Bibliography: pages 133-135. / There is an administrative law relationship between the taxpayer and the Commissioner for Inland Revenue, (hereinafter referred to as 'the Commissioner') The basis of this relationship is that the Commissioner is required to collect tax and the taxpayer is required to pay the tax. In exercising his powers under the Income Tax Act No. 58 of 1962 (hereinafter referred to as the Act), the Commissioner has been conferred with discretionary powers. In this thesis, this administrative law relationship is examined with specific reference to the means of regulating the exercise by the Commissioner of his discretionary powers. There are a number of ways in which the discretionary powers of the Commissioner may be regulated. Generally discretion may be regulated by 'rule based administrative action' (1). This means that discretionary power is exercised subject to internal rules which state how discretionary power must be exercised. Another method of regulating the exercise of discretionary power is subsumed under the category of 'adjudicative techniques of decision' (2). The essence of the latter category is that the affected person participates in the decision which affects him. The exercise of discretionary power may be regulated furthermore if the Minister who has responsibility for the Department is required to be responsible for and account publicly for the actions of his subordinate. In this thesis, examples of rule based administrative action and adjudicative techniques of decision are examined.

Taxation statutes often provide opportunities for tax avoidance by taxpayers who exploit the provisions of the taxing statute to reduce the tax that they are legally required to pay. It is, however, important to distinguish between the concepts of tax avoidance and tax evasion. The central issue, especially where the contract has no business purpose, is whether it is possible for the substance and legal form of the transaction to differ to such an extent that a court of law will favour the substance rather than the legal format. The debate is whether the courts should be encouraged to continue with their "judge-made" law or whether the tax jurisdictions should be supporting a legislative route as opposed to a judicial one, in their efforts not only to combat tax avoidance but also to preserve taxpayer certainty. The question is whether the Doctrine of "Substance over Form" as applied by the judiciary is effective in combating tax avoidance, or whether a legislated general anti-avoidance provision is required. An intensive literature survey examines the changes which have occurred in the application of judicial tests from the 1930's to date and investigates the different approaches tax jurisdictions follow in order to combat tax avoidance. The effect of the introduction of anti-avoidance provisions in combating tax avoidance is evaluated by making a comparison between the United Kingdom and South Africa. [n the United Kingdom, the courts are relied on to create anti-tax avoidance rules, one of which is the Doctrine of "Substance over Form". The doctrine is very broad and identifies various applications of the doctrine, which have been developed by the courts. In South Africa, the Doctrine of "Substance over Form" has been applied in certain tax cases; however the South African Income Tax Act does include anti-tax avoidance sections aimed at specific tax avoidance schemes, as well as a general anti-tax avoidance measure enacted as section 103. The judicial tests have progressed and changed over time and the introduction of anti-avoidance legislation in the Income Tax Act has had an effect on tax planning opportunities. A distinction needs to be made between fraudulent and bona fide transactions while recognising the taxpayer's right to arrange his or her affairs in a manner which is beneficial to him or her from a tax perspective. Judicial activism and judicial legislation in the United Kingdom has created much uncertainty amongst taxpayers and as a result strongly supports the retention of a general anti-avoidance section within an Income Tax Act. A general anti-avoidance provision, following a legislative route, appears to be more consistent and effective in combating tax avoidance.

Mr Justice Corbett made a substantial contribution to the South African tax law as he delivered several judgements during his long career on the bench. Starting from the lower ranks as a judge he became Chief Justice of South Africa. Precedents set by his judgements are considered important and indicative of the level of South African tax law. This dissertation observes his background, looks at the operations of the tax court in South Africa and examines whether his judgements were cited and applied in subsequent cases as accepted precedent. International case law is referred to, to compare his judgements with comparable international tax law. / Auditing / M. Comm. (Accounting)

The additional tax ("penalties") imposable in terms of section 76(1) of the Income Tax Act (No 58 of 1962) when a taxpayer is in default, can be very harsh (up to 200% of the tax properly chargeable). The Commissioner may, in terms of section 76(2)(a), remit any penalty imposed, as he sees fit. However, when there was intent on the part of the taxpayer to evade the payment of tax, the Commissioner may not remit any portion of the 200% penalty imposable, unless he is of the opinion that "extenuating circumstances" exist. This dissertation examines the meaning of "extenuating circumstances", as interpreted by the judiciary, and lists the factors and defences that a taxpayer may plead to justify a remission of penalties, both in the case of an intention by the taxpayer to evade tax and in cases where the taxpayer is merely in default of section 76(1). / Accounting / MCOM (Accounting)

Revenue losses due to tax non-compliance pose a substantial risk for all governments, including the South African government. As part of its risk management system, the South African Revenue Service has identified the small, medium and micro enterprise sector as one of the seven high-risk areas and indicated that non-compliance in this sector remains high. The first focus area of any tax compliance risk management system is to ensure registration for the relevant taxes payable. The objective of this study was to establish whether any demographic factors could be used to select small businesses to investigate whether they are meeting their registration compliance requirements for income tax, Value-Added tax as well as the employee related taxes. In order to achieve the research objectives of the study, two sequential research methods were applied. During the first phase of the research, a literature review was conducted to develop a heuristic model consisting of two levels. The first level described the factors that could influence the tax compliance behaviour of a small business. The second level of the heuristic model describes the different taxes a small business could be liable for and when it must register for each of those taxes. During the second phase, the variables influencing registration compliance were statistically analysed for each of the taxes to determine if they significantly influence the compliance status. The study found that several factors have an impact on the registration compliance of small businesses. The demographic factors were analysed separately for each of the three different tax groups used in the study. The results indicate that in the majority of cases all three tax groups share the same demographic factors that would either have a positive or negative impact on the compliance of the entity. Profiles for the most compliant business type (per tax type) and the least compliant business type (per tax type) were compiled. The results of the study can be used by the South African Revenue Service to target their compliance and information actions to help improve registration compliance by small businesses. / Taxation / M. Com. (Accounting)

Thesis (MAcc)--Stellenbosch University, 2015. / ENGLISH ABSTRACT: Section 24C of the Income Tax Act No. 58 of 1962 (‘the Act’) provides for a deduction of future expenditure that will be incurred by the taxpayer in the performance of his obligations under a contract from which the taxpayer derived income. Due to uncertainties regarding the meaning of certain words and phrases used in section 24C, the first aim of this assignment was to determine the meaning of the word ‘expenditure’ and the phrase ‘will be incurred’ as used in section 24C. The second aim was to establish how a taxpayer will prove with certainty that he will incur future expenditure in the performance of his obligations under a contract. This was done by discussing the effect of contractual terms and other circumstances and by taking into account certain additional guidelines regarding the interpretation of section 24C provided for in Interpretation Note: No. 78 (‘IN 78’). It was established that the word ‘expenditure’ means the amount of money spent, including the disbursement of other assets with a monetary value. The word ‘expenditure’ also specifically includes the voluntary payments and disbursements of assets. The word ‘expenditure’ can also include a loss if the word ‘loss’ can be equated to the word ‘expenditure’. The phrase ‘will be incurred’ implies that the taxpayer will, in a subsequent year of assessment, have an unconditional obligation to pay for expenditure, which must arise from the taxpayer’s obligations to perform under the contract. Contractual terms and other circumstances can indicate whether there is certainty that future expenditure will be incurred as aforementioned. Conditions and warranties are contractual terms that indicate that there is uncertainty regarding the taxpayer’s obligations to perform under the contract. A time clause in a contract can indicate that there is certainty regarding the taxpayer’s obligations to perform under the contract. Similar contracts with similar conditional obligations to perform cannot be grouped together in order to determine the probability, and thus the certainty, that future expenditure will be incurred in the performance of the taxpayer’s obligations under a contract. The probability that a taxpayer will perform his unconditional obligation under the contract must, however, be proved in order to demonstrate that there is certainty regarding the incurral of the future expenditure. IN 78 does not specify whether a loss which can, in certain circumstances, be equated to the word ‘expenditure’, is deductible under section 24C. This should be clarified. The new undefined phrases (a high degree of probability, inevitability, certainty and potentially contractually obligatory), as used in IN 78, might cause confusion when interpreting section 24C. These phrases should be defined and it should be explained how the high degree will be measured. Lastly, is was shown that an anomaly occurs regarding trading stock at hand at the end of a year of assessment, which will be utilised in a subsequent year of assessment in the performance of the taxpayer’s obligations under a contract. Such trading stock does not represent ‘future expenditure’ and must be excluded from the section 24C allowance. However, due to the interplay between section 24C and section 22(1), the taxpayer does not receive any tax relief for the expenditure actually incurred to acquire the closing trading stock in the year in which such trading stock is acquired. It is, therefore, questioned whether the established interpretation of section 24C is in agreement with the Legislator’s original intention with section 24C namely, to match income received under a contract with the related deductible expenditure. / AFRIKAANSE OPSOMMING: Artikel 24C van die Inkomstebelastingwet No. 58 van 1962 (‘die Wet’) voorsien ʼn aftrekking vir toekomstige onkoste wat deur die belastingpligtige aangegaan sal word in die nakoming van sy verpligtinge ingevolge ʼn kontrak waaruit hy inkomste verkry het. As gevolg van onsekerhede ten opsigte van die betekenis van sekere woorde en frases wat in artikel 24C gebruik word, was die eerste doelstelling van hierdie navorsingswerkstuk om die betekenis van die woord ‘onkoste’ en die frase ‘aangegaan sal word’, soos wat dit in artikel 24C gebruik word, te bepaal. Die tweede doelstelling was om vas te stel hoe 'n belastingpligtige met sekerheid sal bewys dat hy toekomstige onkoste sal aangaan in die nakoming van sy verpligtinge ingevolge ʼn kontrak. Dit is gedoen deur die effek van kontraksbedinge en ander omstandighede te bespreek en deur sekere bykomende riglyne ten opsigte van die interpretasie van artikel 24C, soos vervat in Interpretasienota No. 78 (‘IN 78’), in ag te neem. Daar is vasgestel dat die woord ‘onkoste’ die bedrag van geld wat bestee word, insluitend die uitbetaling van ander bates met 'n geldwaarde, beteken. Die woord ‘onkoste’ sluit ook spesifiek vrywillige betalings en uitbetalings van bates in. Die woord ‘onkoste’ kan ook 'n verlies insluit, indien die woord ‘verlies’ gelyk gestel kan word aan die woord ‘onkoste’. Die frase ‘aangegaan sal word’ impliseer dat die belastingpligtige, in 'n daaropvolgende jaar van aanslag, 'n onvoorwaardelike verpligting sal hê om vir onkostes te betaal. Hierdie onkostes moet ontstaan weens die belastingpligtige se verpligtinge ingevolge die kontrak. Kontraksbedinge en ander omstandighede kan aandui of daar sekerheid is dat die toekomstige onkoste, soos hierbo genoem, aangegaan sal word. Voorwaardes en waarborge is kontraksbedinge wat daarop dui dat daar onsekerheid is rakende die belastingpligtige se verpligtinge om ingevolge die kontrak op te tree. ʼn Tydsklousule in 'n kontrak kan aandui dat daar sekerheid is rakende die belastingpligtige se nakoming van sy verpligtinge ingevolge die kontrak. Soortgelyke kontrakte, met soortgelyke voorwaardelike verpligtinge kan nie saam gegroepeer word ten einde te bepaal of dit waarskynlik, en gevolglik seker is dat toekomstige onkoste in die nakoming van ʼn belastingpligtige se verpligtinge ingevolge die kontrak aangaan sal word nie. Die waarskynlikheid dat 'n belastingpligtige sy onvoorwaardelike verpligting ingevolge die kontrak sal nakom moet egter bewys word ten einde aan te dui dat daar sekerheid is dat toekomstige onkoste aangegaan sal word. IN 78 spesifiseer nie of 'n verlies wat, in sekere omstandighede, gelyk gestel kan word aan die woord ‘onkoste’, ingevolge artikel 24C aftrekbaar is nie. Duidelikheid hieromtrent moet verskaf word. Die nuwe, ongedefinieerde frases ('n hoë graad van waarskynlikheid, onafwendbaarheid, sekerheid en potensieel kontraktueel verpligtend (vry vertaal)), soos in IN 78 gebruik, kan moontlik verwarring veroorsaak wanneer artikel 24C geïnterpreteer word. Hierdie frases moet gedefinieer word en daar moet verduidelik word hoe ʼn hoë graad gemeet gaan word. Laastens blyk dit dat 'n teenstrydigheid ontstaan ten opsigte van handelsvoorraad op hande aan die einde van 'n jaar van aanslag, wat in 'n daaropvolgende jaar van aanslag deur die belastingpligtige in die nakoming van sy verpligtinge ingevolge 'n kontrak gebruik sal word. Sodanige handelsvoorraad verteenwoordig nie ‘toekomstige onkoste’ nie en moet by die artikel 24C toelaag uitgesluit word. Die belastingpligte ontvang egter, weens die wisselwerking tussen artikel 24C en artikel 22(1), nie ʼn belastingverligting vir die onkoste werklik aangegaan in die jaar waarin sodanige handelsvoorraad verkry is nie. Dit word dus bevraagteken of die bewese interpretasie van artikel 24C in ooreenstemming is met die Wetgewer se oorspronklike bedoeling met artikel 24C, naamlik, om inkomste ontvang ingevolge ʼn kontrak met die verwante aftrekbare uitgawes te paar.

Mainland China has implemented two sets of income taxes systems for many years. One is for the foreign enterprise “1991 Promulgated Foreign Invested Enterprise and the Foreign Enterprise Income Tax Law” and another one to the domestic enterprise, “1993 promulgated Enterprise Income Tax Temporary Regulation”. The coexisted of two taxes not only resulted in unfair taxation but also created fake foreign enterprise phenomenon. It is especially difficult for people to accept this situation after China joined the World Trade Organization. The legislation conditions matured after speedy growth of Chinese economy. The Chinese government considered the current financial situation can withstand the impact on decrease in tax revenue after new tax law implemented and it met one of the current economic development targets of “nurture domestic enterprise”. On March 16, 2007, the “Enterprise Income Tax Law of the People's Republic of China” (here in after referred it as the New Law) was eventually approved after many years of research. It surely will have profound influence on foreign enterprise including the Taiwanese businessmen. The purpose of the study is how the major changes of the New Law impacts the China investment of the Taiwanese businessmen. The structure of the study, other than abstract and conclusion, firstly, the author will discuss of the content of system and policy changes. Next, based on the major changes of the New Law, how they affect designed research method. Analyze and forecast its possible impact and influence on Taiwanese businessmen in the following categories: (1) tax incentive; (2) organization structure organization, and (3) tax risk. Finally, the author will propose the related action taken and suggestions on the impact.

The purpose of this study was an empirical investigation of the factors considered by the United States Tax Court in determining whether the principal purpose for an acquisition was tax avoidance (or alternatively, given the totality of the surrounding circumstances, whether there was an overriding business purpose for the acquisition).

Title: Reflections of the New Civil Code in the life of sports clubs at the local level. Objectives: The goal of this diploma thesis is to specify the changes in the life of sports clubs at the local level after the New Civil Code, which came into effect on 1. 1. 2014. The main object is to discover the changes in the structure of the non-profit sport organizations, tax management of the sports clubs and also to offer concrete advices, which would help to cope with the transformation to the New Civil Code. Methods: In this thesis the qualitative method is used. Semi-structured interviews are helping to get the complex overview of the problems and concrete issues. In case of availability, the legislative documents of interviewed non-profit sport organizations are analyzed to specify and verify their answers. Research is supplemented by basic analyzes of public register, which will help to describe current situation of reactions on the New Civil Code. Results: Thanks to the research it was discovered that non-profit sport organizations, which have the help of private sector, support of umbrella organization or advantage of having professional member with experiences in accounting, taxes or law, will more likely manage with all the changes caused by the new legislative. Rest of the non-profit sport...

On the 1st of January 2009, a new regulation regarding interest deduction limitations was enforced. The aim was to prevent tax structure with interest deductions in a community of interest. The changes meant that intra-group share transfers, which generates an intra-group loan structure, can lead to borrower losing their right to deduct interest expenses. Except from the main rule two exceptions were also introduced. These eliminates the limitations, and accept the deductibility despite the above conditions. The exceptions are named ten-percent rule and “ventilen”. It was found that Swedish municipal communities also engaged in such arrangements. As a result of this discovery the Swedish Tax Authority was delegated the task to investigate companies that are in a community of interest with a fully or partially exempted taxpayer in general and its relationship to the tax structure of interest deductions in particular. The application of “ventilen” creates problems regarding the definition of business purpose as well as the relationship between business and organizational purposes. The assessment of organizational purposes is of particular importance for municipal communities of interest where transparency, control and quality assurance are of great importance. Needs of rationalization and organizational changes occurs continually within municipal community groups. Unclarity due to organizational purpose makes these changes, within the municipal communities, problematic. Both municipal communities as well as experts regard the deduction limitations due to municipal community interest unclear. Due to the unclarity a few municipal communities have chosen to switch their internal loans to ones through Kommuninvest. This to avoid the rising risk-taking as any interest deductibility limitations may entail. The Swedish High Administrative Court has in their judgements expressed their support for this kind of loan structure. It is unclear how the law concerning “ventilen” should be applied in regards to municipal communities interest, which also raises questions about “ventilens” compatibility with the principle of legality. The High Swedish Administrative Court has solved the problem, at least for now, by approving an alternative approach, the one including Kommuninvest, which thereby reduces the stress for the Court to come to a conclusion regarding “ventilens” proper functioning and application. / Den 1 januari 2009 trädde en ny lagstiftning i kraft gällande ränteavdragsbegränsningar. Syftet var att förhindra skatteupplägg med ränteavdrag inom en intressegemenskap. Förändringarna innebar att koncerninterna andelsöverlåtelser, som genererar en koncernintern upplåning hänförlig till lånet, kan resultera i att låntagaren förlorar sin avdragsrätt för ränteutgifterna. Till huvudregeln infördes två undantag som undanröjer begräsningen, och godtar avdragsrätt trots ovan förutsättningar. Undantagsreglerna betecknas tioprocentsregeln samt ventilen. Syftet med ränteavdragsbegränsningarna är att förhindra skatteupplägg med ränteavdrag inom intressegemenskaper, och då främst inom privata internationella sådana. Det har dock framkommit att även svenska kommunala intressegemenskaper ägnar sig åt dylika upplägg. Med anledning av denna upptäckt fick SKV i uppdrag att utreda bolag som befinner sig i intressegemenskap med helt eller delvis skattebefriade skattesubjekt i allmänhet samt dess relation till skatteupplägg med ränteavdrag i synnerhet. Tillämpningen av ventilen, i förhållande till kommunala intressegemenskaper, genererar problem gällande såväl definitionen av affärsmässigt samt relationen mellan affärsmässiga och organisatoriska skäl. Bedömning kring organisatoriska skäl blir av stor vikt för kommunala intressegemenskaper där insyn, kontrollutövande och kvalitetssäkring är betydelsefullt. Det uppkommer ständigt behov av effektivisering och förändring för att kunna uppnå en acceptabel nivå av kontroll och inblick i bolagen som kommunen äger och förvaltar.  Då rättsläget enligt kommuner och sakkunniga är oklart har flertalet kommunala intressegemenskaper lagt om sina interna lån via Kommuninvest. Det har gjorts för att undvika det ökade riskatagande som en eventuell förlorad ränteavdragsrätt kan komma att innebära. HFD har i praxis uttryckt sitt stöd för denna typ av omläggning. Gällande rätt bör dock anses vara oklar gällande ventilens tillämpning inom kommunala intressegemenskaper, vilket även väcker frågor kring ventilens kompatibilitet med legalitetsprincipen. HFD kan dock ha ansetts finna en, om än en provisorisk sådan, lösning på problematiken genom att godkänna en omläggning till Kommuninvest som därmed minskar stressen för HFD att komma till en slutsats gällande ventilens korrekta tolkning och tillämpning.