A common law view of "carrying on a trade"
- Authors: Mkonza, Qhinga Aidan
- Date: 2018
- Subjects: Business , Common law -- South Africa , Income tax -- South Africa , Agriculture -- Taxation -- South Africa , Property tax -- South Africa , Moneylenders -- Taxation -- South Africa
- Language: English
- Type: text , Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10962/60888 , vital:27883
- Description: The term “trade” is defined in very wide terms in the Income Tax Act and includes a “business” and a “venture”. For a taxpayer to claim certain deductions in arriving at taxable income, the taxpayer must be carrying on a trade. The expression “carrying on a trade” is not defined in the Income Tax Act. Whether or not a taxpayer is carrying on a trade is a matter of fact. Case law has established certain principles and tests to be applied in determining whether a taxpayer is carrying on a trade. The goal of the thesis was to determine to what extent an activity can be considered as carrying on a trade. This research focused on the letting of property, money-lending, or farming operations in relation to carrying on a trade or business or engaging in a venture. The thesis also discussed at what stage a taxpayer ceases to carry on a trade and what the tax consequences are of ceasing to trade. An interpretative research approach was used in the research as it sought to understand and describe. No interviews conducted for this research and the data used for the research are publicly available. It was established that “carrying on a trade”, including a business, requires an active step taken by the taxpayer to trade. It involves regularity of buying and selling or rendering of services. The intention to trade is important but it is a subjective matter and cannot be persuasive in determining whether a taxpayer is carrying on a trade; objective factors are also considered. If the stated intention to trade matches the actions of the taxpayer, the taxpayer will be considered to be carrying on a trade. In determining whether a taxpayer is carrying on a trade each case must be considered with its own merits.
- Full Text:
- Date Issued: 2018
- Authors: Mkonza, Qhinga Aidan
- Date: 2018
- Subjects: Business , Common law -- South Africa , Income tax -- South Africa , Agriculture -- Taxation -- South Africa , Property tax -- South Africa , Moneylenders -- Taxation -- South Africa
- Language: English
- Type: text , Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10962/60888 , vital:27883
- Description: The term “trade” is defined in very wide terms in the Income Tax Act and includes a “business” and a “venture”. For a taxpayer to claim certain deductions in arriving at taxable income, the taxpayer must be carrying on a trade. The expression “carrying on a trade” is not defined in the Income Tax Act. Whether or not a taxpayer is carrying on a trade is a matter of fact. Case law has established certain principles and tests to be applied in determining whether a taxpayer is carrying on a trade. The goal of the thesis was to determine to what extent an activity can be considered as carrying on a trade. This research focused on the letting of property, money-lending, or farming operations in relation to carrying on a trade or business or engaging in a venture. The thesis also discussed at what stage a taxpayer ceases to carry on a trade and what the tax consequences are of ceasing to trade. An interpretative research approach was used in the research as it sought to understand and describe. No interviews conducted for this research and the data used for the research are publicly available. It was established that “carrying on a trade”, including a business, requires an active step taken by the taxpayer to trade. It involves regularity of buying and selling or rendering of services. The intention to trade is important but it is a subjective matter and cannot be persuasive in determining whether a taxpayer is carrying on a trade; objective factors are also considered. If the stated intention to trade matches the actions of the taxpayer, the taxpayer will be considered to be carrying on a trade. In determining whether a taxpayer is carrying on a trade each case must be considered with its own merits.
- Full Text:
- Date Issued: 2018
A comparative study of tax incentives for small businesses and investors in small businesses in South Africa, Australia, New Zealand, Singapore and Ireland
- Authors: Horn, Edward Bennet
- Date: 2018
- Subjects: Small business -- Taxation -- South Africa , Small business -- South Africa -- Finance , Job creation -- South Africa , Government aid to small business -- South Africa , Tax incentives -- South Africa , Tax incentives -- Australia , Tax incentives -- New Zealand , Tax incentives -- Singapore , Tax incentives -- Ireland
- Language: English
- Type: text , Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10962/61669 , vital:28047
- Description: In the South African context, it is accepted that small businesses will be the vehicle for job creation and changing the current business ownership patterns. This is to be achieved by creating access to finance, exploring the role of venture capital and simplifying the tax obligations and the compliance burden. The literature indicates that the current South African tax incentives for small businesses are perceived as unfair and fundamentally ineffective. The objective of this thesis was to compare the tax incentives available to small businesses and investors in small businesses in South Africa to those available in Australia, New Zealand, Singapore and Ireland, in order to identify possible measures that could be introduced in South Africa. In addressing the objective, the research set out to provide, in terms of South African tax legislation, a definition of a small business for tax purposes and document the tax incentives available for start-up and existing small businesses, as well as the tax incentives available for investors in small businesses, either through a venture capital company or a direct investment in small business. It was found that South Africa has a complex and onerous multi-layered approach to classifying a taxpayer as either a “micro business” or a “small business corporation” for the purpose of applying tax incentives. The international jurisdictions included in this research follow a single requirement approach, based on either one or a combination of turnover, balance sheet total or staff headcount. The international jurisdictions provide a wide range of tax incentives to small businesses and investors in small businesses, aimed at reducing taxable income to enable the small businesses to grow and access equity finance. By identifying differences and similarities, a number of possible tax relief measures were recommended that could be introduced in South Africa.
- Full Text:
- Date Issued: 2018
- Authors: Horn, Edward Bennet
- Date: 2018
- Subjects: Small business -- Taxation -- South Africa , Small business -- South Africa -- Finance , Job creation -- South Africa , Government aid to small business -- South Africa , Tax incentives -- South Africa , Tax incentives -- Australia , Tax incentives -- New Zealand , Tax incentives -- Singapore , Tax incentives -- Ireland
- Language: English
- Type: text , Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10962/61669 , vital:28047
- Description: In the South African context, it is accepted that small businesses will be the vehicle for job creation and changing the current business ownership patterns. This is to be achieved by creating access to finance, exploring the role of venture capital and simplifying the tax obligations and the compliance burden. The literature indicates that the current South African tax incentives for small businesses are perceived as unfair and fundamentally ineffective. The objective of this thesis was to compare the tax incentives available to small businesses and investors in small businesses in South Africa to those available in Australia, New Zealand, Singapore and Ireland, in order to identify possible measures that could be introduced in South Africa. In addressing the objective, the research set out to provide, in terms of South African tax legislation, a definition of a small business for tax purposes and document the tax incentives available for start-up and existing small businesses, as well as the tax incentives available for investors in small businesses, either through a venture capital company or a direct investment in small business. It was found that South Africa has a complex and onerous multi-layered approach to classifying a taxpayer as either a “micro business” or a “small business corporation” for the purpose of applying tax incentives. The international jurisdictions included in this research follow a single requirement approach, based on either one or a combination of turnover, balance sheet total or staff headcount. The international jurisdictions provide a wide range of tax incentives to small businesses and investors in small businesses, aimed at reducing taxable income to enable the small businesses to grow and access equity finance. By identifying differences and similarities, a number of possible tax relief measures were recommended that could be introduced in South Africa.
- Full Text:
- Date Issued: 2018
A critical analysis of the deductibility of bad debts for income tax purposes
- Authors: Naidu, Aveshni
- Date: 2018
- Subjects: Collecting of accounts -- South Africa , Tax deductions -- South Africa , South Africa. Income Tax Act, 1962
- Language: English
- Type: text , Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10962/61712 , vital:28051
- Description: The objective of this thesis was to critically analyse the deductibility of bad debts for income tax purposes. This was achieved by applying a doctrinal research methodology to the data, which consisted of local and international legislation and case law, as well as other relevant writings. In setting out to achieve this primary objective, this thesis addressed certain subsidiary goals. The requirements of section 11 (i) of the South African Income Tax Act that provides for the deduction of bad debts were examined with reference to local case law, together with case law from selected international jurisdictions. To clarify the requirement of section 11 (i) that a debt must have become bad, this thesis set out to ascribe a meaning to the term “bad debt” which is currently not defined in the South African Income Tax Act and to ascertain the principles applicable in determining when a debt will be regarded as having become bad. The research also addressed the timing in relation to the identification of a debt as bad, as well as other commercial considerations. This research concluded that there is a need for further guidance in this area and provided brief recommendations that could provide more certainty in relation to the deductibility of bad debts.
- Full Text:
- Date Issued: 2018
- Authors: Naidu, Aveshni
- Date: 2018
- Subjects: Collecting of accounts -- South Africa , Tax deductions -- South Africa , South Africa. Income Tax Act, 1962
- Language: English
- Type: text , Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10962/61712 , vital:28051
- Description: The objective of this thesis was to critically analyse the deductibility of bad debts for income tax purposes. This was achieved by applying a doctrinal research methodology to the data, which consisted of local and international legislation and case law, as well as other relevant writings. In setting out to achieve this primary objective, this thesis addressed certain subsidiary goals. The requirements of section 11 (i) of the South African Income Tax Act that provides for the deduction of bad debts were examined with reference to local case law, together with case law from selected international jurisdictions. To clarify the requirement of section 11 (i) that a debt must have become bad, this thesis set out to ascribe a meaning to the term “bad debt” which is currently not defined in the South African Income Tax Act and to ascertain the principles applicable in determining when a debt will be regarded as having become bad. The research also addressed the timing in relation to the identification of a debt as bad, as well as other commercial considerations. This research concluded that there is a need for further guidance in this area and provided brief recommendations that could provide more certainty in relation to the deductibility of bad debts.
- Full Text:
- Date Issued: 2018
An analysis, from a South African case law perspective, of the deductibility of losses due to embezzlement, fraud, theft, damages and compensation
- Authors: Jachi, Adelaide Gamuchirai
- Date: 2018
- Subjects: South Africa. Income Tax Act, 1962 , Tax deductions -- South Africa , Taxation -- Law and legislation -- South Africa , Tax courts -- South Africa , Tax administration and procedure -- South Africa , Tax accounting -- South Africa , Income tax deductions for losses -- South Africa
- Language: English
- Type: text , Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10962/60855 , vital:27846
- Description: When calculating the income tax payable for a year of assessment, a taxpayer deducts from his or her or its income, allowable deductions in terms of the preamble to section 11 and section 11(a) as read with section 23(g) of the Income Tax Act, 58 of 1962. Amongst the expenditure and losses incurred by a taxpayer during a year of assessment, a claim may be sought for the deduction of losses incurred due to embezzlement, fraud and theft as well as damages and compensation. The requirements of the preamble and section 11(a) include the requirement that expenditure and losses must be incurred “in the production of the income”. Losses incurred due to defalcations, as well as expenditure on damages and compensation must satisfy this requirement to be allowed as deductions. The objective of the research was to analyse the judicial decisions dealing with “in the production of the income” in granting a deduction for income tax purposes in cases dealing with embezzlement, fraud and theft, and damages and compensation, to establish why the courts grant or disallow the deduction of expenditure and losses. A doctrinal research methodology was applied to the research. The provisions of the Income Tax Act, relevant case law relating to embezzlement, fraud and theft, and damages and compensation, and the contributions of the revenue authority and tax experts in articles of accredited journals, textbooks and other writings were analysed. The major conclusions drawn from the research were that losses due to defalcations are regarded as having been incurred “in the production of the income” if the taxpayer discharges the onus of proof that the risk of the act leading to misappropriation is an incidental risk of the business. Expenditure on damages and compensation is deductible provided the expense is attached to the performance of a business operation bona fide performed for the purpose of earning income and the expense is so closely connected with the business operation as to be regarded as part of the cost of performing it. Where negligence is attached to an expense or loss, the South African courts have held that negligence does not increase the likelihood of disallowing an expense or loss as not having been incurred “in the production of the income”.
- Full Text:
- Date Issued: 2018
- Authors: Jachi, Adelaide Gamuchirai
- Date: 2018
- Subjects: South Africa. Income Tax Act, 1962 , Tax deductions -- South Africa , Taxation -- Law and legislation -- South Africa , Tax courts -- South Africa , Tax administration and procedure -- South Africa , Tax accounting -- South Africa , Income tax deductions for losses -- South Africa
- Language: English
- Type: text , Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10962/60855 , vital:27846
- Description: When calculating the income tax payable for a year of assessment, a taxpayer deducts from his or her or its income, allowable deductions in terms of the preamble to section 11 and section 11(a) as read with section 23(g) of the Income Tax Act, 58 of 1962. Amongst the expenditure and losses incurred by a taxpayer during a year of assessment, a claim may be sought for the deduction of losses incurred due to embezzlement, fraud and theft as well as damages and compensation. The requirements of the preamble and section 11(a) include the requirement that expenditure and losses must be incurred “in the production of the income”. Losses incurred due to defalcations, as well as expenditure on damages and compensation must satisfy this requirement to be allowed as deductions. The objective of the research was to analyse the judicial decisions dealing with “in the production of the income” in granting a deduction for income tax purposes in cases dealing with embezzlement, fraud and theft, and damages and compensation, to establish why the courts grant or disallow the deduction of expenditure and losses. A doctrinal research methodology was applied to the research. The provisions of the Income Tax Act, relevant case law relating to embezzlement, fraud and theft, and damages and compensation, and the contributions of the revenue authority and tax experts in articles of accredited journals, textbooks and other writings were analysed. The major conclusions drawn from the research were that losses due to defalcations are regarded as having been incurred “in the production of the income” if the taxpayer discharges the onus of proof that the risk of the act leading to misappropriation is an incidental risk of the business. Expenditure on damages and compensation is deductible provided the expense is attached to the performance of a business operation bona fide performed for the purpose of earning income and the expense is so closely connected with the business operation as to be regarded as part of the cost of performing it. Where negligence is attached to an expense or loss, the South African courts have held that negligence does not increase the likelihood of disallowing an expense or loss as not having been incurred “in the production of the income”.
- Full Text:
- Date Issued: 2018
An exploration of whether using a global employment company could mitigate the South African tax risks in relation to inbound expatriates in multinational companies
- Authors: Pavey, Janet Gail
- Date: 2018
- Subjects: Double taxation -- South Africa , Corporations, Foreign -- South Africa , Foreign workers -- Taxation -- South Africa , International business enterprises -- South Africa , Corporations -- Taxation -- South Africa , Value-added tax -- Law and legislation -- South Africa
- Language: English
- Type: text , Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10962/61368 , vital:28019
- Description: The main objective of this research paper was to explore whether a multinational company could use a global employment company to employ its expatriates to mitigate, simplify or limit the tax risk for that foreign company when sending expatriates to South Africa. To investigate this topic, an interpretive research approach was used, a doctrinal research methodology was followed, and inductive reasoning was applied. The documentary data used in this research was publicly available. Firstly, the meaning of the term “expatriate” was explored, together with the types of employment arrangements commonly used to employ this type of employee. The South African tax consequences that an inbound expatriate may create for a multinational company were then analysed. These tax consequences were applied to the common types of employment arrangements to determine what the South African tax impact of these arrangements is likely to be and which entity within a multinational group is likely to be affected. It was investigated whether using a foreign global employment company provides any tax simplification or tax mitigation strategies for the multinational company for expatriates inbound to South Africa. The primary conclusions of this research were that it was found that using a global employment company may only provide a tax benefit in South Africa in very specific circumstances: (i) where the economic employer of the expatriate is the South African entity; (ii) where flexibility is required to easily move the expatriate to other jurisdictions; and (iii) where there are multiple home-host country combinations that the multinational group needs to consider when moving its expatriates. It would appear that using a global employment company as the employment arrangement for an inbound expatriate to South Africa may have a fairly limited application if its purpose is to mitigate tax risks. In effect, a global employment company is likely to provide tax benefits only where it acts as an international labour broker for the multinational company of which it is a part.
- Full Text:
- Date Issued: 2018
- Authors: Pavey, Janet Gail
- Date: 2018
- Subjects: Double taxation -- South Africa , Corporations, Foreign -- South Africa , Foreign workers -- Taxation -- South Africa , International business enterprises -- South Africa , Corporations -- Taxation -- South Africa , Value-added tax -- Law and legislation -- South Africa
- Language: English
- Type: text , Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10962/61368 , vital:28019
- Description: The main objective of this research paper was to explore whether a multinational company could use a global employment company to employ its expatriates to mitigate, simplify or limit the tax risk for that foreign company when sending expatriates to South Africa. To investigate this topic, an interpretive research approach was used, a doctrinal research methodology was followed, and inductive reasoning was applied. The documentary data used in this research was publicly available. Firstly, the meaning of the term “expatriate” was explored, together with the types of employment arrangements commonly used to employ this type of employee. The South African tax consequences that an inbound expatriate may create for a multinational company were then analysed. These tax consequences were applied to the common types of employment arrangements to determine what the South African tax impact of these arrangements is likely to be and which entity within a multinational group is likely to be affected. It was investigated whether using a foreign global employment company provides any tax simplification or tax mitigation strategies for the multinational company for expatriates inbound to South Africa. The primary conclusions of this research were that it was found that using a global employment company may only provide a tax benefit in South Africa in very specific circumstances: (i) where the economic employer of the expatriate is the South African entity; (ii) where flexibility is required to easily move the expatriate to other jurisdictions; and (iii) where there are multiple home-host country combinations that the multinational group needs to consider when moving its expatriates. It would appear that using a global employment company as the employment arrangement for an inbound expatriate to South Africa may have a fairly limited application if its purpose is to mitigate tax risks. In effect, a global employment company is likely to provide tax benefits only where it acts as an international labour broker for the multinational company of which it is a part.
- Full Text:
- Date Issued: 2018
Factors contributing to taxpayer morale: a multi-country perspective
- Authors: Kosiorek, Jakub
- Date: 2018
- Subjects: Taxpayer compliance -- South Africa , Tax evasion -- South Africa , Taxpayer compliance -- Social aspects -- South Africa , Taxpayer compliance -- Economic aspects -- South Africa , Tax morale -- South Africa
- Language: English
- Type: text , Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10962/60255 , vital:27759
- Description: Tax morale is the intrinsic motivation to pay taxes that arises either from a belief that one should contribute towards society by paying taxes or from a moral obligation to pay taxes. The goals of this thesis were to identify the various factors that influence tax morale in a country and use these factors in order to attempt to determine whether tax morale in South Africa has improved or deteriorated over the years. A further goal of this thesis was to identify strategies that could be implemented by a country in order to improve the tax morale of its citizens. The period covered by this thesis is between the years 2000 and 2015. The factors that have an effect on tax morale were identified by a review of the literature. It was found that a number of factors appear to have an impact on tax morale, but certain of these factors are incapable of being directly influenced by tax administrations. With regard to South Africa, it was found that a number of factors affecting tax morale appear to have improved over the years, while others had deteriorated. However, overall it appeared that tax morale in South Africa had deteriorated. With regard to strategies that could be used to improve tax morale, a number were identified by reviewing the literature and include strategies implemented in certain countries, as well as those discussed by scholars. Ii was found that South Africa had implemented a number of the strategies aimed at improving tax morale in its own tax system, but the manner in which some of them were implemented could have been improved. Furthermore, a number of strategies were identified that South Africa has not yet implemented and thus should look to attempting to implement these strategies to improve tax morale.
- Full Text:
- Date Issued: 2018
- Authors: Kosiorek, Jakub
- Date: 2018
- Subjects: Taxpayer compliance -- South Africa , Tax evasion -- South Africa , Taxpayer compliance -- Social aspects -- South Africa , Taxpayer compliance -- Economic aspects -- South Africa , Tax morale -- South Africa
- Language: English
- Type: text , Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10962/60255 , vital:27759
- Description: Tax morale is the intrinsic motivation to pay taxes that arises either from a belief that one should contribute towards society by paying taxes or from a moral obligation to pay taxes. The goals of this thesis were to identify the various factors that influence tax morale in a country and use these factors in order to attempt to determine whether tax morale in South Africa has improved or deteriorated over the years. A further goal of this thesis was to identify strategies that could be implemented by a country in order to improve the tax morale of its citizens. The period covered by this thesis is between the years 2000 and 2015. The factors that have an effect on tax morale were identified by a review of the literature. It was found that a number of factors appear to have an impact on tax morale, but certain of these factors are incapable of being directly influenced by tax administrations. With regard to South Africa, it was found that a number of factors affecting tax morale appear to have improved over the years, while others had deteriorated. However, overall it appeared that tax morale in South Africa had deteriorated. With regard to strategies that could be used to improve tax morale, a number were identified by reviewing the literature and include strategies implemented in certain countries, as well as those discussed by scholars. Ii was found that South Africa had implemented a number of the strategies aimed at improving tax morale in its own tax system, but the manner in which some of them were implemented could have been improved. Furthermore, a number of strategies were identified that South Africa has not yet implemented and thus should look to attempting to implement these strategies to improve tax morale.
- Full Text:
- Date Issued: 2018
Funding higher education and training in South Africa: a comparative study of tax incentive measures, in conjunction with a dedicated tax
- Authors: Holm, Darryn
- Date: 2018
- Subjects: Education, Higher -- Finance , Education, Higher -- South Africa , Tax incentives -- Law and legislation -- South Africa , Student aid -- South Africa , Universities and Colleges -- Taxation -- Law and legislation -- South Africa , South Africa. Income Tax Act, 1962
- Language: English
- Type: text , Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10962/59445 , vital:27606
- Description: Higher education and training in South Africa in the post-Apartheid era has never been more volatile than it is currently, some two decades into democracy. Despite the many advances and achievements of higher education, the student protests of 2015 and 2016 have given expression to underlying fault-lines, including increasing student expectations and frustrations with regard to access and funding. This research was undertaken to document the underlying historical issues and models pertaining to funding within the higher education and training sector as well as the existing higher education and training taxation policies and incentives enacted in South Africa and selected international jurisdictions. This was done with a view to providing a framework for higher education and training tax policy formation in South Africa to assist in meeting its higher education and training “access and affordability” targets as set out in the National Plan on Higher Education and the Higher Education White Paper, while at the same time not hindering economic growth. A doctrinal research methodology was adopted in this study as it mainly analysed and interpreted legislation and policy documents and therefore the approach was qualitative in nature. An extensive literature survey was done in order to document the various internationally selected legislated higher education and training tax policies and incentives. The literature indicated that there are widespread funding perspectives and initiates, and that international tax policies enacted with the aim of ensuring that higher education and training is more accessible and affordable to the public, is stable and effective in certain jurisdictions. It is submitted that while a higher education dedicated tax may not be sufficiently effective in South Africa, a combination of broad-based tax incentives will help to promote the change to a more affordable and stable higher education funding system, whilst not preventing growth through sustainable development.
- Full Text:
- Date Issued: 2018
- Authors: Holm, Darryn
- Date: 2018
- Subjects: Education, Higher -- Finance , Education, Higher -- South Africa , Tax incentives -- Law and legislation -- South Africa , Student aid -- South Africa , Universities and Colleges -- Taxation -- Law and legislation -- South Africa , South Africa. Income Tax Act, 1962
- Language: English
- Type: text , Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10962/59445 , vital:27606
- Description: Higher education and training in South Africa in the post-Apartheid era has never been more volatile than it is currently, some two decades into democracy. Despite the many advances and achievements of higher education, the student protests of 2015 and 2016 have given expression to underlying fault-lines, including increasing student expectations and frustrations with regard to access and funding. This research was undertaken to document the underlying historical issues and models pertaining to funding within the higher education and training sector as well as the existing higher education and training taxation policies and incentives enacted in South Africa and selected international jurisdictions. This was done with a view to providing a framework for higher education and training tax policy formation in South Africa to assist in meeting its higher education and training “access and affordability” targets as set out in the National Plan on Higher Education and the Higher Education White Paper, while at the same time not hindering economic growth. A doctrinal research methodology was adopted in this study as it mainly analysed and interpreted legislation and policy documents and therefore the approach was qualitative in nature. An extensive literature survey was done in order to document the various internationally selected legislated higher education and training tax policies and incentives. The literature indicated that there are widespread funding perspectives and initiates, and that international tax policies enacted with the aim of ensuring that higher education and training is more accessible and affordable to the public, is stable and effective in certain jurisdictions. It is submitted that while a higher education dedicated tax may not be sufficiently effective in South Africa, a combination of broad-based tax incentives will help to promote the change to a more affordable and stable higher education funding system, whilst not preventing growth through sustainable development.
- Full Text:
- Date Issued: 2018
The South African general anti-tax avoidance rule and lessons from the first world: a case law approach
- Pidduck, Teresa Michelle Calvert
- Authors: Pidduck, Teresa Michelle Calvert
- Date: 2018
- Subjects: Tax evasion -- South Africa , Taxpayer compliance -- South Africa , Taxation -- Law and legislation -- South Africa , South Africa. Income Tax Act, 1962 , Taxation -- Law and legislation -- Australia , Taxation -- Law and legislation -- Canada , Tax evasion -- Law and legislation -- South Africa , General anti-avoidance rule (GAAR)
- Language: English
- Type: text , Thesis , Doctoral , PhD
- Identifier: http://hdl.handle.net/10962/60328 , vital:27768
- Description: Tax avoidance has been a concern to revenue authorities since the time that the concept of tax was first introduced. Revenue authorities worldwide constantly strive to ensure taxpayer compliance, while combating impermissible tax avoidance. South Africa uses a general anti-avoidance rule (GAAR) as part of its arsenal to combat the increasingly innovative ways in which taxpayers seek to minimise their tax. However, the GAAR has been the source of much criticism and its effectiveness in combatting impermissible tax avoidance is untested in the courts. Therefore, the use of hindsight to criticise the GAAR is not possible. This study applied a qualitative approach to compare the South African, Australian and Canadian GAARs in order to propose changes which are intended to improve the efficacy of the South African GAAR. This research was performed by first comparing the three GAARs using a doctrinal research methodology and then applying the South African GAAR to the facts of selected cases from Australia and Canada in the form of reform-oriented research. In order to apply the South African GAAR to the facts of the cases a framework was developed in phase 1 of the research in order to ensure consistency in the application. This allowed for a more reliable analysis to be made regarding the areas where the South African GAAR could be improved. The convergence of results from the two research methodologies validated many of the suggestions made for the improvement of the South African GAAR This thesis examined the GAARs in South Africa, Australia and Canada with a view to identifying if there are any lessons to be learned for their application and interpretation, in order to suggest improvements which can be made to the South African GAAR. Further, relevant Australian and Canadian case law was found to be instructive as to the approach that could be adopted for purposes of applying the South African GAAR. The findings of the research revealed that while the South African, Australian and Canadian GAARs differ in their structure, each is directed to achieve the same end. The results of the study identified two types of improvements to the South African GAAR. Firstly, the South African GAAR should be consolidated into a three-part enquiry instead of the current four-part enquiry. In doing so the tainted elements (previously the abnormality requirement) could be used to inform an objective test of purpose. Secondly, guidance on areas of uncertainty regarding the application of the South African GAAR needs to be provided in order to prevent possible inconsistent judicial interpretations that may limit the efficacy of the GAAR whilst still protecting the right for taxpayers to legitimately minimise their tax burdens. One additional cause for concern highlighted in this research is the use of provisions from other jurisdictions without guidance on the application in the South African context. The use of similar provisions to that of its much-criticised predecessor has also introduced areas of uncertainty regarding the application of the South African GAAR. These areas of weakness and uncertainty arguably prevent the South African GAAR from being an effective deterrent to tax avoidance and many could be addressed by the legislature.
- Full Text:
- Date Issued: 2018
- Authors: Pidduck, Teresa Michelle Calvert
- Date: 2018
- Subjects: Tax evasion -- South Africa , Taxpayer compliance -- South Africa , Taxation -- Law and legislation -- South Africa , South Africa. Income Tax Act, 1962 , Taxation -- Law and legislation -- Australia , Taxation -- Law and legislation -- Canada , Tax evasion -- Law and legislation -- South Africa , General anti-avoidance rule (GAAR)
- Language: English
- Type: text , Thesis , Doctoral , PhD
- Identifier: http://hdl.handle.net/10962/60328 , vital:27768
- Description: Tax avoidance has been a concern to revenue authorities since the time that the concept of tax was first introduced. Revenue authorities worldwide constantly strive to ensure taxpayer compliance, while combating impermissible tax avoidance. South Africa uses a general anti-avoidance rule (GAAR) as part of its arsenal to combat the increasingly innovative ways in which taxpayers seek to minimise their tax. However, the GAAR has been the source of much criticism and its effectiveness in combatting impermissible tax avoidance is untested in the courts. Therefore, the use of hindsight to criticise the GAAR is not possible. This study applied a qualitative approach to compare the South African, Australian and Canadian GAARs in order to propose changes which are intended to improve the efficacy of the South African GAAR. This research was performed by first comparing the three GAARs using a doctrinal research methodology and then applying the South African GAAR to the facts of selected cases from Australia and Canada in the form of reform-oriented research. In order to apply the South African GAAR to the facts of the cases a framework was developed in phase 1 of the research in order to ensure consistency in the application. This allowed for a more reliable analysis to be made regarding the areas where the South African GAAR could be improved. The convergence of results from the two research methodologies validated many of the suggestions made for the improvement of the South African GAAR This thesis examined the GAARs in South Africa, Australia and Canada with a view to identifying if there are any lessons to be learned for their application and interpretation, in order to suggest improvements which can be made to the South African GAAR. Further, relevant Australian and Canadian case law was found to be instructive as to the approach that could be adopted for purposes of applying the South African GAAR. The findings of the research revealed that while the South African, Australian and Canadian GAARs differ in their structure, each is directed to achieve the same end. The results of the study identified two types of improvements to the South African GAAR. Firstly, the South African GAAR should be consolidated into a three-part enquiry instead of the current four-part enquiry. In doing so the tainted elements (previously the abnormality requirement) could be used to inform an objective test of purpose. Secondly, guidance on areas of uncertainty regarding the application of the South African GAAR needs to be provided in order to prevent possible inconsistent judicial interpretations that may limit the efficacy of the GAAR whilst still protecting the right for taxpayers to legitimately minimise their tax burdens. One additional cause for concern highlighted in this research is the use of provisions from other jurisdictions without guidance on the application in the South African context. The use of similar provisions to that of its much-criticised predecessor has also introduced areas of uncertainty regarding the application of the South African GAAR. These areas of weakness and uncertainty arguably prevent the South African GAAR from being an effective deterrent to tax avoidance and many could be addressed by the legislature.
- Full Text:
- Date Issued: 2018
- «
- ‹
- 1
- ›
- »