M.Comm. / In a changing world, adaptation is essential to survival. This holds particularly true for businesses in view of the increasing responsibility entailed upon their management by the globalisation of trade and technology. Planning for the future is crucial, and proper planning methods must be implemented to meet challenges successfully. One of the most important planning methods is the Business Plan, which can be used according to the particular needs and objectives of a business. In South Africa, the requirements of the Government's Reconstruction and Development Programme (RDP) have made it necessary for companies to plan better than ever before - especially in terms of the major RDP objective of making affordable housing available to all the country's citizens. This study is an investigation into the development and implementation of a framework for a Business Plan for SouthNet Projects, a property development company whose objective is to provide housing at the so-called lower end of the market. The chief aims of this study have been to: determine whether the Business Plan of SouthNet Projects meets all the requirements for drawing venture capital into the business; develop a framework for a Business Plan that can be utilised for measuring the content and standard of an overall or comprehensive Business Plan so that improvements can be effected where necessary. The methodology involved a comparative study in which Business Planning, as reflected in eight authors/institutions, was analysed. This analysis was used for drawing up a framework according to which the Business Plan of S?uthNet Projects could be measured. It was found that the existing Business Plan was indeed a sound one in that it: generally measured up to required standards; addressed all the essential aspects; was drafted by professionals thoroughly acquainted with the industry. However, certain shortcomings - inter alia the following - were identified: A "standard" (overall or comprehensive) Business Plan was lacking. Some aspects recurred repeatedly under different headings, a problem that could be remedied by grouping related topics (marketing, for instance) under the same heading ("Marketing). The executive summary needed to be remoulded to ensure that the readers' attention would immediately be caught. It is recommended that, although the variedness of the nature and purpose of industries makes it difficult to formulate a standard Business Plan, the framework developed should be integrated with other business plans as far as possible in an attempt to approach the ideal of a standard plan.

Most property development firms who invest in property will need to raise some extra financial support. Unforeseen or unexpected expenses can arise at any point in time during the development process. Calculated decisions should be taken with regards to the financial circumstances for any property development project. Decisions should be taken not only for the present but for the future as well. It is therefore important to understand the market and the current economic conditions before applying for capital to fund a property development project. There several types of finance available to fund property development, these include long term borrowing, short term borrowing, construction loans property development investment trust, second mortgages. There is risk to all of the aforementioned finance available.

This dissertation deals with the effect of value-added tax on small to medium-sized developers of residential properties in South Africa. Firstly, the way value-added tax is applied to residential properties in South Africa was established. It was ascertained that no special concessions exist with regard to housing. Secondly, the application of value-added tax to residential properties in the United Kingdom was discussed. It was ascertained that supplies relating to new residential premises are zero-rated. Thirdly, the application of goods and services tax to residential properties in Canada was discussed. Canadian goods and services tax and harmonious sales tax legislation contains a broad range of special concessions relating to residential property developments. The harmonious sales tax which applies in some provinces, is a combination of goods and services tax and a provincial sales tax. Fourthly, the way goods and services tax is applied to residential property developments in Australia was determined. Australian legislation provides for a margin scheme to be applied to the development of residential properties. In terms of the margin scheme, goods and services tax is payable on the basis of profit rather than turnover. Transfer duty as applied in South Africa was examined as an alternative to the value-added tax being applied on residential properties developed by developers registered for value-added tax purposes. The legislation with regard to developers of residential properties registered for value-added tax, goods and services tax and harmonious sales tax purposes was measured against the principles of taxation. On the basis of these results, an alternative to the current application of value-added tax relating to developers registered for value-added tax purposes in South Africa was proposed that would be in line with that of the selected countries. / Economics / M. Com. (Accounting)

This dissertation deals with the effect of value-added tax on small to medium-sized developers of residential properties in South Africa. Firstly, the way value-added tax is applied to residential properties in South Africa was established. It was ascertained that no special concessions exist with regard to housing. Secondly, the application of value-added tax to residential properties in the United Kingdom was discussed. It was ascertained that supplies relating to new residential premises are zero-rated. Thirdly, the application of goods and services tax to residential properties in Canada was discussed. Canadian goods and services tax and harmonious sales tax legislation contains a broad range of special concessions relating to residential property developments. The harmonious sales tax which applies in some provinces, is a combination of goods and services tax and a provincial sales tax. Fourthly, the way goods and services tax is applied to residential property developments in Australia was determined. Australian legislation provides for a margin scheme to be applied to the development of residential properties. In terms of the margin scheme, goods and services tax is payable on the basis of profit rather than turnover. Transfer duty as applied in South Africa was examined as an alternative to the value-added tax being applied on residential properties developed by developers registered for value-added tax purposes. The legislation with regard to developers of residential properties registered for value-added tax, goods and services tax and harmonious sales tax purposes was measured against the principles of taxation. On the basis of these results, an alternative to the current application of value-added tax relating to developers registered for value-added tax purposes in South Africa was proposed that would be in line with that of the selected countries. / Economics / M. Com. (Accounting)