In the last two decades, many firms in the U.S. forest products industry have either divested their timberlands or converted their corporate structures from C corporations to real estate investment trusts (REITs). This study hypothesizes that this large-scale timberland ownership change affects the financial performance of firms involved in divestitures and on timber supply and, as a result, the economic surplus of producers and consumers in the U.S. timber markets. These issues have not been adequately addressed in existing literature. Event analysis and equilibrium displacement models were employed to address firm financial performance in the capital markets and welfare implications in U.S. timber markets, respectively. The capital markets responded to divestiture events by significantly improving buying firms’ and REITs’ market value. Annual average timberland ownership changes resulted in a net reduction of timber supply which, in turn, caused total social surplus to decrease by $43 million on annual rate of timberland ownership change basis. Compared to over $33 billion U.S. timber markets, this surplus reduction was small. Thus, this study helps justify timberland ownership change decisions and explains the nature and extent of surplus shifts among producers and consumers when timberlands change hands.

As a result of globalisation there are endless business opportunities out there in the business world. South African tax residents may purchase shares in a foreign company as an investment which can lead to that company being effectively controlled in South Africa for South African tax purposes. When a controlled foreign company ceases to be a controlled by South African tax residents it is deemed to have disposed of its assets the day immediately before this event and certain exit tax charges should considered. Sound tax policies are crucial to ensure stability in any tax system. Tax legislation may be amended from time to time in order to ensure this stability in the South African tax system. No research has been done on the practical implication of current amendments to legislation affecting a controlled foreign company when it ceases to be controlled in South Africa as a direct result of the issuing of new equity shares by the controlled foreign company to foreign investors. The aim of this study was to discuss the current amendments to tax legislation affecting controlled foreign companies as well as the practical issues experienced by controlled foreign companies and South African tax residents. Furthermore, the study aims to demonstrate whether South Africa’s tax legislation is in line with the international norm by comparing the literature reviewed, the results of case study and information gathered through interviews to the United Kingdom’s tax legislation. / Dissertation (MCom)--University of Pretoria, 2014. / hb2014 / Taxation / unrestricted

Magister Economicae - MEcon / Developing countries all over the world are competing for greater shares of foreign investment flows in a world where capital has become much more mobile. Also changes to tax policies have been implemented to make the domestic economies of host countries more attractive in the eyes of foreign investors.South Africa is an example of a capital-scarce country requiring much higher and more sustainable levels of foreign investment in order to reach the growth target as envisaged by AsgiSA. This problem is exacerbated by the current deficit on the current account of the balance of payments, together with the extremely low rate of national savings.Recent empirical findings indicate that various aspects of tax policy (nominal versus effective rates of company tax, tax incentives, accelerated depreciation allowances,etc) do affect investment decisions and that harmonisation of tax policies is important.It emphasises that tax policy is a very important aspect considered by multinational companies in their investment decisions. It therefore cannot be ignored by policy makers in capital-scarce countries.The study presents an economic appraisal of the South African situation in the context of important lessons which can be learnt from behavioural responses to international tax rules. It finds inter alia that along with other countries, such as Ireland and Singapore, South Africa implemented various changes, such as reducing the nominal and effective rates of company tax. Another example is the recent announcement of the phasing out of the secondary tax on companies. However, studies also indicate that, although not a first best solution, the use tax incentives is standard practice which cannot be ignored. Uncertainty regarding tax policy also seems to impact on the host country’s ability to attract foreign investment inflows and may even result in disinvestment. A case in point is the recent disinvestment from the South African mining sector.

The first differentiated tax policies for small and medium enterprises (SMEs) in South Africa were introduced in 2001. Several relief measures have followed, the most recent being the introduction in the 2008/9 budget of a presumptive turnover tax system and venture capital incentives for investments in high-growth and high-tech SMEs. The present study uses a qualitative systematic literature review to assess the effectiveness of using differentiated tax policies to address the constraints that have been imposed on South African SMEs. It draws on international experiences in the use of differentiated tax policies to address constraints imposed on SMEs. Thereafter it focuses on differentiated tax policies in South Africa and considers the effectiveness of using differentiated tax policies to address constraints that have been imposed on SMEs. Research in other countries indicates that when differentiated tax policies are used in isolation, they are not very successful in bringing about changes in the level of entrepreneurial activity. However, these policies can assist in creating an environment that is conducive to the growth of SMEs and can alleviate the constraints faced by SMEs. The effectiveness of differentiated tax policies in the alleviation of the constraints imposed on small and medium enterprises can be improved by means of various non-tax policy measures. The National Treasury has used differentiated tax policies to target two specific constraints for SMEs, namely access to equity finance and easing of the tax compliance burden. This study concludes that the current differentiated tax policies for small and medium enterprises that are articulated in tax legislation do not address the constraints identified by the National Treasury effectively. The findings of this study cast doubt on the ability of the differentiated tax policies in South Africa to alleviate the constraints that SMEs face in this country. Furthermore, it poses the question whether the main objective of the policies is not to collect more revenue by broadening the tax base. The study focuses on the differentiated tax policies that came into effect before August 2008. The effectiveness of the differentiated tax policies that were proposed in the 2008/2009 budget (venture capital incentives and presumptive turnover tax) will depend on the details of the tax legislation that is promulgated. Future research could determine the effectiveness of these differentiated tax policies in addressing the constraints with which SMEs are faced. Copyright / Dissertation (MCom)--University of Pretoria, 2009. / Taxation / unrestricted

Dès le début des années 1980, les États francophones d’Afrique, producteurs de matières premières, ont largement ouvert leur secteur extractif aux investissements étrangers. Cette ouverture a adopté plusieurs stratégies parmi lesquelles la fiscalité et les douanes ont occupé une place de choix. Nos travaux ont porté principalement sur ces dernières. En effet, l’enjeu de ces États a toujours été la conciliation de l’attractivité du secteur et sa rentabilité. Dans un premier temps, notre réflexion a été centrée sur les stratégies de mise en place des dispositifs fiscaux et douaniers de faveur et, dans un deuxième temps, sur la bonne gouvernance de ces dispositifs. Il ressort de nos travaux qu’au primo, si les stratégies fiscales et douanières ont réussi à attirer des investissements étrangers, la question de leur rentabilité est encore mitigée, ce pour de nombreuses raisons que nous avons analysées. C’est à ce niveau que nous avons fait des propositions d’amélioration. Au secundo, il apparaît que les conditions de la bonne gouvernance des dispositifs fiscaux et douaniers mis en place ne sont pas suffisamment réunies par les États francophones d’Afrique, d’où la nécessité de réunir ces dernières tout en améliorant les techniques de prévention et résolution des litiges. / Since the early 1980s, French-speaking African countries, producers of raw materials, have largely opened their extractive sector to foreign investments. This openness has adopted several strategies among which taxation and customs have occupied a special place. Our work focused on the latter. Indeed, the stakes of these states have always been the reconciliation of the attractiveness of the sector and its profitability. Initially, our reflection focused on the strategies for setting up favorable tax and customs systems and, secondly, on the good governance of these systems. Our research shows that, first, while tax and customs strategies have been successful in attracting foreign investments, the question of profitability is still mixed, for many reasons that we have analyzed. This is where we made suggestions for improvement. In the second, it appears that the conditions of good governance tax and customs arrangements put in place are not sufficiently met by Francophone African, hence the need reunite past and improve prevention and resolution techniques disputes.