Spelling suggestions: "subject:"income bax tct"" "subject:"income bax tact""
1 |
Die belasting-betekenis van transaksies wat onder uiterste voorwaardes beding word21 August 2012 (has links)
M.Comm. / The purpose of this study is to determine the meaning of 'arm's length transactions' as stated in the Income Tax Act, Act 58 of 1962. Although the meaning of arm's length transactions have been properly interpreted by our courts, no guidelines or policy documents pertaining to this concept, have been issued by the South African Revenue Services in as far as it relates to transfer pricing. Several of the developed countries have adopted the guidelines of the Organisation of Economic Co-ordination and Development regarding transfer prices and the arm's length principle in respect of international transactions. The substance of arm's length transactions : The concept of arm's length is not easy to state: it is not unlike the proverbial elephant which could easily be recognised, but could not be defined. It can be defined by reference to the terms of the transaction in question, or by reference to the relationship between the parties to it, or by reference to both of these factors. Normally, parties enter into an arm's length transaction when each party: • Is independent of the other; and • Strives to get the utmost possible advantage from the transaction for himself. The effects of an arm's length transaction are: • The rights and obligations created by the transaction are more likely to be regarded as normal than abnormal; and • The means and manner employed in entering into the transaction are more likely to be normal than abnormal. It is clear that the meaning of arm's length is defined, but that the effect of such transactions will depend on the facts of each case. What may be normal in one case can be abnormal in another depending on the underlying facts. Although South African transfer pricing legislation includes the arm's length principle in respect of international transactions, legislation on transfer pricing should be more clear as to what is normal or abnormal in respect of international transactions.
|
2 |
An analysis of the tax implications of ore stockpiling in the mining industryFaber, Pieter Coenraad 27 February 2009 (has links)
The purpose of this study was to examine whether unmined ore stockpiles fall within the ambit of the definition of trading stock in section 1 of the Income Tax Act (58/1962) and therefore needs to be considered for the purposes of section 22 in the determination of taxable income. Furthermore the judgement in Richards Bay Iron&Titanium (Pty) Ltd and Another v CIR (1996:55) would be analysed to determine whether a distinction could be made between the stockpiled material held in that case as opposed to unmined ore. The research object would be determined by analysing the nature of ore stockpiles, the accounting treatment ore stockpiles and its effect on the tax treatment as well as the taxation of stockpiles in terms of case law. As to the first part, a distinction in the legal sense was examined between movable and immovable property. It was concluded that stockpiles could by its nature in certain circumstances, be considered immovable property even though they became movable by its separation from the soil. Intention was furthermore identified as one of the most important criteria in a three tier test for the determination of the legal nature of stockpiles. As to its tax nature, it was concluded that even though case law suggests that the intention to realise through mining activities could make such stockpiles floating capital, it was submitted that intention remains the conclusive criteria and therefore only once an intention exist, to utilise mining property in a mining process that is a scheme of profit making, does the intention change and does the fixed capital (both immovable property and movable stockpiles) become floating capital. In the second chapter an analysis was done of the financial reporting requirements for stockpiles and whether the accounting treatment thereof would influence the tax treatment. It was concluded that the accounting treatment would influence the tax treatment as the definition of trading stock in section 1 of the ITA (58/1962) is actually an extension of the normal grammatical meaning, the latter for which the accounting treatment is critical. In terms of IAS1 it was found that an essential criterion for a current asset was that it must be expected to be realised in the 12 months after the reporting date. It was found that even though mined ore and crushed ore could be seen as work in progress and thus inventories, such ore still had to comply with the requirements of IAS1 and IAS2 to be classified as inventory. The valuation of the ore would be in terms of IAS2 if at historical cost and in terms of SANREC if at net realisable value. It was concluded that stockpiles that did not meet the trading stock criteria due to various uncertain circumstances could be disclosed as non-current assets at historical cost, but not in terms of IAS16. However, if no reasonable expectation of future benefits existed, then no disclosure would be required. In examining the taxation of stockpiles the definition of trading stock was analysed. It was concluded that to the extent that the normal grammatical meaning did not apply, the extension to the definition still had to be considered. It was held that the extension to the definition had two parts of which the first required that the object must be acquired, produced or manufactured for the purpose of use in a manufacturing process, irrespective of whether the object was saleable in its current condition. The second part required no intention but was an objective enquiry of whether a saleable object was disposed of and which the proceeds would be revenue in nature It was also found that a distinction between a mining process and a manufacturing process exists in the South African tax law and that objects intended for use in the different processes could be treated differently from a tax perspective. Finally the analysis of the Richards Bay case (1996:55) revealed that even though the court considered that stockpiles are raw materials or work-in-progress, it was the taxpayer’s admission of a manufacturing process and his lack of distinction of the mining process that was critical in the decision against him. The court accepted the taxpayer’s contentions and withheld opinion on these two critical matters. It was concluded that stockpiles of unmined ore did not constitute trading stock in the extended definition and only under very specific circumstances could it be considered trading stock under the normal grammatical meaning when inferred from accounting disclosure and valuation requirements. Copyright / Dissertation (MCom)--University of Pretoria, 2009. / Taxation / unrestricted
|
3 |
A critical analysis of Section 8C : taxation of directors and employees on vesting of equity instrumentsMuller, Theunis Christian 03 May 2010 (has links)
With effect from 26 October 2004, section 8C was introduced into the Income Tax Act No 58 of 1962 and replaced the previous section 8A. The main purpose of the new section was to effectively tax directors and employees on the receipt of income from equity based incentive schemes and therefore close potential ‘loopholes’ that existed in the previous section 8A. The purpose of this study was to critically analyse section 8C and specifically the principles of ‘vesting’ and ‘restricted equity instruments’ as introduced by the section. Since no case law exists and the application of the principles within the section is deemed to be detailed and complex, the possibility for inconsistent treatment or misinterpretation exists. Due to limited information being available regarding the application of section 8C and in order to determine whether different interpretations may exist in practice, selected tax practitioners and/or specialists were also asked to provide information through the completion of a questionnaire. Section 8C has already been amended since its introduction and as indicated in the study, further amendments may be necessary in order to address problem areas. Employers with equity based incentives need to be aware of the significant impact that section 8C has on the taxation of equity instruments and have to ensure that they comply. Depending on the instruments in use it could also have a major impact on the administrative duties of employers, who have the responsibility of calculating and paying the necessary taxes on time. Copyright / Dissertation (MCom)--University of Pretoria, 2010. / Taxation / unrestricted
|
4 |
Consistency as a desirable and achievable objective in the proposed rewrite of the South African Income Tax Act, 1962 (Act No. 58 of 1962)Viljoen, Jeanne Abbie 29 November 2011 (has links)
No abstract available. Copyright / Dissertation (MPhil)--University of Pretoria, 2011. / Taxation / unrestricted
|
5 |
The meaning of "actually incurred" in section 11 of the Income Tac Act in the context of three specific transactionsMota, Maroe Martin January 2012 (has links)
The Income Tax Act 58 of 1962 (“Act”) entitles taxpayers to deduct certain losses
and expenses incurred by them from their taxable income if such losses and
expenses comply with the requirements of section 11(a) of the Act. One of the
requirements of section 11(a) is that, in order to be eligible for a deduction, the
losses and expenses must have been “actually incurred” by the taxpayer.
The area of tax deductions in our tax law represents the frontline in the continuous
and inevitable war between the taxpayer (almost always desperately trying to
maximise her deductions) and the revenue authorities (as often times desperately
trying to minimise the deductions to which the taxpayer is entitled). The stage on
which the various battles which make up this mighty war between citizen and state
are fought is the court and the arsenal with which each party comes armed is the Act
and, more specifically, the absolute belief of each party in the correctness of their
interpretation of the Act, which, each party hopes, will be ably demonstrated by their
able (and often extremely expensive) counsel. Such is the determination of the
taxpayer and the tax authorities alike that the body of case law relating to this
specific area of our law is, especially when one considers that it essentially involves
on only one section of the Act, relatively voluminous.
The author’s intention is to consider only one of the requirements with which the
taxpayer must comply in order to be eligible for a deduction, namely, the requirement
that the relevant loss or expenditure must have been “actually incurred” by the
taxpayer. Despite the fact that the meaning of the phrase “actually incurred” has
been considered extensively by our courts, significant uncertainty still exists as to its
exact meaning. The author will deal with three specific contexts in which the
meaning of this phrase remains a subject of uncertainty, namely, share-based
payments, contingent liabilities and losses and expenses incurred in relation to illegal
receipts. The author will begin first by dealing with the interpretation of tax statutes, the author
will then, in general terms, consider the general deduction formula after which the
author will delve into the meaning of the phrase “actually incurred” in the contexts of
each of the transactions mentioned above. / Dissertation (LLM)--University of Pretoria, 2012. / gm2014 / Mercantile Law / unrestricted
|
6 |
An analysis of Section 80A(C)(ii) of the Income Tax Act no. 58 of 1962 as amendedGeldenhuys, Bernard, Van Schalkwyk, Linda 03 1900 (has links)
Thesis (MAcc)--University of Stellenbosch, 2009. / ENGLISH ABSTRACT: In November 2006 section 103(1) of the Act was abolished and replaced by a
new Part IIA, containing sections 80A to 80L, which targets impermissible tax
avoidance arrangements. Section 80A(c)(ii) introduced a new concept to the
South African tax law: a misuse or abuse of the provisions of the Act,
including Part IIA thereof.
The objective of this study was to establish the origin, meaning, application
and effect of section 80A(c)(ii) of the Act. The evolution of section 80A(c)(ii)
was therefore examined where after the enacted version was analyzed. It
was essential to determine the origin of section 80A(c)(ii) in order to establish
some point of reference from which inferences could be drawn as to the
possible application and effect thereof. Case law, practice statements and
articles relating to its proposed root was then examined.
A ‘misuse or abuse’ of a provision, it was found, implies, frustrating or
exploiting the purpose of the provision. This contention was confirmed by
existing Canadian precedent. Such an interpretation, however, has a strong
resemblance to the words in which the draft version of section 80A(c)(ii) was
couched. It is therefore in contrast to the presumption that different words (in
the enacted version) imply a different meaning. The precise meaning of the
words ‘misuse or abuse’ is thus still elusive.
It was established that section 80A(c)(ii) has its roots in section 245 of the
Canadian Act. Section 245(4) was regarded as an effective comparative to
section 80A(c)(ii) as it also contained a so-called misuse or abuse rule. The
application of this rule in the Canadian tax environment required the following
process:
- Interpret (contextually and purposively) the provisions relied on by the
taxpayer, to determine their object, spirit and purpose.
- Determine whether the transaction frustrates or defeats the object, spirit or
purpose of the provisions.
Section 245(4) had the effect of reviving the modern approach (a contextual
and/or purposive theory) to the interpretation of statutes in Canada.
Reference to the ‘spirit’ of a provision (above) was found not to extend the
modern approach to statutory interpretation: it does not require of the court to
look for some inner and spiritual meaning within the legislation. As section
245(4) was regarded as an effective comparative to section 80A(c)(ii) it was
contented that it would have a similar effect, than that of its Canadian
counterpart, on the approach to statutory interpretation in South Africa.
However, it was established that a modern approach to statutory
interpretation was already authoritative in South Africa. This finding led the
author to the conclusion that section 80A(c)(ii) could at best only reinforce the
case for applying such an approach. Such a purpose for section 80A(c)(ii)
was however found to be void in the light of the Constitution of the Republic of
South Africa, which was enacted in 1996, and provides a sovereign authority
for the application of the modern approach.
It was also found that the practical burden of showing that there was a
‘misuse or abuse of the provisions of this Act (including the provisions of this
Part)’ will rest on the shoulders of the Commissioner, notwithstanding section
82 of the Act. / AFRIKAANSE OPSOMMING: Artikel 103(1) van die Inkomstebelastingwet is herroep in November 2006 en
vervang deur Deel IIA, bestaande uit artikels 80A tot 80L, wat daarop gemik is
om ontoelaatbare belastingvermydingsreëlings te teiken. Artikel 80A(c)(ii) het
‘n nuwe konsep in die Suid-Afrikaanse Inkomstebelastingreg ingebring: ‘n
misbruik of ‘n wangebruik van die bepalings van die Wet, insluitende Deel IIA.
Die doel van hierdie studie was om die oorsprong, betekenis, toepassing en
uitwerking van artikel 80A(c)(ii) vas te stel. Die ontwikkeling van artikel
80A(c)(ii) is daarom ondersoek waarna die verordende weergawe daarvan
geanaliseer is. ‘n Sleutelaspek van die analise was om die oorsprong van
artikel 80A(c)(ii) vas te stel. Hierdie oefening het ‘n verwysbare bron
daargestel waarvan afleidings rondom die moontlike toepassing en uitwerking
van artikel 80A(c)(ii) gemaak kon word. Hofsake, praktyknotas en artikels
rakende die voorgestelde oorsprong is vervolgens ondersoek.
Daar is vasgestel dat ‘n ‘misbruik of wangebruik’ van ‘n bepaling neerkom op
die frustering of uitbuiting van die doel van ‘n bepaling. Hierdie bewering is
bevestig deur bestaande Kanadese presedent. So ‘n interpretasie is egter
soortgelyk aan die woorde waarin die konsepweergawe van artikel 80A(c)(ii)
uitgedruk is. Dit is daarom in teenstelling met die vermoede dat ‘n wysiging
van die woorde (in die verordende weergawe) ‘n gewysigde betekenis
impliseer. Die presiese betekenis van die woorde ‘misbruik of wangebruik’ is
dus steeds ontwykend.
Daar is bevind dat artikel 80A(c)(ii) waarskynlik sy ontstaan in artikel 245 van
die Kanadese Inkomstebelastingwet gehad het. Artikel 245(4) van die
Kanadese Inkomstebelastingwet is beskou as ‘n effektiewe vergelykende
artikel vir artikel 80A(c)(ii), aangesien dit ook oor ‘n sogenaamde misbruik of
wangebruik reël beskik. Die toepassing van hierdie reël in die Kanadese
belastingmilieu vereis die volgende werkswyse:
- Interpreteer (kontekstueel en doeldienend) die bepalings waarop die
belastingpligtige steun, ten einde die oogmerk, gees en doel daarvan vas
te stel.
- Bepaal of die transaksie, deur die belastingpligtige aangegaan, die
oogmerk, gees of doel van die bepalings frustreer.
Artikel 245(4) het aanleiding gegee tot die herstel van die moderne
benadering (‘n kontekstuele en/of doeldienende teorie) tot die interpretasie
van wetgewing in Kanada. Daar is bevind dat die verwysing na die ‘gees’ van
‘n bepaling (hierbo) nie aanleiding gee tot die uitbreiding van die moderne
benadering tot wetsuitleg nie: dit vereis nie dat die hof moet soek na die
innerlike of geestelike betekenis van die wetgewing nie. Aangesien artikel
245(4) as ‘n effektiewe vergelykende artikel vir artikel 80A(c)(ii) beskou is, is
daar aangeneem dat dit ‘n soortgelyke uitwerking, as sy Kanadese eweknie,
op wetsuitleg in Suid Afrika sal hê.
By nadere ondersoek is daar egter bevind dat ‘n moderne benadering tot
wetsuitleg alreeds gesaghebbend in Suid Afrika is. Hierdie bevinding het die
skrywer tot die gevolgtrekking gebring dat artikel 80A(c)(ii), in beginsel, slegs
die saak vir die moderne benadering tot wetsuitleg in Suid Afrika sal versterk.
Indien hierdie die doel is wat die wetgewer gehad het met die verordening van
artikel 80A(c)(ii), sal dit egter niksseggend wees in die lig van die Grondwet
van die Republiek van Suid Afrika, wat verorden is in 1996, en ‘n
oppermagtige gesag bied vir die moderne benadering tot wetsuitleg.
Daar is ook vasgestel dat die onus op die Kommissaris rus om te bewys dat
daar ‘n ‘misbruik of wangebruik van die bepalings van hierdie Wet (waarby
ingesluit die bepalings van hierdie Deel)’ was, ondanks artikel 82 van die Wet.
|
7 |
A critical analysis of the concepts permanent establishment and foreign business establishmentVan Schaik, Rozelle 12 1900 (has links)
Thesis (MAcc)--Stellenbosch University, 2010. / ENGLISH ABSTRACT: The Income Tax Act, Act 58 of 1962 (‘the Act’) currently defines a permanent establishment in section 1. The definition of a permanent establishment in the Act refers to article 5 of the Model Tax Convention on Income and on Capital of the Organisation for Economic Co- Operation and Development. The existence of a permanent establishment in a tax jurisdiction determines the right of the jurisdiction to tax the profits of the permanent establishment. The concept foreign business establishment was inserted into section 9D of the Act by clause 10(1)(a) of the Revenue Laws Amendment Act, Act 59 of 2000. Section 9D is an antiavoidance provision, which determines that certain foreign-sourced income generated by South African controlled foreign companies are subject to tax in South Africa. The concept foreign business establishment is one of the exclusions from the anti-avoidance provisions in section 9D. The Revenue Laws Amendment Act, Act 59 of 2000, replaced all references to the concept permanent establishment with a reference to the newly introduced concept foreign business establishment in section 9D(9)(b) of the Act. The Explanatory Memorandum on the Revenue Laws Amendment Bill, 2000 (SARS 2000:1-12) does not provide a reason for the replacement of the concept permanent establishment. The objective of this study was to analyse and compare the concepts permanent establishment and foreign business establishment in order to make recommendations regarding the required additions and amendments to replace the concept foreign business establishment with the internationally recognised and accepted concept permanent establishment. The proposed replacement of the concept foreign business establishment with an internationally recognised and accepted tax concept will enhance the international compatibility of the Act. The use of an internationally recognised and accepted tax concept will provide clarity and certainty regarding the tax implications of section 9D(9)(b) for those affected by it. It was found that the concepts permanent establishment and foreign business establishment are used in different contexts within the Act. The concepts also apply to different types of taxpayers in different situations. The two concepts have, however, the same objective, being the identification of criteria for the existence of legitimate and substantive business activities in the foreign tax jurisdiction. A comparison between the definitions of the two concepts reveals that there are various components in the definitions with the same wording and meaning. After a detailed comparison between the two definitions it was found that, subject to some suggested additions and amendments, the internationally recognised and accepted concept permanent establishment can replace the concept foreign business establishment in section 9D(9)(b) of the Act without having a material impact on the objective of section 9D(9)(b). This replacement is possible due to the mutual objective of and similar components contained in the definitions of the concepts permanent establishment and foreign business establishments. / AFRIKAANSE OPSOMMING: Die Inkomstebelastingwet, Wet 58 van 1962 (‘die Wet’) definieer ’n permanente saak in
artikel 1. Die definisie van ’n permanente saak verwys na artikel 5 van die ‘Model Tax
Convention on Income and on Capital of the Organisation for Economic Co-Operation and
Development’. Die bestaan van ’n permanente saak in ’n belastingjurisdiksie bepaal die reg
van die belastingjurisdiksie om die winste van die permanente saak te belas.
Die begrip buitelandse besigheidsaak is deur artikel 10(1)(a) van die Wysigingswet op
Inkomstewette, Wet 59 van 2000 in die Wet ingesluit. Artikel 9D is ’n
teenvermydingsbepaling wat bepaal dat sekere inkomste vanaf ’n buitelandse bron
gegenereer deur ’n Suid-Afrikaans beheerde buitelandse maatskappy in Suid-Afrika belas
word. Die begrip buitelandse besigheidsaak is een van die uitsluitings van die
teenvermydingsbepaling in artikel 9D. Alle verwysings in artikel 9D(9)(b) na die begrip
permanente saak is deur die Wysigingswet op Inkomstewette, Wet 59 van 2000, vervang
met ’n verwysing na die nuwe begrip buitelandse besigheidsaak. Die ‘Explanatory
Memorandum on the Revenue Laws Amendment Bill, 2000’ (SARS 2000:1-12) verskaf nie ’n
rede vir die vervanging van die begrip permanente saak nie. Die doel van die studie was om die begrippe permanente saak en buitelandse besigheidsaak
te vergelyk sodat voorstelle gemaak kan word rakende die nodige byvoegings en wysings
om die begrip buitelandse besigheidsaak met die internasionaal aanvaarde en erkende
begrip, permanente saak, te vervang. Die voorgestelde vervanging van die begrip
buitelandse besigheidsaak met ’n internasionaal aanvaarde en erkende begrip sal die
internasionale verenigbaarheid van die Suid Afrikaanse wetgewing bevorder. Die gebruik
van ’n begrip wat internasionaal aanvaar en erken word, sal sekerheid en duidelikheid
bewerkstellig vir diegene wat deur die artikel geaffekteer word.
Daar is bevind dat die begrippe permanente saak en buitelandse besigheidsaak in die Wet in
verskillende verbande gebruik word. Die begrippe is ook van toepassing op verskillende belastingbetalers in verskillende situasies. Die twee begrippe het egter dieselfde doelwit
naamlik die identifisering van kriteria vir die bestaan van wesenlike en volwaardige
besigheidsaktiwiteite in die buitelandse belastingjurisdiksie.
’n Vergelyking tussen die definisies van die twee begrippe toon dat verskeie komponente
van die definisies dieselfde woorde en betekenis bevat. Na ’n detail vergelyking van die
twee begrippe is daar bevind dat, onderhewig aan sommige voorgestelde byvoegings en
wysigings, die internasionaal erkende en aanvaarde begrip permanente saak die begrip
buitelandse besigheidsaak in artikel 9D(9)(b) van die Wet kan vervang. Die vervanging is
moontlik weens die gemeenskaplike doelwit en soortgelyke komponente in die definisies
van die begrippe permanente saak en buitelandse besigheidsaak.
|
8 |
Remuneration structuring11 November 2015 (has links)
M.Com. (Taxation) / Please refer to full text to view abstract
|
9 |
An analyis of the tax implications for an employer and employee of a deferred compensation scheme.Pardy, Louise. January 1999 (has links)
No abstract available. / Theses (LL.M.)- University of Natal, Durban, 1999.
|
10 |
An investigation of the resident based tax system and its impact on the general scheme of the Income Tax Act No. 58 of 1962.Naidoo, Sugandran. January 2005 (has links)
No abstract available. / Thesis (M.Com.)-University of KwaZulu-Natal, 2005.
|
Page generated in 0.0431 seconds