The purpose of this research was to determine whether horizontal
equity in the taxation of individuals in South Africa improved
after the legislative changes from 1984 to 1995 and the Katz
Commission recommendations.
After an extensive literature study, horizontal equity in the
taxation of individuals in South Africa was defined as the
equivalent tax treatment in equivalent economic circumstances for
the same economic units. The household as the economic unit, is
the unit to be considered when evaluating horizontal equity.
The study also reviewed the solutions found in other countries for
the dilemma of the one-breadwinner versus the two-breadwinner
married couple. It was found that the tax systems of most
countries provide relief to the one-breadwinner couple while the
working wife was taxed separately from her husband or had the
option to be taxed separately.
An important part of this study compared the tax of the unmarried
taxpayer and the married couple as the units for horizontal equity.
It was found that, although two-breadwinner married couples were
discriminated against until the separate taxation of married
couples was introduced, the one-breadwinner couple and single
taxpayers with dependants now suffer more horizontal inequity than
was previously the case.
The research indicated that to attain greater horizontal equity
provision should also be made for families and households with only
one breadwinner (breadwinner being defined as the provider in a
one-breadwinner couple or a ·taxpayer with dependents).
Recommendations made to alleviate this inequity are transferable
allowances for spouses, or, without ~ontravening the Constitution's
demands for equality, a separate rate schedule for breadwinners, a
fixed allowance or rebate for breadwinners, or a proportional
allo~ance depending on the breadwinner's income.
The study also addressed the financial and administrative
implications and political acceptability of these recommendations
and concluded that the proportional allowance, although expensive,
would come the closest to providing the greatest horizontal equity.
The research into the international tax measures to promote equity
revealed that horizontal equity could be further promoted by
providing tax relief for child-care and day-care facilities. This
would benefit both the two-breadwinner married couple and the
single parent with dependent children. / Financail accounting / D.Com. (Applied Accountancy)
| Identifer | oai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:unisa/oai:umkn-dsp01.int.unisa.ac.za:10500/17905 |
| Date | 11 1900 |
| Creators | Coetzee, K. (Karina) |
| Contributors | Stack, E. |
| Source Sets | South African National ETD Portal |
| Language | English |
| Detected Language | English |
| Type | Thesis |
| Format | 1 online resource (ix, 351 leaves) |
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