This study compared the turnover tax and small business corporation tax systems in South Africa as applicable to micro and small businesses. Misinformed perceptions of the turnover tax system were the motivation for this study. A three phase approach was adopted to conduct this study, the phases being literature review, in-depth face-to-face interviews and quantitative analysis of financial statements which are referred to as case studies. The tax liability was calculated for each of the thirty cases and thereafter a comparative analysis was performed to establish the most beneficial tax system for each case study. The findings for year one revealed that the small business corporation tax system was the most beneficial tax system for fifteen of the thirty cases and turnover tax for the other fifteen cases. Over an average of five years, fourteen cases benefited from the small business corporation tax system and sixteen from turnover tax. There were a number of significant reasons why the above mentioned tax systems were appropriate for each of the thirty cases, one of which being, the type of business or industry where the case is located. The information obtained from this study could inform small and micro businesses about the most appropriate and beneficial tax system for their businesses. In addition the information emanating from this study could be used by tax practitioners to advise their clients on the most appropriate tax system for their businesses. Lastly, the results of this study could contribute to the debate around legislation for small and micro businesses. / Taxation / M. Com. (Accounting)

This study compared the turnover tax and small business corporation tax systems in South Africa as applicable to micro and small businesses. Misinformed perceptions of the turnover tax system were the motivation for this study. A three phase approach was adopted to conduct this study, the phases being literature review, in-depth face-to-face interviews and quantitative analysis of financial statements which are referred to as case studies. The tax liability was calculated for each of the thirty cases and thereafter a comparative analysis was performed to establish the most beneficial tax system for each case study. The findings for year one revealed that the small business corporation tax system was the most beneficial tax system for fifteen of the thirty cases and turnover tax for the other fifteen cases. Over an average of five years, fourteen cases benefited from the small business corporation tax system and sixteen from turnover tax. There were a number of significant reasons why the above mentioned tax systems were appropriate for each of the thirty cases, one of which being, the type of business or industry where the case is located. The information obtained from this study could inform small and micro businesses about the most appropriate and beneficial tax system for their businesses. In addition the information emanating from this study could be used by tax practitioners to advise their clients on the most appropriate tax system for their businesses. Lastly, the results of this study could contribute to the debate around legislation for small and micro businesses. / Taxation / M. Com. (Accounting)

Small and medium enterprises (SMEs) play a significant role in the economy. However, SMEs face a number of obstacles and impediments that prevent them from developing and growing. Government has introduced a number of initiatives to help develop and promote SMEs but SMEs still face many remaining obstacles and impediments which include non-compliance with tax legislation. The main purpose of this dissertation is thus to help SMEs increase their level of tax compliance by developing a checklist of indicators that will help SMEs reduce the probability of tax errors occurring in respect of the gross income definition and general deduction formula. Other sections of the income tax and other tax types were not considered as the study was confined to the gross income definition and general deduction formula. These untouched areas may be considered in future research / Taxation / M. Compt.