The effect of global e-commerce on taxation legislation and the permanent establishment concept in South Africa
- Authors: Young, Nikita Jade
- Date: 2013
- Subjects: Electronic commerce , Electronic commerce -- Taxation , Electronic commerce -- South Africa , Taxation -- Law and legislation -- South Africa , South African taxation , E-commerce , Permanent establishment , Foreign business entity
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:876 , http://hdl.handle.net/10962/d1001608 , Electronic commerce , Electronic commerce -- Taxation , Electronic commerce -- South Africa , Taxation -- Law and legislation -- South Africa
- Description: The objective of this thesis was to analyse the effect of the increasing popularity of global e-commerce on the South African legislative framework in respect of the taxation of non-resident enterprises, and to propose a possible solution for the taxation of e-commerce, taking into account previous theories. The methodology utilised comprised of a critical analysis of the legal rules relating to the taxation of a foreign entity's business profits by virtue of the application of the permanent establishment principle, its definition and evolution as a conceptual basis for taxation. Furthermore, an in depth evaluation of the various solutions that have already been proposed and, in some cases, implemented was undertaken. It was concluded that the application of the permanent establishment principle is wholly ineffective as a means to levy tax on the e-commerce business profits of a foreign entity as the principle relies too heavily upon a physical intermediary in the source state, whereas e-commerce transactions are conducted on the intangible trading platform of the Internet. In light of the numerous policy proposals advanced over the years, it was concluded that the most feasible and practical solution for the taxation of foreign e-commerce would be the imposition on a foreign entity in South Africa of a low withholding tax on the active business profits in excess of a pre-determined threshold. Key words: South African taxation; e-commerce; foreign business entity; permanent establishment; withholding tax
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- Authors: Young, Nikita Jade
- Date: 2013
- Subjects: Electronic commerce , Electronic commerce -- Taxation , Electronic commerce -- South Africa , Taxation -- Law and legislation -- South Africa , South African taxation , E-commerce , Permanent establishment , Foreign business entity
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:876 , http://hdl.handle.net/10962/d1001608 , Electronic commerce , Electronic commerce -- Taxation , Electronic commerce -- South Africa , Taxation -- Law and legislation -- South Africa
- Description: The objective of this thesis was to analyse the effect of the increasing popularity of global e-commerce on the South African legislative framework in respect of the taxation of non-resident enterprises, and to propose a possible solution for the taxation of e-commerce, taking into account previous theories. The methodology utilised comprised of a critical analysis of the legal rules relating to the taxation of a foreign entity's business profits by virtue of the application of the permanent establishment principle, its definition and evolution as a conceptual basis for taxation. Furthermore, an in depth evaluation of the various solutions that have already been proposed and, in some cases, implemented was undertaken. It was concluded that the application of the permanent establishment principle is wholly ineffective as a means to levy tax on the e-commerce business profits of a foreign entity as the principle relies too heavily upon a physical intermediary in the source state, whereas e-commerce transactions are conducted on the intangible trading platform of the Internet. In light of the numerous policy proposals advanced over the years, it was concluded that the most feasible and practical solution for the taxation of foreign e-commerce would be the imposition on a foreign entity in South Africa of a low withholding tax on the active business profits in excess of a pre-determined threshold. Key words: South African taxation; e-commerce; foreign business entity; permanent establishment; withholding tax
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Demographical diversity influence on online shopping orientation and propensity to buy online
- Authors: Tapson, Megan Jacqueline
- Date: 2010
- Subjects: Teleshopping -- South Africa , Electronic commerce -- South Africa , Consumer behavior -- South Africa -- Cross-cultural studies , Ethnicity -- South Africa , Ethnic attitudes -- South Africa , Consumer behavior -- South Africa
- Language: English
- Type: Thesis , Masters , MSocSc
- Identifier: vital:1168 , http://hdl.handle.net/10962/d1002784 , Teleshopping -- South Africa , Electronic commerce -- South Africa , Consumer behavior -- South Africa -- Cross-cultural studies , Ethnicity -- South Africa , Ethnic attitudes -- South Africa , Consumer behavior -- South Africa
- Description: Online shopping is a growing phenomenon all over the world, and it has thus had an influence on the shopping process for many consumers (Brengman et al., 2005:79; Brown et al., 2003:1667; Kau et al., 2003:139). Consumers are now choosing to shop online due to changes in their lifestyles and demographic diversity (Kau et al., 2003:139). The purpose of this research was to examine the extent to which demographic diversity influenced online shopping orientation and propensity to buy online. The researcher first conducted an in-depth theoretical study of previous research into demographic diversity, online shopping orientation and propensity to buy online. Next, the researcher conducted an empirical survey questionnaire, in order to assess the opinions of students at the three selected Eastern Cape universities. Phinney's (1992:156) multi-group ethnic identity measure was administered in order to identify how respondents feel about their ethnicity and/or how they react to their own ethnic group. Kau et al.,'s (2003) online shopping orientation measure was used to help identify six relevant online shopping factors. The six online shopping factors where then used to describe six online shopping orientation types. The main findings of this research conducted at three Universities in the Eastern Cape can be summarised as follows: Ethnic Identity Profile: - Within this research it was found that respondents at all three universities in general had a strong ethnic identity to their specified ethnic group, according to the two ethnic identity factors namely; commitment and exploration. Online Shopping Orientation Profile: - Within this research it was found that the respondents at all three universities in general could be categorised in one of six online shopping orientation types according to six online shopping factors. The extent to which demographic diversity influences types of online shopping orientation: - From the research hypotheses it was concluded that a relationship exists between demographic diversity and types of online shopping orientations, whereby the gender, race and ethnicity of respondent is likely to influence the way consumers shop online, namely the consumers‟ online shopping orientation. The extent to which demographic diversity influences propensity to buy online: - From the research hypotheses it was concluded that a relationship exists between demographic diversity and propensity to buy online, whereby the gender of respondents is likely to influence whether consumers buy online in the future. - From the research hypotheses it was concluded that no relationship exists between demographic diversity and propensity to buy online, whereby the race and ethnicity of respondents is not likely to influence whether consumers buy online in the future. The extent to which types of online shopping orientation influence propensity to buy online: - The findings suggest that different online shopping orientations have different propensities to buy online in the future. Hence, marketers should be aware of the online shopping orientations more likely to buy online in the future and focus their marketing programs on them. They should also try new ways to attract the online shopping orientations that may not buy online, in the hopes of changing their opinions and perceptions of the Internet and online shopping. South Africa, in particular, consists of multi-racial and diverse ethnic origins, which has resulted in a demographically diverse South African nation. Therefore, marketers need to develop a better understanding of consumers‟ online shopping orientation (Donthu and Garcia, 1999:57; Jayawardhena and Foley, 2000:19; Kau et al., 2003:140). Understanding consumers' online shopping orientation will assist marketers in being able to market to specific consumers and meet the needs of consumers effectively (Kau et al., 2003:140). Since demographic diversity influences the online shopping orientations of consumers, major opportunities for marketers will be provided by accommodating for a demographically diverse South African nation.
- Full Text:
- Authors: Tapson, Megan Jacqueline
- Date: 2010
- Subjects: Teleshopping -- South Africa , Electronic commerce -- South Africa , Consumer behavior -- South Africa -- Cross-cultural studies , Ethnicity -- South Africa , Ethnic attitudes -- South Africa , Consumer behavior -- South Africa
- Language: English
- Type: Thesis , Masters , MSocSc
- Identifier: vital:1168 , http://hdl.handle.net/10962/d1002784 , Teleshopping -- South Africa , Electronic commerce -- South Africa , Consumer behavior -- South Africa -- Cross-cultural studies , Ethnicity -- South Africa , Ethnic attitudes -- South Africa , Consumer behavior -- South Africa
- Description: Online shopping is a growing phenomenon all over the world, and it has thus had an influence on the shopping process for many consumers (Brengman et al., 2005:79; Brown et al., 2003:1667; Kau et al., 2003:139). Consumers are now choosing to shop online due to changes in their lifestyles and demographic diversity (Kau et al., 2003:139). The purpose of this research was to examine the extent to which demographic diversity influenced online shopping orientation and propensity to buy online. The researcher first conducted an in-depth theoretical study of previous research into demographic diversity, online shopping orientation and propensity to buy online. Next, the researcher conducted an empirical survey questionnaire, in order to assess the opinions of students at the three selected Eastern Cape universities. Phinney's (1992:156) multi-group ethnic identity measure was administered in order to identify how respondents feel about their ethnicity and/or how they react to their own ethnic group. Kau et al.,'s (2003) online shopping orientation measure was used to help identify six relevant online shopping factors. The six online shopping factors where then used to describe six online shopping orientation types. The main findings of this research conducted at three Universities in the Eastern Cape can be summarised as follows: Ethnic Identity Profile: - Within this research it was found that respondents at all three universities in general had a strong ethnic identity to their specified ethnic group, according to the two ethnic identity factors namely; commitment and exploration. Online Shopping Orientation Profile: - Within this research it was found that the respondents at all three universities in general could be categorised in one of six online shopping orientation types according to six online shopping factors. The extent to which demographic diversity influences types of online shopping orientation: - From the research hypotheses it was concluded that a relationship exists between demographic diversity and types of online shopping orientations, whereby the gender, race and ethnicity of respondent is likely to influence the way consumers shop online, namely the consumers‟ online shopping orientation. The extent to which demographic diversity influences propensity to buy online: - From the research hypotheses it was concluded that a relationship exists between demographic diversity and propensity to buy online, whereby the gender of respondents is likely to influence whether consumers buy online in the future. - From the research hypotheses it was concluded that no relationship exists between demographic diversity and propensity to buy online, whereby the race and ethnicity of respondents is not likely to influence whether consumers buy online in the future. The extent to which types of online shopping orientation influence propensity to buy online: - The findings suggest that different online shopping orientations have different propensities to buy online in the future. Hence, marketers should be aware of the online shopping orientations more likely to buy online in the future and focus their marketing programs on them. They should also try new ways to attract the online shopping orientations that may not buy online, in the hopes of changing their opinions and perceptions of the Internet and online shopping. South Africa, in particular, consists of multi-racial and diverse ethnic origins, which has resulted in a demographically diverse South African nation. Therefore, marketers need to develop a better understanding of consumers‟ online shopping orientation (Donthu and Garcia, 1999:57; Jayawardhena and Foley, 2000:19; Kau et al., 2003:140). Understanding consumers' online shopping orientation will assist marketers in being able to market to specific consumers and meet the needs of consumers effectively (Kau et al., 2003:140). Since demographic diversity influences the online shopping orientations of consumers, major opportunities for marketers will be provided by accommodating for a demographically diverse South African nation.
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