Thesis (MBA)--Stellenbosch University, 2002. / ENGLISH ABSTRACT: Tax policy makers in South Africa have to a large extent neglected the tax treatment of
derivative instruments. The Income Tax Act, No. 58 of 1962, currently only takes into
account three types of financial arrangements that can be classified as being derivative in
nature: forward exchange and option contracts relating to foreign exchange, interest rate
swaps based on notional capital amounts and option contracts. Although the Commissioner
for Inland Revenue has appointed a number of internal working committees to research this
area of the law, the legislation resulting from these efforts has been piecemeal in nature,
dealing only with limited aspects of the taxation of a few specific transactions.
Due to the lack of specific legislative provisions regulating the tax aspects of derivatives, the
general principles of South African income tax law have to be applied to these instruments.
This leads to imprecise and inconsistent results, primarily due to the development of these
principles long before the widespread use of derivatives in sophisticated and complex
transactions.
The taxation of transactions involving derivative instruments is becoming a subject of
increasing practical importance in South Africa due to the number of derivative transactions
escalating in quantity. The introduction of capital gains tax in South Africa has added yet a
further dimension to the taxation of derivatives.
In light of the increasing volume and value of derivative transactions entered into by South
African taxpayers, it is imperative that clarity regarding the taxation of these transactions be
reached as soon as possible. Any reform and revised tax rules which is made applicable to
these instruments, need to be very flexible, as further developments in the financial instrument
environment are extremely dynamic and almost changing by day. It is furthermore important
that the South African tax system keeps track with international developments to enhance the
countl-y's trading status and to ensure that cross border transactions do not have anomalous
conseq Llences, especially for foreign counter-parties. / AFRIKAANSE OPSOMMING: Belastingbeleidmakers in Suid-Afrika het tot 'n groot mate die belastinghantering van
afgeleide instrumente verwaarloos. Die Inkomstebelasingwet, No. 58 van 1962, neem tans
slegs drie soorte finansiele ooreenkomste wat as afgeleide instrumente geklassifiseer kan
word, in aanmerking: termynwissel- en opsiekontrakte met betrekking tot buitelandse valuta,
rentekoers ruilkontrakte gebaseer op denkbeeldige kapitaalbedrae en opsiekontrakte.
Alhoewel die Kommissaris van Binnelandse Inkomste 'n aantal interne werkskomitees
aangestel het om ondersoek in te stel na hierdie afdeling van die reg, is die wetgewing wat
voortgespruit het as uitvloeisel van hierdie pogings broksgewys van aard deurdat dit slegs met
beperkte aspekte van die belasbaarheid van 'n aantal spesifieke transaksies gehandel het.
Vanwee die gebrek aan spesifieke wetgewende bepalings wat die belastingaspekte van
afgeleides reguleer, moet die algemene beginsels van die Suid-Afrikaanse
inkol11stebelastingreg toegepas word op hierdie instrumente. Dit gee aanleiding tot
onnollkeurige en teenstrydige resllltate, hoofsaaklik omdat hierdie beginsels reeds lank voor
die wydverspreide gebruik van afgeleides in gesofistikeerde en ingewikkelde transaksies
ontwikkel het.-
Die belasbaarheid van transaksies waarby afgeleide instrumente betrokke is, is 'n onderwerp
van loenemende praktiese belang in Suid-Afrika vanwee die styging in die aantal transaksies
in afgeleides. Die inwerkingstelling van kapitaalwinsbelasting in Suid-Afrika het nog 'n
verdere dimensie aan die belasbaarheid van afgeleide instmmente toegevoeg.
lndien aggeslaan word op die toename in die aantal en waarele van transaksies in afgeleiele
instrllmente wat deur Suid-Afrikaanse belastingbetalers aangegaan word, is elit noodsaaklik
clat ciuidelikheid rakencle ciie belasbaarheid van hierdie transaksies so spoedig doenlik verkry
word. Enige hervOiming en hersiende belastingreels wat van toepassing gemaak word op
hierdie instrllmente, moet baie buigsaam wees aangesien verdere ontwikkelings in die
finansieie instrumente-omgewing uiters dinamies is en bykans daagliks verander. Dit is
vnorts belangrik dat die Suid-Afrikaanse belastingstelsel tred hou met intemasionale
ontwikkelinge ten eincle ciie lanci se handelstatus te versterk en te verseker ciat tral1saksies oor
grense heen nie onreeimatige gevolge inhou, veral vir buitelandse teenpartye nie.
| Identifer | oai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:sun/oai:scholar.sun.ac.za:10019.1/17471 |
| Date | 03 1900 |
| Creators | Uys, Hermien |
| Contributors | Smit, E. vdM., University of Stellenbosch. Faculty of Economic and Management Sciences. Graduate School of Business. |
| Publisher | Stellenbosch : Stellenbosch University |
| Source Sets | South African National ETD Portal |
| Language | en_ZA |
| Detected Language | Unknown |
| Type | Thesis |
| Rights | Stellenbosch University |
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