become a contentious issue. It has recently been reported in the press that SARS has lodged a claim for R183 million in income taxes against the estate of the slain mining magnate, Brett Kebble, in respect of the R2 billion allegedly stolen by him from the mining companies of which he was a director.4 It is further reported that the Master of the High Court has rejected the claim on the grounds that the amounts on which SARS sought to levy tax constituted money stolen by Kebble, and that stolen money is not subject to income tax. It has been reported that SARS is to take the Master’s decision in this regard on review.5 The Kebble case raises an interesting and unresolved tax issue and, in view of the large sum at stake, it may be a case that will go all the way to the Supreme Court of Appeal and bring long-overdue certainty to the law. The Income Tax Act No. 58 of 1962 (the Act) is of no assistance in determining the issue. Section 23(o) states that payments that are illegal in terms of Chapter 2 of the Prevention and Combating of Corrupt Activities Act No. 12 of 2004 or that constitute a fine or penalty for any “unlawful activity carried out in the Republic or in any other country if that activity.
- Full Text:
- Date Issued: 2016
- Authors: Nxumalo,Delani
- Date: 2016
- Subjects: Tax evasion -- South Africa Money laundering -- South Africa , Income tax -- Law and legislation -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10948/12780 , vital:27120
- Description: Moneymaking schemes such as prostitution, drug dealing, fraud, corruption, pyramid schemes and the sale of counterfeit goods have been around for years. The taxing of these transactions/schemes has become a contentious issue. It has recently been reported in the press that SARS has lodged a claim for R183 million in income taxes against the estate of the slain mining magnate, Brett Kebble, in respect of the R2 billion allegedly stolen by him from the mining companies of which he was a director.4 It is further reported that the Master of the High Court has rejected the claim on the grounds that the amounts on which SARS sought to levy tax constituted money stolen by Kebble, and that stolen money is not subject to income tax. It has been reported that SARS is to take the Master’s decision in this regard on review.5 The Kebble case raises an interesting and unresolved tax issue and, in view of the large sum at stake, it may be a case that will go all the way to the Supreme Court of Appeal and bring long-overdue certainty to the law. The Income Tax Act No. 58 of 1962 (the Act) is of no assistance in determining the issue. Section 23(o) states that payments that are illegal in terms of Chapter 2 of the Prevention and Combating of Corrupt Activities Act No. 12 of 2004 or that constitute a fine or penalty for any “unlawful activity carried out in the Republic or in any other country if that activity.
- Full Text:
- Date Issued: 2016
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.
- Full Text:
- Date Issued: 2017
- 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.
- Full Text:
- Date Issued: 2017
A critical analysis of the income tax implications of persons ceasing to be a resident of South Africa
- Authors: Loyson, Richard Michael
- Date: 2010
- Subjects: Income tax -- South Africa , Double taxation -- South Africa , Aliens -- Taxation -- South Africa , Capital gains tax -- South Africa , Citizenship -- South Africa , Emigration and immigration law -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:8957 , http://hdl.handle.net/10948/1180 , Income tax -- South Africa , Double taxation -- South Africa , Aliens -- Taxation -- South Africa , Capital gains tax -- South Africa , Citizenship -- South Africa , Emigration and immigration law -- South Africa
- Description: Over the last 10 years the South African fiscus has introduced numerous changes to the Income Tax Act (ITA) which affect the income tax implications of persons ceasing to be a resident of South Africa. The two main changes were: - The introduction of a world-wide basis of taxation for residents - The introduction of capital gains tax (CGT) as part of the ITA The aim of this treatise was to identify the income tax implications of persons ceasing to be a resident of South Africa. Resulting from this research, several issues in the ITA have been identified, and the two major ones are summarised below. Firstly, upon the emigration of the taxpayer, there is a deemed disposal of a taxpayer’s assets in terms of paragraph 12 of the Eighth Schedule. It is submitted that the resulting exit tax may be unconstitutional for individuals. It is recommended that South Africa should adopt the deferral method within its domestic legislation for individuals who are emigrating. The deferral method postpones the liability until the disposal of the asset. Secondly, on the subsequent disposal of assets by former residents where there was no exit charge in terms of the exemption under paragraph 12(2)(a)(i) of the Eighth Schedule. Depending on the specific double tax agreement (DTA) that has been entered into with the foreign country, taxpayers have been given vii the opportunity to minimise or eliminate the tax liability with regard to certain assets. This should be of concern from the point of view of the South African government. Further issues noted in this treatise were the following: - It is submitted that the term ‘place of effective management’ has been incorrectly interpreted by SARS in Interpretation Note 6. - It is further submitted that the interpretation by SARS of paragraph 2(2) of the Eighth Schedule is technically incorrect. The above issues that have been identified present opportunities to emigrants to take advantage of the current tax legislation. It is further recommended that taxpayers who are emigrating need to consider the South African domestic tax law implications, respective DTA’s, as well as the domestic tax laws of the other jurisdiction, not only on the date of emigration but also on the subsequent disposal of the respective assets.
- Full Text:
- Date Issued: 2010
- Authors: Loyson, Richard Michael
- Date: 2010
- Subjects: Income tax -- South Africa , Double taxation -- South Africa , Aliens -- Taxation -- South Africa , Capital gains tax -- South Africa , Citizenship -- South Africa , Emigration and immigration law -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:8957 , http://hdl.handle.net/10948/1180 , Income tax -- South Africa , Double taxation -- South Africa , Aliens -- Taxation -- South Africa , Capital gains tax -- South Africa , Citizenship -- South Africa , Emigration and immigration law -- South Africa
- Description: Over the last 10 years the South African fiscus has introduced numerous changes to the Income Tax Act (ITA) which affect the income tax implications of persons ceasing to be a resident of South Africa. The two main changes were: - The introduction of a world-wide basis of taxation for residents - The introduction of capital gains tax (CGT) as part of the ITA The aim of this treatise was to identify the income tax implications of persons ceasing to be a resident of South Africa. Resulting from this research, several issues in the ITA have been identified, and the two major ones are summarised below. Firstly, upon the emigration of the taxpayer, there is a deemed disposal of a taxpayer’s assets in terms of paragraph 12 of the Eighth Schedule. It is submitted that the resulting exit tax may be unconstitutional for individuals. It is recommended that South Africa should adopt the deferral method within its domestic legislation for individuals who are emigrating. The deferral method postpones the liability until the disposal of the asset. Secondly, on the subsequent disposal of assets by former residents where there was no exit charge in terms of the exemption under paragraph 12(2)(a)(i) of the Eighth Schedule. Depending on the specific double tax agreement (DTA) that has been entered into with the foreign country, taxpayers have been given vii the opportunity to minimise or eliminate the tax liability with regard to certain assets. This should be of concern from the point of view of the South African government. Further issues noted in this treatise were the following: - It is submitted that the term ‘place of effective management’ has been incorrectly interpreted by SARS in Interpretation Note 6. - It is further submitted that the interpretation by SARS of paragraph 2(2) of the Eighth Schedule is technically incorrect. The above issues that have been identified present opportunities to emigrants to take advantage of the current tax legislation. It is further recommended that taxpayers who are emigrating need to consider the South African domestic tax law implications, respective DTA’s, as well as the domestic tax laws of the other jurisdiction, not only on the date of emigration but also on the subsequent disposal of the respective assets.
- Full Text:
- Date Issued: 2010
A critical analysis of the marketing of mohair in South Africa with special reference to the period 1963 to 1989
- Norton, Eustace Herbert Fraser
- Authors: Norton, Eustace Herbert Fraser
- Date: 1992
- Subjects: Mohair -- South Africa -- Marketing , Mohair industry -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:1020 , http://hdl.handle.net/10962/d1002755 , Mohair -- South Africa -- Marketing , Mohair industry -- South Africa
- Description: The objective of the research was to determine the extent to which marketing in general, and the Mohair Scheme in particular, played a part in the re-emergence of South Africa as the world's leading mohair producer. The two major components of the Scheme, the 'voorskot', or initial payment, and reserve prices were analysed separately. In an adaptive expectations, distributed lag model of supply adjustment, only the weighted rainfall and the average real net price of mohair during the previous season, were found to be important determinants of mohair production. The significant negative correlation between the average real net 'voorskot' price and mohair production was contrary to expectations, and probably due to the 'voorskot' always having been set well below the market price. The 'voorskot' may nevertheless have played an important part in making the Scheme as a whole acceptable to producers. As no record is kept of the reserve price, its influence was tested indirectly in two stages. In the first, its influence on price stability was determined by a comparison of ranges, standard deviations and variances, and by several multiple linear demand regressions. Three of the four models showed clearly that price stability was increased by the Mohair Scheme. In the second stage, formulae and diagrammatic analyses were used to assess the welfare gains and losses resulting from the Mohair Scheme. There was a welfare gain to local producers and most of the welfare costs of the Scheme were borne by foreign consumers. With this gain to producers and the more stable price, it was concluded that the reserve price had stimulated mohair production. It was therefore established that the Mohair Scheme had played a major part in the re-emergence of South Africa as the world' s leading mohair producer. Nevertheless, in view of the massive stockpiling in recent seasons, because the reserve price was set too high, the result was a substantial loss to the Scheme; it was therefore recommended that the Mohair Scheme be discontinued or, at least, that the reserve price should be set at a much lower long-run, market clearing level.
- Full Text:
- Date Issued: 1992
- Authors: Norton, Eustace Herbert Fraser
- Date: 1992
- Subjects: Mohair -- South Africa -- Marketing , Mohair industry -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:1020 , http://hdl.handle.net/10962/d1002755 , Mohair -- South Africa -- Marketing , Mohair industry -- South Africa
- Description: The objective of the research was to determine the extent to which marketing in general, and the Mohair Scheme in particular, played a part in the re-emergence of South Africa as the world's leading mohair producer. The two major components of the Scheme, the 'voorskot', or initial payment, and reserve prices were analysed separately. In an adaptive expectations, distributed lag model of supply adjustment, only the weighted rainfall and the average real net price of mohair during the previous season, were found to be important determinants of mohair production. The significant negative correlation between the average real net 'voorskot' price and mohair production was contrary to expectations, and probably due to the 'voorskot' always having been set well below the market price. The 'voorskot' may nevertheless have played an important part in making the Scheme as a whole acceptable to producers. As no record is kept of the reserve price, its influence was tested indirectly in two stages. In the first, its influence on price stability was determined by a comparison of ranges, standard deviations and variances, and by several multiple linear demand regressions. Three of the four models showed clearly that price stability was increased by the Mohair Scheme. In the second stage, formulae and diagrammatic analyses were used to assess the welfare gains and losses resulting from the Mohair Scheme. There was a welfare gain to local producers and most of the welfare costs of the Scheme were borne by foreign consumers. With this gain to producers and the more stable price, it was concluded that the reserve price had stimulated mohair production. It was therefore established that the Mohair Scheme had played a major part in the re-emergence of South Africa as the world' s leading mohair producer. Nevertheless, in view of the massive stockpiling in recent seasons, because the reserve price was set too high, the result was a substantial loss to the Scheme; it was therefore recommended that the Mohair Scheme be discontinued or, at least, that the reserve price should be set at a much lower long-run, market clearing level.
- Full Text:
- Date Issued: 1992
A critical analysis of the practical man principle in Commissioner for Inland Revenue v Lever Brothers and Unilever Ltd
- Authors: Grenville, David Paul
- Date: 2014
- Subjects: Unilever (Firm) , South African Revenue Service , Taxation -- Law and legislation -- South Africa , Income tax -- Law and legislation -- South Africa -- Cases , Income tax -- South Africa -- Cases , Business enterprises -- Taxation -- South Africa , Law -- South Africa -- Philosophy
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:909 , http://hdl.handle.net/10962/d1013238
- Description: This research studies the practical person principle as it was introduced in the case of Commissioner for Inland Revenue v Lever Brothers and Unilever Ltd 1946 AD 441. In its time the Lever Brothers case was a seminal judgment in South Africa’s tax jurisprudence and the practical person principle was a decisive criterion for the determination of source of income. The primary goal of this research was a critical analysis the practical man principle. This involved an analysis of the extent to which this principle requires judges to adopt a criterion that is too flexible for legitimate judicial decision-making. The extent to which the practical person principle creates a clash between a philosophical approach to law and an approach that is based on common sense or practicality was also debated. Finally, it was considered whether adopting a philosophical approach to determining the source of income could overcome the problems associated with the practical approach. A doctrinal methodology was applied to the documentary data consisting of the South African and Australian Income Tax Acts, South African and other case law, historical records and the writings of scholars. From the critical analysis of the practical person principle it was concluded that the anthropomorphised form of the principle gives rise to several problems that may be overcome by looking to the underlying operation of the principle. Further analysis of this operation, however, revealed deeper problems in that the principle undermines the doctrine of judicial precedent, legal certainty and the rule of law. Accordingly a practical approach to determining the source of income is undesirable and unconstitutional. Further research was conducted into the relative merits of a philosophical approach to determining source of income and it was argued that such an approach could provide a more desirable solution to determining source of income as well as approaching legal problems more generally.
- Full Text:
- Date Issued: 2014
- Authors: Grenville, David Paul
- Date: 2014
- Subjects: Unilever (Firm) , South African Revenue Service , Taxation -- Law and legislation -- South Africa , Income tax -- Law and legislation -- South Africa -- Cases , Income tax -- South Africa -- Cases , Business enterprises -- Taxation -- South Africa , Law -- South Africa -- Philosophy
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:909 , http://hdl.handle.net/10962/d1013238
- Description: This research studies the practical person principle as it was introduced in the case of Commissioner for Inland Revenue v Lever Brothers and Unilever Ltd 1946 AD 441. In its time the Lever Brothers case was a seminal judgment in South Africa’s tax jurisprudence and the practical person principle was a decisive criterion for the determination of source of income. The primary goal of this research was a critical analysis the practical man principle. This involved an analysis of the extent to which this principle requires judges to adopt a criterion that is too flexible for legitimate judicial decision-making. The extent to which the practical person principle creates a clash between a philosophical approach to law and an approach that is based on common sense or practicality was also debated. Finally, it was considered whether adopting a philosophical approach to determining the source of income could overcome the problems associated with the practical approach. A doctrinal methodology was applied to the documentary data consisting of the South African and Australian Income Tax Acts, South African and other case law, historical records and the writings of scholars. From the critical analysis of the practical person principle it was concluded that the anthropomorphised form of the principle gives rise to several problems that may be overcome by looking to the underlying operation of the principle. Further analysis of this operation, however, revealed deeper problems in that the principle undermines the doctrine of judicial precedent, legal certainty and the rule of law. Accordingly a practical approach to determining the source of income is undesirable and unconstitutional. Further research was conducted into the relative merits of a philosophical approach to determining source of income and it was argued that such an approach could provide a more desirable solution to determining source of income as well as approaching legal problems more generally.
- Full Text:
- Date Issued: 2014
A critical analysis of the provisions taxing maintenance payments in terms of the South African income tax legislation
- Authors: Zulu, Nkosinathi
- Date: 2018
- Subjects: Income tax -- Law and legislation -- South Africa , Income tax -- South Africa Tax planning -- South Africa Taxation -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10948/35885 , vital:33856
- Description: The tax implications of contributions towards maintenance are not always clear to a typical taxpayer. The duty of support is often the driving force behind the contributions made. Donations, payments made by ‘Blessors’, and child maintenance are fundamental objects of attention in this study, although all maintenance payments are considered from a tax perspective with reference to the Income Tax Act No 58 of 1962. The main aim of the study was to illustrate and analyse the interaction of the rules governing the taxation of maintenance payments. Tax abuse was assessed in relation to the anti-avoidance provisions in effect in the legislation. The results were benchmarked against data relating to Australia. In the social context, a fundamental difference in the systems was observed, and the Australian provision may be considered for possible adoption in South Africa. In the context of tax per se, the study found that the operation of the attribution rules in the provisions in South African tax law pertaining to the taxation of child maintenance renders the provisions adequate.
- Full Text:
- Date Issued: 2018
- Authors: Zulu, Nkosinathi
- Date: 2018
- Subjects: Income tax -- Law and legislation -- South Africa , Income tax -- South Africa Tax planning -- South Africa Taxation -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10948/35885 , vital:33856
- Description: The tax implications of contributions towards maintenance are not always clear to a typical taxpayer. The duty of support is often the driving force behind the contributions made. Donations, payments made by ‘Blessors’, and child maintenance are fundamental objects of attention in this study, although all maintenance payments are considered from a tax perspective with reference to the Income Tax Act No 58 of 1962. The main aim of the study was to illustrate and analyse the interaction of the rules governing the taxation of maintenance payments. Tax abuse was assessed in relation to the anti-avoidance provisions in effect in the legislation. The results were benchmarked against data relating to Australia. In the social context, a fundamental difference in the systems was observed, and the Australian provision may be considered for possible adoption in South Africa. In the context of tax per se, the study found that the operation of the attribution rules in the provisions in South African tax law pertaining to the taxation of child maintenance renders the provisions adequate.
- Full Text:
- Date Issued: 2018
A critical analysis of the reference pricing tool used by SARS to address undervaluation of imported clothing
- Authors: Mansoor, Younus Ahmed
- Date: 2014
- Subjects: Transfer pricing -- Taxation -- South Africa , Tariff -- Law and legislation , Customs appraisal , Revenue management
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:8965 , http://hdl.handle.net/10948/d1020755
- Description: The South African Revenue Service has since 2009 introduced “reference pricing” as a tool to detect undervaluation of customs values of imported clothing and textiles. The term “reference pricing” is not defined in the Customs and Excise Act No.91 of 1964 which is the legislation that governs the importation of goods into the Republic of South Africa. The mandate of the South African Revenue Service, amongst others, is to facilitate legitimate trade. By applying the reference pricing guidelines the South African Revenue Service will target all importers who declare customs values which are less than the reference price for a targeted tariff heading associated with an item of clothing or textile. The Customs and Excise Act No.91 of 1964 is clear in that the transaction value which is the price paid or payable for the imported goods shall be the value used for customs duty purposes. The Customs and Excise Act No.91 of 1964 also requires that the interpretation of the sections 65, 66 and 67 of the said Act shall be subject to the Agreement on Implementation of Article VII of the General Agreement on Tariffs and Trade 1994 (Valuation Agreement). Part I of the Valuation Agreement deals with the rules for customs valuation. Article 17 of part 1 allows for customs administrations to satisfy themselves as to the truth or accuracy of any statement, document or declaration presented for customs valuation purposes. The Technical Committee on Customs Valuation of the World Trade Organisation decided the following in so far as Article 17 of the aforesaid agreement is concerned: “1. When a declaration has been presented and where the customs administration has reason to doubt the truth or accuracy of the particulars or of documents produced in support of this declaration, the customs administration may ask the importer to provide further explanation, including documents or other evidence, that the declared value represents the total amount actually paid or payable for the imported goods, ....” It would appear that the South African Revenue Service is using reference prices as a tool to support its reason for doubting the truth or accuracy of the declared customs values. The indiscriminate use of reference pricing, it is submitted, affects legitimate trade adversely. This treatise provides an understanding of how the customs value should be determined in terms of the Customs and Excise Act No.91 of 1964 and the Valuation Agreement. It then provides a background to reference pricing and how reference pricing will be used to detect undervalued imports of clothing and textiles, the advantages and disadvantages of using reference pricing and a comparative analysis of the approach adopted by the Mexican Tax Administration Service in so far as the use of reference pricing is concerned. It was established that the reference price cannot replace the customs value of an imported clothing item as the customs value is based on the price actually paid or payable for it and not on some arbitrary or fictitious value. The reference price can only be used as a tool to identify importers that are possibly undervaluing the customs values. The disadvantages far outweigh the advantages of using reference pricing. The treatise further provides a background to the use of a valuation database as a risk assessment tool and compares this to the use of reference pricing. The use of reference pricing and its impact on trade facilitation is then discussed as well as whether the use of reference pricing is consistent with the risk management principles as discussed in the World Customs Organisation Risk Management Guide. It was established that the South African Revenue Service has not disclosed the basis of arriving at the reference price per tariff heading that it targets and the use of reference pricing is not sanctioned by any international guideline or agreement. It was also established that the use of reference pricing targets compliant importers unnecessarily and this practice goes against the principles of trade facilitation. The use of reference pricing can be used as a tool to detect undervalued imports of clothing but should not be used as a basis to stop every consignment of clothing simply because the customs value declared is less than the reference price. It should not be used as a stand-alone tool but rather enhanced further with the recommendations provided. In the final analysis, recommendations are provided which seek to enhance the reference pricing mechanism and to further identify and exclude compliant importers and limit the use of reference pricing to target non-compliant importers who undervalue the customs value of imported clothing and textile items.
- Full Text:
- Date Issued: 2014
- Authors: Mansoor, Younus Ahmed
- Date: 2014
- Subjects: Transfer pricing -- Taxation -- South Africa , Tariff -- Law and legislation , Customs appraisal , Revenue management
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:8965 , http://hdl.handle.net/10948/d1020755
- Description: The South African Revenue Service has since 2009 introduced “reference pricing” as a tool to detect undervaluation of customs values of imported clothing and textiles. The term “reference pricing” is not defined in the Customs and Excise Act No.91 of 1964 which is the legislation that governs the importation of goods into the Republic of South Africa. The mandate of the South African Revenue Service, amongst others, is to facilitate legitimate trade. By applying the reference pricing guidelines the South African Revenue Service will target all importers who declare customs values which are less than the reference price for a targeted tariff heading associated with an item of clothing or textile. The Customs and Excise Act No.91 of 1964 is clear in that the transaction value which is the price paid or payable for the imported goods shall be the value used for customs duty purposes. The Customs and Excise Act No.91 of 1964 also requires that the interpretation of the sections 65, 66 and 67 of the said Act shall be subject to the Agreement on Implementation of Article VII of the General Agreement on Tariffs and Trade 1994 (Valuation Agreement). Part I of the Valuation Agreement deals with the rules for customs valuation. Article 17 of part 1 allows for customs administrations to satisfy themselves as to the truth or accuracy of any statement, document or declaration presented for customs valuation purposes. The Technical Committee on Customs Valuation of the World Trade Organisation decided the following in so far as Article 17 of the aforesaid agreement is concerned: “1. When a declaration has been presented and where the customs administration has reason to doubt the truth or accuracy of the particulars or of documents produced in support of this declaration, the customs administration may ask the importer to provide further explanation, including documents or other evidence, that the declared value represents the total amount actually paid or payable for the imported goods, ....” It would appear that the South African Revenue Service is using reference prices as a tool to support its reason for doubting the truth or accuracy of the declared customs values. The indiscriminate use of reference pricing, it is submitted, affects legitimate trade adversely. This treatise provides an understanding of how the customs value should be determined in terms of the Customs and Excise Act No.91 of 1964 and the Valuation Agreement. It then provides a background to reference pricing and how reference pricing will be used to detect undervalued imports of clothing and textiles, the advantages and disadvantages of using reference pricing and a comparative analysis of the approach adopted by the Mexican Tax Administration Service in so far as the use of reference pricing is concerned. It was established that the reference price cannot replace the customs value of an imported clothing item as the customs value is based on the price actually paid or payable for it and not on some arbitrary or fictitious value. The reference price can only be used as a tool to identify importers that are possibly undervaluing the customs values. The disadvantages far outweigh the advantages of using reference pricing. The treatise further provides a background to the use of a valuation database as a risk assessment tool and compares this to the use of reference pricing. The use of reference pricing and its impact on trade facilitation is then discussed as well as whether the use of reference pricing is consistent with the risk management principles as discussed in the World Customs Organisation Risk Management Guide. It was established that the South African Revenue Service has not disclosed the basis of arriving at the reference price per tariff heading that it targets and the use of reference pricing is not sanctioned by any international guideline or agreement. It was also established that the use of reference pricing targets compliant importers unnecessarily and this practice goes against the principles of trade facilitation. The use of reference pricing can be used as a tool to detect undervalued imports of clothing but should not be used as a basis to stop every consignment of clothing simply because the customs value declared is less than the reference price. It should not be used as a stand-alone tool but rather enhanced further with the recommendations provided. In the final analysis, recommendations are provided which seek to enhance the reference pricing mechanism and to further identify and exclude compliant importers and limit the use of reference pricing to target non-compliant importers who undervalue the customs value of imported clothing and textile items.
- Full Text:
- Date Issued: 2014
A critical analysis of the socioeconomic impact assessments of the Addo Elephant National Park
- Authors: Rose, Matthew Calvin
- Date: 2011
- Subjects: Addo Elephant National Park (South Africa) South African National Parks Economic impact analysis -- South Africa -- Addo Elephant National Park Environmental impact analysis -- South Africa -- Addo Elephant National Park
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:964 , http://hdl.handle.net/10962/d1002698
- Description: Impact assessment is a requirement for development in many countries across the globe, seeking to inform the decision-maker as to the environmental, social and economic impact of an ongoing or proposed project. Socioeconomic impact assessment (SEIA) is a means of informing decision-makers as to the socioeconomic effects a project could have, or is having, thus contributing to informing adaptive management practices. However, the tendency of socioeconomic impact assessment to highly quantitative economic methods of analysis raises the question of whether the desired results are achieved by the process. The purpose of the research was to determine whether highly quantitative forms of economic analysis are suitable for measurement of impacts in a social context where distributive as well as net impact is important; to critically analyze the method utilized in achieving highly quantitative economic impact assessment results; and lastly to draw conclusions and make recommendations regarding the efficacy of monitoring processes used to inform adaptive management practices. The research was conducted by means of a case study focusing on three SEIAs carried out on the same entity, namely the Addo Elephant National Park. Managed by South African National Parks (SANP), it began expanding its borders in the early 2000s. Funded by the World Bank, SANP was required to carry out a comprehensive Strategic Environmental Assessment (SEA) in 2003 to ensure the expansion did not have negative environmental, social and economic repercussions, and where such consequences were unavoidable, to ensure that mitigation and management thereof was informed by useful monitoring exercises. Given the need for resettlement and issues of economic distributive concern raised in the 2003 SEA, the three socioeconomic impact assessments conducted from 2005 – 2010 as part of the ongoing monitoring exercises formed an ideal framework for answering the primary research questions. The findings indicate that despite consistent terms of reference, different assessors interpret mandates from the commissioning body in different ways, leading to varied applications of the same theory, some methodologically better than others. Economic multiplier analysis was found to be inadequate as a measure of the distributive effects of economic impact. Moreover, a lack of consistency, accountability and transparency in the monitoring process led to three sets of results that were incomparable over time and thus inadequate as a means to inform adaptive management practices. Asymmetries of and between power and expertise in the commissioning body and the assessors led to breakdowns of the assessment process in terms of accountability and integrity and resulted in a failure to properly define the scope of the study and measure the relevant indicators. The following recommendations were made: that the economic multiplier method be complemented by additional methods of analysis when utilized in disparate social contexts where distribution of economic benefit is important; that monitoring practices be systematized at an early stage of the process to ensure comparable results useful in informing ongoing management practices; and that what an assessment measures and how it measures it be clarified with reference to an objective source. Finally, the number of factors for consideration in any impact assessment means that measurement of the full picture suffers resource constraints, emphasizing the need for impact assessment oversight to recognize the deficiencies of the process whilst still acknowledging that ‘some number is better than no number’.
- Full Text:
- Date Issued: 2011
- Authors: Rose, Matthew Calvin
- Date: 2011
- Subjects: Addo Elephant National Park (South Africa) South African National Parks Economic impact analysis -- South Africa -- Addo Elephant National Park Environmental impact analysis -- South Africa -- Addo Elephant National Park
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:964 , http://hdl.handle.net/10962/d1002698
- Description: Impact assessment is a requirement for development in many countries across the globe, seeking to inform the decision-maker as to the environmental, social and economic impact of an ongoing or proposed project. Socioeconomic impact assessment (SEIA) is a means of informing decision-makers as to the socioeconomic effects a project could have, or is having, thus contributing to informing adaptive management practices. However, the tendency of socioeconomic impact assessment to highly quantitative economic methods of analysis raises the question of whether the desired results are achieved by the process. The purpose of the research was to determine whether highly quantitative forms of economic analysis are suitable for measurement of impacts in a social context where distributive as well as net impact is important; to critically analyze the method utilized in achieving highly quantitative economic impact assessment results; and lastly to draw conclusions and make recommendations regarding the efficacy of monitoring processes used to inform adaptive management practices. The research was conducted by means of a case study focusing on three SEIAs carried out on the same entity, namely the Addo Elephant National Park. Managed by South African National Parks (SANP), it began expanding its borders in the early 2000s. Funded by the World Bank, SANP was required to carry out a comprehensive Strategic Environmental Assessment (SEA) in 2003 to ensure the expansion did not have negative environmental, social and economic repercussions, and where such consequences were unavoidable, to ensure that mitigation and management thereof was informed by useful monitoring exercises. Given the need for resettlement and issues of economic distributive concern raised in the 2003 SEA, the three socioeconomic impact assessments conducted from 2005 – 2010 as part of the ongoing monitoring exercises formed an ideal framework for answering the primary research questions. The findings indicate that despite consistent terms of reference, different assessors interpret mandates from the commissioning body in different ways, leading to varied applications of the same theory, some methodologically better than others. Economic multiplier analysis was found to be inadequate as a measure of the distributive effects of economic impact. Moreover, a lack of consistency, accountability and transparency in the monitoring process led to three sets of results that were incomparable over time and thus inadequate as a means to inform adaptive management practices. Asymmetries of and between power and expertise in the commissioning body and the assessors led to breakdowns of the assessment process in terms of accountability and integrity and resulted in a failure to properly define the scope of the study and measure the relevant indicators. The following recommendations were made: that the economic multiplier method be complemented by additional methods of analysis when utilized in disparate social contexts where distribution of economic benefit is important; that monitoring practices be systematized at an early stage of the process to ensure comparable results useful in informing ongoing management practices; and that what an assessment measures and how it measures it be clarified with reference to an objective source. Finally, the number of factors for consideration in any impact assessment means that measurement of the full picture suffers resource constraints, emphasizing the need for impact assessment oversight to recognize the deficiencies of the process whilst still acknowledging that ‘some number is better than no number’.
- Full Text:
- Date Issued: 2011
A critical analysis of the South African Revenue Service (SARS) dispute resolution process
- Authors: Olivier, Carl Hendré
- Date: 2018
- Subjects: South African Revenue Service , Conflict management Civil procedure -- Trials, litigation, etc Dispute resolution (Law) -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10948/23011 , vital:30294
- Description: The SARS dispute resolution process was developed to ensure disputes are resolved in a constitutional manner (i.e. fair, accountable and efficient). The aim of this study was to investigate whether the dispute resolution process adheres to the constitutional requirements as required in terms of section 195 of the Constitution. The study summarised the rules of the dispute process in the various stages (i.e. assessment / discovery stage, objection stage, appeal stage and the litigation stage). The litigation stage was considered to be out of the scope for the study. Using the summary, the significant processes were identified based on set criteria for detailed analysis. The significant processes identified were:Prescribed form and manner, date of delivery and objection against an assessment and extension of time periods, Reasons for assessment, Appeal against rejection of an objection Each of the significant processes was analysed in detail by considering the treatment of the processes in various cases in the courts. Based on the analysis, the following conclusions were reached on the significant processes:Prescribed form and manner, objection against an assessment and extension of time periods – This process was considered to be flawed since the process does not provide for the SARS to be responsible for clerical or processing errors. It was recommended that the taxpayer should not be bound by the set timelines should the SARS issue an assessment which contains clerical or processing errors. It was also noted that there are no set rules when there is evidence of fraud, misrepresentation or non-disclosure of material facts in the case and it was recommended that set rules be included in the rules and the TAA to address the consequences, prescription period and processes surrounding cases where fraud, misrepresentation or non-disclosure of material facts is present. Reasons for assessment – The process was considered to be adequate, however it was recommended that the process be improved by including a set criteria for the SARS to comply with when providing reasons for an assessment to the taxpayer., Appeal against rejection of an objection – The process was considered to be adequate. Based on the findings, the conclusion was drawn that the dispute resolution process is considered to be adequate and constitutional with some reservations.
- Full Text:
- Date Issued: 2018
- Authors: Olivier, Carl Hendré
- Date: 2018
- Subjects: South African Revenue Service , Conflict management Civil procedure -- Trials, litigation, etc Dispute resolution (Law) -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10948/23011 , vital:30294
- Description: The SARS dispute resolution process was developed to ensure disputes are resolved in a constitutional manner (i.e. fair, accountable and efficient). The aim of this study was to investigate whether the dispute resolution process adheres to the constitutional requirements as required in terms of section 195 of the Constitution. The study summarised the rules of the dispute process in the various stages (i.e. assessment / discovery stage, objection stage, appeal stage and the litigation stage). The litigation stage was considered to be out of the scope for the study. Using the summary, the significant processes were identified based on set criteria for detailed analysis. The significant processes identified were:Prescribed form and manner, date of delivery and objection against an assessment and extension of time periods, Reasons for assessment, Appeal against rejection of an objection Each of the significant processes was analysed in detail by considering the treatment of the processes in various cases in the courts. Based on the analysis, the following conclusions were reached on the significant processes:Prescribed form and manner, objection against an assessment and extension of time periods – This process was considered to be flawed since the process does not provide for the SARS to be responsible for clerical or processing errors. It was recommended that the taxpayer should not be bound by the set timelines should the SARS issue an assessment which contains clerical or processing errors. It was also noted that there are no set rules when there is evidence of fraud, misrepresentation or non-disclosure of material facts in the case and it was recommended that set rules be included in the rules and the TAA to address the consequences, prescription period and processes surrounding cases where fraud, misrepresentation or non-disclosure of material facts is present. Reasons for assessment – The process was considered to be adequate, however it was recommended that the process be improved by including a set criteria for the SARS to comply with when providing reasons for an assessment to the taxpayer., Appeal against rejection of an objection – The process was considered to be adequate. Based on the findings, the conclusion was drawn that the dispute resolution process is considered to be adequate and constitutional with some reservations.
- Full Text:
- Date Issued: 2018
A critical analysis of the South African turnover tax system
- Authors: Chiromo, Samuel John
- Date: 2020
- Subjects: Small business -- Taxation -- South Africa , Small business -- South Africa -- Finance , Turnover tax -- South Africa , Government aid to small business -- South Africa , Tax incentives -- South Africa
- Language: English
- Type: text , Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10962/166103 , vital:41329
- Description: The objective of the turnover tax system is to reduce the administrative burden on micro businesses and to contribute positively to boosting these businesses and the economic growth of South Africa. The over-arching goal of this research was to analyse the South African turnover tax to investigate to what extent the turnover tax system complies with generally accepted principles of a good tax system. The research was conducted within an interpretative post-positivism paradigm, applied a qualitative research methodology, and a doctrinal research method. A detailed review of the literature was conducted to establish the nature of South African turnover tax system and the extent of its compliance with generally accepted principles of a good tax system. The literature review included an in-depth analysis of the South African turnover tax system, an in-depth analysis of generally accepted principles of a good tax system, and an investigation of the extent to which turnover tax system complies with various elements of the principles of a good tax system. It was found in this study that the turnover tax system does not comply with certain of the elements of generally accepted principles of a good tax system and the study proposed several recommendations for the improvement of the turnover tax system. These recommendations include the establishment of training initiatives for micro business owners, reviewing the regulations pertaining to turnover tax and providing digital administration of turnover tax.
- Full Text:
- Date Issued: 2020
- Authors: Chiromo, Samuel John
- Date: 2020
- Subjects: Small business -- Taxation -- South Africa , Small business -- South Africa -- Finance , Turnover tax -- South Africa , Government aid to small business -- South Africa , Tax incentives -- South Africa
- Language: English
- Type: text , Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10962/166103 , vital:41329
- Description: The objective of the turnover tax system is to reduce the administrative burden on micro businesses and to contribute positively to boosting these businesses and the economic growth of South Africa. The over-arching goal of this research was to analyse the South African turnover tax to investigate to what extent the turnover tax system complies with generally accepted principles of a good tax system. The research was conducted within an interpretative post-positivism paradigm, applied a qualitative research methodology, and a doctrinal research method. A detailed review of the literature was conducted to establish the nature of South African turnover tax system and the extent of its compliance with generally accepted principles of a good tax system. The literature review included an in-depth analysis of the South African turnover tax system, an in-depth analysis of generally accepted principles of a good tax system, and an investigation of the extent to which turnover tax system complies with various elements of the principles of a good tax system. It was found in this study that the turnover tax system does not comply with certain of the elements of generally accepted principles of a good tax system and the study proposed several recommendations for the improvement of the turnover tax system. These recommendations include the establishment of training initiatives for micro business owners, reviewing the regulations pertaining to turnover tax and providing digital administration of turnover tax.
- Full Text:
- Date Issued: 2020