With constant changes in the nature of businesses, the way businesses are managed and the manner in which corporate groups are structured, a valid risk exists that legislation, including controlled foreign company (CFC) legislation can become outdated. The implication is that a country’s tax base will not be effectively protected. The aim of this mini-dissertation is to analyse section 9D of the South African Income Tax Act (58 of 1962) against the United Kingdom’s CFC regime to identify aspects of the new CFC rules enacted in Great Britain that could enhance South African CFC rules. Since the United Kingdom and South Africa levy income tax on a residence basis, it was concluded that the CFC regimes of these countries would be comparable. The research problem statement was determined to consider whether any aspects of the amended United Kingdom CFC legislation could be incorporated in the South African CFC rules to ensure that they are more accommodating to investors on the one hand and still protect the South African tax base efficiently on the other hand. The problem statement was addressed through the research objectives. Their findings are summarized as follows: 1 To determine what the factors and circumstances were that resulted in the revised CFC legislation in the United Kingdom. It was found that the Commissioner of Inland Revenue was applying the “motive test” very subjectively which resulted in resident-holding companies being taxed on legitimate trading profits of foreign subsidiaries. The “motive test” therefore lacked objectivity which resulted in the residents being taxed on the profits of their subsidiaries. Since section 9D of the South African Income Tax Act (58 of 1962) also applies a subjective test to consider the investor’s motives, it was concluded that the South African legislation is faced with a similar pitfall as the UK CFC legislation enacted in 1984. 2 To critically compare the CFC rules per section 9D of the South African Income Tax Act to the CFC legislation effective 1 January 2013 in the United Kingdom. It was found that the South African rules address a wider range of activities, whereas the UK CFC regime focuses on specific income streams. A number of aspects were identified where the two sets of legislation agree, but areas were also identified where the legislation differs. 3 To identify elements of the new CFC legislation in the United Kingdom that might improve the current South African CFC regime. The differences identified between the South African and United Kingdom CFC regimes were evaluated. It was concluded that there are elements of the South African legislation that should remain unchanged as it addresses specific risks. It was, however, also concluded that there are valid elements implemented in the UK CFC regime that could simplify the South African CFC legislation, enhancing its competitiveness while still retaining the integrity and effectiveness of the legislation. It was concluded that even though the differences between section 9D and the UK CFC regime may enhance section 9D when enacted in South Africa, these enhancements should be considered very carefully as they might create loopholes providing false progress to section 9D. / MCom (South African and International Taxation), North-West University, Potchefstroom Campus, 2014

With constant changes in the nature of businesses, the way businesses are managed and the manner in which corporate groups are structured, a valid risk exists that legislation, including controlled foreign company (CFC) legislation can become outdated. The implication is that a country’s tax base will not be effectively protected. The aim of this mini-dissertation is to analyse section 9D of the South African Income Tax Act (58 of 1962) against the United Kingdom’s CFC regime to identify aspects of the new CFC rules enacted in Great Britain that could enhance South African CFC rules. Since the United Kingdom and South Africa levy income tax on a residence basis, it was concluded that the CFC regimes of these countries would be comparable. The research problem statement was determined to consider whether any aspects of the amended United Kingdom CFC legislation could be incorporated in the South African CFC rules to ensure that they are more accommodating to investors on the one hand and still protect the South African tax base efficiently on the other hand. The problem statement was addressed through the research objectives. Their findings are summarized as follows: 1 To determine what the factors and circumstances were that resulted in the revised CFC legislation in the United Kingdom. It was found that the Commissioner of Inland Revenue was applying the “motive test” very subjectively which resulted in resident-holding companies being taxed on legitimate trading profits of foreign subsidiaries. The “motive test” therefore lacked objectivity which resulted in the residents being taxed on the profits of their subsidiaries. Since section 9D of the South African Income Tax Act (58 of 1962) also applies a subjective test to consider the investor’s motives, it was concluded that the South African legislation is faced with a similar pitfall as the UK CFC legislation enacted in 1984. 2 To critically compare the CFC rules per section 9D of the South African Income Tax Act to the CFC legislation effective 1 January 2013 in the United Kingdom. It was found that the South African rules address a wider range of activities, whereas the UK CFC regime focuses on specific income streams. A number of aspects were identified where the two sets of legislation agree, but areas were also identified where the legislation differs. 3 To identify elements of the new CFC legislation in the United Kingdom that might improve the current South African CFC regime. The differences identified between the South African and United Kingdom CFC regimes were evaluated. It was concluded that there are elements of the South African legislation that should remain unchanged as it addresses specific risks. It was, however, also concluded that there are valid elements implemented in the UK CFC regime that could simplify the South African CFC legislation, enhancing its competitiveness while still retaining the integrity and effectiveness of the legislation. It was concluded that even though the differences between section 9D and the UK CFC regime may enhance section 9D when enacted in South Africa, these enhancements should be considered very carefully as they might create loopholes providing false progress to section 9D. / MCom (South African and International Taxation), North-West University, Potchefstroom Campus, 2014

Within the South African banking environment, mainstream bank clients earn interest on their investments and receive a tax exemption. However, Islamic banking clients, in keeping with the principles of Shari‘a law, do not receive interest. They are paid a profit share on their investments, and hence do not enjoy the tax exemption. The new section 24JA of the Income Tax Act has introduced tax treatment for the following Islamic financing transactions effectively removing 'interest' from the equation: <ul> <li> Mudarabah – Investment account</li> <li> Murabahah – Cost plus financing</li> <li> Diminishing Musharakah – Joint ownership</li> </ul> This study attempts to compare the tax treatment of Islamic financing products between the United Kingdom and South Africa. Moreover, this study also investigates the issues of the new section 24JA of the Income Tax Act as well as the United Kingdom‘s tax legislation, regarding Islamic financing, as to how far they ensure tax parity between Islamic financing products and conventional financing products. The case of tax regimes in Islamic finance operating in a conventional system was demonstrated in the two countries. The study is supported by a literature review related to Islamic finance tax background and Islamic finance products between the two countries. The major revelation of the study shows that the degree of parity of the Islamic income tax legislation leaves a lot to be desired in order to ensure a sense of confidence in the conventional financing environment. Its biggest challenge lies in its degree of simplicity and flexibility in order to address issues in tax that may be complex and fall between its requirements and the conventional and already popular systems. AFRIKAANS : Binne die Suid-Afrikaanse bankwese, verdien kliënte van die hoofstroom banke rente op hulle beleggings. Hierdie rente-inkomste is belasting vry. In teenstelling hiermee verdien kliënte van Islamitiese banke ʼn winsdeling in plek van rente, op hulle beleggings. Hierdie winsdeling beginsel word verplig deur die Shari‘a wetgewing. Bogenoemde winsdeling is nie belasting vry nie en word dus ten volle belas. Artikel 24JA van die Inkomstebelasting wetgewing behandel die hantering van Islamitiese Finansiering transaksies in fyner besonderhede: <ul> <li> Mudarabah – Beleggings rekening</li> <li> Murabaha – Koste plus finansieringskoste</li> <li> Diminishing Musharaka – Gesamentlike eienaarskap</li> </ul> Hierdie artikel verwyder effektiewelik die 'rente' komponent. Hierdie studie be‘oog om die belasting hantering van Islamitiese Finansierings produkte in Suid-Afrika en die Verenigde Koninkryk te vergelyk. In hierdie studie word die moontlike probleme ten opsigte van die nuwe artikel 24JA oorweeg. Spesifieke aandag word ook geskenk aan die belasting hantering tussen Islamitiese Finansierings produkte en die konvensionele finansierings produkte. Die studie word ondersteun deur literatuur wat handel oor Islamitiese belasting agtergrond en finansierings produkte tussen twee verskillende lande Die belangrikste uitkoms van hierdie studie, het bewys dat die Islamitiese Inkomstebelasting spesifiek met betrekking tot finansierings opsies steeds baie ontwikkel moet word. Bo en behalwe die uitkoms geïdentifiseer, is die grootste uitdaging daarin dat die Islamitiese belasting wet moontlik nie komplekse situasies sal kan aanspreek nie. Dit word toegeskryf aan die feit dat die wetgewing baie simplisties is. / Dissertation (MCom)--University of Pretoria, 2012. / Taxation / unrestricted

The purpose of this research was to investigate the nature of the South African late adolescent’s adjustment whilst on a working holiday in the United Kingdom. In order to achieve this goal a thorough literature study was done with attention afforded to late adolescence, the developmental tasks of this life stage, culture and culture shock and the adjustment to the latter. An empirical study was conducted whereby semi-structured interviews were utilized as a data collection method. During these interviews questions were posed to the respondents to ascertain what they regarded as pleasant as well as unpleasant in relation to their working holiday in the United Kingdom, the perceived cultural differences between South Africans and Britons, problems experienced with the adjustment, homesickness, triggers thereof including ways in which to cope with it. Ten respondents were individually interviewed during this research. An exploratory research design was followed as the researcher explored the trend of late adolescents who embark on a working holiday in the United Kingdom. The researcher performed qualitative research to answer the research question. The research question that was formulated for the purpose of this study was: what is the nature of the adjustment of the late adolescent whilst living and working in the United Kingdom? The researcher applied the one-group posttest-only design as research procedure because interviews were conducted following a period of at least four months in which the respondents had lived in the United Kingdom. Empirical data was obtained by means of an interview schedule and the following themes were identified: -- Late adolescents experience culture shock upon arrival in the United Kingdom. -- Environmental differences are experienced. -- Cultural differences between South Africans and Britons are noted. -- Independency increases. -- Work experience is gained and money earned in order to meet needs. -- Cohesion and solidarity are experienced with fellow South Africans in London. -- Exposure is experienced. -- Homesickness is experienced. The researcher concludes that the late adolescent experiences initial culture shock that is absorbed by the support of fellow South Africans and results in increased independence. Homesickness is experienced and is dealt with in ways that had been tested. / Dissertation (MSD (Play Therapy))--University of Pretoria, 2006. / Social Work / unrestricted