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Benchmarking tax practitioner regulation in Zimbabwe and South Africa against German best practice

  • Authors: Munkuli, Charles
  • Date: 2023-10-13
  • Subjects: Tax consultants South Africa , Taxpayer compliance South Africa , Revenue authority , Taxation Law and legislation South Africa , Taxation Law and legislation Zimbabwe , Taxation Law and legislation Germany
  • Language: English
  • Type: Academic theses , Master's theses , text
  • Identifier: http://hdl.handle.net/10962/419621 , vital:71660
  • Description: The regulation of professionals who offer any type of service to the public is a critical intervention towards protecting the public from unscrupulous behaviour. The regulation of tax practitioners is no exception as it is a critical element in protecting the taxpaying public and the fiscus against improper conduct by tax practitioners, as well as preventing revenue leakages due to inaccurate or incorrect declarations made by taxpayers. A major contributor of regulation would be strengthening or improving compliance. This study analyses the frameworks that regulate tax practitioners in Zimbabwe and South Africa and evaluates them against best practice as is found in Germany. Germany has been regulating tax practitioners for 50 years and can rightly be recognised as best practice. This is achieved by reviewing and evaluating institutional and legislative mechanisms in the regulatory frameworks adopted in the three countries in order to identify possible areas of improvement in Zimbabwe and South Africa. The research is situated in the interpretative paradigm and the research methodology is qualitative in nature, involving the critical review of documentary data. The study concludes that both South Africa and Zimbabwe have room to improve in certain areas and makes recommendations aimed at strengthening their respective regulatory frameworks. Both South Africa and Zimbabwe could promulgate a law that deals exclusively with the regulation of tax practitioners, and institute an independent body that deals exclusively with tax practitioner related issues. In Zimbabwe, the Public Accountants and Auditors’ Board should be replaced with a body dedicated to serving tax practitioners. Informing the taxpaying public is important and, particularly in Zimbabwe, measures should be adopted to inform taxpayers about their rights and obligations, the role of tax practitioners, and the interface with the tax administration. The Zimbabwean regulatory model should also recognise other non-accounting and auditing-oriented professions, such as the law profession, as tax practitioners. , Thesis (MCom) -- Faculty of Commerce, Accounting, 2023
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  • Date Issued: 2023-10-13

The adoption of international financial reporting standards and foreign direct investment inflows: the moderating effect of the institutional environment in Africa

  • Authors: Simbi, Chipo
  • Date: 2023-10-13
  • Subjects: International Financial Reporting Standards , Investments, Foreign , Institutional infrastructure , Accounting Law and legislation , Auditing Law and legislation , Generalized method of moments , Difference in differences
  • Language: English
  • Type: Academic theses , Doctoral theses , text
  • Identifier: http://hdl.handle.net/10962/419230 , vital:71627 , DOI 10.21504/10962/419230
  • Description: Globalisation has created a need for an international accounting language to facilitate the smooth flow of trade across countries. In 2003, in an effort to establish a global financial reporting language, the International Accounting Standards Board (IASB) developed a single set of high-quality accounting principles known as the International Financial Reporting Standards (IFRS). Over the last decade, several African countries have adopted IFRS, and Africa has become the second-largest adopting continent after Europe. IFRS promotes improved quality of disclosure of accounting transactions, reduces information asymmetry between preparers and users of financial information, lowers the cost of investing, and breaks down information barriers to cross-border investment. Researchers suggest many benefits of IFRS adoption for macroeconomic indicators such as Foreign Direct Investment (FDI). The reduction in information acquisition and processing costs which translates into the reduction in investment costs, has been cited by most researchers. Researchers have argued, however, that the economic benefits of IFRS in Africa depend on the strength of the institutional environment. They also argue that the Western environment in which the IFRS was developed differs from the African environment. Thus, the universal approach of the IASB may not be appropriate due to the historical, social, economic and political context of African countries. The impact of the adoption of IFRS by African countries requires further examination, particularly as a weak institutional environment confronts many African countries. Three research questions are designed for this study; (1) Is there a significant change in FDI inflows for IFRS adopters in selected African countries after the adoption? (2) Is there a significant change in FDI inflows due to the institutional environment? (3) Does the institutional environment in IFRS-adopting countries moderate the effect of IFRS on FDI in selected African countries? The present study is underpinned by the new institutional theory, the information asymmetry theory, the eclectic theory and the signalling theory, each of which provide reasons why African countries have adopted IFRS. Nine hypotheses are developed, based on the research questions, and tested using the Systems General Method of Moments and the Difference-in-Difference method. The study uses data from 26 African countries, 15 adopting and 11 non-adopting countries, over the period 1996 - 2018. First, the study establishes that the adoption of IFRS positively and significantly affects FDI inflows into the selected sample of African countries. Second, the study concludes that legal enforcement, accounting and auditing standards enforcement, and language origin positively and significantly impact FDI inflows into these countries. Legal origin, however, has a positive but insignificant association with FDI inflows. Third, legal enforcement, historical ties, accounting and auditing enforcement and the quality of the institutional environment are found to moderate the effect of IFRS adoption on FDI inflows. These results indicate that IFRS is a crucial determinant of FDI inflows into African countries, but a supportive institutional environment is needed for African countries to attract FDI inflows after adoption. The results contribute to the accounting and finance literature on FDI into African countries, and may assist the investment community to assess the institutional risk associated with investing in IFRS adopting African countries. , Thesis (PhD) -- Faculty of Commerce, Accounting, 2023
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  • Date Issued: 2023-10-13

The complexities of transfer pricing methods and the role of advance pricing agreements and tax audits in addressing disputes

  • Authors: Ndou, Wavhudi
  • Date: 2023-10-13
  • Subjects: Transfer pricing Taxation Law and legislation South Africa , Advance pricing agreement , Double taxation , Arms-length transactions , Tax auditing , Advance tax ruling , Organisation for Economic Co-operation and Development , United Nations , World Bank
  • Language: English
  • Type: Academic theses , Master's theses , text
  • Identifier: http://hdl.handle.net/10962/419631 , vital:71661
  • Description: Base erosion and profit shifting is defined as the use of tax planning strategies by multinational enterprises, often through exploiting gaps and mismatches between the countries in which they operate (OECD, 2021: p. 1). Multinational enterprises exploit these gaps through the use of transfer pricing. Goods and services are exchanged between connected persons or associated enterprises at prices that do not reflect their arm’s length price, in order to shift profits from high tax to low tax jurisdictions. In terms of section 31 of the Income Tax Act, transactions between connected persons or associated enterprises must be reflected at their arm’s length price. Transfer pricing has become an issue due to the difficulties in determining an appropriate arm’s length price. Disputes arise between a taxpayer and a tax administration on the methods to use to determine an appropriate transfer price. The use of Advance Pricing Agreements prevents these disputes from arising and provides tax certainty on the treatment of transactions for both the taxpayer and the tax administration. While the OECD recommends the use of Advance Pricing Agreements as a method to prevent disputes from arising, the OECD also argued that if a country has the resources to conduct an audit, an Advance Pricing Agreement will not lead to increased revenue collection. The research therefore analyses the problems faced in determining an appropriate arm's length price and compares the role that Advance Pricing Agreements and audits play in addressing transfer pricing issues. The possible role of Advance Tax Rulings is also explored, but they are found not to be suitable, except for the most simple transactions. The research applies a legal interpretative, doctrinal research methodology and a qualitative research method. The data comprised of relevant South African tax legislation, OECD Guidelines, the World Bank Handbook, and the UN Manual, together with the writings of acknowledged experts in the field. The study establishes that a proper functioning audit system is crucial to increasing revenue collection once a country implements an Advance Pricing Agreement. The research therefore recommends the adoption of Advance Pricing Agreements in South Africa as a dispute prevention measure. , Thesis (MCom) -- Faculty of Commerce, Accounting, 2023
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  • Date Issued: 2023-10-13

An analysis of the interpretation and application of anti-tax avoidance legislation in the Income Tax Act, 58 of 1962 (as amended)

  • Authors: Denhere, Munyaradzi Blessing
  • Date: 2023-03-31
  • Subjects: South Africa. Income Tax Act, 1962 , Income tax Law and legislation South Africa , Tax evasion South Africa , Tax assessment South Africa , Statutes South Africa Interpretation and construction
  • Language: English
  • Type: Academic theses , Master's theses , text
  • Identifier: http://hdl.handle.net/10962/419436 , vital:71644
  • Description: Assessed losses provide opportunities to avoid taxation by using various arrangements or transactions. Legislation has been introduced to combat these forms of tax avoidance, in the form of sections 20, 20A, 103(2) and 103(4), and sections 80A to 80L. These sections have also frequently been considered by the courts. The research problem was therefore the analysis of the interaction and effect of the provisions in the Income Tax Act dealing with the use of assessed losses for the purpose of tax avoidance, and the case law interpretation of these provisions. The main goal of the research was to critically analyse the scope and effect of sections 20, 20A, and 103(2) and 102(4), and sections 80A to 80L of the Income Tax Act, dealing with assessed losses, together with the interpretation by the courts. The research was situated within the interpretative paradigm, adopted a qualitative approach, with a doctrinal methodology. As the research was carried out using only publicly available documents, no ethical considerations applied. In addressing the goal of the research, the thesis first discussed the concept of tax avoidance and its consequences. The two main interpretative approaches adopted by the courts, including with regard to tax provisions – the strict literal and the purposive approaches – were described. The thesis then proceeded to analyse sections 20, 20A, 103(2) and 103(4), and sections 80A to 80L, together with the relevant case law, and in the case of sections 80A to 80L, with the use of a hypothetical example, to illustrate the application of the sections. The conclusion arrived at was that the sections discussed in the thesis are adequate to address the problem of the misuse of assessed losses to avoid tax. , Thesis (MCom) -- Faculty of Commerce, Accounting, 2023
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  • Date Issued: 2023-03-31

A critical analysis of the tax treatment of cryptocurrencies in a South African context

  • Authors: Ho, Dau-Ming
  • Date: 2022-10-14
  • Subjects: Cryptocurrencies Taxation , Income tax Law and legislation South Africa , Income tax Law and legislation Australia , Financial services industry Security measures , South Africa. Income Tax Act, 1962
  • Language: English
  • Type: Academic theses , Master's theses , text
  • Identifier: http://hdl.handle.net/10962/357504 , vital:64749
  • Description: The aim of the present research was to investigate whether, as claimed by the South African Revenue Service in the media release issued in April 2018, the normal income tax provisions could apply to cryptocurrency transactions. To achieve this aim, a literature review was undertaken to describe the nature of cryptocurrencies and related crypto mining activities, providing definitions of cryptocurrencies, blockchains and crypto mining, as well as describing the functioning of the system. The research then proceeded to analyse the provisions of the definition of “gross income” in section 1 of the Income Tax Act, 58 of 1962, as amended, and the requirements of the “general deduction formula” in terms of the preamble to section 11, section 11(a) and section 23(g), as applying to cryptocurrency transactions. The application of other provisions in the Act to cryptocurrency transactions was analysed, including trading stock in terms of section 22, and capital allowances in terms of sections 11(e), 12C and 13quin of the Act, together with capital gains tax consequences in terms of the Eighth Schedule to the Income Tax Act. The regulation for income tax purposes of cryptocurrency transactions in Australia was discussed, with a view to making similar recommendations in South Africa. The research was situated in the interpretative paradigm, a doctrinal methodology was applied, together with a qualitative analysis of documentary data. The discussion was limited to the income tax consequences of cryptocurrencies as applying to individuals. The findings of the research were that, in general, the normal income tax provisions could apply to cryptocurrency transactions, but based on the analysis of the South African and Australian income tax acts as they apply to cryptocurrencies, it was recommended that a Comprehensive Guide on the income tax consequences of cryptocurrency transactions should be issued by the South African Revenue Service, together with amendments to section 25D and paragraph 43 of the Eighth Schedule to the Income Tax Act to deal with the conversion of cryptocurrencies to Rand values, and to section 9C of the Income Tax Act to include the deemed capital nature of the disposal of cryptocurrencies in the three-year rule presently applying to equity shares. , Thesis (MCom) -- Faculty of Commerce, Accounting, 2022
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  • Date Issued: 2022-10-14

Informal sector taxation: a lesson for South Africa

  • Authors: Ledwaba, Sophy
  • Date: 2022-10-14
  • Subjects: Informal sector (Economics) Taxation South Africa , Turnover tax South Africa , Informal sector (Economics) Taxation Tanzania , Informal sector (Economics) Taxation Ghana , Informal sector (Economics) Taxation Zimbabwe , Small business Taxation Law and legislation South Africa
  • Language: English
  • Type: Academic theses , Master's theses , text
  • Identifier: http://hdl.handle.net/10962/357571 , vital:64756
  • Description: Most informal sector businesses in developing countries participate indirectly in the tax system through paying Value-Added Tax, as well as import and export duties, without being registered as taxpayers. This effectively results in the collection of lower tax revenue than the informal businesses would be liable for if they were registered as taxpayers. Additionally, the nonregistration of informal sector businesses in the tax system perpetuates a culture of non-tax compliance. Countries in sub-Saharan Africa have responded to this challenge by imposing direct taxes on revenue generated in the informal sector. This thesis discussed the informal sector taxation regimes adopted in Tanzania, Ghana and Zimbabwe, with the aim of identifying direct taxes that could be imposed in South Africa on the revenues generated in the informal sector. The goal of the research was to determine the nature of direct taxes that could be imposed in South Africa on the revenues generated in the informal sector, taking lessons from the sub- Saharan countries of Tanzania, Ghana and Zimbabwe. The research was based in the interpretivist paradigm. The data for the research consisted of documentary data dealing with the legislation and experiences of informal sector taxation in South Africa and the countries forming part of this research. The data were analysed using qualitative non-empirical research methods. South Africa has a presumptive tax model in the form of the Turnover Tax system, and it was recommended that this direct tax could be adapted to integrate the informal sector businesses into the tax base. The study made several recommendations to integrate informal sector businesses into the tax base. These recommendations include the implementation of the tax stamp system to tax informal businesses other than minibus taxi businesses, and an income tax sticker specifically designed for the informal minibus taxi industry. , Thesis (MCom) -- Faculty of Commerce, Accounting, 2022
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  • Date Issued: 2022-10-14

The practical implications of taxing the informal sector in Zimbabwe

  • Authors: Mashate, Fredy
  • Date: 2022-10-14
  • Subjects: Informal sector (Economics) Taxation Zimbabwe , Small business Taxation Law and legislation Zimbabwe , Tax administration and procedure Zimbabwe , Taxpayer compliance Zimbabwe , Taxation Public opinion , Zimbabwe. Revenue Authority , Informal sector (Economics) Taxation Tanzania , Informal sector (Economics) Taxation Ghana
  • Language: English
  • Type: Academic theses , Master's theses , text
  • Identifier: http://hdl.handle.net/10962/357594 , vital:64758
  • Description: The taxation of informal sector business is increasingly becoming a topical issue in many developing countries, and Zimbabwe is no exception. The Zimbabwean government has been experiencing shrinking revenue in the wake of an increased informal sector and a declining formal sector. In an effort to broaden the tax base and increase revenue for government in Zimbabwe, presumptive tax levied against certain informal sector activities was first introduced in 2005 and later expanded to other sectors. Despite the effort, the informal sector has responded with low tax morale and non-compliance, which creates the need to reassess the current administrative strategies in a bid to build a successful tax system for the informal sector. The main goal of the research is to establish clear, innovative and practical administrative strategies that can be adopted by the Zimbabwe Revenue Authority in taxing the informal sector in Zimbabwe. An initial investigation was done to identify the current state of affairs in relation to informal sector taxation in Zimbabwe. A number of challenges were recorded and the research the sought to learn from examples of recent innovation in administrative strategies successfully applied in taxing the informal sector in other jurisdictions like Tanzania and Ghana. Learning from these examples, a number of practical administrative strategies that are mindful of the Zimbabwean economic context were proposed. , Thesis (MCom) -- Faculty of Commerce, Accounting, 2022
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  • Date Issued: 2022-10-14

Transfer pricing: an analysis of legislation in the southern African Customs Union

  • Authors: Patel, Nabil Ahmed
  • Date: 2022-04-06
  • Subjects: Transfer pricing
  • Language: English
  • Type: Master's theses , text
  • Identifier: http://hdl.handle.net/10962/241482 , vital:50943
  • Description: Transfer pricing is defined as the setting of the price for goods sold and services rendered between related entities. For example, if a subsidiary company sells goods or renders services to its holding company or a sister company, the price charged is referred to as the transfer price. Transfer pricing can be used to manipulate profits and facilitate tax evasion. Therefore, it is important that countries enact transfer pricing legislation to prevent this. The United Nations (UN) and Organisation for Economic Co-operation and Development (OECD) guideline documents form the basis for most global legislation and conventions dealing with transfer pricing. The over-arching goal of this research was to investigate whether transfer pricing legislation in the Southern African Customs Union (SACU) aligns between SACU countries and with the OECD Guidelines and the UN Manual. The research applied a legal interpretive doctrinal research methodology and a qualitative research method. The data comprised primary legislation in the SACU countries, transfer pricing guidelines issued by revenue authorities in the SACU, OECD Guidelines, the UN Manual and journal articles. It was found in this study that certain aspects of transfer pricing legislation in the SACU are not fully aligned to each other and to the OECD Guidelines and the UN Manual. This study proposed recommendations to improve transfer pricing legislation in the SACU. These improvements include the introduction of transfer pricing legislation in Eswatini and Lesotho, and updating transfer pricing legislation in Namibia and South Africa in terms of the latest versions of the OECD Guidelines and the UN Manual. , Thesis (MCom) -- Faculty of Commerce, Accounting, 2022
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  • Date Issued: 2022-04-06

An interpretation of the deeming provisions in legislation in the context of a good tax system: a South African perspective

  • Authors: Mostert, Tarita
  • Date: 2021-10-29
  • Subjects: Organisation for Economic Co-operation and Development , Taxation Law and legislation South Africa , South Africa. Income Tax Act, 1962 , Taxpayer compliance South Africa , Tax evasion (International law) , Deeming provisions
  • Language: English
  • Type: Doctoral theses , text
  • Identifier: http://hdl.handle.net/10962/190897 , vital:45039 , 10.21504/10962/190897
  • Description: The goal of this thesis is to analyse the relationship between deeming provisions in legislation and the principles of a good tax system. The need for a positive relationship between deeming provisions and the principles of a good tax system is demonstrated in the thesis. The research explains the historical development of deeming provisions, legal principles relevant to the interpretation of tax legislation, as well as the principles of a good tax system. Approaches to the interpretation of legislation are then described and illustrated by means of case law. Following this, the research focuses on a selection of provisions in the South African Income Tax Act, 58 of 1962, to determine whether the deeming provisions included in the Act reflect the application of the principles of a good tax system. In addition to the analysis of the selected statutory provisions, related case law is discussed, again in relation to the deeming provisions. A discussion of deeming provisions in two publications of the Organisation for Economic Co-Operation and Development (OECD) – the OECD Model Tax Convention and the OECD Multilateral Convention to Implement Tax Treaty Measures to Prevent Base Erosion and Profit Shifting – follows, with an analysis of two related deeming provisions in the Income Tax Act, to illustrate the international approach to deeming provisions and the principles of a good tax system. Finally, the administration of tax legislation is discussed, together with organisations whose mission is to promote the principles of a good tax system in tax administration. The research is qualitative in nature and follows a legal doctrinal research methodology. This methodology is both reform-oriented and theoretical and focuses on understanding the application of the legal concepts: deeming provisions, legal principles and principles of a good tax system. The research concludes that, from a theoretical perspective, a positive relationship exists between deeming provisions in the Income Tax Act and the OECD Model Tax Convention and the principles of a good tax system, and therefore creates a positive environment for tax compliance. , Thesis (PhD) -- Faculty of Commerce, Accounting, 2021
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  • Date Issued: 2021-10-29

An analysis of ways in which the South African tax system could be simplified

  • Authors: Young, Gail Jeni
  • Date: 2021-04
  • Subjects: Taxation -- Law and legislation -- South Africa , Income tax -- Law and legislation -- South Africa , South African Revenue Service , Tax administration and procedure -- South Africa , Tax accounting -- South Africa
  • Language: English
  • Type: thesis , text , Masters , MCom
  • Identifier: http://hdl.handle.net/10962/178235 , vital:42923
  • Description: It has been said that the fundamental paradox of tax simplification is that, despite consensus, almost every year tax rules become more complex. This thesis considers tax simplification measures which have been implemented internationally, in order to provide a basis for an analysis of ways in which the South African tax system could be simplified. A doctrinal methodology is applied, and an analysis is carried out of possible tax simplification measures, based on the commentary of experts in the field of tax law. Simplification measures adopted in the United Kingdom, Australia, the United States of America, Egypt, and certain European countries are discussed, together with their possible adoption in South Africa. Tax simplification has a broad scope. This research identifies four areas in which the South African tax system could simplified: the simplification of tax legislation, addressing the role of accounting in the simplification process, reducing the number of taxes currently levied, and finally addressing the complexities evident in the SARS e-filing system. This thesis illustrates several measures which could be used to address the current areas of complexity. Re-writing tax legislation to assist the understanding of taxpayers is suggested. An increase in the inclusion rate for individuals of capital gains in taxable income from 40% to 60% is suggested, to compensate for the loss of revenue due to the recommended repeal of donations tax and estate duty. Aligning tax legislation with accounting standards is identified as a possible area for simplification, as there are many similarities between the two systems. To address the usability of SARS’ e-filing platform, suggestions are made regarding the further pre-population of returns, introducing e-invoicing and providing a “sandbox” function that taxpayers could use to familiarise themselves with how e-filing works. This research highlights tax simplification as a process that needs to be prioritized in order to achieve the associated benefits. , Thesis (MCom) -- Faculty of Commerce, Accounting, 2021
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  • Date Issued: 2021-04

A comparative analysis with selected jurisdictions of structural challenges facing the South African office of the tax ombud

  • Authors: Mothiba, Boitumelo Charity
  • Date: 2020
  • Subjects: South Africa. Office of the Tax Ombud , Tax administration and procdure -- South Africa , Taxpayer advocates -- South Africa
  • Language: English
  • Type: text , Thesis , Masters , MCom
  • Identifier: http://hdl.handle.net/10962/140360 , vital:37882
  • Description: The Office of the Tax Ombud is critical in the protection of South African taxpayers' rights. The office has only been in existence for a little over five years and to ensure that it fulfils the purpose for which it was established, it must be properly structured. This includes that it ought to be independent from any external influence and manipulation. Any such external influence on the Tax Ombud creates the risk that the general public will lose confidence in the Tax Ombud as an independent recourse. The study, therefore, is designed to review the structure relating to the independence and powers of the South African Tax Ombud. The study assesses and evaluates the legislative safeguards of the structure of the Tax Ombud office in order to determine whether the legislative framework (the Tax Administration Act) safeguarding the Office of the Tax Ombud is adequate to ensure its independence and also to ensure a strengthened structure, without interference in the decision-making process of the office. To achieve this, a comparative analysis was made with selected foreign institutions of Tax Ombudsmen, or equivalent institutions, in order to draw from the best international practice. The study found that the structure of the Office of the Tax Ombud is relatively weak and does not fully provide the legislative powers to protect taxpayers from the well-resourced South African Revenue Service. The study also revealed that most of the institutional features in the structure of the South African Tax Ombud were found to be in line with standard international practice. The study has made recommendations aimed at strengthening the structure of the South African Tax Ombud by suggesting reforms in the legislative framework of the Tax Ombud.
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  • Date Issued: 2020

A comparative study of the tax measures for persons with disabilities in South Africa with those of Canada and the Republic of Ireland

  • Authors: Currie, Natasha
  • Date: 2020
  • Subjects: People with disabilities -- Taxation -- South Africa , People with disabilities -- Taxation -- Law and legislation -- South Africa , People with disabilities -- Taxation -- Canada , People with disabilities -- Taxation -- Law and legislation -- Ireland , People with disabilities -- Taxation -- Ireland
  • Language: English
  • Type: text , Thesis , Masters , MCom
  • Identifier: http://hdl.handle.net/10962/170746 , vital:41956
  • Description: Literature indicates that tax relief measures for persons with disabilities are important as they align with the principle of equity in the allocation of the tax burden. They are a government intervention that assists in decreasing the financial burden of medical care for persons with disabilities. The right of persons with disabilities to an adequate standard of living is contained in the landmark Convention on the Rights of Persons with Disabilities and Optional Protocol, a treaty of the United Nations, which South Africa ratified in 2007. The objective of the research was to provide a comparative study of tax relief measures for persons with disabilities in South Africa with those of Canada and the Republic of Ireland, with a view to identifying potential areas for improvement in South Africa. The requisite information was primarily collected through an extensive analysis of the tax legislation in the jurisdictions. The research found that tax relief measures for persons with disabilities and their families in South Africa are limited when compared with those of Canada and the Republic of Ireland. The comparative study identifies a number of potential tax relief measures for implementation in South Africa.
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  • Date Issued: 2020

An historical analysis of the development of a company as a single enterprise and the impact on group company taxation

  • Authors: Els, Tania
  • Date: 2020
  • Subjects: Taxation -- South Africa , Taxation -- History , Taxation -- Law and legislation -- South Africa , Business enterprises -- South Africa , Business enterprises -- Taxation -- Law and legislation -- South Africa , Corporation law -- South Africa , South Africa. Income Tax Act, 1962 , South Africa. Companies Act, 2008 , Separate legal personality , Group taxation
  • Language: English
  • Type: text , Thesis , Masters , MCom
  • Identifier: http://hdl.handle.net/10962/154241 , vital:39628
  • Description: The company is considered a separate legal entity in both legislation and jurisprudence. The “veil” separating the company and its shareholders is a doctrine entrenched in company law that originated centuries ago. The doctrine is based on conditions that existed during a period that commenced with trading forms less complicated than the corporate groups found today. Trading forms known as guilds could be traced back to 1087, which gradually developed into regulated companies and, in the last century, into the joint-stock company form. The modern era has seen the development of groups of companies carrying on business as economic units. Company law, in regulating business forms, has failed to acknowledge the corporate group as a new business entity. The main purpose of this research was to analyse the origins of the separate legal personality of a company and its relevance for the present corporate group structures. The research aimed to understand company law and jurisprudence in South Africa in relation to the legal personality of a company and a corporate group. The final objective of this reform-orientated doctrinal research thesis was to provide clarity on the need to consider granting separate legal identity to corporate groups in recognition of their economic unity. A historically contextualised analysis was carried out on the development of trading through unregulated forms of businesses to the creation of the company as a regulated entity. The development of the legal persona of a company in legislation as well as jurisprudence was critically analysed in on the context of companies within a corporate group. A case study of a South African corporate group was used to highlight the different characteristics of the companies doing business in the form of a corporate group. The thesis concluded by recommending that legal personality should be extended to include a corporate group in order to facilitate the introduction of a group taxation regime.
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  • Date Issued: 2020

An investigation into the nature and adequacy of tax compliance tools available to assist small businesses in the state of Oklahoma in the United States of America

  • Authors: Cary, Cindi L
  • Date: 2020
  • Subjects: Tax administration and procedure -- United States , United States. Internal Revenue Service , Small business -- Oklahoma , Small business -- United States , Taxpayer compliance -- Oklahoma , Taxpayer compliance -- United States
  • Language: English
  • Type: text , Thesis , Doctoral , PhD
  • Identifier: http://hdl.handle.net/10962/141015 , vital:37937
  • Description: This study identifies and analyses the effectiveness of the tax tools available to the small businesses that make up more than 99 per cent of all businesses in the United States and the state of Oklahoma through an extensive investigation of the small business resources offered by federal and state government agencies, higher education institutions and the professional accounting community. The study uses numerous measurements in order to acquire multiple perspectives and relies on the examination of government websites and documents, interviews, experiments, surveys, and questionnaires to determine the existing small business tax tools and their limitations. The research offers an in-depth analysis of the facts and limitations of the small business services offered by the Internal Revenue Service (IRS). The IRS is determined the largest source of small business tax tools, but limitations plague their effectiveness. Higher education is found guilty of not providing small business education in business or accounting disciplines, leaving college graduates ill-prepared to assist small businesses. Higher education is urged to implement a small business accounting curriculum that couples field experience with classroom lectures and textbooks. This study finds the accounting profession apathetic with regard to informing small businesses of accounting services and presses certified public accountants to be more involved in the education of future small business accountants. The study concludes with recommendations to reduce the small business tax burden by improving the existing small business tax tools.
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  • Date Issued: 2020

An investigation into the tax consequences for individuals performing work abroad

  • Authors: De Ponte, Celeste Lidia
  • Date: 2020
  • Subjects: South Africa. Income Tax Act, 1962 , Income tax -- Law and legislation -- South Africa , Double taxation -- South Africa , International business enterprises -- Taxation -- Law and legislation -- South Africa
  • Language: English
  • Type: text , Thesis , Masters , MCom
  • Identifier: http://hdl.handle.net/10962/141235 , vital:37955
  • Description: This thesis considered the income tax implications for South African tax resident individuals who render services abroad. The research included an analysis of the impact that the amendment to the section 10(1)(o)(ii) exemption has on individuals rendering services abroad and companies who send their employees abroad. In doing so, this thesis sought to highlight the key factors for consideration, for both employers and individuals. A doctrinal methodology was applied, and an analysis was carried out of relevant tax legislation, commentary of experts in the field of tax law and the relevant case law of South Africa, the United Kingdom (UK), Australia and the United States of America (US), where relevant. It was established that residency is key to determining the tax liability of a person and has an impact on the relief mechanisms that are available where double taxation arises. In addition, the amendment to section 10(1)(o)(ii) was considered. It was concluded that when rendering services abroad, both the employer and employee need to consider the tax consequences that may arise and highlights the factors which may be relevant. The thesis illustrates that, whilst the R1 million exemption alleviates the double tax consequences to a certain extent, further guidance is needed as to how the R1 million threshold will be calculated.
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  • Date Issued: 2020

Statutory mergers as contemplated in the Companies Act, 2008: the applicability of the corporate rules contained in section 44 of the Income Tax Act, 1962

  • Authors: Shama, Natalie Anne
  • Date: 2020
  • Subjects: South Africa. Companies Act, 2008 , South Africa. Income Tax Act, 1962 , Consolidation and merger of corporations -- South Africa , Corporation law -- South Africa
  • Language: English
  • Type: text , Thesis , Masters , MCom
  • Identifier: http://hdl.handle.net/10962/144767 , vital:38377
  • Description: The purpose of this research is to determine the extent to which a statutory merger in terms of the Companies Act, 2008, may be accommodated by the provisions of an amalgamation transaction in terms of section 44 of the Income Tax Act, 1962. The research method adopted is a legal interpretative research approach. South African company law underwent significant reform with the introduction of the Companies Act, 2008. One of the fundamental areas for reform was the need for a mechanism to appropriately accommodate a corporate merger, and thus, what is referred to as a statutory merger was introduced into South African company law. What is notable is that the statutory merger has been crafted to apply across a variety of circumstances that may arise in commerce, thus offering wide versatility. On the other hand, the tax relief afforded in terms of the corporate roll-over provisions in the Income Tax Act is designed to facilitate corporate transactions on a tax neutral basis, whilst balancing the concessions these measures introduce and the potential for tax avoidance. Consequently, the tax relief applicable to an amalgamation transaction will only apply within strictly prescribed parameters. The research shows an ongoing effort by National Treasury to amend the provisions of the amalgamation transaction to better accommodate a statutory merger, but highlights that there are nevertheless certain conflicting purposes (policy) for each piece of legislation. For these reasons, the focus and parameters of a statutory merger and amalgamation transaction do not align perfectly. The key areas of inconsistency identified in this research are threefold, namely (i) the creation of a new company as a consequence of a statutory merger is not accommodated in an amalgamation transaction; (ii) the process of compensating the shareholders of the amalgamated company in an amalgamation transaction is not clearly contemplated in the statutory merger provisions; and (iii) mergers between a company and its shareholder currently present numerous complexities from both a company law and taxation perspective. The research concludes that the flexibility afforded under the statutory merger is largely minimised for parties who wish to simultaneously enjoy the tax relief afforded under an amalgamation transaction.
  • Full Text:
  • Date Issued: 2020

The South African income tax implications of a Stokvel

  • Authors: Matshego, Katlego
  • Date: 2020
  • Subjects: Rotating credit associations -- South Africa. , Taxation -- South Africa , Tax deductions -- South Africa
  • Language: English
  • Type: text , Thesis , Masters , MCom
  • Identifier: http://hdl.handle.net/10962/143094 , vital:38201
  • Description: The term “Stokvel” originates from the rotating cattle auctions of English settlers in the Eastern Cape during the nineteen century. A Stokvel is defined as a credit union where a group of people agree to contribute a fixed amount of money to a common pool and is referred to as a rotating savings and credit association, where the contributions to a fund are given in whole or in part to each member. The goal of the thesis was to determine the “gross income” implications of the fund and its members, as well the deductibility of their expenses. An interpretative research approach was used in the research as it sought to understand and describe. No interviews were conducted for this research and the data used for the research are publicly available. The tax implications of five different types of a Stokvel were considered in relation to the research goals through the application of legislation and case law principles. The study established that a collection burial society, where funds are contributed after death, does not beneficially receive funds and it is not entitled to any deductions. The same applies to the member of that society. A contributing burial society, where funds are contributed over time, beneficially receives funds, which are included in “gross income”, and qualifies for deductions. The receipt by the member is exempt and deductions are prohibited by section 23(f). An entertainment Stokvel does not receive the contributions on its own behalf and benefit. No deductions are available to it. However, the member beneficially receives the contributions from the Stokvel, which are included in “gross income”, and qualifies for deductions. A purchasing power group, where items are purchased on behalf of members, does not receive the funds beneficially and no deductions are available to it. The members simply receive the goods they have paid for. Lastly an investment Stokvel, which invests contributions for the members, beneficially receives contributions and qualifies for various deductions. The member receives the share of income from the Stokvel for his/her own benefit. However, no deductions are available in respect of contributions.
  • Full Text:
  • Date Issued: 2020

An investigation into the introduction of a new wealth tax in South Africa

  • Authors: Arendse, Jacqueline A
  • Date: 2018
  • Subjects: Wealth tax -- Law and legislation -- South Africa , Taxation -- Law and legislation -- South Africa , Income tax -- South Africa , Fiscal policy -- South Africa , South Africa -- Economic conditions , Income distribution -- South Africa
  • Language: English
  • Type: text , Thesis , Doctoral , PhD
  • Identifier: http://hdl.handle.net/10962/61379 , vital:28020
  • Description: In a world of economic uncertainty and manifold social problems, South Africa has its own unique challenges of low economic growth, persistent budget deficits that produce increasing government debt and the highest level of economic inequality in the world. The history of injustice and economic marginalisation and the failure of the economy to provide inclusive growth drives an urgent need to address economic inequality through tax policy, placing ever more focus on wealth taxes as a possible solution. There is a hope is that taxing the wealthy may provide the opportunity to redistribute desperately-needed resources to those denied the opportunity to build wealth and who are trapped in the cycle of poverty. Yet, as appealing as a new wealth tax may seem, the introduction of such a tax carries with it a range of risks, not all of which are known. Of great concern is the possible effect on the economy, which, in its vulnerable state, cannot afford any loss of capital and investment. Very little research has been done on wealth tax in the South African context and there is a dearth of literature focusing on the views and perceptions of the wealthy individuals themselves. This qualitative study investigates the merits and disadvantages of a new wealth tax and seeks to identify any unintended consequences that could result from the implementation of a new wealth tax in South Africa, drawing from historical and international experience and primary data obtained from interviews with individuals likely to be affected by such a tax. Having explored the literature and international experiences with wealth tax and having probed the thinking of wealthy individuals who would be the payers of a wealth tax, the study finds that a new wealth tax may contribute towards the progressivity of the tax system, but it is doubtful whether such a tax would provide a sustainable revenue stream that would be sufficient to address economic inequality and there is a risk of causing harm to the economy. Recognising that the motivation for wealth taxes is often driven more by political argument and public perception than by rational quantitative analysis, the study also anticipates the introduction of a new wealth tax and suggests guidelines for the design of such a tax within the framework for evaluating a good tax system. This study informs the debate on wealth taxes in South Africa and contributes to the design of such a tax, should it be implemented.
  • Full Text:
  • Date Issued: 2018

Taxation of non-resident digital companies providing services in South Africa

  • Authors: Shumba, Marilyn Tatenda
  • Date: 2018
  • Subjects: Electronic commerce Taxation Law and legislation South Africa , Value-added tax South Africa , Organisation for Economic Co-operation and Development , Taxation Law and legislation South Africa , Business enterprises, Foreign Taxation Law and legislation South Africa
  • Language: English
  • Type: text , Thesis , Masters , MCom
  • Identifier: http://hdl.handle.net/10962/61680 , vital:28048
  • Description: The role played by electronic commerce has increased in recent years and continues to increase. Due to this increase in the buying and selling of digital goods and services, revenue authorities have had to recognise that the existing taxation laws do not adequately tax the digital economy. The goal of this research was to establish how South Africa could amend its fiscal legislation in order to adequately tax the digital economy. The Organisation for Economic Co-Operation and Development (OECD) has been the leader in addressing the challenges posed by the digital economy. The thesis therefore focused on the recommendations by the OECD on how to tax the digital economy and relevant recommendations for South were adopted in this thesis, based on the work of the OECD. The main focus of these recommendations was on implementing the International VAT/GST Guidelines that were drafted by the OECD. The thesis also focused on the progress made by New Zealand with regard to taxing of the digital economy. New Zealand has a similar taxation system to South Africa so that the progress made there was relevant in the South African context. Recommendations were also made, based on the proposals by the New Zealand revenue authority that South Africa could adopt in taxing the digital economy. The main focus of these recommendations was lowering the Value-Added Tax (VAT) registration threshold for non-resident suppliers of electronic services and enacting legislation to provide for registration of an electronic marketplace for VAT purposes, instead of an individual supplier.
  • Full Text:
  • Date Issued: 2018

The tax consequences of income and expenses arising from illegal activities

  • Authors: Singh, Shalona
  • Date: 2018
  • Subjects: South Africa. Income Tax Act, 1962 , Income tax South Africa , Tax evasion South Africa , Taxation Law and legislation South Africa Criminal provisions , Crime Economic aspects South Africa
  • Language: English
  • Type: text , Thesis , Masters , MCom
  • Identifier: http://hdl.handle.net/10962/59456 , vital:27609
  • Description: Income tax in South Africa is levied in terms of the Income Tax Act, 58 of 1962 (the South African Income Tax Act) on taxable income, which by definition, is arrived at by deducting from ''gross income" receipts and accruals that are exempt from tax as well as deductions and allowances provided for in the Act. The South African Income Tax Act provides no guidance with regard to the taxation of income and expenditure from illegal activities. In this mini thesis, case law and legislation is reviewed in an attempt to provide clarity on the tax consequences of income and expenses arising from illegal activities. An overview is provided of the taxation of income and expenditure in respect of illegal activities in the United States of America, Australia and New Zealand. Similarities are found between the American, Australian, New Zealand and South African tax regimes in relation to the taxation of income earned from illegal activities, but there appears to be more certainty in America, Australia and New Zealand with regard to the deduction of expenses arising from illegal activities. In South Africa, taxpayers earning income from ongoing illegal activities will, in principle, comply with the definition of “trade” as defined in section 1 of the South African Income Tax Act. However, this is contrary to the view of the South African Revenue Service that illegal activities do not meet the definition of “trade”, a viewpoint that may not hold if challenged in court. Recommendations are made for the amendment of the South African Income Tax Act to specifically provide for the inclusion in “gross income” of income from illegal activities and to prohibit the deduction of expenditure arising from illegal activities.
  • Full Text:
  • Date Issued: 2018
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