Thesis (MCom)--Stellenbosch University, 1999. / ENGLISH ABSTRACT: lt is internationally accepted that Internet is the trade route of the future.
Although Internet trading is still in its infancy the effect of Internet on taxation
needs to be adressed.
Internet defies geographic borders and leads to the questioning of the
principles underlying income tax. Income tax principles are traditionally based
on the existence of some form of physical presence (either residency, source
of income or that of a permanent establishment) in a jurisdiction before tax
can be levied. The fact that Internet can provide substantial economic activity
in a jurisdiction without any physical presence, requires interpretation of
and/or amendments to the traditional income tax principles.
The South African income tax principles are based on the source of income.
In this study the impact of Internet on the applicability of the traditional source
rules, in terms of the South African Income Tax Act, no. 58 of 1962, was
investigated.
The study first outlines the principles and methodology laid down by South
African courts in determining the source of income. These principles and
methodology are then tested in an Internet environment. lt is concluded that
Internet requires a reinterpretation of certain of the traditional principles, i.e.:
• The fact that a dominant source rule is applied.
• The classification of products and services with a digitalised content within
the existing principles.
• The finding of a physical location when transactions are concluded in
cyberspace.
• The applicability of certain deemed source rules, i.e. section 9(1 )(a),
9(1)(d), 9(1)(dbis) and certain aspects of section 9(1)(b), in an Internet
environment.
In obtaining a sollution for South Africa the international initiatives regarding
Internet and taxation, under the guidance of the Committee on Fiscal Affairs of
the Organisation for Enonomic Co-operation and Development (OECD), were
taken into account.
The first alternative to the traditional South African source rules that was
investigated was the permanent establishment principle, as recommended by
the Katz Commission in their Fifth Interim Report. Other alternatives to the
permanent establishment principle were also investigated, i.e. the residence
principle, formal requirements and an Internet tax.
The interim solution for South Africa seems to be the acceptance of the
permanent establishment principle. This principle needs interpretation and/or
amendment due to the effect of Internet. In this study amendments to the
permanent establishment principle are suggested in order to provide the
necessary clarity in the Internet environment.
A closing remark is made that Internet might well change income tax as we
know it today. Internet has the ability to simplify tax systems. None of the
income tax alternatives provide simple tax solutions. The tax of the future
seems to be some form of indirect tax.
Internet is an international medium and addresses international tax issues.
South Africa will, by accepting the permanent establishment principle, be in a
position to join the co-ordinated efforts towards solving the Internet related tax
problems while aiming to protect our tax base. / AFRIKAANSE OPSOMMING: Internet word internasionaal as die handelsroete van die toekoms beskou.
Alhoewel lnternethandel nog in sy kinderskoene is, moet die invloed van
Internet op belasting aangespreek word.
lnternethandel misken geografiese grense en lei tot die bevraagtekening van
die beginsels waarop inkomstebelasting gebaseer is. lnkomstebelastingbeginsels
berus tradisioneel op die bestaan van 'n vorm van fisiese
teenwoordigheid in 'n jurisdiksie (hetsy verblyf, bron van inkomste of die
bestaan van 'n permanentesaak) alvorens belasting gehef kan word. Die feit
dat Internet wesenlike ekonomiese aktiwiteite in 'n jurisdiksie kan
bewerkstellig sonder dat daar enige fisiese teenwoordigheid is, noodsaak die
herinterpretasie van en/of aanpassings aan die tradisionele
inkomstebelastingbeginsels.
Die Suid-Afrikaanse inkomstebelastingbeginsels berus op die bron van
inkomste. In hierdie studie is die invloed van Internet op die toepaslikheid van
die tradisionele bronreels, in terme van die lnkomstebelastingwet, no. 58 van
1962, ondersoek.
In die studie is die beginsels en reels wat deur die Suid-Afrikaanse howe
neergele word by die vasstelling van die bron van inkomste eerstens ontleed.
Daarna is die beginsels en reels in die lnternetomgewing getoets. Die
afleiding word gemaak dat Internet die herinterpretasie van sekere van die
tradisionele beginsels en reels verg, naamlik:
• Die feit dat 'n dominante bronreel toegepas word.
• Die klassifisering van produkte en dienste met 'n digitale inhoud binne die
tradisionele beginsels.
• Die vasstelling van 'n fisiese plek indien transaksies in die kuberruimte
plaasvind.
• Die toepaslikheid van sekere geagtebronreels, naamlik artikel 9(1 )(a),
9(1)(d), 9(1)(dbis) en sekere aspekte van artikel 9(1)(b), in die
I nternetomgewing.
In die soeke na 'n oplossing vir Suid-Afrika is die internasionale inisiatiewe
rondom Internet en belasting, onder leiding van die Fiskale Komitee van die
Organisation for Economic Co-operation and Development (OECD), in ag
geneem.
Die eerste alternatief op die tradisionele Suid-Afrikaanse bronreels wat
ondersoek is, is die permanantesaak-beginsel, soos voorgestel deur die Katzkommissie
in die Vyfde Verslag. Ander alternatiewe wat ook ondersoek is, is
die verblyfbeginsel, formele handelinge en 'n lnternetbelasting.
Die oplossing vir die hede vir Suid-Afrika blyk die aanvaarding van die
permanantesaak-beginsel te wees. Hierdie beginsel verg herinterpretasie
en/of aanpassings weens die invloed van Internet. In hierdie studie word
aanpassings aan die permanentesaak-beginsel voorgestel ten einde die
nodige duidelikheid binne die lnternetomgewing te verskaf.
Ter afsluiting word vermeld dat Internet weliswaar die einde mag aandui vir
inkomstebelastingstelsels wereldwyd. Internet besit die vermoe om belasting
te vereenvoudig. Die inkomstebelasting alternatiewe wat in hierdie studie
ondersoek is het nie eenvoudige oplossings gebied nie. Die belasting van die
toekoms blyk 'n vorm van indirekte belasting te wees.
Internet is 'n internasionale medium en spreek internasionale belastingkwessies
aan. Die aanvaarding van die permanentesaak-beginsel sal SuidAfrika
in 'n goeie posisie plaas om aan die internasionale inisiatiewe rondom
Internet en belasting deel te neem en om terselfdertyd ons belastingbasis te
beskerm.
| Identifer | oai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:sun/oai:scholar.sun.ac.za:10019.1/51219 |
| Date | 12 1900 |
| Creators | Wesson, Nicolene |
| Contributors | Matthee, J. A., Stellenbosch University. Faculty of Economic & 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 | 95 p. |
| Rights | Stellenbosch University |
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