Thesis (MRek) -- Stellenbosch University, 2003. / ENGLISH ABSTRACT: The introduction of section 9E in the Income Tax Act, NO.58 of 1962 (hereafter "the Act") became effective on 23 February 2000. The main reasons for the introduction of this was, inter alia, to broaden the tax base and to phase in the residency basis of taxation. Consequently are the foreign dividend rules of section 9E interrelated to the foreign income rules of section 90, being the application of the residence basis of taxation. The main objective of this study is to investigate the taxation of foreign dividends in the Republic of South Africa. The introduction of section 9E saw new terminology introduced, which need analysis. This analysis is made possible by supplying the definitions from the Act, as well as making use of national and international case law. Further investigation is also done as to the relevance of section 9E to other sections in the Act, relevant anti-avoidance rules regarding foreign dividends, the effect of section 9E on investment income from tax havens, with specific reference to natural persons, the effect of taxation of foreign dividends on the migration- and investment decisions of non-residents, relief provided regarding double taxation and section 9E's effect on secondary taxation on companies. Lastly, the collection of taxation on foreign dividends is investigated. / AFRIKAANSE OPSOMMING: Die invoeging van artikel 9E in die Inkomstebelastingwet, No.58 van 1962 (hierna "die Wet") het van krag geword op 23 Februarie 2000. Die hoofredes vir die invoeging van die artikel in die Wet was onder andere om die belastingbasis te verbreed en om die verblyfbasis van belasting in te faseer. Juis as gevolg van laasgenoemde, word reels rakende buitelandse dividende in artikel 9E gekombineer met die buitelandse inkomste-reels van artikel9D. Die hoofdoel van hierdie studie is om belasting op buitelandse dividende in die Republiek van Suid Afrika te ondersoek. Met die invoeging van artikel 9E het daar 'n aantal nuwe terme te voorskyn gekom, wat hul ontleding noodsaak. Hierdie ontleding word moontlik gemaak deur bloot die definisies uit die Wet self weer te gee, asook deur die gebruik van nasionale en internasionale regspraak . Verdere ondersoek word ook gedoen na die toepaslikheid van artikel 9E op ander artikels in die Wet, relevante teenvermydingsbepalings met betrekking tot buitelandse dividende, die invloed van artikel 9E op beleggingsinkomste uit belastinghawens, met spesifieke verwysing na belegging deur natuurlike persone, die invloed van belasting op buitelandse dividende op die migrasieen beleggingsbesluite van nie-inwoners, verligting wat beskikbaar is ten opsigte van dubbelbelasting en die verband wat artikel 9E hou met sekondere belasting op maatskappye. Laastens word die invordering van belasting op buitelandse dividende ondersoek.

Thesis (MComm) Stellenbosch University, 2005. / AFRIKAANSE OPSOMMING: Wanneer 'n natuurlike persoon (die vereffenaar) besluit om sy of haar groeibates (byvoorbeeld, vaste eiendom of aandele) aan sy of haar familietrust oor te dra, word sodanige bate-oordrag se markwaarde gewoonlik (volgens die mening van die belastingskrywers, Keith Huxham en Phillip Haupt) deur die toestaan van 'n rentevrye leningsrekening aan die trust gefinansier. Die vermindering van die bedoelde uitstaande skuld by wyse van skenkings van die vereffenaar, het met die verordening van belasting op kapitaalwins (BKW) op 1 Oktober 2001 'n BKW-dilemma vir sodanige trust geskep. 'n BKW-aanspreeklikheid ingevolge paragraaf 12(5) van die Agtste Bylae tot die Inkomstebelastingwet, NO.58 van 1962, soos gewysig, (hierna as "die Wet" verwys) sal in hierdie omstandighede vir die trust ontstaan, omrede die toepaslike vermindering as 'n vermindering van 'n debiteur (die familietrust) se skuld (die uitstaande leningsverpligting) deur 'n krediteur (die vereffenaar) teen geen vergoeding beskou mag word. Belastingraadgewers in die algemeen adviseer gevolglik (volgens onder meer die siening van 'n regskonsultant van San lam Trust, Elmarene Erasmus) hulle kliente dat 'n trust benut moet word op 'n wyse wat verseker dat die vereffenaar nie die trust se tersaaklike uitstaande leningsrekening vir geen werklike betaling verminder nie. 'n Werklike betaling van die skenking word derhalwe voorgestel. Sodanige werklike betaling word bewerkstellig deurdat die vereffenaar 'n bedrag geld ten bedrae van R30 000 (die skenkingsbelasting-vrystellingsperk ingevolge artikel 56(2)(b) van die Wet) direk aan die trust betaal of andersins 'n tjek vir die betrokke bedrag aan die trust uitreik. Teen die einde van die belastingjaar, dit wil se nadat die toepaslike skenking ontvang is, besluit die trustees van die trust meestal om die kontant, wat per die trust se rekeningkundige rekords op hande is, aan te wend ter aflossing van 'n gedeelte van die uitstaande leningsverpligting aan die vereffenaar verskuldig. Daar word deurgaans veronderstel dat die toepaslike trust in hierdie omstandighede oor geen verdere uitstaande skuld, rentedraend al dan nie, beskik nie. Deur te aanvaar dat die vereffenaar nie.regstreeks afstand doen van 'n gedeelte van die uitstaande lening vir geen betaling nie, is die waarskynlikheid dat 'n BKWaanspreeklikheid vir die trust (vanwee enige leningsvermindering) sal ontstaan deur middel van die studie bepaal. Die betekenis van die frase "verminder of afgelos" ("reduced or discharged" per die Engelse teks van die Wet) ingevolge paragraaf 12(5) van die Agtste Bylae tot die Wet is onder meer verklaar aan die hand van die woordeboekbetekenis van die woorde "reduced" en "discharged" en die strekking van "kwytskelding" en "voldoening" as relevante vorme van tenietgaan van 'n verbintenis (byvoorbeeld, 'n uitstaande leningsverpligting) kragtens die Suid-Afrikaanse kontrakte- en handelsreg. Die skrywer het die gevolgtrekking gemaak dat die betrokke frase dui op die gedeeltelike of algehele kwytskelding deur 'n krediteur van 'n skuld (soos byvoorbeeld, 'n uitstaande leningsverpligting) wat deur 'n debiteur aan die bedoelde krediteur verskuldig is. Voldoening (as 'n verskyningsvorm van die tenietgaan van 'n verbintenis) aan 'n skuld op 'n gedeeltelike of volledige basis deur middel van die betaling van 'n bedrag geld of 'n tjekbetaling kan egter volgens hierdie gevolgtrekking nie as 'n vermindering of aflossing van 'n skuld teen geen vergoeding ingevolge paragraaf 12(5) van die Agtste Bylae tot die Wet gesien word nie. Die sogenaamde "verwisseling van tjeks" - prosedure ter ondersteuning van die tersaaklike skenking- en leningvermindering-betalings is vir studiedoeleindes as 'n ekwivalent vir 'n verwisseling van 'n bedrag geld geag. 'n Ondersoek na die relevante howe se benaderings in Suid-Afrikaanse belastingsake [naamlik, ITC 1583 (1993) 57 SATC 58, ITC 1603 (1995) 58 SATC 212 en ITC 1690 (1999) 62 SATC 497] asook buitelandse sake [naamlik, Richard Walter (Pty) Limited v Commissioner of Taxation (1996) 67 FCR 243; 33 ATR 97 en MacNiven (Her Majesty's Inspector of Taxes) v Westmoreland Investments Limited (2001) UKHL 6; (2001) 1 ALL ER 865] ten aansien van sodanige prosedure, het aangetoon dat dit benut kan word as 'n grondslag vir die geldige nakoming van, oftewel voldoening aan 'n verbonde party se uitstaande skuld ingevolge 'n tersaaklike transaksie of reeling. Die onderliggende transaksie of reeling moet egter oor 'n regsgeldige uitwerking beskik, ooreenstemmend met die toepaslike regsgeldige bedoeling van die betrokke partye. Analisering van die vermindering van 'n trust se uitstaande leningsverpligting in samehang met die voorafgaande ontvangs van skenkingbetalings, het ook met verwysing na die gemeenregtelike wese bo vorm - leerstuk geskied. Hierdie ontleding het onder andere benadruk dat die belastingdoeltreffende werking (veraI in 'n BKW-konteks) van die bestudeerde reeling die aanwesigheid van egte ("genuine") en ongesimuleerde skenkingen leningvermindering-betalings, ooreenkomstig die regsgeldige bedoeling van die vereffenaar en trustees van die familietrust, om onderskeidelik skenkings en leningverminderings teweeg te bring, vereis. Die moontlike toepassing en effek van artikel 103(1) van die Wet (die Suid-Afrikaanse algemene teenvermydingsbepaling) op die bestudeerde reeling, is oorweeg deur onder meer ag te slaan op die siening van belastingskrywers (soos byvoorbeeld, D. Clegg, M.A. Kolitz en K. van der Linde) aangaande die uitwerking van hierdie bepaling op transaksies en reelings in die algemeen. Die skrywer het tot die gevolgtrekking gekom dat die toepaslike skenking- en leningvermindering-betalings onderskeidelik op 'n afsonderlike basis oor bona fide besigheidsdoelwitte moet beskik. Die besigheidsdoelwit van die skenkingbetalings mag byvoorbeeld verband hou met die vereffenaar se oogmerk om sy of haar persoonlike bates buite die bereik van sy of haar ondernemingskrediteure te plaas, gegewe die aanname dat die vereffenaar 'n sake-ondernemimg bedryf. Die leningvermindering-betalings se gepaardgaande besigheidsdoelwit mag weer betrekking he op die verbetering van die familietrust se balansstaatposisie soos weerspieel deur finansiele verhoudingsgetalle met betrekking tot onder andere Iikwiditeit en solvabiliteit. Verder is dit in hierdie verband van essensiele belang dat daar geen skakel of verbintenis tussen die onderliggende betalings moet bestaan nie. Die belastingskrywer, M.L. Stein se mening bied steun vir die belang van die afwesigheid van die bedoelde interafhanklikheid. Die teenwoordigheid van die betrokke besigheidsdoelwitte tesame met die ontbreking van enige interafhanklikheid tussen die relevante betalings, behoort dus (volgens die skrywer se beskouing) te verhoed dat die belastingeffektiewe werking (veral in 'n BKW-verband) van die reeling onder oorweging deur artikeI103(1) van die Wet se toepassing en effek ter syde gestel word. Die skrywer het tot die slotsom gekom dat egte, onvoorwaardelike (jaarlikse) skenkingbetalings deur die vereffenaar aan sy of haar familietrust wat aan die einde van die belastingjaar opgevolg word deur ongesimuleerde leningvermindering-betalings, geInisieer deur die trust se trustees sonder enige inmenging of invloed van die vereffenaar, na aile waarskynJikheid'n BKW-dilemma vir die familietrust (in die vorm van 'n BKW-aanspreeklikheid per paragraaf 12(5) van die Agtste Bylae tot die Wet ten aansien van enige leningsvermindering) sal uitskakel. / ENGLISH ABSTRACT: When a natural person (the settlor) decides to transfer his or her growth assets (for example, fixed property or shares) to his or her family trust, the market value of such a asset transfer is usually financed (according to the opinion of certain tax authors, for instance, Keith Huxham and Phillip Haupt) through the grant of a interest free loan account to the appropriate trust. The reduction of the proper indebtedness by way of donations from the settlor, created a capital gains tax (CGT) dilemma for the trust concerned since the commencement of CGT on 1 October 2001. A liability for CGT in terms of paragraph 12(5) of the Eighth Schedule to the Income Tax Act 58 of 1962, as amended, (hereinafter referred to as ''the Act'1 will arise in these circumstances in respect of the trust, because the applicable reduction may be seen as a reduction of the debt (the outstanding loan account) of a debtor (the family trust) by a creditor (the settlor) for no consideration. In general, tax consultants consequently advise their clients (in accordance with, among others, the view of Elmar{me Erasmus, a legal advisor of Sanlam Trust) that a trust should be utilise in a manner which would ensure that the settlor does not reduce the outstanding loan account of the relevant trust for no actual payment. Hence an actual payment of the donation is proposed. The real payment as such is accomplish through the direct payment of R30 000 (the exemption amount for donation tax purposes in terms of section 56(2)(b) of the Act) by the settlor to the trust or otherwise through the issue of a cheque in the amount of R30 000 by him or her. At the end of the tax year, that is after the receipt of the relevant donation, the trustees of the trust will in most of the time decide to appropriate the cash on hand (as per the accounting records of the trust) in order to redeem a portion of the outstanding loan liability due to the settlor. The assumption that the apposite trust in these circumstances has no additional outstanding debt (interest free or not) is maintained on a continuous basis. By the acceptance of the fact that the settlor does not directly relinquish a portion of the outstanding loan for no payment, the probability that a CGT liability would arise in respect of the trust (on account of any loan reduction) is determined by means of the study concerned. The meaning of the phrase "reduced or discharged" in terms of paragraph 12(5) of the Eighth Schedule to the Act is inter alia explained according to the dictionary construction of the words "reduced" and "discharged" and the effect of "remission" and "settlement" as relevant forms of dissolution of an agreement in pursuance of the contract - and mercantile law of South Africa. The author concluded that the appropriate phrase is indicative of the partial or complete remission of an indebtedness (for example, an outstanding loan liability) by a creditor owed by a debtor to the creditor involved. Settlement (as a form of dissolution of an agreement) of an indebtedness on a partial or complete basis by means of the payment of an amount of money or payment by cheque may however in accordance with this inference not be perceived as a reduction or dischargement of a debt for no consideration in terms of paragraph 12(5) of the Eighth Schedule to the Act. The so - called "exchange of cheques" procedure in support of the relevant donation - and loan reduction payments is deemed for study purposes to be the equivalent of an exchange of an amount of money. An examination of the approaches by the proper courts in South African tax cases [to wit, ITC 1583 (1993) 57 SATC 58, ITC 1603 (1995) 58 SATC 212 and ITC 1690 (1999) 62 SATC 497] as well as foreign cases [to wit, Richard Walter (Pty) Limited v Commissioner of Taxation (1996) 67 FCR 243; 33 ATR 97 and MacNiven (Her Majesty's Inspector of Taxes) v Westmoreland Investments Limited (2001) UKHL 6; (2001) 1 ALL ER 865] with regard to the procedure in question has demonstrated that it could be turn to account as a basis for the valid fulfilment of, that is to say the settlement of the outstanding indebtedness of a connected person in respect of the relevant transaction or arrangement. The underlying transaction or arrangement should however have a result sufficient in law, in correspondence with the apposite legal intention of the parties involved. Analysis of the reduction of the outstanding loan liability in relation to a trust in conjunction with the foregoing receipt of donation payments also occurred with reference to the common - law substance over form doctrine. The analysis in question inter alia emphasises that the tax efficient operation (especially in a CGT context) of the scrutinised arrangement necessitates the existence of genuine, unsimulated donation - and loan reduction payments according to the legal intentions of the settlor and trustees of the family trust to respectively give occasion to donations and loan reductions. The conceivable application and effect of section 103(1) of the Act (the general anti _ avoidance provision in South Africa) in respect of the scrutinised arrangement is considered inter alia on account of the views of certain tax authors (for instance, D. Clegg, M.A. Kolitz and K. van der Linde) with reference to the application and effect of this provision on transactions and arrangements in general. The author deduced that the relevant donation - and loan reduction payments each ought to possess a bona fide business purpose on a separate basis. The business purpose in connection with the donation payments may for instance have relevance to the intention of the settlor to locate his or her personal assets outside the range of his or her business creditors, in light of the supposition that the settlor is carrying on a business venture. The business purpose that may be coupled with the loan reduction payments could refer to the enhancement of the balance sheet position of the family trust as reflected by financial ratios in respect of, among other things, liquidity and solvability. Moreover it is essential in this context that no link or connection exists between the underlying payments. The opinion of the tax author, M.L. Stein renders support for the significance of the absence in relation to the correlation concerned. The presence of the appropriate business purposes along with the absence of any interdependance between the relevant payments should consequently (according to the view of the author) avert that the application and effect of section 103(1) of the Act would disregard the tax efficient operation (particularly in a CGT context) of the arrangement considered. The author arrived at a conclusion that genuine, unconditional (annual) donation payments by the settlor to his or her family trust which are succeeded by unsimulated loan reduction payments at the end of the tax year, initiated by the trustees of the trust without any interference from or influence of the settlor, would in all probability preclude a CGT dilemma (in the form of a CGT liability in terms of paragraph 12(5) of the Eighth Schedule to the Act in relation to any loan reduction) for the family trust.

Thesis (MComm)--University of Stellenbosch, 2006. / AFRIKAANSE OPSOMMING: Kollektiewe Beleggingskemas in Effekte ("KBS in Effekte") en Kollektiewe Beleggingskemas in Eiendom ("KBS in Eiendom") is besigheidstrukture wat baie gewild is in Suid-Afrika. Desondanks bestaan daar nog heelwat onsekerhede rondom die belastinghantering van hierdie twee tipes Kollektiewe Beleggingskemas ("KBS"). Die Suid-Afrikaanse KBS industrie is In multi biljoen rand industrie hoofsaaklik as gevolg van die feit dat dit uitstekende beleggingsgeleenthede vir Jan en alleman asook groot finansiële instellings soos versekeraars bied. Dit is dus logies om te verwag dat die belastinghantering van KBS met redelike sekerheid gereguleer word. In KBS kan of as In trust opgerig word of as In oop beleggingsmaatskappy. Die belastinghantering van In KBS hang dus daarvan af of dit as In trust of oop beleggingsmaatskappy opgerig is. Die Inkomstebelastingwet No. 58 van 1962 ("die Inkomstebelastingwet") bevat inkomsteen kapitaalwinsbelastingbepalings wat uitdruklik die belastinghantering van KBS in Effekte en KBS in Eiendom reguleer ("die spesiale belastingreels"). In KBS in Effekte word vir belastingdoeleindes as In maatskappy beskou en so hanteer. Dit is nie maklik om vas te stel wat die wetgewer se onderliggende bedoeling was toe daar besluit is om In KBS in Effekte as In maatskappy te hanteer. Dit blyk wei dat hierdie besluit van die wetgewer nie deeglik deurdink is nie na aanleiding van die verskeie praktiese en teoretiese probleme wat met die belastinghantering van KBS in Effekte bestaan. Meeste van hierdie probleme is In direkte gevolg van die besluit om In KBS in Effekte vir belastingdoeleindes as In maatskappy te hanteer. Een die probleme wat in die konteks van KBS in Effekte bestaan hou verband met die vraag of die geleibuisbeginsel, wat bepaal dat inkomste wat deur In trust aan sy begunstigdes uitgekeer word hul aard en karakter behou, in die konteks van In KBS in Effekte (wat as In trust opgerig is) toepassing vind. Alhoewel die KBS in Effekte as In trust opgerig is, word dit vir belastingdoeleindes as 'n maatskappy hanteer en dit is duidelik dat die geleibuisbeginsel nie in die konteks van 'n maatskappy geld nie. Na oorweging van die regsaard van 'n KBS in Effekte wat as 'n trust opgerig is asook die gevolge van die vrystellingsbepalings in artikel 10 van die Inkomstebelastingwet wat ten opsigte van KBS in Efekte geld, word daar aan die hand gedoen dat die geleibuisbeginsel wei toepassing sal vind in die geval van 'n KBS in Effekte was as 'n trust opgerig is. Die gevolge van die vrystellingsbepalings in artikel 10 van die Inkomstebelastingwet is sodanig dat die inkomste wat die KBS in Effekte (wat as 'n trust opgerig is) aan sy begunstigdes uitkeer op dieselfde basis as die geleibuisbeginsel belas word. Gevolglik blyk dit of voorgenoemde standpunt van die skrywer in ooreenstemming met die bedoeling van die wetgewer is. Soortgelyke probleme kom voor in die konteks van die 'verbonde persoon' definisie in artikel 1 van die Inkomstebelastingwet sowel as die terugkoop van 'n deelnemende belang deur 'n KBS in Effekte, veral waar daardie KBS in Effekte as 'n trust opgerig is. Daarteenoor word 'n KBS in Eiendom nie as 'n maatskappy vir belastingdoeleindes hanteer nie. Indien "n KBS in Eiendom dus as 'n trust opgerig is word dit vir belastingdoeleindes soos "n trust hanteer. Ewe-eens, indien 'n KBS in Eiendom as "n oop beleggingsmaatskappy opgerig is, is dit vir aile doeleindes In maatskappy en sal so hanteer word vir belastingdoeleindes. Die belastinghantering van KBS in Eiendom bied ook sekere probleme veral waar die KBS in Eiendom wat as 'n oop beleggingsmaatskappy opgerig is sy aandele terugkoop. In hierdie verband bepaal die Wet op Beheer van Kollektiewe Beleggingskemas No. 45 van 2002 ("die Wet op Beheer van KBS") dat artikel 85 van die Maatskappywet No. 61 van 1973 ("die Maatskappywet") nie ten opsigte van 'n terugkoop van 'n deelnemende belang deur 'n oop beleggingsmaatskappy geld nie. Dit beteken egter nie dat 'n oop beleggingsmaatskappy nie sy eie aandele mag terugkoop nie. Vir belastingdoeleindes sal daar vasgestel moet word of bepalings in die Inkomstebelastingwet wat na artikel 85 van die Maatskappywet verwys, soos paragraaf (c) van die 'dividend' definisie, steeds met betrekking tot sodanige terugkoop toepassing sal vind siende dat die terugkoop nie ingevolge artikel 85 van die Maatskappywet gedoen word nie. Na oorweging van die wye omvang van paragraaf (c) van die 'dividend' definisie, word daar aan die hand gedoen dat paragraaf (c) van die 'dividend' definisie steeds toepassing sal vind om die terugkoop van aandele deur "n oop beleggingsmaatskappy te reguleer, nieteenstaande die feit dat artikel 85 van die Maatskappywet nie op die terugkoop van toepassing is nie. / ENGLISH ABSTRACT: Notwithstanding that Collective Investment Schemes in Securities ("CISS") and Collective Investment Schemes in Property ("CISP") are common business vehicles in the South African economy, there remains uncertainty with regard to the tax treatment of these business structures. The South African Collective Investment Scheme ("CIS") industry is a multibillion rand industry as it offers attractive investment vehicles for the general public as well as for big financial institutions such as insurers. One would therefore think that the tax treatment thereof would be fairly tightly regulated. A CISS and CISP may either be constituted as a trust or as an open ended investment company ("OEIC"). The tax treatment of a CIS differs depending on whether it is constituted as a trust or as an OEIC. The Income Tax Act No. 58 of 1962 ("the Income Tax Act") contains specific income tax and capital gains tax provisions that regulates the tax treatment of CISS and CISP (the "special tax provisions"). For tax purposes, a CISS is deemed to be a company and treated as such. It is difficult to ascertain what the intention of the legislature was in deciding to treat a CISS as a company. It does however seem as if this decision was not thoroughly considered by the legislature based on the fact that the application of the special tax provisions to CISS presents many practical and theoretical problems. Most of these problems are directly attributable to the legislature's decision to treat CISS as companies for tax purposes. For example, one difficulty relates to the question whether the conduit pipe principle, which determines that income distributed by a trust during a year of assessment will retain its nature and character, will find application in respect of a CISS constituted as a trust. For although the CISS is constituted as a trust, it is deemed to be company for tax purposes and it is clear that the conduit pipe principle cannot find application in the instance of a company. However, considering the legal nature of a CISS constituted as a trust, as well as the effect of the exemption provisions in section 10 of the Income Tax Act relating to CISS, it is submitted that the conduit pipe principle will find application in respect of a CISS constituted as a trust. The effect of the exemption provisions is such that the income distributed by a CISS to its investors will be taxed on the same basis as if the conduit pipe principle applied. As such, the aforementioned submission also appears to be in accordance with the intention of legislator. Similar difficulties arise in the context of the 'connected person' definition in section 1 of the Income Tax Act as well as the repurchase of a participatory interest by a CISS, especially where such CISS is constituted as a trust. Contrary to a CISS, a CISP is not deemed to be a company for tax purposes. Thus, where the CISP is constituted as a trust, it will be treated as a trust for tax purposes. By the same token, if the CISP is constituted as an OEIC, it will be a company for all intends and purposes and will therefore be treated as such. The tax treatment of CISP also presents difficulties, especially where it is constituted as an OEIC. In the instance of a repurchase of a participatory interest by a CISP constituted as a OEIC, the Collective Investment Schemes Control Act 45 of 2002 ("CISCA") states that the provisions of section 85 of the Companies Act 61 of 1973 (lithe Companies Act"), does not apply in respect of such repurchase. However, that does not mean that an OEIC may not repurchase its own shares. For tax purposes, one will have to determine whether the provisions in the Income Tax Act relating to section 85 of the Companies Act that governs the repurchase of shares by an OEIC, such as paragraph (c) of the 'dividend income' definition, will still apply to determine the tax consequences of the repurchase. After considering the wide scope of paragraph (c) of the 'dividend' definition, it is submitted that paragraph (c) of the 'dividend' definition will still find application in respect of a repurchase of shares by a OEIC, notwithstanding the fact that the repurchase is not effected in terms of section 85 of the Companies Act.

Thesis (MComm)--Stellenbosch University, 2004. / ENGLISH ABSTRACT: Like any other item of expenditure, interest expenditure's deductibility is determined by subjecting it to the tests laid down in the general deduction formula contained in section 11(a), together with section 23(f) and 23(g) of the Income Tax Act, as well as the special deductions applicable to interest. In this study there will be only concentrated on the tests laid down in the general deduction formula contained in section 11(a), together with section 23(f) and 23(g) of the Income Tax Act. The general test according to section 11(a) as laid down by the courts to ascertain if an expense incurred in trade is deductible, is firstly to ascertain the act entailing the expenditure. If it is performed for the purpose of earning income, the expenditure attendant upon is deductible. Secondly, the closeness of the connection between the expenditure incurred and the trade must be ascertained. If the expense incurred is so closely connected with the business operation that it may be regarded as part of the cost of performing it, the expenditure will be deductible. The courts have considered many factors to ascertain if interest expenditure complies with the statutory requirements as set out in section 11(a), read together with section 23(f) and 23(g) of the Income Tax Act. There seems to be one test which can be applied to most of the statutory requirements and can be seen as the conclusive factor in determining the deductibility of interest expenses and that is the test of the original purpose of the loan that leads to the interest expense. Firstly in this study, the factors considered by the courts to ascertain if the deductibility of an interest expenditure complies with the statutory requirements as set out in the introduction of section 11(a), together with section 23(f) and 23(g), will be examined with specific reference to the purpose of the loan. Then the possibility of a change in the original purpose of a loan and the effect on the deductibility of an interest expenditure will be examined. / AFRIKAANSE OPSOMMING: Soos enige ander uitgawe, word rente uitgawes se aftrekbaarheid bepaal deur dit te onderwerp aan die toetse soos neergele in die algemene aftrekkingsformule, vervat in artikel 11(a), saamgelees met artikel 23(f) en 23(g) van die Inkomstebelastingwet, asook die spesiale aftrekkings wat op rente van toepassing is. In hierdie studie word slegs op die algemene aftrekkingsformule, vervat in artikel 11(a), saamgelees met artikel 23(f) en 23(g) van die Inkomstebelastingwet gekonsentreer. Die algemene toets volgens artikel 11(a) wat deur die howe neergele is om te bepaal of 'n uitgawe aangegaan in 'n bedryf aftrekbaar is, is om eerstens te bepaal of die handeling waaraan die uitgawe verbind is by die voortbrenging van inkomste aangegaan is en tweedens of die uitgawe wat aangegaan is nou genoeg verwant is aan die bedryf sod at dit as deel van die koste beskou kan word om die bedryf te beoefen. Die howe het verskeie faktore oorweeg om te bepaal of die aftrekbaarheid van rente uitgawes voldoen aan die statutere vereistes soos bepaal deur artikel 11(a), saamgelees met artikel 23(f) en 23(g) van die Inkomstebelastingwet. Daar blyk een toets te wees wat op die meeste statutêre vereistes toegepas kan word en wat ook as die bepalende factor beskou kan word om die aftrekbaarheid van rente uitgawes te beoordeel en dit is die oorspronklike doel waarmee die lening aangegaan is wat die rente uitgawe tot gevolg het. In hierdie studie word eerstens ondersoek ingestel na die faktore wat die howe oorweeg om te bepaal of 'n rente uitgawe aan die vereistes, soos uiteengesit in die inleiding van artikel 11(a), saamgelees met artikel 23(f) en 23(g), voldoen met spesifieke verwysing na die doel waarmee 'n lening aangegaan word. Die moontlikheid word dan ondersoek dat die oorspronklike doel van die lening kan verander en watter effek dit op die aftreknbaarheid van ‘n rente uitgawe kan hê.

Thesis (MComm) -- Stellenbosch University, 2008. / ENGLISH ABSTRACT: The September 2007 decision of the SCA in C: SARS v Brummeria Renaissance (Pty) Ltd and Others has proven to be one of the most contentious tax cases ever decided by a court in our jurisdiction. Questions surrounding the interpretation of the judgment and the likely scope of its application are some of the most widely debated matters in South African tax circles ever since the judgment was delivered. In this research paper a study is undertaken into the income tax treatment of an interest-free loan receipt. The position as it stood prior to the SCA decision is first analysed with particular reference to the legal nature of a contract for the loan of money and the tax court decision in ITC 1791. The discourse continues with a critical discussion of the Brummeria judgment in order to extract the ratio decidendi thereof. The ambit of application of the extracted binding principles to selected interest-free loans (encountered most often in practice) is considered, drawing on views expressed by numerous South African tax experts as well as the Revenue Authority’s own stance in this regard, as enunciated in their Draft Interpretation Note dealing with the right to use loan capital interest-free. As a final application a study is undertaken into the possible arguments available to tax subjects to refute an assessment for income tax raised on them by SARS on the basis of the binding principles enunciated by the SCA in Brummeria. It is concluded that initial fears regarding the potential wide-ranging impact of the decision, though justified, may have been over-anticipated as strong grounds exist to argue that the scope of the judgment’s application is not likely to extend wider than the type of legal construction found in the case itself, namely where an interest-free loan is received in consideration or as a quid pro quo for some or other revenue supply. / AFRIKAANSE OPSOMMING: Die beslissing van die Hoogste Hof van Appèl (“HHA”) in C: SARS v Brummeria Renaissance (Pty) Ltd and Others gedurende September 2007 blyk een van die mees omstrede belastingsake te wees wat tot nog toe in ons jurisdiksie beslis is. Kwelvrae rondom die interpretasie van die uitspraak sowel as die waarskynlike omvang van die toepassing daarvan is van die aangeleenthede wat die wydste gedebateer is in Suid-Afrikaanse belastingkringe in die onlangse verlede. In die studie word die inkomstebelasting hantering van die ontvangs van 'n rentevrye lening ondersoek. Die regsposisie voor die beslissing van die HHA word eers ontleed met spesifieke verwysing na die regsaard van 'n kontrak vir die leen van geld en die beslissing van die spesiale inkomstebelasting hof in ITC 1791. Die verhandeling gaan voort met 'n kritiese bespreking van die Brummeria uitspraak ten einde die ratio decidendi daarvan te ekstraheer. Die bestek van die toepassing van die saak se bindende beginsels op uitgesoekte rentevrye lenings (wat die meeste in die praktyk teёgekom word) word oorweeg. In dié verband word verwys na die menings van verskeie Suid-Afrikaanse belasting-deskundiges, sowel as die Ontvanger van Inkomste se eie seining in hierdie verband, soos uiteengesit in hul Konsep Interpretasienota met betrekking tot die reg om leningskapitaal rentevry te gebruik. In die laaste instansie word „n ondersoek geloods na die moontlike argumente wat belastingpligtiges sou kon aanvoer om 'n inkomstebelasting-aanslag gegrond op die bindende beginsels neergelê deur die HHA in Brummeria, te weerlê. Dit word bevind dat aanvanklike vrese aangaande die trefwydte van die beslissing, alhoewel geregverdig, moontlik oorversigtig was, aangesien daar sterk gronde is om te argumenteer dat die omvang van die uitspraak se toepassing waarskynlik beperk is tot die soort regskontruksie wat in die saak self aangetref word, naamlik waar 'n rentevrye lening ontvang word in ruil vir of as quid pro quo (teenprestasie) vir een of ander lewering van 'n inkomste aard.

Thesis (MAcc (Accountancy))--University of Stellenbosch, 2007. / The purpose of this assignment is to ascertain whether the COBIT framework is an adequate framework to assist in the governance of virtual private networks. The assignment focuses on whether the framework can ensure the identification of virtual private network-related risks and address IT compliance with policies and statutory regulations. A brief summary of the risks and issues pertaining to the pre-implementation, implementation and post-implementation phases of virtual private networks is included in the assignment. These risks and issues are then individually mapped onto a relevant COBIT control objective. The scope of the assignment does not include the intricacies of how these networks operate, the different types of network topologies or the different technologies used in virtual private networks. It was found that the COBIT framework can be implemented to manage and/or mitigate virtual private network risks.

Study project (MAcc)--University of Stellenbosch, 2002. / ENGLISH ABSTRACT: THE NECESSITY OF A FINANCIAL REPORTING FRAMEWORK FOR SMALL AND MEDIUM-SIZED ENTITIES Financial statements are prepared annually for all types of businesses and for a wide variety of users that require specific information in order to make certain decisions. The majority of users of the financial statements of larger companies, especially listed public companies, use the information in fmancial statements to make investment decisions, since they are unable to obtain fmancial information in any other way. However, the users of the financial statements of small and medium-sized entities have a legal and/or inferential right to request further financial information to enable them to make certain decisions. Thus, users of fmancial statements are classified according to their right to obtain fmancial information. To protect the right of the users of larger entities, it is necessary to compile fmancial statements in accordance with a financial reporting framework that includes certain requirements regarding the measurement and recognition of transactions, as well as the minimum information that needs to be disclosed to these users. This fmancial reporting framework has been adapted over the years to protect investors. Small and medium-sized entities are legally compelled to comply with the same reporting framework at a high cost, even if such users had no need for all the information. To assist small entities (that are of great value to the economy) in saving these costs whilst still setting a standard, different international models were implemented that have encouraged South Africa to follow the same path. To make a success of the South African model, two criteria should be met. Firstly, the qualification requirements for an entity should be based on qualitative criteria, such as the right of users to obtain further information, before such entities can comply with the accounting standards set for small and medium-sized entities. Secondly, simpler and more understandable financial statements should be the result of the application of these new financial standards. This is only possible if the measurement and recognition criteria as well as the disclosure requirements of the current accounting standards are adjusted to meet the needs of smaller entities. These adjustments, as well as the implementation of new accounting standards are discussed in this study, after which the writer reaches the conclusion that a financial reporting framework for small and medium-sized entities is necessary for the upcoming South African economy. / AFRIKAANSE OPSOMMING: DIE NOODSAAKLIKHEID VAN 'N REKENINGKUNDIGE VERSLAGDOENINGSRAAMWERK VIR KLEIN EN MEDIUM GROOTTE ENTITEITE Finansiële state word jaarliks vir alle tipe ondernemingsvorme opgestel VIT gebruik deur 'n wye verskeidenheid gebruikers wat elkeen spesifieke inligting benodig om bepaalde besluite te neem. Die oorgrote meerderheid gebruikers van groter en veral genoteerde publieke maatskappye, moet op grond van die finansiële inligting soos vervat in die fmansiële state hul beleggingsbesluite neem aangesien hulle nie ander finansiële inligting kan bekom nie. Aan die ander kant beskik feitlik al die gebruikers van klein en medium grootte entiteite oor 'n wetlike en/of afgeleide reg om verdere fmansiële inligting aan te vra wanneer dit benodig word om bepaalde besluite te neem. Gebruikers van fmansiële state word dus geklassifiseer op grond van die reg tot die verkryging van fmansiële inligting. Om hierdie reg te beskerm by veral die gebruikers van finansiële state van groter maatskappye, is dit noodsaaklik dat fmansiële state ooreenkomstig 'n rekeningkundige verslagdoeningsraamwerk opgestel word. Hierdie raamwerk behoort vereistes uiteen te sit aangaande die meting en erkenning van transaksies, asook die minimum inligting wat geopenbaar moet word aan die gebruikers. Hierdie rekeningkundige verslagdoeningsraamwerk is egter oor die jare baie aangepas om beleggers te beskerm. Klein en medium grootte entiteite is wetlik verplig om teen hoë koste ook daaraan te voldoen, ten spyte daarvan dat die gebruikers van hierdie entiteite nie die inligting gebruik nie. Ten einde klein entiteite (wat van groot waarde in 'n ekonomie is) van hierdie onnodige koste te spaar en steeds 'n riglyn daar te stel, is verskeie internasionale modelle geïmplementeer en is Suid-Afrika aangespoor om dieselfde pad te volg. Om die Suid-Afrikaanse model werkbaar te maak, is twee komponente noodsaaklik. Eerstens moet die toelatingskriteria gegrond word op kwalitatiewe kriteria, soos die reg van gebruikers om verdere inligting te bekom. Entiteite moet aan hierdie kriteria voldoen alvorens die nuwe rekeningkundige standaarde vir klein en medium grootte entiteite toegepas mag word. Tweedens behoort vereenvoudigde en maklik verstaanbare finansiële state die gevolg van die toepassing van hierdie nuwe rekeningkundige standaarde se inhoud te wees. Dit is slegs moontlik indien die metings- en erkenningskriteria, asook die openbaarmakingsvereistes van die huidige rekeningkundige standaarde aangepas word om aan kleiner entiteite se behoeftes te voldoen. Hierdie aanpassmgs, asook die implementering van nuwe rekeningkundige standaarde word in die studie bespreek, waarna die skrywer tot die gevolgtrekking kom dat 'n rekeningkundige verslagdoeningsraamwerk vir klein en medium grootte entiteite 'n noodsaaklikheid vir die opkomende Suid- Afrikaanse ekonomie is.

Thesis (MComm)--Stellenbosch University, 2014. / ENGLISH ABSTRACT: The growing popularity and continuing development of cloud computing services is ever evolving and is slowly being integrated into our daily lives through our interactions with electronic devices. Cloud Computing has been heralded as the solution for enterprises to reduce information technology infrastructure cost by buying cloud services as a utility. While this premise is generally correct, in certain industries for example banking, the sensitive nature of the information submitted to the cloud for storage or processing places information security responsibilities on the party using the cloud services as well as the party providing them. Problems associated with cloud computing are loss of control, lack of trust between the contracting parties in the cloud relationship (customer and cloud service provider) and segregating data securely in the virtual environment. The risk and responsibilities associated with data loss was previously mainly reputational in nature but with the promulgation and signing by the South African Parliament of the Protection of Personal Information Bill (POPI) in August 2013 these responsibilities to protect information are in the process to be legislated in South Africa. The impact of the new legislation on the cloud computing environment needs to be investigated as the requirements imposed by the Bill might render the use of cloud computing in regard to sensitive data nonviable without replacing some of the IT infrastructure cost benefits that cloud computing allows with increased data security costs. In order to investigate the impact of the new POPI legislation on cloud computing, the components and characteristics of the cloud will be studied and differentiated from other forms of computing. The characteristics of cloud computing are the unique identifiers that differentiate it from Grid and Cluster computing. The component study is focused on the service and deployment models that can be associated with cloud computing. The understanding obtained will be used to compile a new definition of cloud computing. By utilizing the cloud definition of what components and processes constitute cloud computing the different types of data security processes and technical security measures can be implemented are studied. This will include information management and governance policies as well as technical security measures such as encryption and virtualisation security. The last part of the study will be focussed on the Bill and the legislated requirements and how these can be complied with using the security processes identified in the rest of the study. The new legislation still has to be signed by the State President after which businesses will have one year to comply and due to the short grace period businesses need to align their business practices with the proposed requirements. The impact is wide ranging from implementing technical information security processes to possible re-drafting of service level agreements with business partners that share sensitive information. The study will highlight the major areas where the Bill will impact businesses as well as identifying possible solutions that could be implemented by cloud computing users when storing or processing data in the cloud. / AFRIKAANSE OPSOMMING: Die groei in gewildheid en die ontwikkeling van wolkbewerking dienste is besig om te verander en is stadig besig om in ons daaglikse lewens geintegreer te word deur ons interaksie met elektroniese toestelle. Wolkbewerking word voorgehou as ‘n oplossing vir besighede om hul inligtings tegnologie infrastruktuur kostes te verminder deur dienste te koop soos hulle dit benodig. Alhoewel die stelling algemeen as korrek aanvaar word, kan spesifieke industrië soos byvoorbeeld die bankwese se inligting so sensitief wees dat om die inligting aan wolkbewerking bloot te stel vir berging en prosesseering dat addisionele verantwoodelikhede geplaas op die verantwoordelike partye wat die wolk dienste gebruik sowel as die persone wat dit voorsien. Probleme geassosieër met wolk- bewerking is die verlies aan beheer, gebrekkige vertroue tussen kontakteurende partye in die wolk verhouding (verbruiker en wolk dienste verskaffer) en die beveiliging van verdeelde inligting in die virtuele omgewing. Die risiko’s en verantwoordelikhede geassosieër met inligtings verlies was voorheen grootliks gebasseer op die skade wat aan die besigheid se reputasie aangedoen kan word, maar met die publiseering en ondertekening deur die Suid-Afrikaans Parliament van die Beskerming van Persoonlike Inligting Wet (BVPI) in Augustus 2013 is hierdie verantwoordelikhede in die proses om in wetgewing in Suid Afrika vas gelê te word. Die impak van die nuwe wetgewing op die wolkbewering omgewing moet ondersoek word omdat die vereistes van die Wet die gebruik van wolkbewerking in terme van sensitiewe inligting so kan beinvloed dat dit nie die moeite werd kan wees om te gebruik nie, en veroorsaak dat addisionele verminderde IT infrastruktuur koste voordele vervang moet word met addisionele inligting beveiligings kostes. Om die impak van die nuwe BVPI wetgewing op wolkbewerking te ondersoek moet die komponente en karakter eienskappe van die wolk ondersoek word om vas te stel wat dit uniek maak van ander tipes rekenaar bewerking. Die karakter eienskappe van wolkbewerking is die unieke aspekte wat dit apart identifiseer van Rooster en Groep rekenaar bewerking. Die komponente studie sal fokus op die dienste en implimenterings modelle wat geassosieer word met wolkbewerking. Die verstandhouding wat deur voorsafgaande studie verkry is sal dan gebruik word om ‘n nuwe definisie vir wolkbewerking op te stel. Deur nou van die definisie gebruik te maak kan die inligtings sekuriteit prosesse en tegniese sekuriteits maatreëls wat deur die verantwoordelike party en die wolkbewerkings dienste verskaffer gebruik kan word om die komponente en prosesse te beveilig bestudeer word. Die studie sal insluit, inligtings bestuur prosesse en korporatiewe bestuur asook tegniese beveiligings maatreels soos kodering en virtualisasie sekuriteit. Die laaste deel van die studie sal fokus op die BVPI wetgewing en die vereistes en hoe om daaraan te voldoen deur die sekuritiets maatreëls geidentifiseer in die res van die studie te implimenteer. Die nuwe wetgewing moet nog deur die Staats President onderteken word waarna besighede ‘n jaar sal he om aan die vereistes te voldoen en omdat die periode so kort is moet besighede hulself voorberei en besigheid prosesse aanpas. Die impak van die wetgewing strek baie wyd en beinvloed van tegnise inligtings beveiligings prosesse tot kontrakte aangaande diens lewering wat dalk oor opgestel moet word tussen partye wat sensitiewe inligting uitruil. Die studie sal die prominente areas van impak uitlig asook die moontlike oplossings wat gebruik kan word deur partye wat wolkbewerking gebruik om inligting te stoor of te bewerk.

Thesis (MAcc)--Stellenbosch University, 2014. / ENGLISH ABSTRACT: Since the recent credit crisis in 2008, innovative lending products have emerged to address the need for enterprises to maintain and improve their cash flows. One such product is the merchant cash advance (MCA). This form of finance is related to debt factoring and is essentially the business equivalent of a payday loan. In its most common form, a lump sum payment is made to a business in exchange for an agreed upon percentage of future credit and/or debit card receivables. A percentage of the merchant’s daily credit or debit card receivables is retained, either directly from the processor that clears and settles the credit or debit card payment or via a debit order from the merchant’s bank account, until the obligation has been met. The future receivables are purchased at a discount and a processing fee is also charged. Many merchant cash advance service providers (MCASP) structure their business in such a way that it resembles traditional debt factoring. In this manner, MCASPs endeavour to distinguish their product offering from traditional loans, in an effort to elude legislation that would affect loans, for example the limiting of interest rates charged. There is however currently a lack of definitive guidance on the taxation consequences from the perspective of the merchant utilising the product and the MCASP providing it. The purpose of this research is to investigate the taxation consequences of MCA transactions in South Africa in an attempt to provide such guidance. The key issue for consideration affecting the taxation consequences of MCAs is the classification of these transactions as either a form of debt factoring or as loans. The research considers and suggests the appropriate classification of these transactions. The taxation treatment is then considered based on this classification from the perspective the merchant utilising the product and the MCASP providing the product. Taxation issues investigated, include the income tax treatment of the discounting cost as “interest”, the availability of deductions allowed by the Income Tax Act and the Value-Added Tax consequences. / AFRIKAANSE OPSOMMING: Sedert die onlangse kredietkrisis in 2008 het innoverende leningsprodukte na vore gekom om te voorsien in die vraag van ondernemings om hul kontantvloei te handhaaf en verbeter. Een van hierdie produkte is die handelaarskontantvoorskot (HKV). Hierdie vorm van finansiering is verwant aan skuldfaktorering en is basies die besigheidsekwivalent van ‘n betaaldaglening. In die mees algemene vorm, word ‘n enkelbdragbetaling aan ‘n besigheid gemaak in ruil vir ‘n voorafbepaalde persentasie van die toekomstige krediet- en/of debietkaartdebiteure. ’n Persentasie van die handelaar se daagliske krediet- of debietkaart debiteure word teruggehou totdat die skuld afgelos is. Invordering vind plaas direk vanaf die verwerker wat die krediet- of debietkaartbetaling goedkeur en betaal, of deur middel van ‘n debietorder direk vanaf die handelaar se bankrekening. Die toekomstige debiteure word teen ‘n diskonto aangekoop en ‘n verwerkingsfooi kan ook gehef word. Baie handelaarskontantvoorskot-diensverskaffers (HKVD) struktureer hul besighede op so ‘n wyse dat dit soos tradisionele skuldfaktorering voorkom. Op hierdie manier beoog HKVD’s om hul produk van tradisionele lenings te onderskei, met die doel om wetgewing vry te spring wat lenings sou beïnvloed, byvoorbeeld beperkings op rentekoerse gehef. Daar is egter tans ‘n tekort aan beslissende leiding, wat die belastinggevolge betref, uit die perspektief van die handelaar wat die produk benut en die HKVD wat dit verskaf. Die doel van hierdie navorsing is om te ondersoek wat die belastinggevolge van HKV’e in Suid-Afrika is in ‘n poging om hierdie leiding te verskaf. Die kernaangeleentheid vir oorweging wat die belastinghantering affekteer, is die klassifisering van HKV-transaksies as ‘n vorm van skuldfaktorering of as lenings. Hierdie navorsing skenk oorweging aan hierdie transaksies en stel ‘n toepaslike klassifikasie voor. Die belastinghantering word dan oorweeg, gebaseer op hierdie klassifikasie uit die perskeptief van die handelaar wat die produk benut en die HKVD wat die produk verskaf. Belastingaangeleenthede wat ondersoek word, sluit die inkomstebelastinghantering van die diskonto gehef as “rente” in, die beskikbaarheid van aftrekkings toegelaat kragtens die Inkomstebelastingwet en die gevolge vir Belasting op Toegevoegde Waarde.

Thesis (PhD (Accounting))--University of Stellenbosch, 2005. / ENGLISH ABSTRACT: The South African long-term insurance industry is currently believed to be at an important crossroads in its existence. The industry is haunted by concerns about high cost structures, a lack of transparency in disclosure to policyholders, unfulfilled expectations of policyholders and the proliferation of available investment vehicles in the market. These concerns are exerting pressure on the existing products and practices of South African long-term insurers. The audits of these insurers are of a complex and high-risk nature as a result of the complexity of their operations and, in particular, the highly complex actuarial valuation process in respect of policy liabilities. The prevailing auditing standards in South Africa require auditors to include policy liabilities in the ambit of their audit opinions. Recent investigations into failed long-term insurers and their audits, including those of local Fedsure Life, British Equitable Life Assurance Society and Australian HIH Insurance, demonstrate the high risk involved in the audits of long-term insurers. Against this background, the objective of this research was to develop a best practice framework for the formulation of overall audit strategies for policy liabilities arising under insurance contracts and the related earnings of listed South African long-term insurers. To justify the focus of the research on the abovementioned components of the financial statements of listed South African long-term insurers, a questionnaire was developed and sent to auditors of all long-term insurers listed on the JSE Securities Exchange South Africa for completion. Responses were processed to calculate a Relative Inherent Risk Index specifically developed for use in this research, ranking various industry-specific account balances and classes of transactions on the basis of their potential exposure to inherent risk. The results of this process provided significant support for the hypotheses that policy liabilities and the related earnings are potentially exposed to the highest levels of inherent risk. The remainder of the research consequently focused on these components. A further very comprehensive questionnaire was developed to collect data with respect to respondents’ views of potential best practices for the audit of various aspects relating to policy liabilities arising under insurance contracts and the related earnings of listed South African long-term insurers, on the basis of their extensive experience in the industry. This questionnaire was sent to experienced auditors responsible for the audits of the five largest listed long-term insurers in South Africa for completion. Responses were received from four of the five potential respondents, resulting in an 80% response rate, enabling meaningful analysis and interpretation of the data. Responses were analysed, interpreted and documented in the form of a detailed best practice framework for the formulation of overall audit strategies for policy liabilities arising under insurance contracts and the related earnings. The lack of a fifth response was compensated for by a review of the research findings by experienced auditors of Deloitte and the provision of their opinions thereon. Deloitte was selected for this purpose as the fact that this auditing firm is the only one of the so-called “Big Four” auditing firms that does not act as auditor of one of the selected target long-term insurers, resulted in the initial exclusion of the firm’s views from the research. The framework was updated to reflect these opinions and now incorporates input from all of the so-called “Big Four” auditing firms. The framework provides a comprehensive discussion of all possible types of audit procedures that may be relevant to the audit of all aspects of policy liabilities arising under insurance contracts and the related earnings of listed South African long-term insurers. As no such framework existed prior to this research, the development thereof made a significant contribution to existing knowledge. This contribution is the result of, inter alia, the method followed in designing the framework, resulting in it representing a synthesis of, inter alia, the following: • existing international and limited local guidance for auditors and, in particular, auditors of long-term insurers, customised for the South African environment; • best practices currently in use on the audits of listed South African long-term insurers; and • views of experienced practitioners on the abovementioned types of best practices that might not be employed at the moment, but that should, in their views, be employed in future. The valuable contribution of this research to existing knowledge is clear from the fact that numerous publications in popular professional as well as accredited academic journals, plus a paper delivered at a conference have resulted from it (refer to the source list and Appendix A). Furthermore, the South African Institute of Chartered Accountants has approved a project to update existing South African guidance for auditors of long-term insurers on the basis of the findings of this research.