Thesis (MComm)--Stellenbosch University, 1998. / ENGLISH ABSTRACT: In the Fifth Interim Report of the Katz Commission recommendations were
made on a number of fundamental tax issues, including the distinction
between the source and residence principle.
The Commission decided that the source principle should remain but that a
distinction between "active" and "passive" income should be made. "Active"
income should then be taxed on the source principle and "passive" income on
the residence principle.
With effect from 1 July 1997 exchange controls for South African residents
were softened, which meant that South Africans could thereafter invest in
foreign countries to a limited extent. To protect the South African tax base,
sections 9C and 90 were incorporated in the Income Tax Act with effect from
1 July 1997. Section 9C regulates the taxation of investment income earned
in foreign countries.
The main purpose of this study was to investigate the taxation of foreign
investment income in South Africa. For this purpose a critical analysis of
section 9C was done within the context of the recommendations made by the
Katz Commission in their Fifth Report. The focus of the study was aimed at
the requirements for the exclusion of so-called active investment income
according to section 9C(3)(a).
In the analysis of section 9C it was necessary to determine where the terms
used in the section were derived from. The terms which are not new in the
South African tax context were analysed based on the opinions of tax
specialists and national case law. The terms which are new in the South
African tax context were mostly derived from international models of tax
conventions and foreign tax codes. These were analysed according to the
use thereof mainly in the Model Tax Convention on Income and on capital of
the Organisation for Economic Co-operation and Development and the
Commentaries thereon.
The critical analysis of section 9C also included the applicability of the section
on other sections in the Income Tax Act, a brief commentary on section 90
and the relief provided to taxpayers where the section leads to double
taxation. The ability of the South African Revenue Service to collect the tax,
the effect of the tax on immigrants and the effect of the electronic future on the
tax were also investigated.
The conclusion arrived at in this study is that most of the terms in section 9C
are based on internationally used terms and could be analysed according to
international tax conventions and case law. The South African Revenue
Service will have to provide guidelines for the uncertainties and provide
measures to rectify the irregularities and inconsistencies found in the section.
In the light of further examinations to be done by the South African Revenue
Service, based on the recommendations of the Katz Commission in their Fifth
Report, section 9C provides a set of internationally accepted principles as a
solid base for future regulation. / AFRIKAANSE OPSOMMING: Die Katz-kommissie het in die Vyfde Interim Verslag aanbevelings aangaande
'n aantal fundamentele belastingkwessies, insluitend die onderskeid tussen
die bron- en verblyf-grondslag, gemaak.
Die Kommissie het tot die gevolgtrekking gekom dat die bron-grondslag
behou moet word, maar dat daar 'n onderskeid tussen "aktiewe" en
"passiewe" inkomste gemaak moet word. "Aktiewe" inkomste moet dan op die
bron-grondslag belas word en "passiewe" inkomste op die verblyf-grondslag.
Met ingang 1 Julie 1997 is die valutabeheermaatreels vir Suid-Afrikaanse
inwoners verslap wat beteken het dat Suid-Afrikaners voortaan tot 'n beperkte
mate in die buiteland beleggings kan maak. Om die Suid-Afrikaanse
belastingbasis in die tussentyd te beskerm is artikels 9C en 9D met ingang
1 Julie 1997 tot die Wet gevoeg. Artikel 9C reguleer die belasting van
beleggingsinkomste uit buitelandse bronne.
Die hoofdoel van hierdie studie was om die belasting van beleggingsinkomste
uit buitelandse bronne in Suid-Afrika te ondersoek. 'n Kritiese analise van
artikel 9C is gedoen binne die konteks van die voorstelle gemaak deur die
Katz-kommissie in die Vyfde Verslag. Die klem van die studie het op die
vereistes vir die uitsluiting van sogenaamde aktiewe beleggingsinkomste in
artikel 9C(3)(a) geval.
Tydens die ontleding van artikel 9C was dit noodsaaklik om vas te stel waar
die terme wat in die artikel gebruik is, ontstaan het. Die terme wat nie vir die
eerste maal in die Suid-Afrikaanse belastingkonteks gebruik is nie, is ontleed
na aanleiding van die menings van Suid-Afrikaanse belastingspesialiste en
nasionale regspraak. Die nuwe terme kom meesal in internasionale modelle
van belastingkonvensies en buitelandse belastingkodes voor. Die terme is
hoofsaaklik ontleed na aanleiding van die gebruik daarvan in die Model Tax Convention on Income and on capital of the Organisation for Economic Cooperation
and Development.
Die kritiese ontleding van artikel 9C het die toepaslikheid van die artikel op
ander afdelings in die lnkomstebelstingwet, 'n kortlikse verwysing na artikel
9D en die verligting beskikbaar aan belastingpligtiges ten opsigte van dubbele
belasting, ingesluit. Die invorderbaarheid van die belasting, die effek van die
belasting op immigrante en die effek van die elektroniese toekoms op die
belasting is ook ondersoek.
Die slotsom waartoe die skrywer in hierdie studie gekom het, is dat meeste
van die begrippe in artikel 9C internasionaal verstaanbaar is en ontleed kon
word, wat die Wet wereldwyd meer aanvaarbaar en verstaanbaar behoort te
maak. Die Suid-Afrikaanse lnkomstediens sal egter riglyne ten opsigte van
die onduidelike begrippe moet verskaf en die nodige ongelykhede en
inkonsekwenthede in die Wet moet regstel.
In die lig van verdere ondersoeke deur die Suid-Afrikaanse lnkomstediens, na
aanleiding van die voorstelle deur die Katz-kommissie in die Vyfde Verslag,
verskaf artikel 9C 'n stel internasionaal aanvaarde beginsels waarop
toekomstige regulasies gebaseer sal kan word.
| Identifer | oai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:sun/oai:scholar.sun.ac.za:10019.1/50898 |
| Date | 12 1900 |
| Creators | Wiese, Adelle |
| Contributors | Matthee, J. A., Stellenbosch University. Faculty of Economic and Management Sciences. Dept. of Economics. |
| Publisher | Stellenbosch : Stellenbosch University |
| Source Sets | South African National ETD Portal |
| Language | af_ZA |
| Detected Language | Unknown |
| Type | Thesis |
| Format | 78 p. |
| Rights | Stellenbosch University |
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