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1
Brink, Sophia. "An evaluation of the income tax treatment of client loyalty programme transactions by South African suppliers." Journal of Economic and Financial Sciences 8, no. 1 (April 30, 2015): 145–64. http://dx.doi.org/10.4102/jef.v8i1.88.
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The popularity of client loyalty programmes has increased drastically over the past few years, with more than 100 suppliers in South Africa currently making use of them. Despite the fact that client loyalty programmes have been prevalent in South Africa since the 1980s, the South African Revenue Service has issued no specific guidance on the income tax treatment of client loyalty programme transactions. The main objective of the research was to determine whether South African client loyalty programme suppliers treat client loyalty programme transactions correctly for income tax purposes. In order to meet this objective, available local and international literature were analysed to determine the proposed income tax treatment of a client loyalty programme transaction expenditure incurred by supplier for purposes of the client loyalty programme. The proposed correct income tax treatment was compared with a survey circulated to a population of client loyalty programme suppliers in South Africa. The comparison indicated that in practice the Income Tax Act No. 58 of 1962 is treated differently from the proposed treatment. This incorrect tax treatment could result in possible financial loss to the client loyalty programme supplier as taxpayer.
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Brink, Sophia M., and Herman A. Viviers. "Inkomstebelastinghantering van kliëntelojaliteitsprogram: Transaksies in Suid-Afrika." Journal of Economic and Financial Sciences 5, no. 2 (October 31, 2012): 437–58. http://dx.doi.org/10.4102/jef.v5i2.293.
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Client loyalty programmes are a common phenomenon in the South African market and, although prevalent in South Africa since the 1980s, the South African Revenue Service has issued no guidance on the income tax treatment of client loyalty programme transactions in the hands of the consumer. Benefits received in the form of goods, services or discounts from a client loyalty programme are currently not subject to normal South African income tax. The main objective of the research was to investigate whether the existing provisions in the Income Tax Act and related case law provide the basis for taxing client loyalty programmes in the hands of the consumer as natural person. In order to meet this objective local and international literature was analysed to determine the correct income tax treatment and it was found that points or miles received by a consumer meet all the requirements of the “gross income” definition and as a result should be taxable.
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Costa, David, and Lilla Stack. "The relationship between Double Taxation Agreements and the provisions of the South African Income Tax Act." Journal of Economic and Financial Sciences 7, no. 2 (July 31, 2014): 271–82. http://dx.doi.org/10.4102/jef.v7i2.140.
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This article investigates the legal status of Double Taxation Agreements, and the relationship between Double Taxation Agreements, which are concluded in terms of section 108 of the Income Tax Act, and the provisions of the Income Tax Act (taking into account the provisions of the Constitution, and the national and international rules for the interpretation of statutes). An important conclusion reached was that as the Vienna Convention on the Law of Treaties represents customary international law and as such forms part of South African law, the principles contained in the treaty should be taken into account when interpreting South African legislation (including Double Taxation Agreements). The final conclusion of the research was that Double Taxation Agreements have a dual nature – forming part of domestic legislation and being classified as international agreements. The provisions of the Double Taxation Agreement should be taken as overriding any conflicting legislation in the Income Tax Act.
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Oosthuizen, Rudi. "A Framework For The Income Tax Deductibility Of Intellectual Property Expenditure Incurred By South African Taxpayers." International Business & Economics Research Journal (IBER) 12, no. 3 (February 19, 2013): 373. http://dx.doi.org/10.19030/iber.v12i3.7680.
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Taxpayers who use intellectual property (such as patents and trademarks) in their trade in the production of income may obtain the right of such use in a number of different ways. The nature of the transaction granting the taxpayer the use of intellectual property items determines the tax treatment thereof. Taxpayers may be able to claim deductions for the cost of using these items in terms of specific income tax sections or the general deduction formula as outlined by the Income Tax Act 58 of 1962. There are also a number of other sections in the Act which may affect the timing and extent of the deductions allowed. This article investigates the various income tax deductions which may be available to taxpayers in South Africa who make payments in respect of intellectual property. It considers the effect of important recent case law and changes to tax legislation on the timing and extent of these deductions and suggests a framework which can be applied to assist the taxpayer in understanding the structure of such deductions.
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Steenkamp, Lee-Ann, and Peter Cramer. "Reportable arrangements: Tax partner perceptions of some problematic terminology." Journal of Economic and Financial Sciences 7, no. 1 (April 30, 2014): 145–86. http://dx.doi.org/10.4102/jef.v7i1.135.
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The South African Revenue Service (SARS) implemented a more aggressive reporting system in 2008 by introducing new reportable arrangements ('RA') provisions in the Income Tax Act. In March 2010, SARS issued a revised Draft Guide to Reportable Arrangements for public comment. More than three years after its release, there is still no finalised, updated guide available to address the 'new' RA provisions. Determining when arrangements should be reported to SARS therefore remains both problematic and onerous. It is the purpose of this article to examine some of the problematic terminology in an attempt to afford South African taxpayers greater clarity in the identification and disclosure of RAs. The research findings are tested through a survey conducted among tax partners and directors at a sample of 40 leading audit and legal firms in South Africa. The majority of respondents agreed with the conclusions drawn from the literature study.
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Willemse, Leonard C. "Die inkomstebelastinghantering van aanvangsfranchisefooie betaalbaar in die Suid-Afrikaanse petroleumbedryf." Journal of Economic and Financial Sciences 4, no. 2 (October 31, 2011): 407–26. http://dx.doi.org/10.4102/jef.v4i2.328.
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A wholesaler of petroleum products is prohibited in terms of section 12(2)(c) of Regulation 287 of the Petroleum Products Act, No. 120 of 1977, to own a retail licence for purposes other than that of training. As a result, petroleum companies make use of franchises to sell their products. The concept of a franchise is based on the principle that a franchisee obtains the franchise of an existing, often prosperous, business from a franchisor, and then operates the business under the banner of this franchise. The franchisee pays the franchisor franchise fees as consideration for certain items or privileges obtained. This article investigates the deductibility of franchise fees in terms of the current South African Income Tax Act, No. 58 of 1962 and includes an evaluation of Australian Income Tax Act sections that might offer deduction possibilities for franchise fees if applied within a South African context.
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Willemse, Leonard C. "A critical analysis of the barriers to entry for small business owners imposed by Sections 12E(4)(a)(iii) and (d) and paragraph 3(b) of the Sixth Schedule Of The Income Tax Act, No. 58 of 1962." Journal of Economic and Financial Sciences 5, no. 2 (October 31, 2012): 527–46. http://dx.doi.org/10.4102/jef.v5i2.298.
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According to National Treasury’s Explanatory Memorandum on the Revenue Laws Amendment Bill, 2008, small businesses in South Africa are instrumental in the growth of the South African economy as they are a source of job creation and a counter to poverty. Research, however, indicates that small businesses face many obstacles, such as relatively high tax compliance costs. It was, therefore, proposed in the 2008 Budget Review that a turnover tax system be implemented for micro businesses with a turnover of up to R1 million per annum to simplify the tax compliance process. Similarly, section 12E was introduced earlier in the Income Tax Act No. 58 of 1962 to offer additional income tax relief to small business owners. Sections 12E(4)(a)(iii) and (d) and paragraph 3(b) of the Sixth Schedule, however, prevent certain small business owners from making use of these concessions. This article investigates these barriers to entry and explores possible solutions to the problems presented by them.
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Nel, Rudie, and Johann Du Plooy. "The Role Of Tax Incentives In Reducing CO2 Emissions Evidence From Vehicle Manufacturers." International Business & Economics Research Journal (IBER) 12, no. 5 (April 27, 2013): 551. http://dx.doi.org/10.19030/iber.v12i5.7830.
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The objective of the study was to consider the role of tax incentives (deductions and allowances in terms of the South African Income Tax Act) in reducing carbon dioxide (CO2)emissions in the automotive industry. The objective was achieved in the light of qualitative empirical evidence obtained from South African vehicle manufacturers. A questionnaire was circulated to nine South African vehicle manufacturers and the responses were interpreted to establish whether current tax incentives provide an incentive to reduce CO2 emissions. Findings highlighted the importance of tax incentives in reducing CO2 emissions and suggest that vehicle manufacturers regard tax incentive-driven policies as the most effective tool in reducing CO2 emissions. However, since it is difficult to qualify for current tax incentives, this approach might not provide the necessary incentive to reduce CO2 emissions. It is recommended that tax incentive policies either be simplified or alternative initiatives be introduced to encourage investments in the reduction of CO2 emissions.
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Sturdy, Joline, and Christo Cronjé. "An analysis of the tax implications of prospecting expenditure incurred by junior exploration companies in South Africa." Journal of Economic and Financial Sciences 6, no. 2 (July 31, 2013): 329–46. http://dx.doi.org/10.4102/jef.v6i2.263.
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One of the consequences of the change in the mineral policy of South Africa with the promulgation of the Mineral and Petroleum Resources Development Act 28 of 2002 was the increase in junior exploration companies. Junior exploration companies are mainly involved in prospecting activities. No definition exists for either prospecting or exploration in the Income Tax Act 58 of 1962 (Income Tax Act). The lack of research and case law on the tax treatment of prospecting expenditure by junior exploration companies may result in various interpretations for the treatment of prospecting expenditure. Through critical analysis of specific sections in the Income Tax Act, applicable case law and relevant literature, it is evident that there are different interpretations by junior exploration companies of the treatment of prospecting expenditure from an income tax perspective. The perceived challenges with interpretation of the tax treatment of prospecting expenditure by junior exploration companies create an opportunity for further research.
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Makhaya, Siphamandla, and Lizanne Barnard. "Income tax implications from the transfer of soccer players in South Africa." Journal of Economic and Financial Sciences 10, no. 1 (June 6, 2017): 125–44. http://dx.doi.org/10.4102/jef.v10i1.9.
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Sports clubs often trade players with each other through the player transfer system. Using the doctrinal research methodology, which involves an extended review of literature, the study aims at providing an interpretative analysis of the income tax implications from the transfer of professional soccer players between professional soccer clubs, based on the Income Tax Act 58 of 1962 (South Africa, 1962) (hereafter the Act) and the relevant case law. This study further provides hypothetical case studies that provide different scenarios of soccer player transfers and the analysis of the income tax implications arising from the facts presented in each case study.
11
Padia, Nirupa, and Warren Maroun. "Determining the residency of companies: Difficulties in interpreting ‘place of effective management’." Journal of Economic and Financial Sciences 5, no. 1 (April 30, 2012): 119–34. http://dx.doi.org/10.4102/jef.v5i1.309.
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Even South Africa’s Income Tax Act No. 58 of 1962 uses the terminology ‘place of effective management’ when determining the residency of companies. This term is not, however, defined in the said legislation and there is no South African case law specifically dealing with this matter. In contrast, the United Kingdom (UK) uses the term ‘central management and control’, and its courts have been called upon to hear numerous cases on the interpretation of this phrase. Given the increasing pressure on South Africa to align its tax treatment with international trends as well as increased levels of trade with the United Kingdom, this study examined the interpretation of ‘place of effective management’ in a South African context and juxtaposed this with the conclusions reached in seven cases in the United Kingdom dealing with the interpretation of ‘centre of management and control’. The findings show that ‘place of effective management’ from a South African perspective may depend heavily on where decisions are implemented and day-to-day operations occur. ‘Central management and control’, however, appears to vest almost exclusively in where primary decisions are made or strategic directions emanate from.
12
Straus, Carien, and Leonard Willemse. "A critical investigation of the interaction between sections 8(4)(a), 9H and paragraph 40 of the eighth schedule of the income tax act No. 58 of 1962 versus the current practice of The South African Revenue Service." Journal of Economic and Financial Sciences 7, no. 3 (October 31, 2014): 889–906. http://dx.doi.org/10.4102/jef.v7i3.242.
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Section 9H and paragraph 40 of the Eighth Schedule of the Income Tax Act No. 58 of 1962 (‘the Act’) determines that a person is deemed to dispose of all of his assets (bar a few exceptions) at market value when that person ceases to be a South African resident or passes away, respectively. This deemed disposal is treated as a disposal event for capital gains tax purposes in terms of the Eighth Schedule of the Act. The question that arises is whether this deemed disposal event gives rise to a recoupment in terms of section 8(4)(a). In practice there currently seems to be uncertainty with regard to this issue, as there are different interpretations and applications of these provisions. This article investigates the interaction between sections 8(4)(a), 9H and paragraph 40 of the Eighth Schedule in order to determine whether a section 8(4)(a) recoupment should be included, or not, in the taxpayer’s gross income according to paragraph (n) of the gross income definition found in section 1 of the Act.
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Maroun, Warren, Magda Turner, and Kurt Sartorius. "Does capital gains tax add to or detract from the fairness of the South African tax system?" South African Journal of Economic and Management Sciences 14, no. 4 (December 6, 2011): 436–48. http://dx.doi.org/10.4102/sajems.v14i4.131.
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This research seeks to add to the existing body of knowledge on the perceived impact of Capital Gains Tax (CGT) on the fairness of the South Africa Tax System. Building on the largely qualitative work done by Vivian (2006) and Smith (1776), this research makes use of an extensive literature review followed by a correspondence analysis to complement the existing body of research into this area. The literature review discuss the fairness criteria advanced by Smith (1776) (Smith’s tax canon) and identify ‘unfairness characteristics’ of CGT. The correspondence analysis only tests the theories advanced in the literature review and revealed that there are potential sources of unfairness inherent in the Eighth Schedule to the Income Tax Act No. 58 of 1962 (the Eighth Schedule). These include the possibility that that CGT gives rise to double tax and imposes a high burden on taxpayer’s ability to bear the tax load.
14
Steenkamp, Lee-Ann. "Beneficial Ownership Provisions In Tax Treaties Between Developed And Developing Countries: The Canada/South Africa Example." International Business & Economics Research Journal (IBER) 12, no. 9 (August 30, 2013): 1107. http://dx.doi.org/10.19030/iber.v12i9.8056.
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In the years since the Organisation for Economic Cooperation and Development (OECD) adopted its first draft tax treaty in 1963, the world has experienced an astonishing surge in international trade and investment. The tax treatment of these cross-border transactions is affected by double tax agreements. As tax treaty networks will likely continue to expand, concerns about tax treaty abuse might be expected to grow. The extent to which a countrys tax treaty policy favours developing countries - or not - depends upon the extent to which the country is prepared to adopt provisions from the UN model tax convention as opposed to the OECD model. Developing countries, in particular, should carefully consider the design of their tax treaties so as to effectively combat tax avoidance without sacrificing foreign direct investment. To this end, the Canada/South Africa tax treaty is compared and contrasted with these two models. The concept of beneficial ownership is reviewed in this context. It is contended that a general definition in South Africa's Income Tax Act of 'beneficial ownership' would assist in the interpretation of the term for the purposes of South Africa's tax treaties. It is submitted that the scope for the source taxation of passive investment income (viz. dividends, interest and royalties) in the developing country could be magnified through treaty negotiations.
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Engelbrecht, Waldette. "The beneficial owner of dividend income received by a discretionary trust." Journal of Economic and Financial Sciences 8, no. 1 (April 30, 2015): 281–304. http://dx.doi.org/10.4102/jef.v8i1.95.
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In terms of the new Dividends Tax, which came into effect on 1 April 2012, Dividends Tax may be the liability of the beneficial owner of the dividend. This makes it important to correctly identify the beneficial owner. The term beneficial owner is specifically defined in section 64D of the Income Tax Act No. 58 of 1962 as ‘the person entitled to the benefit of the dividend attaching to the share’, yet a distinct difference remains between the legal ownership and economic ownership of the share. Within a South African context, determining the beneficial owner within a discretionary trust might be problematic. The trustees are the legal owners of the shares, whilst the beneficiaries might be the economic owners of the shares. Further, consideration has to be given to the timing of the dividend distribution. This article formulates steps to determine which person is entitled to the benefit of the dividend attached to the share.
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van Schalkwyk, L., and B. Geldenhuys. "Section 80A(c)(ii) of the Income Tax Act and the interpretation of tax statutes in South Africa." Meditari Accountancy Research 17, no. 2 (October 2009): 167–85. http://dx.doi.org/10.1108/10222529200900018.
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Venter, J. MP, W. R. Uys, and M. C. Van Dyk. "MP Finance Group CC (In Liquidation) v C: SARS: Adding to the financial hardship of victims of illegal transactions." Southern African Business Review 19 (February 12, 2019): 121–38. http://dx.doi.org/10.25159/1998-8125/5793.
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This article analyses the interpretation of the phrase “received by, accrued to or in favour of” in the gross income definition of the Income Tax Act, as applied to illegal receipts. During the last few decades, South Africans have been victims of a number of Ponzi-type schemes. In MP Finance,1 the Supreme Court of Appeal considered whether illegal receipts received by the Krion Ponzi-type scheme should be included in gross income. After considering the relationship between the taxpayer and the fiscus, the court concluded that, as from a specified juncture, the taxpayer received the amount for its own benefit and it should therefore be included in gross income. The court recognised that the contractual relationship between the investor and the scheme (taxpayer) could in fact be void, resulting in the investor having a right to recover the investment from the taxpayer. The court did not consider whether the levying of income tax on amounts received by the operator of the scheme could infringe on the investor’s right to property espoused under the Constitution of the Republic of South Africa, 1996. It is submitted that the levying of tax does infringe on this right as it reduces the amount that could be recovered from the scheme because the original investment in the scheme is void.
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Brink, Sophia. "Inkomstebelastinghantering van korting ontvang in die hande van 'n nie-handeldrywende persoon." Journal of Economic and Financial Sciences 7, no. 1 (April 30, 2014): 213–30. http://dx.doi.org/10.4102/jef.v7i1.137.
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For income tax purposes, a taxpayer operating a business will account for discount received differently from a taxpayer not operating a business. When a taxpayer operating a business obtains goods or services at a discount, the taxpayer can claim a section 11(a) deduction at the value of the goods or services, net of the discount received. The discount reduces the value of the net reduction of taxable income and the taxpayer is effectively taxed on the discount received. A taxpayer who is not operating a business will not qualify for a section 11(a) deduction (read together with section 23(g)) for goods or services obtained (it does not meet the requirements ‘for the purposes of trade’ and ‘in the production of income’). Discount received in the hands of a non-trading person (often a natural person) is currently not subject to normal South African income tax. The main objective of this article is to investigate whether the existing provisions in the Income Tax Act No. 58 of 1962 and related case law provide a basis for taxing discount received in the hands of the non-trading individual. In order to meet this objective, local literature was analysed to determine the correct income tax treatment and it was found that discount received by a non-trading person meets all the requirements of the ‘gross income’ definition and consequently should be taxable.
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Barkhuizen, Gerhard, and Leonard Willemse. "The impact of the deletion of section 11 (bA) on the deductibility of pre-production raising fees incurred raising fees in the expansion of an existing trade." Journal of Economic and Financial Sciences 8, no. 2 (July 30, 2015): 648–65. http://dx.doi.org/10.4102/jef.v8i2.114.
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Section 11(bA) was recently deleted and replaced by section 11A in the Income Tax Act No. 58 of 1962 (“the Act” – all references to sections and paragraphs hereafter refer to the Act, unless otherwise indicated). Section 11(bA) and section 11A determined the income tax treatment of qualifying pre-production interest incurred. The article focused on whether or not pre-production raising fees incurred by the taxpayer during the expanding of an existing trade will be deductible in terms of section 11(bA) or section 11A. Section 11(bA) and section 24J allow for the deduction, in certain circumstances, of interest or related finance charges. In the recently decided C:SARS v South African Custodial Services (Pty) Ltd 2012 (1) SA 522 (SCA), 74 SATC 61 (“SA Custodial”) it was found by the court that raising fees can be read under the phrase interest or related finance charges in terms of section 11(bA). The question arose whether or not the taxpayers are being disadvantaged by the fiscus through the deletion of section 11(bA) and its replacement by section 11A, especially in regard to pre-production raising fees incurred during the expansion of an existing trade. This article investigates the interaction between sections 11(bA), 11A and 24J of the Act in order to determine the difference in the income tax treatment between these sections for the pre-production raising fees incurred. The result of the investigation into the interaction of these sections will indicate whether or not the taxpayer is being disadvantaged by the fiscus through the deletion of section 11(bA) and its replacement by section 11A.
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Etim, Ernest, and Olawande Daramola. "The Informal Sector and Economic Growth of South Africa and Nigeria: A Comparative Systematic Review." Journal of Open Innovation: Technology, Market, and Complexity 6, no. 4 (November 6, 2020): 134. http://dx.doi.org/10.3390/joitmc6040134.
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The informal sector is an integral part of several sub-Saharan African (SSA) countries and plays a key role in the economic growth of these countries. This article used a comparative systematic review to explore the factors that act as drivers to informality in South Africa (SA) and Nigeria, the challenges that impede the growth dynamics of the informal sector, the dominant subsectors, and policy initiatives targeting informal sector providers. A systematic search of Google Scholar, Scopus, ResearchGate was performed together with secondary data collated from grey literature. Using Boolean string search protocols facilitated the elucidation of research questions (RQs) raised in this study. An inclusion and exclusion criteria became necessary for rigour, comprehensiveness and limitation of publication bias. The data collated from thirty-one (31) primary studies (17 for SA and 14 for Nigeria) revealed that unemployment, income disparity among citizens, excessive tax burdens, excessive bureaucratic hurdles from government, inflationary tendencies, poor corruption control, GDP per capita, and lack of social protection survival tendencies all act as drivers to the informal sector in SA and Nigeria. Several challenges are given for both economies and policy incentives that might help sustain and improve the informal sector in these two countries.
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Moosa, Fareed. "Consequences for Non-Payment of PAYE and VAT Compared." Potchefstroom Electronic Law Journal 23 (November 3, 2020): 1–27. http://dx.doi.org/10.17159/1727-3781/2020/v23i0a7791.
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This article shows that, whereas a bilateral legal relationship exists between the South African Revenue Service (SARS) and a vendor in relation to value-added tax (VAT), a tri-partite legal relationship exists among the SARS, employees and employers in relation to Pay As You Earn (PAYE). This article shows further that employers are, as withholding agents of PAYE, in the same legal position as vendors as regards VAT, namely, they are not in a trust or agency relationship with the SARS. Rather, this article argues that PAYE is in the nature of trust funds held by employers on behalf of employees from whose remuneration it is deducted. Since the employees retain ownership of the PAYE deducted, this article argues that employees have locus standi to lay a charge of theft against employers who misappropriate PAYE. Such a charge of theft is not grounded in tax administration. This article shows further that, as the law presently stands, a charge of theft falls outside the ambit of the remedies available to the SARS against employers and vendors who default in remitting PAYE or VAT. The Tax Administration Act, 2011 read with the Income Tax Act, 1962 and Value-Added Tax Act, 1991 codified only a limited range of criminal sanctions and administrative penalties that may be imposed against a defaulting employer or vendor. If theft is to be included, then a legislative amendment is required.
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Engelbrecht, A. C., G. K. Goldswain, and A. Heyns. "Pyott case: A lasting deposit for our tax heritage." Southern African Business Review 19 (February 12, 2019): 47–70. http://dx.doi.org/10.25159/1998-8125/5790.
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Pyott Ltd v CIR is generally regarded as the seminal case in South Africa on the tax treatment of deposits received on containers that may be returned at a later stage for a refund. This article analyses the tax treatment of deposits, prepayments and advances from a gross income point of view, as well as the possibility of claiming a deduction for the contingent liability to refund such deposit. 6The main objective of this article is to discuss the judgment in the Pyott case and establish whether the principle enunciated that deposits,received in respect of returnable containers, are taxable in full once received, can also be extended to receipts of deposits, prepayments and advances where no returnable container is involved. 7The conclusions reached are that the principles laid down in the Pyott case are still relevant today, apart from possible relief which may now be claimed under the subsequently introduced section 24C. Where no container is involved, beneficial ownership must first be established before such deposit, prepayment or advance becomes taxable, taking into account the specific provisions of legislation such as the Rental Housing Act and the Consumer Protection Act. The research has also shown coherence in the treatment of deposits for income tax purposes and other taxes, such as value-added tax.
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Brink, Sophia, and Leonard Willemse. "An investigation into the future of discretionary trusts in South Africa – An income tax perspective." Journal of Economic and Financial Sciences 7, no. 3 (October 31, 2014): 797–818. http://dx.doi.org/10.4102/jef.v7i3.238.
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Trusts have long been associated with elaborate tax avoidance schemes, primarily as a result of their flow-through nature. In the National Budget the Minister of Finance indicated that the government was proposing several legislative measures during 2013/2014 regarding trusts to control abuse. At this stage the proposals are vague and confusing, but it is intimated that the conduit pipe principle may be under review as the proposals state that trusts should no longer act as a flow-through vehicle, meaning that the amounts distributed to the beneficiaries will no longer retain their original identity. The main objective of the research was to clarify the proposed changes to the taxation of trusts, to investigate the potential impact(s) of these proposals (albeit unclear and consequently based on certain assumptions), and to assess whether discretionary trusts still have a future in South Africa given these proposals. In order to meet this objective, a qualitative approach based on a literature study of pure theoretical aspects was used. It was found that should the proposals become law the beneficiaries will be worse off.
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Coetzee, K., P. Van der Zwan, D. Shutte, H. Van Dyk, and EM Stack. "Ochberg v CIR: No “benefit” to the benefactor." Southern African Business Review 19 (February 12, 2019): 25–46. http://dx.doi.org/10.25159/1998-8125/5780.
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This article analyses the South African case of Ochberg v CIR, which dealt with the question whether shares issued by a company to Ochberg, who was, for all intents and purposes, the sole shareholder, in consideration for services rendered and an asset provided to the company, constituted “income” in terms of the definition of “gross income” in section 7(1) of the Income Tax Act No. 40 of 1925 (as it then applied). Ochberg’s contention was that he had received no benefit from the additional shares issued as the value of all the shares issued had been the same both before and after the issue of the shares. Accordingly, there had been no increase in his wealth and thus no income had been received. The majority decision (two of the five judges dissenting) of the Appellate Division of the Supreme Court held that the shares were “income” and had to be valued at their nominal value. The article first provides a glimpse into the life of Isaac Ochberg, who was a substantial benefactor to charitable causes. It then presents a thematic analysis of the four separate judgments set down in the case, and finally, discusses certain tax principles arising from the judgments. In conclusion, the article considers to what extent Ochberg benefited from the transaction in terms of the Haig-Simons model of taxation and the economic reality of the transaction. The lasting value of the decision is demonstrated with reference to citations of Ochberg v CIR in a number of more recent landmark cases.
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Goldswain, G. K., and O. Swart. "The Port Elizabeth Electric Tramway case:1 Is the meaning ascribed to the phrase “in the production of the income” by Watermeyer AJP in the Port Elizabeth Electric Tramway case still religiously followed today?" Southern African Business Review 19 (February 12, 2019): 71–96. http://dx.doi.org/10.25159/1998-8125/5791.
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This article analyses the meaning attributed to the phrase “in the production of the income” as used in the present section 11(a) of the Income Tax Act, which provides for general expenses to be allowed as deductions against income. Read together with section 23(g), section 11(a) is commonly referred to as the “general deduction formula”. It has been said that the meaning ascribed to the phrase by Watermeyer AJP (as he was then) in his judgment in the Port Elizabeth Electric Tramway Company Ltd v CIR is “too mechanical and contrived”. Consequently, the judiciary, in applying the meaning as attributed to it by Watermeyer AJP in subsequent cases, has sometimes led to inconsistent and conflicting judgments. In fact, the application of the meaning so ascribed takes no account of the economic and other non-economic realities of doing business in the 21st century. The main objective of this article has been to re-ignite the debate surrounding Watermeyer AJP’s interpretation of the phrase, “in the production of the income”, in the Port Electric Tramway case and in so doing establish whether the narrow meaning ascribed by him to that phrase has subtly been changed and widened by the judiciary in subsequent cases. It can be concluded from an analysis of the case law discussed in this article that Watermeyer AJP’s interpretation, if strictly adhered to, can and does lead to absurd results. However, it is submitted that sanity has fi nally prevailed. The Supreme Court of Appeal in the comparatively recently decided cases of C:SARS v Mobile Telephone Networks Holdings (Pty) Ltd and Warner Lambert SA (Pty) Ltd v C:SARS, have considerably widened the ambit of expenses that may now be claimed in terms of section 11(a) of the Income Tax Act. The deduction of expenditure as was allowed in those two cases by the Supreme Court of Appeal, would appear not to have been permissible in terms of Watermayer AJP’s interpretation of the meaning of the phrase “in the production of income”. It is submitted that the economic realities =of doing business in South Africa in the 21st century are now taken into account in determining whether a business expense falls within the ambit of the phrase “incurred in the production of the income”.
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Nel, Rudie, and Shene Steenkamp. "Cloud computing activities: South African normal tax source determination." Journal of Economic and Financial Sciences 9, no. 2 (December 18, 2017): 529–44. http://dx.doi.org/10.4102/jef.v9i2.57.
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The location-independent nature of cloud-based transactions results in many source-related difficulties for normal tax purposes. This study considered the source determination for each of the possible classifications of cloud-based income (lease, service and royalty income, and/or income from know-how) by performing a doctrinal study based on South African and international literature. This study identified and formulated the challenges in applying traditional source tests in the context of cloud-based transactions. These challenges stem from the potential absence of physical presence of the provider in the country of consumption, in contrast to traditional source tests where physical presence indicate a tax presence; as well as the location-independent nature of cloud-based transactions from the perspective of both the provider and the consumer. The findings of the study suggest that the source determination for cloud-based transactions could be based on the source of the payment or residency of the payer, rather than the physical location.
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Sormin, Barita, and Syamsuri Rahim. "Analisis Penerapan Pajak Penghasilan Usaha Mikro Kecil dan Menengah." Bongaya Journal for Research in Accounting (BJRA) 2, no. 1 (April 8, 2019): 11–19. http://dx.doi.org/10.37888/bjra.v2i1.107.
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This research aimed to: (1) To obtain and analyse application of Indonesian Government Act No. 23 of 2018 about increasing level of Micro Small and Medium Enterprises taxpayers who apply in South Makassar and North Makassar Tax Office, (2) to obtain and analyse application of Indonesian Government Act No. 23 of 2018 about contributed Micro Small and Medium Enterprises income taxes related to collection of income taxes Article 4 Section 2 in South Makassar and North Makassar Tax Office. Analysis method used in this research is descriptive analysis to describe increasing number of taxpayers before and after after application of Government Act No.23 of 2018 about collection of income taxes Article 4 Section 2. This research used descriptive analysis method with interactive model. Research shown that: (1) in South Makassar Tax Office, after application of Government Act No.23, shown increasing number of Micro Small and Medium Enterprises taxpayers for 79,61%, in the other hand, in North Makassar Tax Office, after application of Government Act No.23, shown decreasing number of Micro Small and Medium Enterprises taxpayers for -2,44%. (2) in South Makassar Tax Office, average collection of income taxes Article 4 Section 2, after 6 months since applying Government Act No. 23 of 2018, is 10,49% with the low criteria, and in North Makassar Tax Office, average collection of income taxes Article 4 Section 2, after 6 months since applying Government Act No. 23 of 2018, is 17,85% with the low criteria. In the future, government especially South Makassar and North Makassar Tax Office needs to be active and keen for holding personal socialization to the taxpayers.
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Steenkamp, Shené, and Rudie Nel. "Cloud computing activities: Guidelines on the South African income tax classification." Journal of Economic and Financial Sciences 9, no. 1 (December 18, 2017): 228–43. http://dx.doi.org/10.4102/jef.v9i1.39.
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The classification of income from cloud computing activities, according to the substance-over-form doctrine, is fundamental to the application of the correct taxation source test. The designation of IaaS, PaaS and SaaS, the three main cloud computing service models, clearly denotes the form of cloud computing activities as that of a service. However, the nature of cloud computing inherently raises the question of whether or not cloud computing income should not rather be classified as income from leasing activities or the imparting of know-how. In fact, the findings of this study suggest the classification would not necessarily always be that of a service. The possible classification as lease income can be either income from the lease of tangible computer hardware and/or of intellectual property (royalty income). The aim of this study was to formulate guidelines to assist in the correct classification of income from cloud computing activities. This was achieved by performing doctrinal research based on the South African and international literature.
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Berg, Gregory D., and William H. Kaempfer. "Income Inequality and Tax Policy for South African Race Groups." Review of Economics and Statistics 85, no. 3 (August 2003): 755–60. http://dx.doi.org/10.1162/003465303322369876.
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Johnston, Gregory, and Sare Pienaar. "Value-Added Tax On Virtual World Transactions: A South African Perspective." International Business & Economics Research Journal (IBER) 12, no. 1 (December 22, 2012): 71. http://dx.doi.org/10.19030/iber.v12i1.7513.
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The dawn of the internet age has brought about concepts such as electronic commerce, virtual worlds and digitized products. When consumption tax laws such as value-added tax (VAT) or goods and service tax (GST) were legislated, these concepts were not envisaged. The aim of this article is to determine whether the South African value-added tax (VAT) Act is applicable to transactions occurring in virtual worlds. The article critically analyses section 7(1) of the VAT Act to determine its applicability to transactions occurring in virtual worlds. The benefit of this article will be to highlight the deficiency in the South African VAT Act in dealing with electronic commerce transactions as well as transactions arising in virtual worlds. The study reported here concluded that the South African VAT Act in its current format does not appear to deal with transactions occurring in virtual worlds effectively. Consequently, amendments to existing law should be effected in order to deal effectively with the transactions.
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Makananisa, Mangalani Peter, and Jean Luc Erero. "Predicting South African personal income tax– using Holt–Winters and SARIMA." Journal of Economics and Management 31 (2018): 24–49. http://dx.doi.org/10.22367/jem.2018.31.02.
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Bettinger, Pete, Harry L. Haney, and William C. Siegel. "The Impact of Federal and State Income Taxes on Timber Income in the South Following the 1986 Tax Reform Act." Southern Journal of Applied Forestry 13, no. 4 (November 1, 1989): 196–203. http://dx.doi.org/10.1093/sjaf/13.4.196.
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Abstract The 1988 federal and state income tax liabilities for hypothetical forest landowners in two federal income tax brackets, each with and without timber sale revenue, were calculated for the 14 southern states. At the medium income level, the state portion of total income tax liability(without timber sale revenue) ranges from 9% in Louisiana to 20% in North Carolina. With timber sale revenue, it ranges from 7% in Louisiana to 17% in North Carolina. At the high income level, the state portion of total income taxes (without timber sale revenue) ranged from 7% in Louisianato 16% in North Carolina, and with timber sale revenue, from 6% in Louisiana to 15% in North Carolina. Capital gains exclusions, deductions for federal income taxes, tax rates and schedules, standard deductions, and personal exemptions are the most important provisions for reducing state incometax liability. The installment sale method of reporting income was used as one alternative tax planning strategy for spreading timber sale revenue over a 2-year period. The purpose was to smooth cash flows and reduce the amount of income subject to higher marginal tax rates. Georgia taxpayerselecting the installment sale method of reporting in a hypothetical case saved $1,203 and $585 in total income taxes for the medium and high income levels, respectively. South. J. Appl. For. 13(4):196-203.
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Erero, Jean Luc. "Contribution of VAT to economic growth: A dynamic CGE analysis." Journal of Economics and Management 43 (2021): 22–51. http://dx.doi.org/10.22367/jem.2021.43.02.
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Aim/purpose – This study sought to assess the impact of an increased historical fixed VAT rate of 14% to the current rate of 15% on the South African economy. Design/methodology/approach – The method applied in this study was based on a Dynamic Computable General Equilibrium (CGE) model to evaluate the impact of both the VAT rate of 14% and a new rate of 15% on the South African economy. The CGE model has been proven over the years to be a suitable model when evaluating the impact assessment of any shock within an economy. Enhancements were made by the researcher to the direct and indirect tax section of the model, i.e., the direct tax section was disaggregated, such that for both firm and household revenues, a dividend income stream is separated from other income streams. The main reason is to facilitate a detailed analysis of Corporate Income Tax (CIT) and Personal Income Tax (PIT), as well as the latest implemented Dividend Tax (DT). Findings – When VAT was increased from 14% to 15%, the immediate reaction of the shock from the Dynamic CGE model indicates that the Gross Domestic Product (GDP) declined by 0.0002% in 2018, but increased by 0.0028% in the following year (2019). The trend continued until 2021, hence the 1% increase in the VAT tax rate will increase the expected forecast of VAT collection by approximately R3.2 billion on average. Research implications/limitations – The findings of this study will be implemented by the South African government, which will use a dynamic CGE model to assess South Africa’s VAT contribution to the economy. The database of the CGE model was limited to the Social Accounting Matrix (SAM) for 2015. Originality/value/contribution – The study recommends the use of this method for assessing the impact of tax policy changes to the South African economy. The CGE model seems to be the best model as far as the impact assessment of a shock in the econ- omy is concerned. This will assist the South African authorities with their decision mak- ing regarding future VAT revenue. Keywords: South African Revenue Service (SARS), Value Added tax (VAT), Dynamic computable general equilibrium (CGE) model. JEL Classification: H21, C68, E62.
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Willemse, Leonard, and David Badenhorst. "‘n Ondersoek na die inkomstebelastinghantering van beëindigingsboetes betaalbaar deur verhuurders by die voortydige beëindiging van ‘n huurooreenkoms." Journal of Economic and Financial Sciences 5, no. 2 (October 31, 2012): 547–66. http://dx.doi.org/10.4102/jef.v5i2.299.
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The premature termination of lease agreements is a common occurrence in the South African and international business arena. When a lease is terminated prematurely, it is currently the practice that the person who terminates the lease agreement has to pay a termination penalty. This article investigates the income tax treatment possibilities of the penalty paid by a lessor. For purposes of this investigation the income tax treatment of lease termination penalties in Australia, Canada, the United States of America and South Africa are investigated. This is done in order to identify guidelines and principles that could possibly be used in a South African context, which may lead to the efficient and correct treatment of lease termination penalties for South African income tax purposes. The investigation concludes that the factors surrounding the lease termination transaction as well as the intention of the parties involved, will determine the appropriate income tax treatment of the penalty. The question must be asked whether or not the termination penalty was incurred as part of a ‘profit-making scheme’ and what happens after the penalty has been incurred. It is recommended that, where the penalty is deemed to be capital in nature, the merit of allowing some sort of capital allowance (similar to the one used in the United States of America) should be investigated.
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Gomo, Charity. "Government transfers, income inequality and poverty in South Africa." International Journal of Social Economics 46, no. 12 (December 2, 2019): 1349–68. http://dx.doi.org/10.1108/ijse-09-2018-0458.
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PurposeThe purpose of this paper is to quantify the impact of social or government transfers on income inequality and poverty in South Africa.Design/methodology/approachA top-down, bottom-up (TD-BU) model which combines an econometrically estimated labor supply model, a detailed tax-benefit module and a computable general equilibrium model is used in order to analyze the impact of government transfers on income inequality and poverty in South Africa. The paper uses a merged South African income and expenditure household survey and labor force survey for the year 2000, and a South African social accounting matrix as the main data sets.FindingsSimulation results suggest that doubling of government transfers lead to a 5.5 percent reduction in poverty if a relative poverty measure is used and a 7 percent reduction if an absolute poverty line is used. In addition, simulation results show differences in poverty and inequality measures between the MS-only model and the linked TD-BU model confirming the importance of linking the two models.Originality/valueThe TD-BU approach is important since it explicitly accounts for the following aspects: that labor supply should adjust to changes in the tax-benefit model, general equilibrium effects and the heterogeneity of economic agents. This allows for a richer micro-household modeling.
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Moolman, Anneke Maré, and Pieter Van der Zwan. "An Evaluation Of Income Tax Incentives Available To The South African Oil And Gas Industry." International Business & Economics Research Journal (IBER) 15, no. 5 (September 1, 2016): 227–40. http://dx.doi.org/10.19030/iber.v15i5.9781.
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The oil and gas sector is advantageous to South Africa. However, the country’s oil and gas reserves are minimal in relation to many other countries, reducing attractiveness to prospective investors. In the aim of promoting investment in the oil and gas sector of South Africa, attraction should be improved by other means, such as an alluring regulatory environment, including the taxation regime.The research conducted in this study aimed to determine whether the income tax legislation in South Africa provides a meaningful incentive for oil and gas companies to compete for international investment in this industry without unnecessarily compromising the State’s share of wealth from the industry. A literature review established the use and characteristics of meaningful tax incentives. The incentives contained in South Africa’s oil and gas tax environment were evaluated to determine whether the incentives can attract investment to the sector.Findings indicate that the incentive contained in the Tenth Schedule generally meets identified characteristics of meaningful tax incentives, enabling South Africa to lure investment to the sector. The interaction between this incentive and the remainder of the legislation, however, reduces the stability afforded to investors and may create uncertainty in the application of the incentive. Also, an apparent lack of monitoring of the regime may result in the impact and necessity of the incentive not being determinable, especially if the investor environment were to be affected by new discoveries.
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Toerien, Francois, and Matthew Marcus. "The Effect Of South African Dividend And Capital Gains Taxes On Share Prices And Investor Expected Returns." Journal of Applied Business Research (JABR) 30, no. 3 (April 24, 2014): 895. http://dx.doi.org/10.19030/jabr.v30i3.8574.
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<p>We examine the effect of South African taxes, specifically the secondary tax on companies (STC) and the dividends tax (DT) that replaced it, as well as capital gains tax (CGT), on investor measures of expected return and firm value. The discussion, findings, and models presented in this study are entirely original in the field of South African corporate finance research. We model the relationship between STC, CGT, and expected return and use this relationship to formulate an hypothesis of the expected behaviour of ex-ante measures of implied cost of capital for a sample of listed South African companies. We calculate these measures by formulating a unique South African version of the residual income valuation model (RIVM) and then regress derived measures of the implied equity premium on historical measures of dividend yield, ultimately concluding that investors appear to recognise the net tax benefit of dividends and capitalise this benefit into stock prices. Finally, we examine the expected position of each of these areas in light of the proposed shareholder dividend tax regime.</p>
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Schlenther, Bernd. "Is the South African effort toward reducing money laundering optimal?" Journal of Money Laundering Control 17, no. 1 (January 7, 2014): 17–33. http://dx.doi.org/10.1108/jmlc-07-2013-0025.
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Purpose – A measure of how much money is laundered is required to determine the effectiveness of any anti-money laundering regime and the reduction of money laundering in targeted areas. In the absence of useful estimates, authorities need to look at the best quality data available to arrive at a meaningful estimate and a consequent target for reduction of money laundering. Since tax crimes are viewed as one of the top three sources of laundered money, an understanding of the underlying predicate offence – tax evasion – may be indicative of the values or volumes involved in order to facilitate a target setting process. It is suggested that a “whole of government approach”, as is advanced by the OECD, is applied between the tax administration and the financial intelligence centre in South Africa. The paper aims to discuss these issues. Design/methodology/approach – By reviewing tax gap and money laundering estimation models and results from South Africa's first tax amnesty, it is proposed that micro analysis methodologies are applied to arrive at an estimate of the size and impact of money laundering which results from tax evasion practices. Findings – By making basic inferences from the results of the 2003 voluntary disclosure programme, it is estimated that a potential revenue gap of between ZAR4 billion and ZAR12 billion exists for personal income tax alone and that the value of personal assets acquired from the proceeds of crime can, at any time, be as high as ZAR1.4 trillion. Originality/value – In the absence of empirical and statistical data, it is necessary for authorities in developing countries to identify and make use of the most relevant and detailed data to assess its effectiveness in identifying, quantifying and reducing money laundering.
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Dangerfield, Coleman W., and John E. Gunter. "Impacts of the Tax Reform Act of 1986 on Noncorporate Timber Income in the South." Southern Journal of Applied Forestry 15, no. 3 (August 1, 1991): 113–17. http://dx.doi.org/10.1093/sjaf/15.3.113.
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Abstract The Tax Reform Act of 1986 (TRA'86) may reduce the timber-growing profitability of noncorporate landowners in the South. Effects vary by site index, length of rotation, market area, and tax provision. The long-run timber supply will be adversely affected by TRA'86. Short-run effects were not determined. Many producers will continue tree production with reduced profitability after TRA'86 because no better use for timber producing assets exists. Additional production and marketing efficiencies will be squeezed into tree production at the margin because of TRA'86. Some marginal producers, unable to become more efficient, may exit the industry. South. J. Appl. For. 15(3):113-117.
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Siweya, Nkhensani. "Carbon tax to lower emissions: the likely impact of carbon emissions tax on households in South Africa." African Multidisciplinary Tax Journal 2021, no. 1 (February 2021): 211–27. http://dx.doi.org/10.47348/amtj/2021/i1a12.
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The South African government, along with other countries, has signed the Paris Agreement to commit to lowering carbon dioxide emissions. This has led to the introduction of carbon tax in different countries to combat global warming. The Mexican government was the first to introduce carbon tax amongst the emerging economies back in 2014, while the Argentine government implemented carbon tax in January 2018. The South African government followed suite and introduced carbon tax effective 5 June 2019. Households are expected, however, to be weighed down by the levy as the carbon fuel levy will be implemented at 9 and 10 cents per litre on petrol and diesel respectively. The impact on strained households’ income is expected to emanate from the already high fuel prices, which have been on a rising trajectory since the beginning of 2019.
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Keulder, Carika. ""Pay Now, Argue Later" Rule – Before and After the Tax Administration Act." Potchefstroom Electronic Law Journal/Potchefstroomse Elektroniese Regsblad 16, no. 4 (May 17, 2017): 124. http://dx.doi.org/10.17159/1727-3781/2013/v16i4a2412.
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The South African Revenue Service (SARS) is entrusted with the duty of collecting tax on behalf of the South African government. In order to ensure effective and prompt collection of taxes, the payment of tax is not suspended pending an objection or an appeal, unless directed otherwise. This is also known as the "pay now, argue later" rule, and, for value-added tax purposes, is provided for in terms of section 36 of the Value-Added Tax Act 89 of 1991. The "pay now, argue later" rule in terms of section 36 of the Value-Added Tax Act prima facie infringes on a taxpayer's right of access to the courts as envisaged in section 34 of the Constitution. This is due to the fact that a taxpayer is obliged to pay tax before being afforded the opportunity to challenge the assessment in a court. In Metcash Trading Ltd v Commissioner for the South African Revenue Service, the Constitutional Court held the "pay now, argue later" rule in terms of section 36 to be constitutional. Olivier, however, does not agree with the court on several matters. Amongst the problems she indicates are that the taxpayer does not have access to the courts at the time the rule is invoked, and that the court did not consider the fact that there might be less invasive means available which would ensure that SARS's duty is balanced with the taxpayer's right of access to the courts. Guidelines were also issued which provide legal certainty regarding the factors SARS may consider in determining whether the payment of tax should be suspended or not. These guidelines also evoked some points of criticism. Since 1 October 2012, the "pay now, argue later" rule has been applied in terms of section 164 of the Tax Administration Act 28 of 2011. The question arises whether this provision addresses the problems identified in respect of section 36 of the Value-Added Tax Act and the guidelines. In comparing these sections, only slight differences emerged. The most significant difference is that section 164(6) of the Tax Administration Act stipulates that the enforcement of tax be suspended for a period when SARS is considering a request for suspension. Section 164(6) does not provide a solution to the problems identified regarding section 36 of the Value-Added Tax Act. It is even possible that this section could give rise to further problems. Therefore, the legislature has failed to address the imbalance between the duties of SARS and the right of a taxpayer to access the courts.
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Oguttu, Annet Wanyana. "Offshore trusts and income tax avoidance: the lures and pitfalls from a South African perspective." International Journal of Private Law 5, no. 4 (2012): 406. http://dx.doi.org/10.1504/ijpl.2012.049360.
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Netswera, Fulufhelo G., and Collins C. Ngwakwe. "Rethinking the erosional effect of indirect taxes on individual income." Corporate Ownership and Control 11, no. 1 (2013): 383–88. http://dx.doi.org/10.22495/cocv11i1c4art2.
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This paper examines the erosional effect of indirect taxes on individual incomes of South African citizens. A focus on taxation and the pervasion of indirect taxation in particular has become important given growing income inequality, unemployment and poverty amongst South Africans. The methodological approach utilised in this paper is rooted in reviews and use of hypothetical salaries to assess the erosional effect of indirect taxation on such salaries. The paper finds that although richer individuals may pay greater indirect taxes than poorer individuals; as a proportion of income however, poorer individuals spend higher proportion of their income on indirect taxes than richer individuals. This connotes therefore the lack of desired progressivity that should be implicit in South African indirect tax system. South Africa is among countries with the highest income inequality in the world. The implication of this research finding is that indirect taxes may exacerbate income inequality and work against the government vision of “better life for all” and in particular worsen the state of the poor class. The paper concludes that achieving effective reduction of income inequality and economic transformation in South Africa would require exempting individuals below certain threshold of income from paying some indirect taxes.
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Saxena, Akshar, Nicholas Stacey, Paula Del Ray Puech, Caroline Mudara, Karen Hofman, and Stéphane Verguet. "The distributional impact of taxing sugar-sweetened beverages: findings from an extended cost-effectiveness analysis in South Africa." BMJ Global Health 4, no. 4 (August 2019): e001317. http://dx.doi.org/10.1136/bmjgh-2018-001317.
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BackgroundFacing increasing obesity prevalence and obesity-related disease burden, South Africa has devised an obesity prevention strategy that includes a recently implemented tax on the sugar content of sugar-sweetened beverages (SSB). We assess the potential distributional impact (across socioeconomic groups) of this tax on type 2 diabetes mellitus (T2DM) incidence and associated mortality and its financial burden on households.MethodsWe conducted an extended cost-effectiveness analysis of the new 10% tax on SSBs in South Africa, and estimated: the averted premature deaths related to T2DM, the financial benefits to households (out-of-pocket (OOP) medical costs and indirect costs due to productivity losses averted), the increased government tax revenues and healthcare savings for the government, all across income quintiles.FindingsA 10% SSB tax increase would avert an estimated 8000 T2DM-related premature deaths over 20 years, with most deaths averted among the third and fourth income quintiles. The government would save about South African rand (ZAR) 2 billion (US$140 million) in subsidised healthcare over 20 years; and would raise ZAR6 billion (US$450 million) in tax revenues per annum. The bottom two quintiles would bear the smallest tax burden increase (36% of the additional taxes). The bottom two income quintiles would also have the lowest savings in OOP payments due to significant subsidisation provided by government healthcare. Lastly, an estimated 32 000 T2DM-related cases of catastrophic expenditures and 12 000 cases of poverty would be averted.ConclusionsSSB taxation would have a substantial distributional impact on obesity-related premature deaths, cost savings to the government and the financial outcomes of South Africa’s population.
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Daniels, Rudolph. "The Structure of the South African Labor Market, 1970–83." Review of Black Political Economy 15, no. 4 (March 1987): 63–78. http://dx.doi.org/10.1007/bf02903730.
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The structure of the labor market in the Republic of South Africa over 1970–83 is strongly linked to the Natives Land Act of 1913, No. 27, which dispossessed blacks of their legal right to land ownership. One of the intended results of this act was to increase the supply of cheap black labor to South Africa's predominantly white-owned industry. Thus, over the 1970–83 period, as before, blacks occupied the lowest ends of the educational, occupational, employment, and income distributions among all races in South Africa. On the other hand, the white minority lived at a standard equal to that of Americans and Scandanavians. However, even within these constraints, the demographics of South Africa are such that over the next decade or more, and even in the absence of major political upheaval, blacks may comprise an increasing percentage of the workforce and occupy positions which have been mainly occupied by whites to date.
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Steenkamp, Lee-Ann. "An analysis of the applicability of the OECD Model Tax Convention to non-OECD member countries: The South African case." Journal of Economic and Financial Sciences 10, no. 1 (June 6, 2017): 83–93. http://dx.doi.org/10.4102/jef.v10i1.6.
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Most tax treaties (including South Africa's) are based on the OECD Model Tax Convention on Income and Capital and the related Commentary (the 'OECD Model'). Notwithstanding the uncertainty surrounding its legal status, the courts in many countries use the OECD Model in the interpretation of their tax treaties. The OECD launched an action plan on Base Erosion and Profit Shifting ('BEPS') in 2013, which is aimed at improving international tax cooperation between governments. In South Africa, the importance of combating BEPS is highlighted by the fact that the Davis Tax Committee has appointed a sub-committee specifically to address concerns pertaining to BEPS. South Africa's participation in the BEPS project and its tax treaty negotiations with other countries, especially OECD member states, are of the utmost importance to South Africa's National Treasury. Consequently, it is the primary objective of this article to analyse the applicability of the OECD Model to non-OECD member countries, with particular emphasis on South Africa. It will be argued that, if the treaties of non-member countries are in conformity with the OECD Model and no specific position has been taken, the non-members also accept the provisions of the Model and the Commentary as an interpretative aid.
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Coetzee, Liza (ESM), Hanneke Du Preez, and Aideen Maher. "The Case For Tax Relief On Private Security Expenditures In South Africa." International Business & Economics Research Journal (IBER) 13, no. 2 (February 27, 2014): 419. http://dx.doi.org/10.19030/iber.v13i2.8458.
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Like other countries in transitional democracies, South Africa is experiencing high levels of crime since its first democratic election in 1994. About 83 percent of South Africans believe that the South African Police Service is corrupt and citizens are losing faith in the government to protect them as promised in the Constitution. As a result citizens are paying a large portion of their disposable income on security expenses to protect themselves and their property. Currently no tax relief is available for non-trade related security expenditure, as stated by the South African Revenue Services in 2008 after a public outcry to allow private security expenses as a deduction. This paper urges government to revisit its decision made in 2008. Private security expenses have become a necessity in the daily lives of South Africans. This was demonstrated by surveying four of the largest private security companies in an area of Tshwane Metropolitan Municipality (previously called Pretoria), South Africa. The paper ends by proposing three possible ways of providing tax relief for private security expenses.
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van der Zee, Kirsten, Corné van Walbeek, and Sibahle Magadla. "Illicit/cheap cigarettes in South Africa." Trends in Organized Crime 23, no. 3 (November 22, 2019): 242–62. http://dx.doi.org/10.1007/s12117-019-09372-9.
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AbstractUsing wave 5 of the National Income Dynamics Study (conducted in 2017), this paper investigates the market for very low-priced cigarettes in South Africa, which, in all probability, are illicit. Since the sum of the excise tax and VAT in 2017 amounted to R16.30 (1.22 USD) per pack, any cigarettes selling for R20 (1.50 USD) per pack or less are likely to be illicit, assuming reasonable production costs. By this definition, approximately 30% of cigarettes consumed in South Africa in 2017 were illicit. Illicit cigarettes are found across all nine provinces. At the margin, the purchase of illicit cigarettes is associated with lower socio-economic characteristics, such as having lower levels of income and education. As illicit cigarettes undermine both the fiscal and health agendas of tobacco taxation policy, these results highlight the need for the South African government to implement urgently effective measures in order to curb illicit trade.
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Chadwick, Rachelle. "Ambiguous subjects: Obstetric violence, assemblage and South African birth narratives." Feminism & Psychology 27, no. 4 (February 28, 2017): 489–509. http://dx.doi.org/10.1177/0959353517692607.
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Obstetric violence is gaining recognition as a worldwide problem manifesting in a range of geopolitical contexts. While global public health attention is turning to this issue, there has been a lack of theoretical engagement by feminist psychologists with the phenomenon of obstetric violence. This paper contributes to the literature on obstetric violence via a feminist social constructionist analysis of “marginalized” and low-income South African women’s narratives of giving birth in public sector obstetric contexts. Drawing on interviews conducted in 2012 with 35 black, low-income women living in Cape Town, South Africa, the analysis focuses on obstetric violence as a relational, disciplinary, and productive process that has implications for the construction of women’s subjectivities and agency during childbirth. The findings focus on relational constructions of violence and agency in women’s narratives, including (a) the performance of docility as an act of ambiguous agency and (2) resistant bodies and modes of discipline. Framed within a Foucauldian approach to power and using the concept of assemblage, I argue that obstetric violence needs to be conceptualized as more than isolated acts involving individual perpetrators and victims. Instead, the analysis shows that obstetric violence functions as a mode of discipline embedded in normative relations of class, gender, race, and medical power.
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Naude, Tjakie. "The protection of low-income consumers under the South African Consumer Protection Act 68 of 2008." Zeitschrift für Europäisches Unternehmens- und Verbraucherrecht 1, no. 4 (December 2012): 243–53. http://dx.doi.org/10.1007/s13590-012-0026-6.
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