The fourth industrial revolution and human capital development
- Authors: Goldschmidt, Kyle
- Date: 2018
- Subjects: Technological innovations -- Economic aspects , Human capital , Intellectual capital , Economic development , Economic development -- Effect of education on , Fourth industrial revolution
- Language: English
- Type: text , Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10962/62483 , vital:28197
- Description: The focus of the Fourth Industrial Revolution has been on its implications on Human Capital and its need to develop “21st-Century Skills" through education to ensure future labour and capital complementarity. Human Capital combined with 21st-Century Skills, it is claimed, can together generate economic growth, jobs and propel an economy into the next Industrial Revolution. However, Schwab’s (2016) concept of the Fourth Industrial Revolution, make no distinction between the Average Worker and the Knowledge Elite and their relationship to each other and successful economic growth. The different nature of these skills is absent in the literature to date. A critical analysis of literature will be used to examine Schwab’s (2016) claim of a Fourth Industrial Revolution and assess how the Average Worker and the Knowledge Elite relate to the Fourth Industrial Revolution and 21st-Century Skills. The evidence is provided on how both the Average Worker and the Knowledge Elite are key contributors to economic growth and will be important in the Fourth Industrial Revolution.
- Full Text:
- Authors: Goldschmidt, Kyle
- Date: 2018
- Subjects: Technological innovations -- Economic aspects , Human capital , Intellectual capital , Economic development , Economic development -- Effect of education on , Fourth industrial revolution
- Language: English
- Type: text , Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10962/62483 , vital:28197
- Description: The focus of the Fourth Industrial Revolution has been on its implications on Human Capital and its need to develop “21st-Century Skills" through education to ensure future labour and capital complementarity. Human Capital combined with 21st-Century Skills, it is claimed, can together generate economic growth, jobs and propel an economy into the next Industrial Revolution. However, Schwab’s (2016) concept of the Fourth Industrial Revolution, make no distinction between the Average Worker and the Knowledge Elite and their relationship to each other and successful economic growth. The different nature of these skills is absent in the literature to date. A critical analysis of literature will be used to examine Schwab’s (2016) claim of a Fourth Industrial Revolution and assess how the Average Worker and the Knowledge Elite relate to the Fourth Industrial Revolution and 21st-Century Skills. The evidence is provided on how both the Average Worker and the Knowledge Elite are key contributors to economic growth and will be important in the Fourth Industrial Revolution.
- Full Text:
The impact of the cultural and creative industries on the economic growth and development of small cities and towns - guidelines for creating a regional cultural policy
- Authors: Ndhlovu, Raymond
- Date: 2018
- Subjects: Cultural industries -- South Africa , Cultural industries -- Economic aspects -- South Africa , Cultural policy , South Africa -- Economic conditions , Economic development -- South Africa -- Eastern Cape , South Africa. Department of Arts and Culture , Standard Bank National Arts Festival
- Language: English
- Type: text , Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10962/61524 , vital:28032
- Description: The arts and cultural sector has come under even more financial strain than it previously was, as it has to compete with other sectors of the economy for the very limited public funding that is available. It is in this context that the economic impact, and the role, of the arts and cultural sector towards advancing economic growth and development, needs be examined. This thesis investigates the potential for the positive impact of the cultural and creative industries (CCIs) on growth and development of small cities and towns. Furthermore, it also provides guidelines for the development of regional cultural policy in small cities and towns. The CCIs have also been touted as a catalyst for economic growth and economic development, hence the global rise in their interest. For example, the CCIs have been used to redevelop and revive urban areas that have been rundown. CCIs, however, tend to develop in clusters, and additionally, they cluster around large cities. However, the lack of reliance of some CCIs on long supply chains or high-technology inputs may make them suitable candidates for investment in small cities and towns. Additionally, the link that small cities and towns have with rural and isolated areas makes them potential engines for driving growth, development, as well as employment creation for these areas, given their decline as a result of the transition from the traditional agricultural economy, to the knowledge economy. As CCIs have the propensity to drive government’s macroeconomic objectives such as efficiency, equity, economic growth and job creation, it is necessary to develop cultural policy that regards this. The tendency of CCIs to cluster and develop around large cities inevitably means that very little research into cultural policy directed towards regions without large cities and towns has been done. By the same token, very little research has also been conducted on how to craft cultural policy for such areas. In order then, for cultural policy for regions without large cities and towns to be developed, it is necessary to investigate, and provide, guidelines on, how to develop cultural policy for such regions. As a case study, the Sarah Baartman District Municipality (SBDM) in the Eastern Cape was chosen. The SBDM has no large cities and towns, but the District Municipality has identified the CCIs as a potential growth sector, and is in the process of developing a regional cultural policy. The area also includes Grahamstown, which not only hosts the National Arts Festival, which is the largest arts event of its type in Africa, but is also piloting the “Creative City” project in South Africa. An audit and mapping study was conducted on the CCIs in the SBDM; this was based on a national mapping study commissioned by the Department of Arts and Culture. Further internet searches, as well as consultations with the provincial and regional Department of Arts of Culture, coupled with snowball sampling, also aided in the identification of CCIs, and consequently, the “creative hotspots” within the SBDM. Two random samples of stakeholders were chosen; the CCI owners and practitioners, as well as key stakeholders such as government officials, and interviews conducted with both groups, in order to get a first-hand perspective on the operations, activities, challenges, and opportunities that are faced by the CCIs. The study found that there were at least 441 CCIs in the SBDM, with two local municipalities (Dr. Beyers Naude and Makana) hosting the largest share of these (145 and 113 CCIs in each local municipality respectively), which indicates some support for the ‘clustering’ theory. It was also found that the local municipalities that had the largest number of CCIs also experienced better socio-economic welfare. Furthermore, based on the UNESCO Framework for Cultural Statistics (FCS) domains, the Visual Arts and Crafts; Information, Books and Press; and, Cultural Heritage domains were the largest domains represented in the SBDM. It was concluded that cultural policy that is developed, ought to take advantage of, and build on, these existing clusters, as well as the domains that are most prevalent in the region. To demonstrate the impact of cultural festivals on growth and development, a socio-economic impact study was undertaken at the 2016 National Arts Festival (NAF) in Grahamstown. Face to interviews, as well as self-completion questionnaires were used, with respondents at different venues, attending a variety of shows, and across a range of demographics, being interviewed, in order to get a representative sample of Festival attendees. It was found that the economic impact of the 2016 NAF on the city of Grahamstown was R94.4 million. Over and above the economic value of the NAF, it was also found that there were nonmarket benefits (social and intrinsic values) of the NAF, that included audience development, education of the arts and culture, social cohesion, and community development. The inability to directly track and measure social and intrinsic values proved to be a challenge. The study concluded that in order for successful cultural policy to be developed in regions without large cities and towns, it is first necessary to carry out a study to identify what resources are present, and where they are. Locating resources enables cluster identification - as clusters encourage comparative and competitive advantage, it is worthwhile to invest in areas where there are clusters. Therefore, in the allocation of scarce public funds, cultural policy needs to guide investment in to areas where established clusters indicate existing comparative advantage. In terms of equity and transformation, it is also necessary to evaluate labour markets and ownership patterns when developing cultural policy. Beyond the analysis of physical and human resources, the study also found that a crucial step towards developing successful cultural policy is identification of opportunities and challenges faced by the practitioners themselves; the policy ought to capitalise on the opportunities, whilst attempting to correct the challenges faced. Also of importance is aligning the proposed policy and its objectives with regional, provincial and national aims and objectives. Finally, it is important to include a monitoring and evaluation tool that will evaluate the performance of the policy against its stated aims and objectives.
- Full Text:
- Authors: Ndhlovu, Raymond
- Date: 2018
- Subjects: Cultural industries -- South Africa , Cultural industries -- Economic aspects -- South Africa , Cultural policy , South Africa -- Economic conditions , Economic development -- South Africa -- Eastern Cape , South Africa. Department of Arts and Culture , Standard Bank National Arts Festival
- Language: English
- Type: text , Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10962/61524 , vital:28032
- Description: The arts and cultural sector has come under even more financial strain than it previously was, as it has to compete with other sectors of the economy for the very limited public funding that is available. It is in this context that the economic impact, and the role, of the arts and cultural sector towards advancing economic growth and development, needs be examined. This thesis investigates the potential for the positive impact of the cultural and creative industries (CCIs) on growth and development of small cities and towns. Furthermore, it also provides guidelines for the development of regional cultural policy in small cities and towns. The CCIs have also been touted as a catalyst for economic growth and economic development, hence the global rise in their interest. For example, the CCIs have been used to redevelop and revive urban areas that have been rundown. CCIs, however, tend to develop in clusters, and additionally, they cluster around large cities. However, the lack of reliance of some CCIs on long supply chains or high-technology inputs may make them suitable candidates for investment in small cities and towns. Additionally, the link that small cities and towns have with rural and isolated areas makes them potential engines for driving growth, development, as well as employment creation for these areas, given their decline as a result of the transition from the traditional agricultural economy, to the knowledge economy. As CCIs have the propensity to drive government’s macroeconomic objectives such as efficiency, equity, economic growth and job creation, it is necessary to develop cultural policy that regards this. The tendency of CCIs to cluster and develop around large cities inevitably means that very little research into cultural policy directed towards regions without large cities and towns has been done. By the same token, very little research has also been conducted on how to craft cultural policy for such areas. In order then, for cultural policy for regions without large cities and towns to be developed, it is necessary to investigate, and provide, guidelines on, how to develop cultural policy for such regions. As a case study, the Sarah Baartman District Municipality (SBDM) in the Eastern Cape was chosen. The SBDM has no large cities and towns, but the District Municipality has identified the CCIs as a potential growth sector, and is in the process of developing a regional cultural policy. The area also includes Grahamstown, which not only hosts the National Arts Festival, which is the largest arts event of its type in Africa, but is also piloting the “Creative City” project in South Africa. An audit and mapping study was conducted on the CCIs in the SBDM; this was based on a national mapping study commissioned by the Department of Arts and Culture. Further internet searches, as well as consultations with the provincial and regional Department of Arts of Culture, coupled with snowball sampling, also aided in the identification of CCIs, and consequently, the “creative hotspots” within the SBDM. Two random samples of stakeholders were chosen; the CCI owners and practitioners, as well as key stakeholders such as government officials, and interviews conducted with both groups, in order to get a first-hand perspective on the operations, activities, challenges, and opportunities that are faced by the CCIs. The study found that there were at least 441 CCIs in the SBDM, with two local municipalities (Dr. Beyers Naude and Makana) hosting the largest share of these (145 and 113 CCIs in each local municipality respectively), which indicates some support for the ‘clustering’ theory. It was also found that the local municipalities that had the largest number of CCIs also experienced better socio-economic welfare. Furthermore, based on the UNESCO Framework for Cultural Statistics (FCS) domains, the Visual Arts and Crafts; Information, Books and Press; and, Cultural Heritage domains were the largest domains represented in the SBDM. It was concluded that cultural policy that is developed, ought to take advantage of, and build on, these existing clusters, as well as the domains that are most prevalent in the region. To demonstrate the impact of cultural festivals on growth and development, a socio-economic impact study was undertaken at the 2016 National Arts Festival (NAF) in Grahamstown. Face to interviews, as well as self-completion questionnaires were used, with respondents at different venues, attending a variety of shows, and across a range of demographics, being interviewed, in order to get a representative sample of Festival attendees. It was found that the economic impact of the 2016 NAF on the city of Grahamstown was R94.4 million. Over and above the economic value of the NAF, it was also found that there were nonmarket benefits (social and intrinsic values) of the NAF, that included audience development, education of the arts and culture, social cohesion, and community development. The inability to directly track and measure social and intrinsic values proved to be a challenge. The study concluded that in order for successful cultural policy to be developed in regions without large cities and towns, it is first necessary to carry out a study to identify what resources are present, and where they are. Locating resources enables cluster identification - as clusters encourage comparative and competitive advantage, it is worthwhile to invest in areas where there are clusters. Therefore, in the allocation of scarce public funds, cultural policy needs to guide investment in to areas where established clusters indicate existing comparative advantage. In terms of equity and transformation, it is also necessary to evaluate labour markets and ownership patterns when developing cultural policy. Beyond the analysis of physical and human resources, the study also found that a crucial step towards developing successful cultural policy is identification of opportunities and challenges faced by the practitioners themselves; the policy ought to capitalise on the opportunities, whilst attempting to correct the challenges faced. Also of importance is aligning the proposed policy and its objectives with regional, provincial and national aims and objectives. Finally, it is important to include a monitoring and evaluation tool that will evaluate the performance of the policy against its stated aims and objectives.
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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.
- Full Text:
- 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.
- Full Text:
Towards a threat assessment framework for consumer health wearables
- Authors: Mnjama, Javan Joshua
- Date: 2018
- Subjects: Activity trackers (Wearable technology) , Computer networks -- Security measures , Data protection , Information storage and retrieval systems -- Security systems , Computer security -- Software , Consumer Health Wearable Threat Assessment Framework , Design Science Research
- Language: English
- Type: text , Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10962/62649 , vital:28225
- Description: The collection of health data such as physical activity, consumption and physiological data through the use of consumer health wearables via fitness trackers are very beneficial for the promotion of physical wellness. However, consumer health wearables and their associated applications are known to have privacy and security concerns that can potentially make the collected personal health data vulnerable to hackers. These concerns are attributed to security theoretical frameworks not sufficiently addressing the entirety of privacy and security concerns relating to the diverse technological ecosystem of consumer health wearables. The objective of this research was therefore to develop a threat assessment framework that can be used to guide the detection of vulnerabilities which affect consumer health wearables and their associated applications. To meet this objective, the Design Science Research methodology was used to develop the desired artefact (Consumer Health Wearable Threat Assessment Framework). The framework is comprised of fourteen vulnerabilities classified according to Authentication, Authorization, Availability, Confidentiality, Non-Repudiation and Integrity. Through developing the artefact, the threat assessment framework was demonstrated on two fitness trackers and their associated applications. It was discovered, that the framework was able to identify how these vulnerabilities affected, these two test cases based on the classification categories of the framework. The framework was also evaluated by four security experts who assessed the quality, utility and efficacy of the framework. Experts, supported the use of the framework as a relevant and comprehensive framework to guide the detection of vulnerabilities towards consumer health wearables and their associated applications. The implication of this research study is that the framework can be used by developers to better identify the vulnerabilities of consumer health wearables and their associated applications. This will assist in creating a more securer environment for the storage and use of health data by consumer health wearables.
- Full Text:
- Authors: Mnjama, Javan Joshua
- Date: 2018
- Subjects: Activity trackers (Wearable technology) , Computer networks -- Security measures , Data protection , Information storage and retrieval systems -- Security systems , Computer security -- Software , Consumer Health Wearable Threat Assessment Framework , Design Science Research
- Language: English
- Type: text , Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10962/62649 , vital:28225
- Description: The collection of health data such as physical activity, consumption and physiological data through the use of consumer health wearables via fitness trackers are very beneficial for the promotion of physical wellness. However, consumer health wearables and their associated applications are known to have privacy and security concerns that can potentially make the collected personal health data vulnerable to hackers. These concerns are attributed to security theoretical frameworks not sufficiently addressing the entirety of privacy and security concerns relating to the diverse technological ecosystem of consumer health wearables. The objective of this research was therefore to develop a threat assessment framework that can be used to guide the detection of vulnerabilities which affect consumer health wearables and their associated applications. To meet this objective, the Design Science Research methodology was used to develop the desired artefact (Consumer Health Wearable Threat Assessment Framework). The framework is comprised of fourteen vulnerabilities classified according to Authentication, Authorization, Availability, Confidentiality, Non-Repudiation and Integrity. Through developing the artefact, the threat assessment framework was demonstrated on two fitness trackers and their associated applications. It was discovered, that the framework was able to identify how these vulnerabilities affected, these two test cases based on the classification categories of the framework. The framework was also evaluated by four security experts who assessed the quality, utility and efficacy of the framework. Experts, supported the use of the framework as a relevant and comprehensive framework to guide the detection of vulnerabilities towards consumer health wearables and their associated applications. The implication of this research study is that the framework can be used by developers to better identify the vulnerabilities of consumer health wearables and their associated applications. This will assist in creating a more securer environment for the storage and use of health data by consumer health wearables.
- Full Text:
Women’s perceptions of successful financial retirement planning
- Authors: Durrheim, Meghan
- Date: 2018
- Subjects: Women -- Retirement -- South Africa -- Makhanda , Retirement -- Planning , Retirement income -- Planning , Women -- Finance, Personal , Retired women -- Finance, Personal , Regression analysis
- Language: English
- Type: text , Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10962/60339 , vital:27771
- Description: Financial retirement planning is an important component in ensuring that individuals accumulate sufficient wealth for retirement. Previous research suggests that many individuals are unable to accumulate sufficient wealth for retirement with the problem being particularly acute for women as they tend to spend less time planning financially for retirement when compared to men. Consequently, many women are unable to accumulate sufficient wealth for retirement. Despite the growing need to investigate women’s financial retirement planning, much research tends to focus on financial retirement planning for males. Consequently, there is a growing need to investigate women’s perceptions of successful financial retirement planning, particularly in Grahamstown. After conducting an in-depth literature study and using the study done by Doa (2014), six independent variables were identified: values, time horizon, attitudes, working life-cycle, risk tolerance and financial literacy. These independent variables were identified as factors which could potentially influence women’s perceptions of successful financial retirement planning. A set of hypothesis were formulated to test the relationship between these independent variables and the dependent variable (women’s perceptions of successful financial retirement planning). The study comprised of 101 participants. A principle component analysis was performed to determine the key variables, with the relevant independent factors being renamed: cultural values, personal values, affective attitudes, time horizon knowledge, time horizon consideration, risk tolerance, financial literacy. An ordinal logit regression analysis was then conducted on these renamed variables to determine the influence of these key independent variables on the dependent variable. After controlling for a set of demographic variables the results of the ordinal logit regression analysis revealed that only affective attitudes, time horizon knowledge, and personal values had a significant relationship with women’s perceptions of successful financial retirement planning. Cronbach’s alpha revealed that the measuring instrument of the significant extracted factors was reliable, while Pearson product moment was used to determine correlations between extracted key independent variables and the dependent variable. The investigation into women’s perceptions of successful financial retirement planning enabled insightful information to be gathered which adds to the body of knowledge. In addition, recommendations were formulated in an attempt to assist women when making financial retirement decisions.
- Full Text:
- Authors: Durrheim, Meghan
- Date: 2018
- Subjects: Women -- Retirement -- South Africa -- Makhanda , Retirement -- Planning , Retirement income -- Planning , Women -- Finance, Personal , Retired women -- Finance, Personal , Regression analysis
- Language: English
- Type: text , Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10962/60339 , vital:27771
- Description: Financial retirement planning is an important component in ensuring that individuals accumulate sufficient wealth for retirement. Previous research suggests that many individuals are unable to accumulate sufficient wealth for retirement with the problem being particularly acute for women as they tend to spend less time planning financially for retirement when compared to men. Consequently, many women are unable to accumulate sufficient wealth for retirement. Despite the growing need to investigate women’s financial retirement planning, much research tends to focus on financial retirement planning for males. Consequently, there is a growing need to investigate women’s perceptions of successful financial retirement planning, particularly in Grahamstown. After conducting an in-depth literature study and using the study done by Doa (2014), six independent variables were identified: values, time horizon, attitudes, working life-cycle, risk tolerance and financial literacy. These independent variables were identified as factors which could potentially influence women’s perceptions of successful financial retirement planning. A set of hypothesis were formulated to test the relationship between these independent variables and the dependent variable (women’s perceptions of successful financial retirement planning). The study comprised of 101 participants. A principle component analysis was performed to determine the key variables, with the relevant independent factors being renamed: cultural values, personal values, affective attitudes, time horizon knowledge, time horizon consideration, risk tolerance, financial literacy. An ordinal logit regression analysis was then conducted on these renamed variables to determine the influence of these key independent variables on the dependent variable. After controlling for a set of demographic variables the results of the ordinal logit regression analysis revealed that only affective attitudes, time horizon knowledge, and personal values had a significant relationship with women’s perceptions of successful financial retirement planning. Cronbach’s alpha revealed that the measuring instrument of the significant extracted factors was reliable, while Pearson product moment was used to determine correlations between extracted key independent variables and the dependent variable. The investigation into women’s perceptions of successful financial retirement planning enabled insightful information to be gathered which adds to the body of knowledge. In addition, recommendations were formulated in an attempt to assist women when making financial retirement decisions.
- Full Text:
A comparative analysis of the new behaviours and terms introduced in the understatement penalty table in section 223 of the Tax Administration Act
- Authors: Doolan, Kim
- Date: 2017
- Subjects: South Africa. Tax Administration Act, 2011 , Taxation -- South Africa , Taxation -- Law and legislation -- South Africa , Tax administration and procedure -- Law and legislation -- South Africa , Tax penalties -- Law and legislation -- South Africa , Taxpayer compliance -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10962/5802 , vital:20977
- Description: The Tax Administration Act became effective on the 1 October 2012 and in Chapter 16 introduced the understatement penalty regime which replaced section 76 of the Income Tax Act. The understatement penalty is calculated by applying a percentage in terms of the table included in section 223 of the Tax Administration Act to the shortfall in tax giving rise to the imposition of the penalty. There are five behaviours reflected in the understatement penalty table in section 223, namely, “substantial understatement”, “reasonable care not taken in completing return”, “no reasonable grounds for tax position taken”, “gross negligence” and “intentional tax evasion”. “Substantial understatement” is the only behaviour defined in the Tax Administration Act. Section 222(1) of the Tax Administration Act requires SARS to impose the penalty reflected in the table in the event of an “understatement”, unless the “understatement” results from a “bona fide inadvertent error”. The term “bona fide inadvertent error” is not defined in the Tax Administration Act; neither is the term “obstructive”. The Memorandum on the Objects of the Tax Administration Laws Amendment Bill confirmed that guidance would be developed in this regard for the use of taxpayers and SARS officials. This guidance has not yet been released. Media reports express the view that the lack of definition of the behaviours is problematic for both SARS and taxpayers as the table is new and there is still room for interpretation and understanding of the meaning of each of the behaviours. The primary goal of this study was is to obtain a better understanding of the meaning of the new behaviours and terms introduced in the understatement penalty table. In addressing this main goal, the penalty tables and behaviours in legislation in New Zealand were compared to South Africa’s understatement penalty. The similarities and differences between the understatement penalty imposed in terms of Chapter 16 of the Tax Administration Act and the additional tax previously imposed in terms of section 76 of the Income Tax Act were also discussed to determine whether this would be of assistance in enabling a better understanding of the meaning of the behaviours and terms in section 223. Guidance on the interpretation of the various behaviours and terms was developed and a definition was proposed for the meaning of “bona fide inadvertent error” and “obstructive” to assist in the objective and consistent application of the understatement penalty table in relation to each shortfall identified. The proposed definition for “bona fide inadvertent error” is as follows: “An honest mistake made or simple oversight, which the taxpayer was not aware of, despite taking reasonable care and displaying a prudent attitude while making a genuine attempt to comply with all applicable tax obligations.” The definition for “obstructive” is proposed as: “Deliberately interfering with, causing difficulties (impeding) or delays in, or preventing the progress of a SARS audit or review.”
- Full Text:
- Authors: Doolan, Kim
- Date: 2017
- Subjects: South Africa. Tax Administration Act, 2011 , Taxation -- South Africa , Taxation -- Law and legislation -- South Africa , Tax administration and procedure -- Law and legislation -- South Africa , Tax penalties -- Law and legislation -- South Africa , Taxpayer compliance -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10962/5802 , vital:20977
- Description: The Tax Administration Act became effective on the 1 October 2012 and in Chapter 16 introduced the understatement penalty regime which replaced section 76 of the Income Tax Act. The understatement penalty is calculated by applying a percentage in terms of the table included in section 223 of the Tax Administration Act to the shortfall in tax giving rise to the imposition of the penalty. There are five behaviours reflected in the understatement penalty table in section 223, namely, “substantial understatement”, “reasonable care not taken in completing return”, “no reasonable grounds for tax position taken”, “gross negligence” and “intentional tax evasion”. “Substantial understatement” is the only behaviour defined in the Tax Administration Act. Section 222(1) of the Tax Administration Act requires SARS to impose the penalty reflected in the table in the event of an “understatement”, unless the “understatement” results from a “bona fide inadvertent error”. The term “bona fide inadvertent error” is not defined in the Tax Administration Act; neither is the term “obstructive”. The Memorandum on the Objects of the Tax Administration Laws Amendment Bill confirmed that guidance would be developed in this regard for the use of taxpayers and SARS officials. This guidance has not yet been released. Media reports express the view that the lack of definition of the behaviours is problematic for both SARS and taxpayers as the table is new and there is still room for interpretation and understanding of the meaning of each of the behaviours. The primary goal of this study was is to obtain a better understanding of the meaning of the new behaviours and terms introduced in the understatement penalty table. In addressing this main goal, the penalty tables and behaviours in legislation in New Zealand were compared to South Africa’s understatement penalty. The similarities and differences between the understatement penalty imposed in terms of Chapter 16 of the Tax Administration Act and the additional tax previously imposed in terms of section 76 of the Income Tax Act were also discussed to determine whether this would be of assistance in enabling a better understanding of the meaning of the behaviours and terms in section 223. Guidance on the interpretation of the various behaviours and terms was developed and a definition was proposed for the meaning of “bona fide inadvertent error” and “obstructive” to assist in the objective and consistent application of the understatement penalty table in relation to each shortfall identified. The proposed definition for “bona fide inadvertent error” is as follows: “An honest mistake made or simple oversight, which the taxpayer was not aware of, despite taking reasonable care and displaying a prudent attitude while making a genuine attempt to comply with all applicable tax obligations.” The definition for “obstructive” is proposed as: “Deliberately interfering with, causing difficulties (impeding) or delays in, or preventing the progress of a SARS audit or review.”
- Full Text:
A water footprint assessment of dryland pasture based dairy enterprise in the Eastern Cape: a case study
- Authors: Jenje, Paige
- Date: 2017
- Subjects: Water supply, Agricultural -- South Africa , Water supply, Agricultural -- Government policy -- South Africa , Water consumption -- Measurement -- South Africa , Water demand management -- South Africa , Water-supply -- Accounting -- South Africa , Cattle -- Water requirements -- South Africa -- Cast studies
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10962/5362 , vital:20917
- Description: Water scarcity continues to pose a threat to South Africa, with severe water scarcity predicted within the next fifty years. As a result, national interest has been sparked over the development of market based water resource allocation strategies to alleviate pressures on South Africa's freshwater resources, and ensure compliance with the National Water Act. Agriculture is the largest water user internationally and within South Africa, highlighting the importance of improving the water use efficiency within the industry. This study performed a full water footprint assessment (WFA) of a dryland pasture based dairy enterprise in the Eastern Cape. Following the guidelines of the WFA, this study calculated the blue, green and grey water footprints of dryland pasture based dairy production from crop- to-farm gate by assessing the water footprints of pasture production, bought in feed and concentrates, drinking water and servicing water processes over a period of five years. Following the accounting the of the water footprint, economic and environmental sustainability indicators were used along with the incorporation of the Water Risk Filter tool. This revealed that the case study farm was operating efficiently with the enterprise's highest water related risk being governmental regulation. Water footprint accounting results highlighted that green water was largest contributor to the overall water footprint of over 80%, and grey water contributed the least to the water footprint of dryland pasture based dairy production. Economic productivity results indicated that milk production is highly correlated with annual rainfall due to the breeding strategy undertaken by the farm. Results also indicated little correlation between the monthly water footprint and milk production, with the majority of the enterprise's milk production occurring in the last quarter regardless of the water footprint. The study demonstrated the relationship between the water footprint and economic land and water productivity, along with the value of milk to costs ratio which indicated that approximately R1.00 worth of costs generates between R1.80 and R2.06 value of milk. The sustainability indicators suggested that the farm's management of its effluent dam requires attention to meet the Department of Water and Sanitations effluent waste quality guidelines. The overall analysis of the water footprint suggested that the highest water related risk to dryland dairy production was regulatory risk. This risk suggests that the government cannot be relied upon for the management of freshwater resources within the study area, leaving the onus on the individual dairy farmers. As such, farmers should utilise the water footprint to formulate water stewardship programmes which have the potential to influence the regulation and protection of freshwater resources.
- Full Text:
- Authors: Jenje, Paige
- Date: 2017
- Subjects: Water supply, Agricultural -- South Africa , Water supply, Agricultural -- Government policy -- South Africa , Water consumption -- Measurement -- South Africa , Water demand management -- South Africa , Water-supply -- Accounting -- South Africa , Cattle -- Water requirements -- South Africa -- Cast studies
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10962/5362 , vital:20917
- Description: Water scarcity continues to pose a threat to South Africa, with severe water scarcity predicted within the next fifty years. As a result, national interest has been sparked over the development of market based water resource allocation strategies to alleviate pressures on South Africa's freshwater resources, and ensure compliance with the National Water Act. Agriculture is the largest water user internationally and within South Africa, highlighting the importance of improving the water use efficiency within the industry. This study performed a full water footprint assessment (WFA) of a dryland pasture based dairy enterprise in the Eastern Cape. Following the guidelines of the WFA, this study calculated the blue, green and grey water footprints of dryland pasture based dairy production from crop- to-farm gate by assessing the water footprints of pasture production, bought in feed and concentrates, drinking water and servicing water processes over a period of five years. Following the accounting the of the water footprint, economic and environmental sustainability indicators were used along with the incorporation of the Water Risk Filter tool. This revealed that the case study farm was operating efficiently with the enterprise's highest water related risk being governmental regulation. Water footprint accounting results highlighted that green water was largest contributor to the overall water footprint of over 80%, and grey water contributed the least to the water footprint of dryland pasture based dairy production. Economic productivity results indicated that milk production is highly correlated with annual rainfall due to the breeding strategy undertaken by the farm. Results also indicated little correlation between the monthly water footprint and milk production, with the majority of the enterprise's milk production occurring in the last quarter regardless of the water footprint. The study demonstrated the relationship between the water footprint and economic land and water productivity, along with the value of milk to costs ratio which indicated that approximately R1.00 worth of costs generates between R1.80 and R2.06 value of milk. The sustainability indicators suggested that the farm's management of its effluent dam requires attention to meet the Department of Water and Sanitations effluent waste quality guidelines. The overall analysis of the water footprint suggested that the highest water related risk to dryland dairy production was regulatory risk. This risk suggests that the government cannot be relied upon for the management of freshwater resources within the study area, leaving the onus on the individual dairy farmers. As such, farmers should utilise the water footprint to formulate water stewardship programmes which have the potential to influence the regulation and protection of freshwater resources.
- Full Text:
An analysis of the impact of financialization on commodity markets
- Authors: Ndawona, Takudzwa Maitaishe
- Date: 2017
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10962/7113 , vital:21218
- Description: An unprecedented increase in real commodity prices from 2002-2011 fuelled an intense debate as to the causes of the steep rise in prices and its possible implications for producers and consumers. On the one hand, the prolonged and dramatic rise in almost all commodity prices is attributed to growing demand from emerging market economies, supply shocks such as adverse weather conditions, export bans as well as other macroeconomic factors. Collectively these are known as the fundamental (demand and supply) factors. On the other hand, there is a growing body of evidence that suggests these fundamental factors alone are not sufficient enough to explain recent commodity price developments. It is noted that alongside changes in the fundamental factors, there was a major shift in trading activities on commodity derivative markets related to the increasing presence of financial investors, institutional investors and hedge funds. This had important effects, it is argued, on the microstructure of these markets and on price dynamics in a process termed “fmancialization”. Most of the empirical literature covers the period of rising commodity prices from 20022011. This study seeks to add to the existing literature by examining, in addition, the impact of financialization when commodity prices were falling from 2011-2015. Whereas the literature focuses mainly on the rise of agricultural commodity prices, the focus of this study is on metals, oil and bulk commodities (coal and iron ore). Two techniques are employed, namely the calculation of rolling correlations for futures and spot returns. Granger causality tests are then performed to examine the relationships between futures and spot prices. Rolling return correlations are calculated for i) different exchange- traded commodities and ii) exchange-traded commodities and bulk commodities not traded on exchanges. This is done to establish whether the increased correlations between different commodities found in the literature still hold now that commodity prices across all categories are falling. Granger causality tests are used in order to establish the link between the futures prices and spot prices both during the upswing period (2002-2011) and downswing period (2011-2015). It is found that rapidly growing indexed-based investment in commodity markets (financialization) during the upswing period is concurrent with increasingly correlated returns on the prices of unrelated commodities in both the futures and spot markets. These correlations decline during the period of falling commodity prices (2011-2015). This was a period in which the total amount of commodity assets under management fell sharply. This supports the a priori expectation that if the increased correlations of previously seemingly correlated and unrelated commodities during the upswing had been driven by financialization, the correlation would decline in the downturn. Granger causality results reveal statistically significant evidence of futures prices (returns) driving spot prices (returns) during the financialization period. However, post-financialization there is a shift to more bidirectional relationships. The study therefore concludes that, in addition to changing fundamental and macroeconomic factors, the financialization of commodity markets further drove the excessive and volatile price levels in commodity markets from 2002 to 2011.
- Full Text:
- Authors: Ndawona, Takudzwa Maitaishe
- Date: 2017
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10962/7113 , vital:21218
- Description: An unprecedented increase in real commodity prices from 2002-2011 fuelled an intense debate as to the causes of the steep rise in prices and its possible implications for producers and consumers. On the one hand, the prolonged and dramatic rise in almost all commodity prices is attributed to growing demand from emerging market economies, supply shocks such as adverse weather conditions, export bans as well as other macroeconomic factors. Collectively these are known as the fundamental (demand and supply) factors. On the other hand, there is a growing body of evidence that suggests these fundamental factors alone are not sufficient enough to explain recent commodity price developments. It is noted that alongside changes in the fundamental factors, there was a major shift in trading activities on commodity derivative markets related to the increasing presence of financial investors, institutional investors and hedge funds. This had important effects, it is argued, on the microstructure of these markets and on price dynamics in a process termed “fmancialization”. Most of the empirical literature covers the period of rising commodity prices from 20022011. This study seeks to add to the existing literature by examining, in addition, the impact of financialization when commodity prices were falling from 2011-2015. Whereas the literature focuses mainly on the rise of agricultural commodity prices, the focus of this study is on metals, oil and bulk commodities (coal and iron ore). Two techniques are employed, namely the calculation of rolling correlations for futures and spot returns. Granger causality tests are then performed to examine the relationships between futures and spot prices. Rolling return correlations are calculated for i) different exchange- traded commodities and ii) exchange-traded commodities and bulk commodities not traded on exchanges. This is done to establish whether the increased correlations between different commodities found in the literature still hold now that commodity prices across all categories are falling. Granger causality tests are used in order to establish the link between the futures prices and spot prices both during the upswing period (2002-2011) and downswing period (2011-2015). It is found that rapidly growing indexed-based investment in commodity markets (financialization) during the upswing period is concurrent with increasingly correlated returns on the prices of unrelated commodities in both the futures and spot markets. These correlations decline during the period of falling commodity prices (2011-2015). This was a period in which the total amount of commodity assets under management fell sharply. This supports the a priori expectation that if the increased correlations of previously seemingly correlated and unrelated commodities during the upswing had been driven by financialization, the correlation would decline in the downturn. Granger causality results reveal statistically significant evidence of futures prices (returns) driving spot prices (returns) during the financialization period. However, post-financialization there is a shift to more bidirectional relationships. The study therefore concludes that, in addition to changing fundamental and macroeconomic factors, the financialization of commodity markets further drove the excessive and volatile price levels in commodity markets from 2002 to 2011.
- Full Text:
An analysis on role of judges in interpreting tax legislation
- Authors: Chanhuwa, Mildred Kudzanai
- Date: 2017
- Subjects: Taxation -- Law and legislation -- South Africa , Law -- South Africa , Judicial discretion -- South Africa , Judicial opinion -- South Africa , Judges -- Attitudes -- South Africa , South Africa. Constitution of the Republic of South Africa, 1996
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10962/4289 , vital:20644
- Description: This thesis focusses on the role of judges as interpreters of tax legislation. It examines the role of judges by analysing how the perceptions of judges can impact on how they interpret legislation. It also analyses various other factors that play a role when judges interpret legislation, in an effort to answer the question to what extent do philosophical theories and interpretative approaches explain the role of judges as interpreters? Jurisprudential theories such as the natural law theory, positivist theories, and American realist theories are used to analyse how judges interpret and how theorists think judges should play their interpretational role. It is noted that in pre-constitutional South Africa the courts followed a positivist paradigm; as a result, the judges used a strict literal approach to interpretation. The new Constitution brought a change in the jurisprudential paradigm accepted in South Africa and has transformed how judges perceive and carry out their role as interpreters of legislation. Judges have now adopted the purposive value-laden approach as authoritative. As custodians of the Constitution, judges should interpret provisions against the values imposed by it. The purposive value-laden interpretational approach allows judges to take into account more considerations and to weigh a provision against the constitutional values. Other issues discussed pertain to how institutional guidelines such as the doctrine of precedent and separation of powers, to a lesser extent, play a role in how judges interpret the law. It is demonstrated that the doctrine of precedent does not limit the role of judges but rather contributes to maintaining certainty, predictability and coherence in the legal system. It is also noted that judicial discretion is the mechanism by which judges use extra-legal factors such as public policy and moral considerations to assist in interpreting legislation.
- Full Text:
- Authors: Chanhuwa, Mildred Kudzanai
- Date: 2017
- Subjects: Taxation -- Law and legislation -- South Africa , Law -- South Africa , Judicial discretion -- South Africa , Judicial opinion -- South Africa , Judges -- Attitudes -- South Africa , South Africa. Constitution of the Republic of South Africa, 1996
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10962/4289 , vital:20644
- Description: This thesis focusses on the role of judges as interpreters of tax legislation. It examines the role of judges by analysing how the perceptions of judges can impact on how they interpret legislation. It also analyses various other factors that play a role when judges interpret legislation, in an effort to answer the question to what extent do philosophical theories and interpretative approaches explain the role of judges as interpreters? Jurisprudential theories such as the natural law theory, positivist theories, and American realist theories are used to analyse how judges interpret and how theorists think judges should play their interpretational role. It is noted that in pre-constitutional South Africa the courts followed a positivist paradigm; as a result, the judges used a strict literal approach to interpretation. The new Constitution brought a change in the jurisprudential paradigm accepted in South Africa and has transformed how judges perceive and carry out their role as interpreters of legislation. Judges have now adopted the purposive value-laden approach as authoritative. As custodians of the Constitution, judges should interpret provisions against the values imposed by it. The purposive value-laden interpretational approach allows judges to take into account more considerations and to weigh a provision against the constitutional values. Other issues discussed pertain to how institutional guidelines such as the doctrine of precedent and separation of powers, to a lesser extent, play a role in how judges interpret the law. It is demonstrated that the doctrine of precedent does not limit the role of judges but rather contributes to maintaining certainty, predictability and coherence in the legal system. It is also noted that judicial discretion is the mechanism by which judges use extra-legal factors such as public policy and moral considerations to assist in interpreting legislation.
- Full Text:
An evaluation of appreciative inquiry as an alternative organisation development approach
- Van der Merwe, Schalk Willem
- Authors: Van der Merwe, Schalk Willem
- Date: 2017
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10962/5925 , vital:20990
- Description: The research provides an insight into the main challenges of previous Organisation Development processes, and Appreciative Inquiry is explored to establish the value it can offer as an alternative which minimises these challenges in today’s organisations. Organisation Development originated during the early 1950s and has evolved, adapted and changed dramatically since then. Two classical Organisation Development processes, Lewin’s 3-Step model and the Action Research spiral, are described, and typical challenges of applying them in today’s organisations are outlined. To remain competitive, organisations need to identify, adjust, and adapt to changing circumstances. These changing circumstances are constant and are due to increasingly complex demands from technological, economic, managerial, and cultural needs. Appreciative Inquiry as an approach is explored as an alternative Organisation Development process: it shifts the question from ‘what is going wrong’ to ‘what is going right in the organisation’. Appreciative Inquiry consists of the Discovery, Dream, Design and Destiny stages, and searches for the best in people and their organisations. In accordance with the constructionist paradigm, the research offers conclusions through the confirmation of past practices, conversations and relationships combined with creative new methods or experimentation of a positive intended future. The One- Group Pretest-Posttest, as a design, was selected to explore the effect of the variable (the Appreciative Inquiry intervention) in relation to the pre- and post-experimental evaluation. The design consists of an initial engagement (Pretest), the influencing variable (an Appreciative Inquiry intervention) and final engagement (Posttest) with the same group. The research was supported by a mixed method approach, with qualitative data supported by quantitative data. The quantitative data provided a general understanding of how participants experienced the change interventions. The qualitative data provided the information on how respondents experienced Organisation Development before an Appreciative Inquiry intervention and their views after an Appreciative Inquiry intervention. A South African secondary school was selected as a research site. Limited research is available regarding the application of Organisation Development and especially Appreciative Inquiry as a process in schools in general, and in South African schools in particular. A survey questionnaire was the instrument for collecting the quantitative data regarding the participants’ biographical information and change process perceptions. For the collection of qualitative data, interview questionnaires were used. The findings indicate that whereas previous change processes appear to have regarded the various staff levels of the school as separate entities, during the Appreciative Inquiry approach all staff were included as being an integral part of the organisation. The main finding after completion of the Appreciative Inquiry intervention was that collectively discussing and defining issues in a positive light instead of a problem to be solved changes the perspective of participants. Through the application of the Appreciative Inquiry’s four stages, participants were invited to think in a new way by applying innovation, enhancing participation, maintaining a positive core, and providing practical solutions through provocative statements. Conclusions reached from the research are that Appreciative Inquiry is a viable alternative for minimising Organisation Development challenges in contemporary organisations. The conclusions are based on factors such as understanding the reason for change; strong leadership; defining what is a successful intervention; understanding the Appreciative Inquiry process, the value of provocative statements; and the sustainability of change.
- Full Text:
- Authors: Van der Merwe, Schalk Willem
- Date: 2017
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10962/5925 , vital:20990
- Description: The research provides an insight into the main challenges of previous Organisation Development processes, and Appreciative Inquiry is explored to establish the value it can offer as an alternative which minimises these challenges in today’s organisations. Organisation Development originated during the early 1950s and has evolved, adapted and changed dramatically since then. Two classical Organisation Development processes, Lewin’s 3-Step model and the Action Research spiral, are described, and typical challenges of applying them in today’s organisations are outlined. To remain competitive, organisations need to identify, adjust, and adapt to changing circumstances. These changing circumstances are constant and are due to increasingly complex demands from technological, economic, managerial, and cultural needs. Appreciative Inquiry as an approach is explored as an alternative Organisation Development process: it shifts the question from ‘what is going wrong’ to ‘what is going right in the organisation’. Appreciative Inquiry consists of the Discovery, Dream, Design and Destiny stages, and searches for the best in people and their organisations. In accordance with the constructionist paradigm, the research offers conclusions through the confirmation of past practices, conversations and relationships combined with creative new methods or experimentation of a positive intended future. The One- Group Pretest-Posttest, as a design, was selected to explore the effect of the variable (the Appreciative Inquiry intervention) in relation to the pre- and post-experimental evaluation. The design consists of an initial engagement (Pretest), the influencing variable (an Appreciative Inquiry intervention) and final engagement (Posttest) with the same group. The research was supported by a mixed method approach, with qualitative data supported by quantitative data. The quantitative data provided a general understanding of how participants experienced the change interventions. The qualitative data provided the information on how respondents experienced Organisation Development before an Appreciative Inquiry intervention and their views after an Appreciative Inquiry intervention. A South African secondary school was selected as a research site. Limited research is available regarding the application of Organisation Development and especially Appreciative Inquiry as a process in schools in general, and in South African schools in particular. A survey questionnaire was the instrument for collecting the quantitative data regarding the participants’ biographical information and change process perceptions. For the collection of qualitative data, interview questionnaires were used. The findings indicate that whereas previous change processes appear to have regarded the various staff levels of the school as separate entities, during the Appreciative Inquiry approach all staff were included as being an integral part of the organisation. The main finding after completion of the Appreciative Inquiry intervention was that collectively discussing and defining issues in a positive light instead of a problem to be solved changes the perspective of participants. Through the application of the Appreciative Inquiry’s four stages, participants were invited to think in a new way by applying innovation, enhancing participation, maintaining a positive core, and providing practical solutions through provocative statements. Conclusions reached from the research are that Appreciative Inquiry is a viable alternative for minimising Organisation Development challenges in contemporary organisations. The conclusions are based on factors such as understanding the reason for change; strong leadership; defining what is a successful intervention; understanding the Appreciative Inquiry process, the value of provocative statements; and the sustainability of change.
- Full Text:
Carbon credit restoration projects in the Eastern Cape province of South Africa: considerations for sustainable local economic development
- Authors: Polak, James Samuel
- Date: 2017
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10962/8069 , vital:21349
- Description: Although global climate change has been identified as a serious global economic, social, and environmental threat to society, national governments have been slow to respond on a global scale. Environmental economic theory offers market-based solutions to address climate change efficiently through carbon control regimes, such as carbon taxation and cap-and-trade policy. A major political milestone was reached when an international agreement entered into force in 2008, known the Kyoto Protocol, which incorporated a market-based solution to address climate change on a global scale. This allowed a global market for emissions to form through the Clean Development Mechanism. Although the Kyoto Protocol aimed to address a global issue on a global scale through a single global market for emissions, fragmented sovereign cap-and-trade schemes have since emerged in the form of national and regional emission markets, commonly referred to as carbon markets. The Clean Development Mechanism offered the opportunity to generate carbon credits through carbon offset projects, such as carbon restoration projects. Although the Kyoto Protocol did not achieve the objective of forming an internationally accepted global carbon control regime, it seems to have set a trend of including offset programs in newly emerging carbon control regimes, such as South Africa’s proposed carbon tax. This study set out to assess the extent to which carbon control regimes are enabling sustainable local economic development, based on carbon restoration projects in the Eastern Cape province of South Africa using Portulacaria afra, commonly known as spekboom. As a starting point, this study assessed the current state of the international carbon markets using significant international cap-and-trade based markets as examples. Based on Newell et al.’s (2013) selection of significant carbon markets and data availability, the United States’ Regional Greenhouse Gas Initiative and the European Union’s Emission Trading Scheme were selected. Historical, current and forecasted supply and demand data were gathered from Thomson Reuters’ Point Carbon research division. Further, historical futures and spot market price and volume data were gathered from the markets to compare how prices have fared over time. The Clean Development Mechanism’s market for Certified Emission Reduction credits was used for comparative purposes. The markets were found to be systemically oversupplied, leading to systemically low prices. The systemic oversupply in credits provides a limited incentive to initiate carbon offset projects, however, South Africa’s proposed carbon tax may be able to stimulate demand for domestic offset projects. Key success factors established through a comparative literature review on local economic development theory were incorporated into key informant interviews. The results were then analysed through the lens of Connelly’s (2007) model for sustainable development to provide recommendations for sustainable local economic development, regarding carbon restoration projects in the Eastern Cape using P. afra. The following opportunities were identified: the planting of P. afra on degraded land has the potential to mitigate climate change, offer water benefits to the surrounding communities, and promote biodiversity regeneration. There is potential for economic growth through job creation and the economic multiplier effect. Government funding is available and voluntary offset agreements do exist, eliminating a large portion of the cumbersome accreditation requirements. These projects also offer potential for social justice through the government funding requirements which stipulate that youth and women should be given preference for employment, potentially helping to alleviate inequality. The funding further stipulates that employees should be trained in transferable skills, offering potential for capacity building and social capital accumulation through education. These transferable skills include skills geared towards encouraging entrepreneurialism. Corresponding challenges were also found: excessive overgrazing through pastoralism has rendered some land degraded beyond restoration. Opportunists may resort to planting P. afra outside of the subtropical Albany Thicket biome to which it is endemic, leading to potential biodiversity loss rather than gains. Sufficient buy-in is required from private landowners for these projects to be sustainable, however, the projects entail a large opportunity cost to farmers as returns take at least 5 to 6 years. This may render these projects undesirable to most landowners and provides scope for free-riding, should pastoralists not have to bear the full costs of the project and property rights not be enforced through land user agreements. The projects require an exorbitant amount of upfront funding. Cash flow received from the projects does not extend in perpetuity. Requirements for social justice pertain only to government funded projects. A working model, generating and selling carbon credits through land restoration using P. afra, has not yet been established. As it stands, these carbon restoration projects are still highly speculative and carry a significant amount of investment risk, given the high mortality and low growth rates associated with the current planting method. The current systemic oversupply of carbon. credits in the international markets signal that returns from carbon credits are set to be low, at least until the oversupply issues are resolved. Should these challenges be overcome, carbon restoration projects using P. afra may have the potential to bolster sustainable local economic development in the impoverished regions of province as well as provide a locally-driven adaptation and mitigation strategy to address global climate change.
- Full Text:
- Authors: Polak, James Samuel
- Date: 2017
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10962/8069 , vital:21349
- Description: Although global climate change has been identified as a serious global economic, social, and environmental threat to society, national governments have been slow to respond on a global scale. Environmental economic theory offers market-based solutions to address climate change efficiently through carbon control regimes, such as carbon taxation and cap-and-trade policy. A major political milestone was reached when an international agreement entered into force in 2008, known the Kyoto Protocol, which incorporated a market-based solution to address climate change on a global scale. This allowed a global market for emissions to form through the Clean Development Mechanism. Although the Kyoto Protocol aimed to address a global issue on a global scale through a single global market for emissions, fragmented sovereign cap-and-trade schemes have since emerged in the form of national and regional emission markets, commonly referred to as carbon markets. The Clean Development Mechanism offered the opportunity to generate carbon credits through carbon offset projects, such as carbon restoration projects. Although the Kyoto Protocol did not achieve the objective of forming an internationally accepted global carbon control regime, it seems to have set a trend of including offset programs in newly emerging carbon control regimes, such as South Africa’s proposed carbon tax. This study set out to assess the extent to which carbon control regimes are enabling sustainable local economic development, based on carbon restoration projects in the Eastern Cape province of South Africa using Portulacaria afra, commonly known as spekboom. As a starting point, this study assessed the current state of the international carbon markets using significant international cap-and-trade based markets as examples. Based on Newell et al.’s (2013) selection of significant carbon markets and data availability, the United States’ Regional Greenhouse Gas Initiative and the European Union’s Emission Trading Scheme were selected. Historical, current and forecasted supply and demand data were gathered from Thomson Reuters’ Point Carbon research division. Further, historical futures and spot market price and volume data were gathered from the markets to compare how prices have fared over time. The Clean Development Mechanism’s market for Certified Emission Reduction credits was used for comparative purposes. The markets were found to be systemically oversupplied, leading to systemically low prices. The systemic oversupply in credits provides a limited incentive to initiate carbon offset projects, however, South Africa’s proposed carbon tax may be able to stimulate demand for domestic offset projects. Key success factors established through a comparative literature review on local economic development theory were incorporated into key informant interviews. The results were then analysed through the lens of Connelly’s (2007) model for sustainable development to provide recommendations for sustainable local economic development, regarding carbon restoration projects in the Eastern Cape using P. afra. The following opportunities were identified: the planting of P. afra on degraded land has the potential to mitigate climate change, offer water benefits to the surrounding communities, and promote biodiversity regeneration. There is potential for economic growth through job creation and the economic multiplier effect. Government funding is available and voluntary offset agreements do exist, eliminating a large portion of the cumbersome accreditation requirements. These projects also offer potential for social justice through the government funding requirements which stipulate that youth and women should be given preference for employment, potentially helping to alleviate inequality. The funding further stipulates that employees should be trained in transferable skills, offering potential for capacity building and social capital accumulation through education. These transferable skills include skills geared towards encouraging entrepreneurialism. Corresponding challenges were also found: excessive overgrazing through pastoralism has rendered some land degraded beyond restoration. Opportunists may resort to planting P. afra outside of the subtropical Albany Thicket biome to which it is endemic, leading to potential biodiversity loss rather than gains. Sufficient buy-in is required from private landowners for these projects to be sustainable, however, the projects entail a large opportunity cost to farmers as returns take at least 5 to 6 years. This may render these projects undesirable to most landowners and provides scope for free-riding, should pastoralists not have to bear the full costs of the project and property rights not be enforced through land user agreements. The projects require an exorbitant amount of upfront funding. Cash flow received from the projects does not extend in perpetuity. Requirements for social justice pertain only to government funded projects. A working model, generating and selling carbon credits through land restoration using P. afra, has not yet been established. As it stands, these carbon restoration projects are still highly speculative and carry a significant amount of investment risk, given the high mortality and low growth rates associated with the current planting method. The current systemic oversupply of carbon. credits in the international markets signal that returns from carbon credits are set to be low, at least until the oversupply issues are resolved. Should these challenges be overcome, carbon restoration projects using P. afra may have the potential to bolster sustainable local economic development in the impoverished regions of province as well as provide a locally-driven adaptation and mitigation strategy to address global climate change.
- Full Text:
Credit extension in South Africa: an analysis of the impact of interest rates and income levels on the level of household debt
- Widdop, James Stuart Hailstones
- Authors: Widdop, James Stuart Hailstones
- Date: 2017
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10962/4988 , vital:20750
- Description: The recent growth in the unsecured lending market and the bankruptcy of African Bank Investments Limited have brought to light concerns regarding credit extension and the level of household indebtedness in South Africa. This study seeks to investigate the relevant aspects of credit extension in both the secured and unsecured lending markets by firstly analysing contemporary literature and then conducting a more formal empirical analysis. A VAR model is estimated to examine the effects household disposable income and interest rates have on the level of household debt in South Africa for the period 1995Q1-2015Q3. The empirical results indicate that there is no significant deterministic relationship between household disposable income and household debt. However, the results show that such a relationship does exist between interest rate and household debt. Finally, impulse response functions obtained from the VAR estimation are examined which indicate that both shocks too household disposable income and interest rates effect the level of household debt, but that this effect returns to equilibrium within six periods.
- Full Text:
- Authors: Widdop, James Stuart Hailstones
- Date: 2017
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10962/4988 , vital:20750
- Description: The recent growth in the unsecured lending market and the bankruptcy of African Bank Investments Limited have brought to light concerns regarding credit extension and the level of household indebtedness in South Africa. This study seeks to investigate the relevant aspects of credit extension in both the secured and unsecured lending markets by firstly analysing contemporary literature and then conducting a more formal empirical analysis. A VAR model is estimated to examine the effects household disposable income and interest rates have on the level of household debt in South Africa for the period 1995Q1-2015Q3. The empirical results indicate that there is no significant deterministic relationship between household disposable income and household debt. However, the results show that such a relationship does exist between interest rate and household debt. Finally, impulse response functions obtained from the VAR estimation are examined which indicate that both shocks too household disposable income and interest rates effect the level of household debt, but that this effect returns to equilibrium within six periods.
- Full Text:
Garnishee orders as a tax collection tool: a critical review of the South African and Zimbabwean models
- Authors: Nzombe, Kudzanayi
- Date: 2017
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10962/8082 , vital:21352
- Description: Taxation statues of most jurisdictions contain provisions that deal with defaulting taxpayers. The taxation statutes of Zimbabwe and South Africa have employed the concept of garnishee orders as a method of recovering tax. This method is codified in the respective taxation statutes under the guise of “third party appointments”, or simply “appointment of an agent”. This method is very convenient and expeditious for the tax collection authorities, namely, the Zimbabwe Revenue Authority (ZIMRA) and the South Africa Revenue Service (SARS). Other jurisdictions have also employed this method, with varying degrees of invasiveness into the taxpayers’ constitutional rights. The concept of garnishee orders can have negative constitutional implications for the taxpayers in both Zimbabwe and South Africa. In Zimbabwe, compared to South Africa, the tax collection field is not as developed in terms of jurisprudence and the legislation. There are lessons that Zimbabwe could learn from South Africa, considering that the latter has experienced more than two decades of constitutional democracy. Therefore, in order to identify areas for development, the two jurisdictions are critically reviewed, with particular attention to the legislative provisions and case law dealing with garnishee orders in the tax collection context. Approaches employed by other countries in relation to similar concepts and provisions are also analysed. The lessons learned from this analysis could suggest a less invasive method of recovering tax from defaulting taxpayers and an approach to be followed by the tax authorities, ZIMRA and SARS that would allow them to fulfil their responsibilities and mandate with taxpayer-friendly measures.
- Full Text:
- Authors: Nzombe, Kudzanayi
- Date: 2017
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10962/8082 , vital:21352
- Description: Taxation statues of most jurisdictions contain provisions that deal with defaulting taxpayers. The taxation statutes of Zimbabwe and South Africa have employed the concept of garnishee orders as a method of recovering tax. This method is codified in the respective taxation statutes under the guise of “third party appointments”, or simply “appointment of an agent”. This method is very convenient and expeditious for the tax collection authorities, namely, the Zimbabwe Revenue Authority (ZIMRA) and the South Africa Revenue Service (SARS). Other jurisdictions have also employed this method, with varying degrees of invasiveness into the taxpayers’ constitutional rights. The concept of garnishee orders can have negative constitutional implications for the taxpayers in both Zimbabwe and South Africa. In Zimbabwe, compared to South Africa, the tax collection field is not as developed in terms of jurisprudence and the legislation. There are lessons that Zimbabwe could learn from South Africa, considering that the latter has experienced more than two decades of constitutional democracy. Therefore, in order to identify areas for development, the two jurisdictions are critically reviewed, with particular attention to the legislative provisions and case law dealing with garnishee orders in the tax collection context. Approaches employed by other countries in relation to similar concepts and provisions are also analysed. The lessons learned from this analysis could suggest a less invasive method of recovering tax from defaulting taxpayers and an approach to be followed by the tax authorities, ZIMRA and SARS that would allow them to fulfil their responsibilities and mandate with taxpayer-friendly measures.
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Malawi’s trilemma: monetary policy independence, exchange rate stability and financial integration
- Authors: Kamamkhudza, Charity
- Date: 2017
- Subjects: Malawi -- Economic conditions , Economic policy -- Malawi , Monetary policy -- Malawi , Foreign exchange rates -- Malawi
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10962/41634 , vital:25112
- Description: Malawi has, in the last few decades, undergone several reforms relating to monetary, exchange rate and financial integration policies in a bid to achieve sustainable economic growth. Despite these reforms, however, the country has barely attained desirable macroeconomic performance. This study sets out to establish if the need for these policy reforms is due to the fact that the country is constrained from the simultaneous achievement of optimal levels of monetary policy independence, exchange rate stability and financial integration, as postulated by the ‘trilemma’. The trilemma is evaluated using an approach introduced by Aizenman et al. (2008), in which the Ordinary Least Squares (OLS) method is applied to a model in which a constant is regressed on indices constructed for the policy intermediate goals; the results indicate that the trilemma is a binding constraint in Malawi and that the largest trade-off is between exchange rate stability and financial integration. Given these constraints, the study also considers the combination of the trilemma intermediate policy goals that has been dominant in the country in the last three decades, using predicted values from the model and a graphical analysis to explore this objective. The analysis reveals that Malawi has, on average, prioritised exchange rate stability and monetary policy independence at the expense of financial integration. The study also assesses how the trilemma intermediate policy goals affect macroeconomic performance, specifically regarding output growth rate and inflation. The results reveal that exchange rate stability is associated with faster output growth, financial integration is associated with higher inflation, and that monetary policy independence is not a significant factor. The results emphasise the importance of consistent stability of the exchange rate if Malawi is to achieve faster and sustainable economic growth. Given this, policy makers must be cautious, as the current floating exchange rate regime, combined with financial integration, could lead to slow growth and high inflation.
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- Authors: Kamamkhudza, Charity
- Date: 2017
- Subjects: Malawi -- Economic conditions , Economic policy -- Malawi , Monetary policy -- Malawi , Foreign exchange rates -- Malawi
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10962/41634 , vital:25112
- Description: Malawi has, in the last few decades, undergone several reforms relating to monetary, exchange rate and financial integration policies in a bid to achieve sustainable economic growth. Despite these reforms, however, the country has barely attained desirable macroeconomic performance. This study sets out to establish if the need for these policy reforms is due to the fact that the country is constrained from the simultaneous achievement of optimal levels of monetary policy independence, exchange rate stability and financial integration, as postulated by the ‘trilemma’. The trilemma is evaluated using an approach introduced by Aizenman et al. (2008), in which the Ordinary Least Squares (OLS) method is applied to a model in which a constant is regressed on indices constructed for the policy intermediate goals; the results indicate that the trilemma is a binding constraint in Malawi and that the largest trade-off is between exchange rate stability and financial integration. Given these constraints, the study also considers the combination of the trilemma intermediate policy goals that has been dominant in the country in the last three decades, using predicted values from the model and a graphical analysis to explore this objective. The analysis reveals that Malawi has, on average, prioritised exchange rate stability and monetary policy independence at the expense of financial integration. The study also assesses how the trilemma intermediate policy goals affect macroeconomic performance, specifically regarding output growth rate and inflation. The results reveal that exchange rate stability is associated with faster output growth, financial integration is associated with higher inflation, and that monetary policy independence is not a significant factor. The results emphasise the importance of consistent stability of the exchange rate if Malawi is to achieve faster and sustainable economic growth. Given this, policy makers must be cautious, as the current floating exchange rate regime, combined with financial integration, could lead to slow growth and high inflation.
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Modelling the causality between FDI and Zimbabwe’s economic growth
- Authors: Mashamhanda, Tendai
- Date: 2017
- Subjects: Investments, Foreign -- Zimbabwe , Zimbabwe -- Economic conditions -- 1965-1980 , Zimbabwe -- Economic conditions -- 1980-
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10962/50260 , vital:25970
- Description: The study investigates the causal nexus between economic growth and FDI in Zimbabwe for the period spanning 1976 to 2011. The bounds testing approach to cointegration and Granger causality methodology was applied and results suggest a bi-directional causal relationship between FDI and economic growth in the long run. However, the causal effect from economic growth to FDI was weak. Domestic investment, human capital and trade openness were also found to be crucial determinants of economic growth in Zimbabwe. Implementing policies that promote inflow of FDI into Zimbabwe are recommended.
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- Authors: Mashamhanda, Tendai
- Date: 2017
- Subjects: Investments, Foreign -- Zimbabwe , Zimbabwe -- Economic conditions -- 1965-1980 , Zimbabwe -- Economic conditions -- 1980-
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10962/50260 , vital:25970
- Description: The study investigates the causal nexus between economic growth and FDI in Zimbabwe for the period spanning 1976 to 2011. The bounds testing approach to cointegration and Granger causality methodology was applied and results suggest a bi-directional causal relationship between FDI and economic growth in the long run. However, the causal effect from economic growth to FDI was weak. Domestic investment, human capital and trade openness were also found to be crucial determinants of economic growth in Zimbabwe. Implementing policies that promote inflow of FDI into Zimbabwe are recommended.
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The deductibility of damages and associated legal expenses for the purposes of determining taxable income in South Africa
- Authors: Madovi, Ezekiel
- Date: 2017
- Subjects: Income tax -- Law and legislation -- South Africa , Damages -- Taxation -- South Africa , South Africa. Income Tax Act, 1962
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10962/4344 , vital:20650
- Description: The deduction of damages and the associated legal costs must satisfy the requirements of the preamble to section 11 and section 11(a) of the Income Tax Act 58 of 1962, read with section 23(g) (referred to as the general deduction formula). This research examined under what circumstances a payer of damages and the associated legal costs would be able to claim a deduction from taxable income. This research also considered whether or not the issue of fault is a relevant consideration in determining whether a deduction should be allowed. In some cases the courts appear to have disallowed a deduction if the expenditure or loss was incurred as a result of a negligent or unlawful act. In other instances the courts have allowed the deduction of damages despite the expenditure or loss having been incurred as a result of a negligent or unlawful act. The research concludes that negligence is not a relevant consideration in the deduction of damages and the associated legal costs. In order to secure a claim for damages the taxpayer must prove that the expenditure was incurred in the production of income and it was expended for the purposes of trade. Associated legal costs are only deductible if the damages satisfy the requirements of section 11(c).
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- Authors: Madovi, Ezekiel
- Date: 2017
- Subjects: Income tax -- Law and legislation -- South Africa , Damages -- Taxation -- South Africa , South Africa. Income Tax Act, 1962
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10962/4344 , vital:20650
- Description: The deduction of damages and the associated legal costs must satisfy the requirements of the preamble to section 11 and section 11(a) of the Income Tax Act 58 of 1962, read with section 23(g) (referred to as the general deduction formula). This research examined under what circumstances a payer of damages and the associated legal costs would be able to claim a deduction from taxable income. This research also considered whether or not the issue of fault is a relevant consideration in determining whether a deduction should be allowed. In some cases the courts appear to have disallowed a deduction if the expenditure or loss was incurred as a result of a negligent or unlawful act. In other instances the courts have allowed the deduction of damages despite the expenditure or loss having been incurred as a result of a negligent or unlawful act. The research concludes that negligence is not a relevant consideration in the deduction of damages and the associated legal costs. In order to secure a claim for damages the taxpayer must prove that the expenditure was incurred in the production of income and it was expended for the purposes of trade. Associated legal costs are only deductible if the damages satisfy the requirements of section 11(c).
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The determinants of credit default swap spreads in emerging market economies
- Authors: Matakane, Lwazi
- Date: 2017
- Subjects: Bank loans -- BRIC countries , Risk management -- BRIC countries , Swaps (Finance) -- BRIC countries , BRIC countries -- Economic conditions , Rating agencies (Finance)
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10962/7142 , vital:21221
- Description: Emerging markets have become a destination for international portfolio flows as a result of global financial integration. This has allowed exogenous factors like sentiment and developed country monetary policy to affect developing countries capital markets and macroeconomic fundamentals. This study analyses the impact of investor sentiment alongside US monetary policy, country specific risks, inflation and domestic stock returns on the BRICS credit default spreads. To investigate this relationship, the study uses panel data and a fixed effects model. The results of the panel regressions suggest that all variables had an impact on the variation of BRICS credit default spreads however the crisis may have distorted the relationship among the variables. Sovereign ratings had an inverse relationship depicting a rise in ratings decreasing the credit default premium. This was in line with a priori expectations. Domestic company earnings also had an inverse relationship with BRCIS credit default premia, the magnitude of which is dependent on the value of the index. This is to say the higher the index, the more significant the effect on the BRICS default premium. US monetary policy was significant and in line with expectations of a linear relationship between emerging market credit default spreads when controlling for the crisis. In the crisis period however, results depicted an inverse relationship going against a priori expectations. The inflation variable was found to have a greater impact on CDS spreads during the crisis period, while the VIX index had a linear relationship with the default premia albeit the impact was not highly significant. The study concludes that the financial crisis was an important event that affected the relationship of these variables with BRICS country default spreads and had read through to market participant’s behaviour at the time.
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- Authors: Matakane, Lwazi
- Date: 2017
- Subjects: Bank loans -- BRIC countries , Risk management -- BRIC countries , Swaps (Finance) -- BRIC countries , BRIC countries -- Economic conditions , Rating agencies (Finance)
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10962/7142 , vital:21221
- Description: Emerging markets have become a destination for international portfolio flows as a result of global financial integration. This has allowed exogenous factors like sentiment and developed country monetary policy to affect developing countries capital markets and macroeconomic fundamentals. This study analyses the impact of investor sentiment alongside US monetary policy, country specific risks, inflation and domestic stock returns on the BRICS credit default spreads. To investigate this relationship, the study uses panel data and a fixed effects model. The results of the panel regressions suggest that all variables had an impact on the variation of BRICS credit default spreads however the crisis may have distorted the relationship among the variables. Sovereign ratings had an inverse relationship depicting a rise in ratings decreasing the credit default premium. This was in line with a priori expectations. Domestic company earnings also had an inverse relationship with BRCIS credit default premia, the magnitude of which is dependent on the value of the index. This is to say the higher the index, the more significant the effect on the BRICS default premium. US monetary policy was significant and in line with expectations of a linear relationship between emerging market credit default spreads when controlling for the crisis. In the crisis period however, results depicted an inverse relationship going against a priori expectations. The inflation variable was found to have a greater impact on CDS spreads during the crisis period, while the VIX index had a linear relationship with the default premia albeit the impact was not highly significant. The study concludes that the financial crisis was an important event that affected the relationship of these variables with BRICS country default spreads and had read through to market participant’s behaviour at the time.
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The effects of changing western worldviews on morals and ethics in economics: a protestant perspective
- Authors: Appalraju, Nerusha
- Date: 2017
- Subjects: Economics -- Moral and ethical aspects , Neoclassical school of economics , Capitalism -- Religious aspects -- Protestant churches , Feminist economics , Economics -- Religious aspects , Environmental economics -- Moral and ethical aspects , Smith, Adam, 1723-1790 , Weber, Max, 1864-1920
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10962/32480 , vital:24050
- Description: The World Economics Association held an online conference in 2012 where they published many papers on ethics in economics. The topic of ethics in economics became more serious and popular following the 2008 financial crisis. However the case for a professional code of ethics in economics is difficult to introduce and implement due to the multidisciplinary approach of the discipline. Therefore authors such as Dow (2012), De Martino (2012), Freeman (2012) and Earl (2012) urged economists to start thinking about ethics in economics from a pluralistic view. This thesis studied the effects of changing Western worldviews on morals and ethics in economics from a Protestant perspective. Numerous authoritative sources were considered and used to create a discussion and analysis of how diverse Western worldviews impact on the type of economics which is prescribed and practiced. It was found that different Western worldviews create various standards of understanding and evaluation, which result in varying opinions on what constitutes as morally or ethically acceptable within the discipline of economics.
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- Authors: Appalraju, Nerusha
- Date: 2017
- Subjects: Economics -- Moral and ethical aspects , Neoclassical school of economics , Capitalism -- Religious aspects -- Protestant churches , Feminist economics , Economics -- Religious aspects , Environmental economics -- Moral and ethical aspects , Smith, Adam, 1723-1790 , Weber, Max, 1864-1920
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10962/32480 , vital:24050
- Description: The World Economics Association held an online conference in 2012 where they published many papers on ethics in economics. The topic of ethics in economics became more serious and popular following the 2008 financial crisis. However the case for a professional code of ethics in economics is difficult to introduce and implement due to the multidisciplinary approach of the discipline. Therefore authors such as Dow (2012), De Martino (2012), Freeman (2012) and Earl (2012) urged economists to start thinking about ethics in economics from a pluralistic view. This thesis studied the effects of changing Western worldviews on morals and ethics in economics from a Protestant perspective. Numerous authoritative sources were considered and used to create a discussion and analysis of how diverse Western worldviews impact on the type of economics which is prescribed and practiced. It was found that different Western worldviews create various standards of understanding and evaluation, which result in varying opinions on what constitutes as morally or ethically acceptable within the discipline of economics.
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The illegal diamond trade in South Africa and its tax consequences
- Authors: Kumm-Schmidt, Megan
- Date: 2017
- Subjects: Diamond industry and trade -- South Africa , Diamond industry and trade -- Corrupt practices -- South Africa , Diamond industry and trade -- South Africa -- Taxation , Conflict diamonds -- South Africa , Income tax -- Law and legislation -- South Africa , Tax evasion -- South Africa , South Africa. Income Tax Act, 1962 , South Africa. Prevention and Combating of Corrupt Activities Act, 2004 , South Africa. Tax Administration Act, 2011 , South Africa. ǂt Value-Added Tax Act, 1991 , Kimberley Process Certification Scheme
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10962/4389 , vital:20656
- Description: The object of the research was to discuss the taxability of the illegal diamond trade in South Africa and to identify the consequences of not declaring income obtained from the illegal diamond trade to the South African Revenue Services. The research was conducted by means of a critical analysis of documentary data with specific reference to the Income Tax Act, the Value-Added Tax (VAT) Act, the Tax Administration Act and relevant case law. The Income Tax Act and the Value-Added Tax Act were referred to in relation to the tax consequences of the illegal diamond trade and the Tax Administration Act was used to determine the consequences of not declaring income to the South African Revenue Services. It was established that amounts received from the sale of illegal diamonds are to be included in the taxpayer's gross income, whilst in relation to income received from diamond theft it was not as clear. The MP Finance Group case held that the nature of the receipt and the way in which the transaction occurred in each individual situation will be the deciding factor as to whether or not the stolen diamonds will be taxable in the hands of the thief. The buying and selling of "blood" or stolen diamonds can amount to a trade. As there have been no definitive case decisions in South Africa, it remains unclear whether expenses relating to an illegal trade are deductible. Assuming that expenses relating to an illegal trade are deductible, the provisions of section 11(a) will apply to expenses incurred as a result of dealing in illegal diamonds and it was concluded that qualifying expenses will be deductible. A taxpayer buying and selling "blood" or stolen diamonds is required to register for VAT if sales exceed the threshold and would be required to account for VAT on these transactions. If the taxpayer does not declare the income for income tax purposes or register for and pay VAT to the South African Revenue Services from either the sale of illegal diamonds or the theft of diamonds, this will amount to tax evasion and the dealer will be subject to penalties and even imprisonment
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- Authors: Kumm-Schmidt, Megan
- Date: 2017
- Subjects: Diamond industry and trade -- South Africa , Diamond industry and trade -- Corrupt practices -- South Africa , Diamond industry and trade -- South Africa -- Taxation , Conflict diamonds -- South Africa , Income tax -- Law and legislation -- South Africa , Tax evasion -- South Africa , South Africa. Income Tax Act, 1962 , South Africa. Prevention and Combating of Corrupt Activities Act, 2004 , South Africa. Tax Administration Act, 2011 , South Africa. ǂt Value-Added Tax Act, 1991 , Kimberley Process Certification Scheme
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10962/4389 , vital:20656
- Description: The object of the research was to discuss the taxability of the illegal diamond trade in South Africa and to identify the consequences of not declaring income obtained from the illegal diamond trade to the South African Revenue Services. The research was conducted by means of a critical analysis of documentary data with specific reference to the Income Tax Act, the Value-Added Tax (VAT) Act, the Tax Administration Act and relevant case law. The Income Tax Act and the Value-Added Tax Act were referred to in relation to the tax consequences of the illegal diamond trade and the Tax Administration Act was used to determine the consequences of not declaring income to the South African Revenue Services. It was established that amounts received from the sale of illegal diamonds are to be included in the taxpayer's gross income, whilst in relation to income received from diamond theft it was not as clear. The MP Finance Group case held that the nature of the receipt and the way in which the transaction occurred in each individual situation will be the deciding factor as to whether or not the stolen diamonds will be taxable in the hands of the thief. The buying and selling of "blood" or stolen diamonds can amount to a trade. As there have been no definitive case decisions in South Africa, it remains unclear whether expenses relating to an illegal trade are deductible. Assuming that expenses relating to an illegal trade are deductible, the provisions of section 11(a) will apply to expenses incurred as a result of dealing in illegal diamonds and it was concluded that qualifying expenses will be deductible. A taxpayer buying and selling "blood" or stolen diamonds is required to register for VAT if sales exceed the threshold and would be required to account for VAT on these transactions. If the taxpayer does not declare the income for income tax purposes or register for and pay VAT to the South African Revenue Services from either the sale of illegal diamonds or the theft of diamonds, this will amount to tax evasion and the dealer will be subject to penalties and even imprisonment
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The impact of good news and bad news on South Africa’s sectoral stock return volatility: an asymmetric GARCH analysis
- Authors: Muzinda, Edmond Toreva
- Date: 2017
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10962/6425 , vital:21108
- Description: This study explores the impact of good news and bad news on South Africa’s sectoral stock return volatility using an asymmetric GARCH analysis. Understanding the different impact of news on stock return volatility in different economic sectors has important implications for investors’ risk management practices, portfolio allocation strategies and asset pricing. The study employs data of daily closing prices for nine sectors and three benchmark indices for the period 2nd January 1997 - 17th August 2016. The data was split into sub-samples of pre-, during and post-global financial crisis, as well as the overall sample period. The incorporation of sub-samples was to help explain the outcomes of the overall sample period. To capture the different impact of good news and bad news on stock return volatility for each sector, asymmetric GARCH models namely, TGARCH and EGARCH were employed. The findings from this study revealed that volatility asymmetry was present in all sectors and benchmark indices of South African equity market. Bad news had more impact on stock return volatility for all sectors except the Oil and Gas sector, than good news of the same magnitude. In the Oil and Gas sector, good news was found to have an amplified effect on return volatility compared with bad news of the same magnitude. High volatility persistence was also found to be present in the Consumer goods, Financials, Industrials, All-share index and Mid-cap index. High differential impact of good and bad news were found in the Industrials, Financials, Basic materials, Consumer goods and the All-share index. Since the main objective of this study was to provide explanations of volatility asymmetry found in the South African sectors, the following were proposed as possible explanations of the findings. Within sectors, volatility asymmetry was explained by financial leverage, the role of the media, loss-averse investors and the behaviour of traders (overconfidence and extrapolation bias). Volatility asymmetry across sectors was explained by information flow, the uneven distribution of information by the media, investor sentiments, investor expectations and trading volumes. Overall, the results indicate that the stock return volatility of individual sectors of the South African equity market is driven mainly by bad news (except for Oil and Gas) and that leverage effects exist in all the sectors and in the benchmark indices.
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- Authors: Muzinda, Edmond Toreva
- Date: 2017
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10962/6425 , vital:21108
- Description: This study explores the impact of good news and bad news on South Africa’s sectoral stock return volatility using an asymmetric GARCH analysis. Understanding the different impact of news on stock return volatility in different economic sectors has important implications for investors’ risk management practices, portfolio allocation strategies and asset pricing. The study employs data of daily closing prices for nine sectors and three benchmark indices for the period 2nd January 1997 - 17th August 2016. The data was split into sub-samples of pre-, during and post-global financial crisis, as well as the overall sample period. The incorporation of sub-samples was to help explain the outcomes of the overall sample period. To capture the different impact of good news and bad news on stock return volatility for each sector, asymmetric GARCH models namely, TGARCH and EGARCH were employed. The findings from this study revealed that volatility asymmetry was present in all sectors and benchmark indices of South African equity market. Bad news had more impact on stock return volatility for all sectors except the Oil and Gas sector, than good news of the same magnitude. In the Oil and Gas sector, good news was found to have an amplified effect on return volatility compared with bad news of the same magnitude. High volatility persistence was also found to be present in the Consumer goods, Financials, Industrials, All-share index and Mid-cap index. High differential impact of good and bad news were found in the Industrials, Financials, Basic materials, Consumer goods and the All-share index. Since the main objective of this study was to provide explanations of volatility asymmetry found in the South African sectors, the following were proposed as possible explanations of the findings. Within sectors, volatility asymmetry was explained by financial leverage, the role of the media, loss-averse investors and the behaviour of traders (overconfidence and extrapolation bias). Volatility asymmetry across sectors was explained by information flow, the uneven distribution of information by the media, investor sentiments, investor expectations and trading volumes. Overall, the results indicate that the stock return volatility of individual sectors of the South African equity market is driven mainly by bad news (except for Oil and Gas) and that leverage effects exist in all the sectors and in the benchmark indices.
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