M.Comm. / The for-profit business must maximise owners' wealth over the long term. It is accomplished by legally structuring the lease to minimise tax liability. Accounting profits and tax liability arising from the lease are determined in different ways: different lease structures could result in similar accounting profits, but different tax liability. A lease's accounting profits may be preestimated with relative certainty, but it's difficult to pre-estimate its tax liability. It's especially difficult with long-term leases that stretch over a number of accounting periods and tax years. There isn't a specific framework with which tax liability arising from the lease of immovable property may be determined and minimised. This study focuses on determining and minimising income tax liability within the context of the leasing of immovable property in South Africa. The workings of the factors that give rise to the tax liability are distinguished. Different types oflease agreements, reflecting the commercial objectives, are identified. A framework is then constructed from these factors to simplizy determination of the tax liability, and to structure the lease so that tax liability may be reduced. The different types of lease agreements are imposed on the framework to subordinate the reduction of tax liability to the parties' commercial objectives.
| Identifer | oai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:uj/uj:1787 |
| Date | 06 December 2011 |
| Creators | Du Preez, Andries Stephanus |
| Source Sets | South African National ETD Portal |
| Detected Language | English |
| Type | Thesis |
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