Abstact unavailable. / Thesis (M.Com.)-University of KwaZulu-Natal, 2005.

The purpose of this technical report is not to establish a definitive answer as to the validity and suitability of a business trust as a new form of a business entity, but is aimed at addressing the uncertainties that have emanated from the use of a traditional trust structure as a business vehicle. A critical analysis of the recommendations made by the Margo Commission that the taxation treatment of business trusts and companies should be aligned in order to avoid the tax abuse of business trusts will also be undertaken. Globally trusts, especially discretionary inter vivos trusts, are formed purely for carrying on a business including owning and letting of property. However, there are divergent views whether a trust can be used for commercial purposes. Honore (1985 : Preface) is of the opinion that "The use of trusts for business purposes - no new phenomenon, since testators long since saw the advantage of setting up a trust to carry on their enterprises after their death - raises complex issues of control. It should not be assumed without thorough investigation of the past record and future possibilities of business trusts that there is no room for a tertium quid between the commercial partnership and the incorporated company". Wunsh (1986 : 561 - 82) says that a business trust provides a method of setting up or continuing a business alternative to an incorporated company or close corporation (Honore, 1992 : 74). In general a business trust is a pure trust the main object of which is to carry on a business enterprise with a view to making a profit and distributing it amongst the beneficiaries. Notwithstanding the fact that the Trust Property Control Act which controls all forms of trusts was enacted in 1988, Honore (1992 : Preface) is of the view that business trusts call for some further regulation, but not for the full panoply detailed in the Companies Act or even the Close Corporations Act. The analysis of the recommendation of the Margo Commission to align the taxation treatment of business trusts and companies shows that business trusts are not close substitutes for companies as they are 'pure trusts' formed purely for protecting the founder's business for the benefit of the beneficiaries. Although there may be similarities, there are also dissimilarities between business trusts and companies. Further, there are no compelling reasons for changing the current tax regime since taxing business trusts like companies will not necessarily improve equity or efficiency and particularly prevent perceived tax abuse. Tax abuse should be addressed at its source through better enforcement action to limit tax abuse opportunities. In conclusion it will be shown that although a business trust can at present provide certain tax advantages while still preserving the limited liability of the trustees, legislation is gradually being introduced which will iii result in trading trusts being taxed on the same basis as companies. However, the researcher submits that the legislature will not be solving the problem by aligning the tax treatment of business trusts and companies. / Thesis (M.Com.)-University of Kwazulu-Natal, 2004.

The primary purpose of this study was to establish on whether South African taxpayers have an in-depth understanding of taxation. In particular, an understanding on the requirements on taxation on companies and directors in relation to normal tax, secondary tax on companies and lastly, piercing of any possible veil. The population was from the North-West Province with particular inclination to the Mafikeng area. Sixty nine respondents participated in the study after random selection. The questionnaire was the primary instrument of data collection for this study. The data was presented in tables and graphs and analysed using the F-Tests and T-Tests. The responses of directors of companies as opposed to non-directors were what one could safely term unsurprising in that it was, so to speak, what was ordinarily expected; that is, the responses showed that directors had more knowledge regarding tax matter than non-directors. This could be attributed the farmer's everyday exposure tax matters. Stemming from this, it is recommended that a lot of education needs to be done on the part of non-directors in order to familiarise them with tax-related issues. Further, it is recommended that the language used in the tax field be made more accessible so that any taxpayer could understand it. / (MBA) North-West University, Mafikeng Campus, 2005

M.Comm. / The purpose of this study is to determine the tax implications of sectional title, shareblock and timeshare schemes and to establish whether any of the schemes is more beneficial to the taxpayer than the others.

Successful business in today’s competitive climate thrives on building relationships with one’s suppliers, clientele and employees. Businesses, as a form of strategic engagement, extend their appreciation and recognition to these key role players with rewards (or incentives) such as prizes, holidays and free goods and/or services. This treatise examines the taxation implications of such rewards and determines that the market value thereof should be taxed in the hands of their recipients. This study also investigates possible indicators (or points of reference) to establish such market value and suggests alternate values that may be ascribed thereto for inclusion in the recipient’s gross income. Where the rewards are passed onwards by the recipient to its employees, fringe benefit consequences are occasioned and this study observes that the market value thereof should be taxed in the employees’ hands. The study goes on further to consider the position of the supplier (or provider) of the rewards and finds that the supplier is entitled to a deduction of the cost of the rewards it has provided to its clients or customers. This study also reflects upon the penal implications of not including the market value of rewards in gross income and notes that such non-inclusion constitutes a fiscal loss and is subject to an understatement penalty. Key recommendations on how such omission may be addressed by the tax authorities are also presented.

Thesis (MAcc)--Stellenbosch University, 2012. / ENGLISH ABSTRACT: This study explores the question whether a company that issues shares in exchange for assets or services incurs expenditure for purposes of the Income Tax Act No 58 of 1962. It is concluded that a company may, in terms of the Companies Act No 61 of 1973 and the Companies Act No 71 of 2008, only issue shares once it has received consideration for those shares. Unissued shares have no value and are not considered to be assets of the company. Die ordinary meaning of the word expenditure requires the action of spending an amount of money, funds or other resources. In light of this meaning it is further concluded that the issue of shares does not qualify as expenditure actually incurred by the company. It is further concluded that the principles of what expenditure entails for income tax purposes, laid down in CSARS v Labat Africa Limited, are accurate and should form the basis whenever it is necessary to consider whether expenditure was actually incurred. / AFRIKAANSE OPSOMMING: Die studie is ʼn ondersoek na die vraag of die uitreik van aandele deur ʼn maatskappy, ten einde bates of dienste te bekom, sou beteken dat die maatskappy onkoste werklik aangegaan het vir doeleindes van die Inkomstebelastingwet No. 58 van 1962. Daar word bevind dat ʼn maatskappy ingevolge die Maatskappywet No. 61 van 1973 en die Maatskappywet No. 71 van 2008 slegs aandele mag uitreik sodra die teenprestasie ontvang is en dat onuitgereikte aandele geen waarde het nie en ook nie bates is van die maatskappy nie. Die gewone betekenis van die woord onkoste vereis ʼn aksie of handeling van betaling of uitgee van ʼn bedrag geld, fondse of ander hulpbronne. In die lig hiervan word daar bevind dat die uitreik van aandele nie onkoste is wat werklik aangegaan word deur ʼn maatskappy nie. Daar word verder bevind dat die beginsel van wat onkoste behels vir inkomstebelastingdoeleindes, soos neergelê in CSARS v Labat Africa Limited, korrek is en die basis vorm wanneer daar oorweeg word of onkoste werklik aangegaan word.

Thesis (MAcc) -- Stellenbosch University, 1999. / ENGLISH ABSTRACT: The current South African tax dispensation does not make provision for a system of group taxation, which gives rise to various tax anomalies. The Katz Commission recommended the implementation of a consolidation system of group taxation in their third interim report. This study investigates the issue of group taxation with the objective of commenting on the Katz Commission's recommendation. Chapter 1 explains the purpose of a system of group taxation and discusses the different forms of group taxation. Furthermore, the theoretical norms or canons are described which can be used to evaluate the current tax treatment of groups as well as the different forms of group taxation. Chapter 2 investigates the current tax treatment of groups by focussing on the tax implications of various intra-group transactions. It is found that the current tax treatment of groups does not satisfy the canons of equity, neutrality, efficiency of tax collection, low administration cost and certainty. Although the absence of a system of group taxation may contribute to technical simplicity, such an absence also leads to complex tax schemes that attempt to exploit favourable tax anomalies or avoid unfavourable anomalies. Chapter 3 exammes certain Issues which may render a system of group taxation unnecessary or undesirable, even if such a system leads to better compliance with the canons of taxation. The conclusion is reached that none of these issues will cause such a result. With regard to the issue of divisionalisation as an alternative to group taxation, it is found that section 39 of the Taxation Laws Amendment, No. 20 of 1994 does not provide an accessible mechanism for divisionalisation. Furthermore, groups may be preferred over divisionalised companies for various commercial and legal reasons. With regard to the issue of limited liability of individual group companies (a benefit which is not available to individual divisions of a single company) it is found that group companies rarely abuse this benefit. In addition, a system of group taxation will complement the concept of limited liability in promoting economic growth. With regard to the issue of concentration of economic control and ownership, the conclusion is reached that group taxation will not lead to further concentration of economic control, as the intra-group shareholding required for group tax treatment will greatly exceed the intra-group shareholding necessary for economic control. A system of group taxation may even lead to the broadening of economic ownership by enabling minority shareholdings in group companies which would otherwise be structured as divisions of existing companies due to tax considerations. Chapter 4 compares the loss transfer system of group taxation with the consolidation system, using the canons of taxation as a reference framework. Because a loss transfer system is similar to the current tax treatment of groups, in the sense that both dispensations treat individual group companies as separate taxable entities, the current tax treatment of groups is included in the above mentioned comparison by implication. It is found that a consolidation system will satisfy the canons of taxation the best. Although such a system carries the risk of undue complexity, it should be possible to design and implement a specific system which will fall within the administrative capabilities of both taxpayers and tax authorities. Chapter 5 examines key recommendations of the Katz commission with regard to group taxation. The writer expresses his agreement with the commission's conclusion that a consolidation system of group taxation should be implemented gradually. Certain adjustments to the commission's recommendations are suggested, which will facilitate quicker implementation and increased simplicity. The current tax treatment of groups leads to tax anomalies which are highly unsatisfactory. From a theoretical as well as a practical perspective, the implementation of a consolidation system of group taxation will represent a significant improvement to the South African tax dispensation. / AFRIKAANSE OPSOMMING: Suid-Afrika beskik tans nie oor 'n stelsel van groepbelasting nie, wat aanleiding gee tot verskeie belastinganomaliee. Die Katz-kommissie het die implementering van 'n gekonsolideerde stelsel van groepbelasting aanbeveel in hulle derde tussentydse verslag. Hierdie studie ondersoek die aangeleentheid van groepbelasting met die doel om kommentaar te !ewer op die Katz-kommissie se voorstelle in hierdie verband. In Hoofstuk 1 word die doel van 'n stelsel van groepbelasting verduidelik, en die verskillende vorme van groepbelasting bespreek. V erder word die teoretiese norme beskryf waaraan die huidige belastinghantering van groepe en die verskillende vorme van groepbelasting gemeet kan word. In Hoofstuk 2 word die huidige belastinghantering van groepe ondersoek deur te fokus op die belastingimplikasies van 'n verskeidenheid intra-groep transaksies. Dit word bevind dat die huidige belastinghantering van groepe nie lei tot billikheid, neutraliteit, effektiewe invordering van die belastinglas, lae administrasiekoste en sekerheid nie. En alhoewel die gebrek aan 'n stelsel van groepbelasting bydra tot tegniese eenvoud, lei dit terselfdetyd tot ingewikkelde, belastinggedrewe skemas wat poog om gunstige belastinganomaliee te benut en om ongunstige belastinganomaliee te vermy. In Hoofstuk 3 word sekere aangeleenthede ondersoek wat moontlik 'n stelsel van groepbelasting onnodig of onwenslik sal maak, selfs al sou so 'n stelsellei tot 'n meer gebalanseerde bevrediging van die teoretiese belastingnorme. Die slotsom word bereik dat geeneen van hierdie aangeleenthede we! so 'n resultaat sal he nie. Met betrekking tot divisionalisering as 'n altematief vir groepbelasting, word beslis dat artikel 39 van die Wysigingswet op Belastingwette, No. 20 van 1994 nie 'n toeganglike meganisme daarstel vir die divisionalisering van bestaande groepe nie. Uit 'n kommersiele en regsoogpunt bestaan daar boonop verskeie redes waarom groepe bo gedivisionaliseerde maatskappye verkies word. Met betrekking tot die beperkte aanspreeklikheid van afsonderlike groepmaatskappye ('n voordeel wat nie tot die beskikking is van divisies van 'n enkele maatskappy nie), word bevind dat groepe in praktyk selde hierdie voordeel misbruik of selfs benut. Voorts sal 'n stelsel van groepbelasting die konsep van beperkte aanspreeklikheid komplimenteer in die bevordering van ekonomiese groei. Met betrekking tot die konsentrasie van ekonomiese beheer en eienaarskap, word beslis dat 'n stelsel van groepbelasting nie die verdere konsentrasie van ekonomiese beheer sal aanhelp nie, aangesien die kwalifiserende aandeelhouding wat vir groepbelastinghantering vereis sal word, die aandeelhouding wat nodig is vir ekonomiese beheer ver sal oorskry. 'n Stelsel van groepbelasting mag voorts hydra tot die verbreding van aandeeleienaarskap, deurdat buiteaandeelhouers direkte belange sal kan opneem in ondernemings wat andersins gestruktureer sou word as divisies van bestaande maatskappye. In Hoofstuk 4 word verliesoordragstelsels en gekonsolideerde stelsels van groepbelasting in die algemeen vergelyk, met die belastingnorme as 'n verwysingsraamwerk. Aangesien 'n verliesoordragstelsel soortgelyk is aan die huidige belastinghantering van groepe, in die sin dat albei bedelings groepmaatskappye as afsonderlike belastingentiteite hanteer, word die huidige belastinghantering van groepe by implikasie ingesluit in die vergelyking. Die slotsom word bereik dat 'n gekonsolideerde stelsel van groepbelasting die mees bevredigende stelsel is in terme van 'n gebalanseerde voldoening aan die belastingnorme. Alhoewel 'n gekonsolideerde stelsel die risiko van kompleksiteit inhou, is dit moontlik om 'n spesifieke stelsel op sodanige wyse te ontwerp en implementeer dat dit wel administreerbaar sal wees. In Hoofstuk 5 word sleutelaanbevelings van die Katz-kommissie met betrekking tot groepbelasting ondersoek. Die skrywer spreek sy instemming uit met die kommissie se voorstelle vir die geleidelike implementering van 'n gekonsolideerde stelsel van groepbelasting. Sekere wysigings word aangebring aan die kommissie se voorstelle, ten einde verdere eenvoud en spoediger implementering teweeg te bring. W anneer die belastinganomaliee as gevolg van die huidige belastinghantering van groepe oorweeg word, is dit duidelik dat die huidige situasie onhoudbaar is. Uit 'n teoretiese en praktiese oogpunt, sal die implementering van 'n gekonsolideerde stelsel van groepbelasting 'n beduidende verbetering van die Suid-Afrikaanse belastingbedeling meebring.

Thesis (MComm.)--Stellenbosch University, 1995. / Many co-operative societies make use of a system of pooling the produce delivered to it by its members. The delivered produce is thrown into one common stock and its identity is lost in the process. Each season's harvest would normally form a separate pool. The co-operative keeps record of all the pool transactions in the form of a pool account. In short these transactions consist of the proceeds from the sale of the pooled mass, commission charged by the co.:.operative, expenses incurred in the processing and marketing of the products, as well as advances to the members. The surplus of the pool account is divided among the members at the closing of the account, in proportion to their contributions to that specific pool. Each member's share in the surplus is reduced by advances already received. In practice, only the advances and the final share of the surplus, reduced by advances already received, are included in the taxable income of the members. Realised sales, not yet distributed to the members are therefore not included in the taxable income of the members, nor of the co-operative society. The value of unsold pool stock at year end is further not included in the taxable income of the individual members, nor of the co-operative society. In this study, the treatment of co-operative pools from an income tax perspective is investigated in order to determine whether the treatment in practice is a correct reflection of the law. The study first gives a general background of the co-operative society as a form of a business enterprise. This is necessary in order to understand the creation of co-operative pools. The study further deals specifically with co-operative pools and the income tax consequences thereof. The following aspects are discussed: (a) The legal nature and consequences of pooling are investigated. The rights and obligations between the relevant parties will determine the income tax consequences. The study concentrates on whether ownership of the produce is transferred to the co-operative society as well as the implications in law of the mixing of all the produce and the further processing thereof. The capacity in which the co-operative processes and disposes of the products are also investigated. (b) A discussion is also given on whether the participants of a particular pool form an association of persons. Certainty in this regard is necessary before the income tax consequences of pooling for the co-operative society or the individual members can be discussed. An association of persons is regarded as a person for income tax purposes and is therefore a separate taxpayer. A partnership will, however, not be a separate taxpayer. As the circumstances with pooling resembles that of a partnership, the legal requirements of partnerships are also investigated. (c) The income tax consequences of pooling for the co-operative society as well as the individual members are discussed in detail. The conclusions are reached by applying the general income tax principals, as laid down by the courts, on the circumstances that exist with pooling. The fact that the members are co-owners of the pooled mass and the co-operative society is regarded as the irrevocable agent of the members, has a significant influence on the income tax consequences. From the above, the conclusion is reached that the income tax treatment of pooling in practice, is a correct reflection of the law, not only in respect of receipts and accruals, but also in respect of the treatment of unsold pool stock.

M.Com. (Economics) / Please refer to full text to view abstract

University of the Witwatersrand, Johannesburg A proposal for a research report to be submitted to the Faculty of Commerce, Law and Management in partial fulfilment of the requirements for the degree of Master of Commerce / Value-Added Tax (VAT) on imported services in South Africa and the VAT treatment of banking income / products has been a contentious issue for a number of years in South Africa. South African companies, individual taxpayers, students and the South African Revenue Service (SARS) have difficulty to interpret whether section 7(1)(c) and section 14 of the Value-Added Tax Act No. 89 of 1991 is applicable to certain transactions. The aim of the study is to discuss and analyse VAT on imported services in South Africa in order for an individual taxpayer, company and SARS to understand which section should be applied to a certain transaction. This study also aims at clearly showing the type of income / products generated in the banking industry and how VAT is treated on the types of income / products in the bank. This will give students, tax professionals in the financial industry, auditors, companies, individuals and the SARS a better understanding of how VAT is treated in the financial industry. / MT2017