This thesis debates the issue of whether Secondary Tax on Companies is a desirable
and efficacious tax and whether it is compatible with other government policies and
programmes.
Secondary Tax on Companies is a tax imposed on resident companies and close
corporations, currently at the rate of 12.5%, on dividends declared or deemed to be
declared by the company to its shareholders.
It has proved to be a deeply contentious form of tax in many quarters although it has
been declared to be a non negotiable tax as far as the government is concerned. It has
been held by many authors that this tax inter alia distorts the financial decision
making process and inhibits investment in South Africa.
It was concluded by the writer that Secondary tax on Companies is probably not
compatible with other important government programmes such as Black Economic
Empowerment and employment creation, as well as contributing to South Africa’s
uncompetitive corporate tax rate.
It was therefore concluded that Secondary tax on Companies should be gradually
phased out.
| Identifer | oai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:wits/oai:wiredspace.wits.ac.za:10539/5458 |
| Date | 20 August 2008 |
| Creators | Skuy, Adrian Gary |
| Source Sets | South African National ETD Portal |
| Language | English |
| Detected Language | English |
| Type | Thesis |
| Format | 162424 bytes, application/pdf, application/pdf |
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