scholarly journals South Africa

2021 ◽  
pp. 205-230
Author(s):  
Murray Leibbrandt ◽  
Vimal Ranchhod ◽  
Pippa Green
Keyword(s):  
South Africa ◽  
Income Tax ◽  
Significant Proportion ◽  
Earnings Distribution ◽  
Income Distributions ◽  
Tax Exemptions ◽  
Indirect Taxes ◽  
Returns To Experience ◽  
Key Drivers ◽  
Social Grants

In this chapter the authors synthesize the findings from several recent studies on South Africa’s high income inequality. These studies use new datasets—including income tax data—and new empirical methods to investigate the drivers of household income and individual earnings inequality in South Africa. Increased returns to experience and an increased rate of return to tertiary qualifications are key drivers of a widening earnings distribution. Tax data merged with survey data show that those at the top of the earnings and income distributions have done well in both absolute and relative terms, thus increasing inequality. Direct taxes and social grants are progressive, indirect taxes are less progressive, and tax exemptions for health insurance and pension fund contributions are regressive. A significant proportion of the current middle class are vulnerable to falling into poverty. Overall, South Africa has not made progress in reducing its extreme inequality over the past decade.

scholarly journals Determinants of internal ta compliance costs: Evidence from South Africa

2016 ◽  
Vol 9 (3) ◽  
pp. 714-729 ◽  
Author(s):  
Sharon Smulders ◽  
Madeleine Stiglingh ◽  
Riel Franzsen ◽  
Lizelle Fletcher
Keyword(s):  
South Africa ◽  
Significant Influence ◽  
Income Tax ◽  
Tax Compliance ◽  
Regression Analyses ◽  
Compliance Costs ◽  
Internal Time ◽  
Key Drivers ◽  
Business Tax ◽  
Compliance Behaviour

Being tax compliant generates costs and these costs affect small business tax compliance behaviour and contribution. This study uses multiple regression analyses to investigate the key drivers of small business’s internal tax compliance costs (hours spent internally on tax compliance activities). This will assist Revenue Services in understanding what factors (determinants) could increase a small business’s internal tax compliance costs and might assist in managing tax compliance behaviour and contribution. The results expose the significant determinants per tax type, enabling a comparison to be made across the different tax types. Overall, turnover is the variable that had the most significant influence on internal tax compliance costs (time) (as opposed to the number of employees, which had a significant effect only on the internal time spent on employees’ tax). The analysis confirmed that there is a higher proportional burden for smaller businesses in respect of internal income tax and employees’ compliance activities.

scholarly journals A comparison of ASCAT and modelled soil moisture over South Africa, using TOPKAPI in land surface mode

2010 ◽  
Vol 14 (4) ◽  
pp. 613-626 ◽  
Author(s):  
S. Sinclair ◽  
G. G. S. Pegram
Keyword(s):  
South Africa ◽  
Soil Moisture ◽  
Land Surface ◽  
Meteorological Data ◽  
Saturation Index ◽  
Significant Proportion ◽  
Surface Mode ◽  
Good Correspondence ◽  
Percentage Saturation ◽  
Soil Saturation

Abstract. In this paper we compare two independent soil moisture estimates over South Africa. The first estimate is a Soil Saturation Index (SSI) provided by automated real-time computations of the TOPKAPI hydrological model, adapted to run as a collection of independent 1 km cells with centres on a grid with a spatial resolution of 0.125°, at 3 h intervals. The second set of estimates is the remotely sensed ASCAT Surface Soil Moisture product, temporally filtered to yield a Soil Wetness Index (SWI). For the TOPKAPI cells, the rainfall forcing used is the TRMM 3B42RT product, while the evapotranspiration forcing is based on a modification of the FAO56 reference crop evapotranspiration (ET0). ET0 is computed using forecast fields of meteorological variables from the Unified Model (UM) runs done by the South African Weather Service (SAWS); the UM forecast fields were used, because reanalysis is not done by SAWS. To validate these ET0 estimates we compare them with those computed using observed meteorological data at a network of weather stations; they were found to be unbiased with acceptable scatter. Using the rainfall and evapotranspiration forcing data, the percentage saturation of the TOPKAPI soil store is computed as a Soil Saturation Index (SSI), for each of 6984 unconnected uncalibrated TOPKAPI cells at 3 h time-steps. These SSI estimates are then compared with the SWI estimates obtained from ASCAT. The comparisons indicate a good correspondence in the dynamic behaviour of SWI and SSI for a significant proportion of South Africa.

scholarly journals Pyott case: A lasting deposit for our tax heritage

2019 ◽  
Vol 19 ◽  
pp. 47-70
Author(s):  
A C Engelbrecht ◽  
G K Goldswain ◽  
A Heyns
Keyword(s):  
South Africa ◽  
Income Tax ◽  
Rental Housing ◽  
Value Added ◽  
Point Of View ◽  
Relevant Today ◽  
Consumer Protection Act ◽  
Contingent Liability ◽  
Beneficial Ownership ◽  
Gross Income

Pyott Ltd v CIR is generally regarded as the seminal case in South Africa on the tax treatment of deposits received on containers that may be returned at a later stage for a refund. This article analyses the tax treatment of deposits, prepayments and advances from a gross income point of view, as well as the possibility of claiming a deduction for the contingent liability to refund such deposit. 6The main objective of this article is to discuss the judgment in the Pyott case and establish whether the principle enunciated that deposits,received in respect of returnable containers, are taxable in full once received, can also be extended to receipts of deposits, prepayments and advances where no returnable container is involved. 7The conclusions reached are that the principles laid down in the Pyott case are still relevant today, apart from possible relief which may now be claimed under the subsequently introduced section 24C. Where no container is involved, beneficial ownership must first be established before such deposit, prepayment or advance becomes taxable, taking into account the specific provisions of legislation such as the Rental Housing Act and the Consumer Protection Act. The research has also shown coherence in the treatment of deposits for income tax purposes and other taxes, such as value-added tax.

scholarly journals Merchant cash advances: investigating the taxation consequences in South Africa

2015 ◽  
Vol 8 (2) ◽  
pp. 415-431
Author(s):  
Eduard Kilian ◽  
Rudie Nel
Keyword(s):  
South Africa ◽  
Service Provider ◽  
Income Tax ◽  
Cash Flows ◽  
Financial Service ◽  
Debit Card ◽  
Lump Sum ◽  
Gross Income

The merchant cash advance is an emerging lending product designed to address the need to maintain cash flows and is essentially the business equivalent of a “payday” loan. A lump-sum advance is made by the merchant cash advance service provider to a business (the merchant) in exchange for an agreed upon percentage of future credit and/or debit card receivables. This article investigates the taxation consequences of merchant cash advance transactions in South Africa, in an attempt to provide guidance which is currently lacking. Although it is posited that a merchant cash advance is a form of debt factoring, the income tax treatment of the initial advance and the resulting discount reflect that of a loan. Through the investigation it was determined that merchants will be able to deduct the discount and processing fees from income. The merchant cash advance service provider will include such discount and processing fee in ‘gross income’. The initial advance and any resulting discount are held to be a ‘financial service’ and therefore an exempt supply for VAT purposes, with the processing fee constituting a taxable supply.

scholarly journals Understanding the role of ICT in South African Sustainable Manufacturing Practice

10.29007/7dtj ◽  
2019 ◽  
Author(s):  
Mohammed Alhassan ◽  
Brenda Scholtz
Keyword(s):  
Artificial Intelligence ◽  
South Africa ◽  
South African ◽  
Review Process ◽  
Production Systems ◽  
Empirical Studies ◽  
Sustainable Manufacturing ◽  
Driving Factor ◽  
Key Drivers

Existing literature perceived Economic, Social and Environmental (ESE) factors as three key drivers of Sustainable Manufacturing Practice (SMP). ICT is not considered as a driving factor, but only as a tool that supports the achievement of SMP. The aim of this study is to investigate the role of ICT in achieving SMP in South Africa. A systematic literature review was conducted. The Google Scholar search engine was used to retrieve 1,352 articles that were analysed in this study. Themes and constructs were analysed based on the scope of the study. The findings revealed that South African manufacturing stakeholders are leveraging the advancement of ICT such as Artificial Intelligence and smart production systems to drive SMP through reduced waste and optimisation of resources. Also, the findings revealed that ICT plays a significant role that warrant its consideration as a fourth factor that drives SMP. This study emphasised the role of ICT as a driver in achieving SMP and presents the ESET model (ESE with the addition of Technology) to support the argument that ICT is a major driving factor for SMP. Understanding the role of ICT can influence how the issues of SMP are addressed and stakeholders can rethink strategies for SMP. Further empirical studies with a broader scope are encouraged because the review process and the scope of this study limits its generalisability

scholarly journals Responsible investing in South Africa: Drivers, barriers and enablers

2008 ◽  
Vol 39 (4) ◽  
pp. 37-49 ◽  
Author(s):  
S. Viviers ◽  
N. S. Eccles ◽  
D. De Jongh ◽  
J. K. Bosch ◽  
E. V.D.M. Smit ◽  
...  
Keyword(s):  
South Africa ◽  
Service Providers ◽  
Responsible Investing ◽  
Telephone Interviews ◽  
Advisory Service ◽  
Barriers And Enablers ◽  
Increased Risk ◽  
Fiduciary Responsibility ◽  
Key Drivers ◽  
Asset Managers

Given growing interest in the phenomenon of responsible investing (RI) in South Africa, this study set out to identify and empirically evaluate the most pertinent drivers, barriers and enablers of RI locally. Telephone interviews were conducted with a sample of pension funds, asset managers and advisory service providers during 2007. All three groups of respondents viewed fiduciary responsibility as one of the most important barriers to RI in South Africa. More legislation/regulation and evidence for increased risk-adjusted returns from local RIs were identified as key drivers of RI in South Africa, whereas the two most important enablers were seen as mainstream RI benchmarks and co-operative initiatives.

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