Thesis (MAcc) -- Stellenbosch University, 2004. / ENGLISH ABSTRACT: In order for a taxpayer to be entitled to a deduction for expenditure actually incurred, the taxpayer must meet the requirements of section 11(a), read with the provisions of sections 23(f) and 23(g). The preamble of section 11 requires that the taxpayer should incur the expenditure in the carrying on of a trade, before it will be deductible. Therefore, taxpayers who do not carry on a trade will not be allowed any deductions for expenditure actually incurred in terms of section 11(a). In the case of a holding company that grants loans to its subsidiaries or associates, there is a general prevailing view that the holding company does not carry on a trade in respect of the loans granted. Therefore it is argued that the holding company is not entitled to any deductions in terms of section 11(a). This study questions the above-mentioned general view by considering case law and the opinions of various tax experts. The question is raised whether the holding company could be regarded as carrying on a trade, and if so, under what circumstances that will be the case. A secondary issue that will be considered is whether the holding company is entitled to deductions in respect of interest expenditure actually incurred. In this regard a distinction is made between moneylenders and non-moneylenders. The writer reaches the conclusion that the definition of “trade” is not all-inclusive, and that the Legislator intended that the term should be interpreted as widely as possible. Therefore, the writer is of the opinion that taxpayers who are not moneylenders could, under certain circumstances, be carrying on a trade in respect of the granting of loans and should thus be entitled to income tax deductions for expenditure incurred. / AFRIKAANSE OPSOMMING: Vir ‘n belastingpligtige om op ‘n aftrekking vir uitgawes werklik aangegaan, geregtig te wees, moet aan die bepalings van artikel 11(a), saamgelees met dié van artikels 23(f) en 23(g) voldoen word. Die aanhef tot artikel 11 vereis dat ‘n belastingpligtige die uitgawes in die beoefening van ‘n bedryf moet aangaan voordat ‘n aftrekking gëeis kan word. Belastingpligtiges wat dus nie ‘n bedryf beoefen nie, sal op geen aftrekkings vir uitgawes werklik aangegaan ingevolge artikel 11(a) geregtig wees nie. Met betrekking tot ‘n houermaatskappy wat lenings aan sy filiale of geassosieerdes toestaan, heers daar ‘n algemene siening dat die houermaatskappy nie ‘n bedryf beoefen met betrekking tot die toestaan van lenings nie. Daarom word geargumenteer dat die houermaatskappy nie ingevolge artikel 11(a) op enige aftrekkings geregtig is nie. In hierdie studie word bogenoemde algemene siening krities aan die hand van regspraak en menings van belastingkenners oorweeg. Die vraag word gevra of die houermaatskappy nie wel beskou kan word om ‘n bedryf te beoefen nie, en indien wel, onder watter omstandighede dit so sal wees. ‘n Sekondêre aspek wat oorweeg word, is of die houermaatskappy op ‘n aftrekking vir rente uitgawes werklik aangegaan by die toestaan van die lenings geregtig is. In hierdie verband word ‘n onderskeid tussen geldskieters en nie-geldskieters getref. Die skrywer kom tot die gevolgtrekking dat die omskrywing van “bedryf” nie allesomvattend is nie, en dat dit blyk of dit die Wetgewer se bedoeling was om die begrip so wyd as moontlik te stel. Dit is die skrywer se mening dat belastingpligtiges wat nie geldskieters is nie, wel onder bepaalde omstandighede beskou kan word om ‘n bedryf te beoefen met betrekking tot die toestaan van lenings. Daarom behoort sulke belastingpligtiges wel op inkomstebelastingaftrekkings vir uitgawes werklik aangegaan, geregtig te wees.

Thesis (MAcc) -- Stellenbosch University, 2010. / ENGLISH ABSTRACT: Due to a number of legislative changes, the tax treatment of pension interest at divorce has become a complicated issue, as it is not only affected by the Income Tax Act, but also by the Pension Funds Act as well as the Divorce Act. Because these changes are still fairly new to the industry, there are still a couple of technical issues on which the industry is not clear. In practice there are many articles and writers trying to give some form of guidance regarding the technical issues of pension interest at divorce. The study will refer to case law that affected the changes made to the Pension Funds Act, which led to the institution of the “clean-break” principle. Some of the technical issues with regard to a payment of an award made to a non-member spouse by a divorce order will be included along with a discussion on difficulties and uncertainties arising from the “clean-break” principle. The focus of the study will then be directed towards changes made to the Income Tax Act. Specific reference will be made to the tax on an award made to a non-member spouse by a divorce order. In some cases the tax on such an award will be recovered from the member spouse. The Income Tax Act does however provide for a right of recovery, which will be discussed. The payment of the tax from the member’s individual reserve however constitutes an additional accrual according to the Income Tax Act, which leads to a tax-on-tax issue. A discussion on GN33 will be included, as GN33 addresses the tax-on-tax issue. A chapter on preservation funds is included, as it is important to understand the working of these funds on when a non-member spouse has the option to transfer his/her pension interest to such a fund. The study will then look at an inequitable position in which the member finds him/herself when party to a divorce order made before 13 September 2007. Due to the changes made to the Income Tax Act, a situation arose where the member spouse looses out on all or part of his/her R300 000 tax free benefit as allowed by the Income Tax Act for withdrawals from his/her retirement funds. The study will include considerations for financial planning. The industry is placing more and more emphasis on sound financial planning, and it is therefore important to understand the key considerations, which an advisor or a party to a divorce should consider. The study will include a discussion on some of the outstanding issues, which the industry expects the legislature to address in the near future. As the changes to the Income Tax Act are ever changing and the discussion on pension interest at divorce is still a new topic under discussion, the industry is keeping an eye on the expected changes from the finance ministry and the legislature. / AFRIKAANSE OPSOMMING: As gevolg van ’n aantal veranderinge in wetgewing, het die belastinghantering van pensioenbelang by egskeiding ’n ingewikkelde kwessie geword, aangesien dit nie net deur die Inkomstebelastingwet beïnvloed word nie, maar ook deur die Pensioenfondswet sowel as die Egskeidingswet. Die studie sal verwys na regspraak wat aanleiding gegee het tot die veranderinge wat in die Pensioenfondswet gemaak is en wat gelei het tot die instelling van die “skoon-breuk”-beginsel. Sommige van die tegniese vrae wat betref die betaling van ’n toekenning aan ’n nie-lid-gade by ’n egskeidingsbevel sal ingesluit word saam met ’n bespreking van probleme en onsekerhede wat uit die “skoon-breuk”-beginsel voortspruit. Die fokus van die studie sal dan gerig word op veranderinge wat in die Inkomstebelastingwet aangebring is. As gevolg van veranderinge in wetgewing op spesifieke datums, word ’n toekenning wat aan ’n nie-lid-gade gemaak is in terme van ’n egskeidingsbevel belas onder drie verskillende belastingregimes, afhangende van die datum van die egskeidingsbevel. Daar sal spesifiek verwys word na die belasting op ’n toekenning aan ’n nie-lid-gade. In sommige gevalle sal die belasting op so ’n toekenning verhaal word van die lid-gade. Die Inkomstebelastingwet maak egter voorsiening vir ’n verhalingsreg wat ook bespreek sal word. Die betaling van die belasting vanuit die lid-gade se minimum individuele reserwe word egter erken as ’n addisionele toevalling in terme van die Inkomstebelastingwet wat lei tot ’n belasting-op-belasting kwessie. GN33 sal bespreek word aangesien hierdie algemene nota die kwessie aanspreek. ’n Hoofstuk oor bewaringsfondse word ingesluit, aangesien dit belangrik is om die werking van hierdie fondse te verstaan wanneer ’n nie-lid-gade die opsie het om sy/haar pensioenbelang na so ’n fonds oor te dra. Die studie sal dan kyk na ’n onbillike posisie waarin die lid hom/haarself bevind as hy/sy party was by ’n egskeiding voor 13 September 2007. As gevolg van die veranderinge wat in die Inkomstebelastingwet aangebring is, het ’n situasie ontstaan waar die lid eggenoot ’n gedeelte van sy/haar R300 000 belastingvrye voordeel vir onttrekkings van sy/haar aftreefonds, verloor. Die studie sal oorwegings vir finansiële beplanning insluit. Die bedryf plaas al meer klem op omvattende finansiële beplanning en dit is dus belangrik om die deurslaggewende oorwegings waarmee ’n adviseur of ’n party by ’n egskeiding moet rekening hou, te verstaan. Ten slotte sal die studie ’n bespreking insluit van sommige uitstaande kwessies wat die industrie verwag die wetgewer in die toekoms moet aanspreek.

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 (MAcc)--Stellenbosch University, 2012. / ENGLISH ABSTRACT: The use of derivative instruments, including single-stock futures, experienced unprecedented growth over the last twenty years. South Africa, like the rest of the world, is still experiencing extraordinary growth in the trading of these instruments. The taxation of these transactions, therefore, are of increasing practical importance. Despite this unprecedented growth, the South African tax policy makers have neglected the tax treatment of these instruments to a large extent. Due to the lack of specific legislative provisions regulating the tax aspects of these instruments, the general principles of the South African income tax law have to be applied. This gives rise to conflicting opinions regarding the tax treatment of these instruments, primarily as a result of the fact that these principles were developed long before the widespread use of derivative instruments. The lack of relevant case law in this regard is also problematic. This results in great uncertainty surrounding the tax treatment of profits from single stock futures. This research paper applies the general principles of the South African income tax law in order to determine when these profits accrue to the taxpayer and to determine the nature thereof. The introduction of capital gains tax has added yet a further dimension to the taxation of these instruments and is also considered. This research paper also considers the income tax treatment of similar instruments in Australia in order to identify useful principles that may be applied within a South African context. In light of the increasing volume and value of derivative transactions, it is imperative that clarity regarding the taxation of these transactions be obtained as soon as possible. Any reform and revised tax rules need to provide certainty to the taxpayer while remaining flexible enough to ensure that future changes in the ever-changing financial instruments environment are accommodated. / AFRIKAANSE OPSOMMING: Die gebruik van afgeleide instrumente, waaronder enkel-aandeeltermynkontrakte, het die afgelope twintig jaar ongekende groei beleef. Suid-Afrika, net soos die res van die wêreld, beleef steeds buitengewone groei in die verhandeling van hierdie instrumente. Die belasbaarheid van hierdie transaksies is gevolglik van toenemende praktiese belang. Ten spyte van hierdie ongekende groei, het die belastingbeleidmakers in Suid-Afrika tot ’n groot mate die belastinghantering van hierdie instrumente verwaarloos. Vanweë die gebrek aan spesifieke wetlike bepalings wat die belastingaspekte van laasgenoemde reguleer, moet die algemene beginsels van die Suid-Afrikaanse inkomstebelastingreg op hierdie instrumente toegepas word. Dié beginsels is egter reeds lank voor die wydverspreide gebruik van afgeleide instrumente ontwikkel en lei tot teenstrydige menings rondom die belastinghantering van hierdie instrumente. Die gebrek aan toepaslike regspraak in hierdie verband is ook problematies. Daar heers gevolglik groot onsekerheid oor die inkomstebelastinghantering van winste verdien uit enkel-aandeeltermynkontrakte. Hierdie navorsingswerkstuk pas die algemene beginsels van die Suid-Afrikaanse inkomstebelastingreg toe ten einde die tydstip waarop dié winste aan die belastingpligtige toeval en die aard daarvan te bepaal. Die inwerkingtreding van kapitaalwinsbelasting het nog 'n verdere aspek aan die belasbaarheid van hierdie instrumente toegevoeg en word ook oorweeg. Die navorsingswerkstuk oorweeg ook die inkomstebelastinghantering van soortgelyke instrumente in Australië ten einde nuttige beginsels te identifiseer wat binne Suid-Afrikaanse konteks toegepas kan word. Indien ag geslaan word op die toename in die aantal en waarde van transaksies in afgeleide instrumente, is dit noodsaaklik dat duidelikheid rakende die belasbaarheid daarvan so spoedig doenlik verkry word. Enige hervorming en hersiende belastingreëls moet sekerheid aan die belastingpligtige verskaf, maar moet terselfdetyd buigsaam genoeg wees om ruimte te skep vir toekomstige veranderinge binne die snelgroeiende finansiële instrumente-omgewing.

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.