South Africa implemented a simplified Turnover Tax system with effect from the
commencement of years of assessment 1 March 2009 in order to help improve the culture of
tax compliance. To date the number of applicants has not been significant and a potential
reason for this is that it is not fair. Fairness and equality within a tax system is important in
order to discourage evasion. The purpose of this research is to explore the perceived fairness
of the current Turnover Tax system. Using the principles of a fair tax system as advanced by
Adam Smith (1776) a correspondence survey was issued to identify whether the Turnover
Tax principles enhance or undermine fairness. The criticisms and provisions of the Sixth
Schedule to the Income Tax Act No. 58 of 1962 were investigated to determine whether
Adam Smith’s (1776) maxims are promoted or undermined and in turn whether they are
perceived as being fair or not. Based on the responses and analysis of the survey, it was
deduced that the Turnover Tax system is not being perceived as completely fair. As a result
changes need to be implemented to in order to improve the overall compliance and
effectiveness of the tax.
| Identifer | oai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:wits/oai:wiredspace.wits.ac.za:10539/12518 |
| Date | 15 March 2013 |
| Creators | Gluckman, Adam |
| Source Sets | South African National ETD Portal |
| Language | English |
| Detected Language | English |
| Type | Thesis |
| Format | application/pdf |
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