An investigation into the introduction of a new wealth tax in South Africa
- Authors: Arendse, Jacqueline A
- Date: 2018
- Subjects: Wealth tax -- Law and legislation -- South Africa , Taxation -- Law and legislation -- South Africa , Income tax -- South Africa , Fiscal policy -- South Africa , South Africa -- Economic conditions , Income distribution -- South Africa
- Language: English
- Type: text , Thesis , Doctoral , PhD
- Identifier: http://hdl.handle.net/10962/61379 , vital:28020
- Description: In a world of economic uncertainty and manifold social problems, South Africa has its own unique challenges of low economic growth, persistent budget deficits that produce increasing government debt and the highest level of economic inequality in the world. The history of injustice and economic marginalisation and the failure of the economy to provide inclusive growth drives an urgent need to address economic inequality through tax policy, placing ever more focus on wealth taxes as a possible solution. There is a hope is that taxing the wealthy may provide the opportunity to redistribute desperately-needed resources to those denied the opportunity to build wealth and who are trapped in the cycle of poverty. Yet, as appealing as a new wealth tax may seem, the introduction of such a tax carries with it a range of risks, not all of which are known. Of great concern is the possible effect on the economy, which, in its vulnerable state, cannot afford any loss of capital and investment. Very little research has been done on wealth tax in the South African context and there is a dearth of literature focusing on the views and perceptions of the wealthy individuals themselves. This qualitative study investigates the merits and disadvantages of a new wealth tax and seeks to identify any unintended consequences that could result from the implementation of a new wealth tax in South Africa, drawing from historical and international experience and primary data obtained from interviews with individuals likely to be affected by such a tax. Having explored the literature and international experiences with wealth tax and having probed the thinking of wealthy individuals who would be the payers of a wealth tax, the study finds that a new wealth tax may contribute towards the progressivity of the tax system, but it is doubtful whether such a tax would provide a sustainable revenue stream that would be sufficient to address economic inequality and there is a risk of causing harm to the economy. Recognising that the motivation for wealth taxes is often driven more by political argument and public perception than by rational quantitative analysis, the study also anticipates the introduction of a new wealth tax and suggests guidelines for the design of such a tax within the framework for evaluating a good tax system. This study informs the debate on wealth taxes in South Africa and contributes to the design of such a tax, should it be implemented.
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- Date Issued: 2018
Taxation of non-resident digital companies providing services in South Africa
- Authors: Shumba, Marilyn Tatenda
- Date: 2018
- Subjects: Electronic commerce Taxation Law and legislation South Africa , Value-added tax South Africa , Organisation for Economic Co-operation and Development , Taxation Law and legislation South Africa , Business enterprises, Foreign Taxation Law and legislation South Africa
- Language: English
- Type: text , Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10962/61680 , vital:28048
- Description: The role played by electronic commerce has increased in recent years and continues to increase. Due to this increase in the buying and selling of digital goods and services, revenue authorities have had to recognise that the existing taxation laws do not adequately tax the digital economy. The goal of this research was to establish how South Africa could amend its fiscal legislation in order to adequately tax the digital economy. The Organisation for Economic Co-Operation and Development (OECD) has been the leader in addressing the challenges posed by the digital economy. The thesis therefore focused on the recommendations by the OECD on how to tax the digital economy and relevant recommendations for South were adopted in this thesis, based on the work of the OECD. The main focus of these recommendations was on implementing the International VAT/GST Guidelines that were drafted by the OECD. The thesis also focused on the progress made by New Zealand with regard to taxing of the digital economy. New Zealand has a similar taxation system to South Africa so that the progress made there was relevant in the South African context. Recommendations were also made, based on the proposals by the New Zealand revenue authority that South Africa could adopt in taxing the digital economy. The main focus of these recommendations was lowering the Value-Added Tax (VAT) registration threshold for non-resident suppliers of electronic services and enacting legislation to provide for registration of an electronic marketplace for VAT purposes, instead of an individual supplier.
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- Date Issued: 2018
The tax consequences of income and expenses arising from illegal activities
- Authors: Singh, Shalona
- Date: 2018
- Subjects: South Africa. Income Tax Act, 1962 , Income tax South Africa , Tax evasion South Africa , Taxation Law and legislation South Africa Criminal provisions , Crime Economic aspects South Africa
- Language: English
- Type: text , Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10962/59456 , vital:27609
- Description: Income tax in South Africa is levied in terms of the Income Tax Act, 58 of 1962 (the South African Income Tax Act) on taxable income, which by definition, is arrived at by deducting from ''gross income" receipts and accruals that are exempt from tax as well as deductions and allowances provided for in the Act. The South African Income Tax Act provides no guidance with regard to the taxation of income and expenditure from illegal activities. In this mini thesis, case law and legislation is reviewed in an attempt to provide clarity on the tax consequences of income and expenses arising from illegal activities. An overview is provided of the taxation of income and expenditure in respect of illegal activities in the United States of America, Australia and New Zealand. Similarities are found between the American, Australian, New Zealand and South African tax regimes in relation to the taxation of income earned from illegal activities, but there appears to be more certainty in America, Australia and New Zealand with regard to the deduction of expenses arising from illegal activities. In South Africa, taxpayers earning income from ongoing illegal activities will, in principle, comply with the definition of “trade” as defined in section 1 of the South African Income Tax Act. However, this is contrary to the view of the South African Revenue Service that illegal activities do not meet the definition of “trade”, a viewpoint that may not hold if challenged in court. Recommendations are made for the amendment of the South African Income Tax Act to specifically provide for the inclusion in “gross income” of income from illegal activities and to prohibit the deduction of expenditure arising from illegal activities.
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- Date Issued: 2018