scholarly journals Testing concurrent benefits for Section 12L tax incentives in South Africa

2020 ◽  
Vol 31 (4) ◽  
pp. 57-71
Author(s):  
W. Hamer ◽  
E.H. Mathews ◽  
A.G.S. Gous ◽  
J. Booysen ◽  
J.C. Vosloo
Keyword(s):  
South Africa ◽  
Energy Efficiency ◽  
South African ◽  
Tax Incentives ◽  
Energy Crisis ◽  
Regulatory Requirements ◽  
Tax Incentive ◽  
Measurement And Verification ◽  
Tax Audit ◽  
Tax Deduction

The South African energy crisis harms the economy. Tax incentives are intended to help, but rules for incentives must be understood by all stakeholders for taxpayers to be encouraged to invest. Section 12L (S12L) is relatively new legislation that allows a tax deduction for verified year-on-year energy efficiency savings in South Africa. Concurrent benefits are excluded from this tax incentive, to prevent a double reward for the same activity. Although the prevention of double benefits is commonly addressed in the field of measurement and verification (M&V), non-technical guidelines are not available. This is a critical shortcoming since multiple professions (tax, audit and legal) need to understand the technical M&V requirements of S12L. This study reviews the current legislation and interpretations of concurrent benefits in terms of S12L. It shows that multiple energy-related incentives are utilised by industries and that, therefore, it must be determined if different programmes overlap, so as to create concurrent benefits with S12L. It is then critical to correctly apply M&V practice to ensure exclusion of concurrent benefits. This study also provides a simplified methodology to evaluate concurrency, based on the S12L regulatory requirements and standard M&V methods. Three case studies show how concurrency can occur and how M&V practice is applied to exclude double benefits. The test for concurrency is shown to reduce to the following question: Is the same energy saving funded twice? The tests must be done to ensure no double benefit occurs.

scholarly journals The role of tax incentives in encouraging energy efficiency in the largest listed South African businesses

2018 ◽  
Vol 21 (1) ◽  
Author(s):  
Mareli Dippenaar
Keyword(s):  
South Africa ◽  
Decision Making ◽  
Energy Efficiency ◽  
South African ◽  
Stock Exchange ◽  
Tax Incentives ◽  
Index Method ◽  
Johannesburg Stock Exchange ◽  
The Government

Background: South Africa is faced with a significant challenge of securing the supply of electricity as well as reducing its greenhouse gas emissions. The implementation of energy efficiency (EE) and renewable energy (RE) measures by energy consumers, especially businesses, is becoming increasingly important and a number of tax incentives have been introduced to promote EE and RE. Objective: The objective of this preliminary study was to determine the role that the available tax incentives play in the decision making of South African businesses regarding investment in RE or EE projects. Aim: To determine this role, the largest South African businesses were selected from the Johannesburg Stock Exchange Top 40 Index. Method: The study contained both empirical and non-empirical elements. A literature review was conducted to determine the role of tax incentives globally, while questionnaires were distributed to determine the role in South Africa. Results: Findings highlighted that, while tax incentives do play a role in decision making, various other non-tax factors drive South African businesses’ decisions to invest in EE and/or RE projects. These businesses do not perceive the available tax incentives as effective, nor do they regard them as sufficiently motivating for businesses to change their environmental behaviour. They also feel that the government should reduce the burden of complying with the requirements of Section 12L (the EE allowance). Conclusion: Improving the available RE and EE tax incentives in South Africa might result in more businesses considering the implementation of RE or EE projects. It is therefore recommended that the available tax incentives are expanded and/or the qualifying criteria simplified.

scholarly journals REGULATORY REQUIREMENTS FOR DRUG PRODUCTS REGISTRATION IN SOUTH AFRICA

2018 ◽  
Vol 3 (4) ◽  
pp. 1-8
Author(s):  
Senthil V. ◽  
L. Srianitha ◽  
R. Baviyapriyadharshini
Keyword(s):  
South Africa ◽  
South African ◽  
Pharmaceutical Market ◽  
Regulatory Body ◽  
Regulatory Requirements ◽  
Drug Products ◽  
Drug Registration ◽  
African Health ◽  
Regulatory Submissions ◽  
South African Health

The South African Pharmaceutical market is one of the emerging markets in the world and it is important to study on how to register a drug in the promising pharmaceutical market in Africa. The MCC is the regulatory body which deals with the quality, safety and efficacy of the medicines in South African market which regulates by approving the medicines by very specific process which is unique to South African health system. They have a specific type of CTD for Regulatory submissions which is generally well known as ZA CTD. This article provides the insight on the Drug Registration process in South Africa, the details of data to be submitted to the agency and the pathways of registration an applicant can avail, categories a drug can be registered by MCC, Application fees to be paid to the agency on various types of applications are also dealt.

scholarly journals Comparative Study of Competitive Intelligence Practices between Two Retail Banks in Brazil and South Africa

2013 ◽  
Vol 3 (2) ◽  
Author(s):  
A. S. A. Du Toit
Keyword(s):  
South Africa ◽  
Developing Countries ◽  
South African ◽  
Global Economy ◽  
Mail Survey ◽  
Competitive Intelligence ◽  
Regulatory Requirements ◽  
Operational Risks ◽  
Retail Banks ◽  
E Mail

Using competitive intelligence (CI) can help developing countries to increase their competitiveness. This paper compares the CI activities between two retail banks in Brazil and South Africa. An e-mail survey in a sample of 2550 employees in a retail bank in Brazil and 847 employees in a retail bank in South Africa was carried out in which CI practices were measured. Respondents in both countries were not very effective to conduct effective CI analysis. Respondents from Brazil consider information on operational risks as the most important while for South African respondents the most important information was on changing regulatory requirements. Although there is a culture of competitiveness in both organizations, it is recommended that if they want to compete effectively in the global economy, they should create CI awareness by organizing CI training sessions for employees.

E-Crime and Non-Compliance with Government Regulations on E-Commerce

2010 ◽  
pp. 47-66 ◽  
Author(s):  
M.E. Kyobe
Keyword(s):  
South Africa ◽  
South African ◽  
National Development ◽  
Security Requirements ◽  
Regulatory Requirements ◽  
Technological Factors ◽  
Factors Influencing ◽  
Market Competitiveness ◽  
Security Practices ◽  
Electronic Crime

E-commerce is critical to national development. Small and Medium sized organizations (SMEs) are encouraged to adopt it to address poverty, improve competitiveness and productivity. However, the escalation in electronic crime (e-crime) and lack of compliance with e-commerce regulations threaten e-commerce success in South Africa. While many strategies for improving e-commerce have been suggested, the focus has mainly been on economic and technological factors and less on human and social aspects such as compliance behaviors. This has resulted in the development of e-commerce systems that do not incorporate regulatory requirements. Consequently, the level of exposure to cyber-risks and legal liabilities has increased and SME market competitiveness compromised (Kyobe, 2009). This chapter examines the factors influencing compliance with e-commerce regulations and e-security requirements and how these impact on e-commerce optimization in South African SMEs. It also provides some useful frameworks and checklists SME managers can use to evaluate their compliance behaviors and security practices in order to make improvement to their e-commerce activities.

scholarly journals South African Tax Incentives To Alleviate Unemployment: Lessons From United States Of America Approaches

2013 ◽  
Vol 12 (7) ◽  
pp. 769
Author(s):  
Liza (ESM) Coetzee ◽  
Hanneke du Preez ◽  
Natasha K. Smale
Keyword(s):  
South Africa ◽  
South African ◽  
Labour Force ◽  
Participation Rate ◽  
Tax Incentives ◽  
Main Concern ◽  
Wage Subsidy ◽  
Unskilled Labour ◽  
The Usa ◽  
The Unemployed

A quarter of the labour force in South Africa is currently unemployed with the majority of the unemployed being unskilled youth. One of the major causes seems to be the commanding power of trades union resulting in a high minimum wage for unskilled workers, which results in a reduction in the demand for unskilled labour. To reduce the current unemployment rate in South Africa, policy decisions should be focused on youth employment with emphasis on skills development. Policy should also stimulate growth of small, medium and micro enterprises in order to stimulate job creation. A literature review indicates that current tax incentives in South Africa do not incentivise employers to hire unskilled youth labour, and are not applied on a wide enough scale to significantly impact the overall unemployment statistics. The proposed youth wage subsidy will increase the demand for unskilled labour by reducing the cost of labour. However, to have the desired impact, the participation rate must be high. The proposed subsidy was analysed against the successes and failures of subsidies implemented in the USA. It was found that many of the flaws identified in the USA have been avoided.Based on the above, the recommendation is that the proposed youth wage subsidy is plausible in a South African context and should be implemented. The main concern is that newly employed youth would replace workers who do not meet the qualifications of the subsidy. This would have to be taken into account by policy makers.

scholarly journals The introduction of a gambling tax in South Africa: What are the odds on the implementation thereof?

2014 ◽  
Vol 7 (2) ◽  
pp. 361-374 ◽  
Author(s):  
Milton Segal ◽  
Warren Maroun
Keyword(s):  
South Africa ◽  
Content Analysis ◽  
South African ◽  
Policy Development ◽  
Unintended Consequences ◽  
Social Consequences ◽  
Economic Consequences ◽  
Tax Base ◽  
Quantitative Studies ◽  
Tax Deduction

The South African Revenue Service has been exploring the possibility of implementing a form of taxation on gambling winnings since the Minister of Finance’s Budget Speech in 2010. On a superficial level it seems a logical mechanism for broadening the tax base – a case of increasing the tax collected from those who can afford the luxury of gambling. There are, however, a number of unintended consequences that government does not seem to have considered. As a result, this article uses a detailed content analysis of the prior academic and professional tax literature to explore possible weaknesses/flaws of a tax on gambling winnings in South Africa. These include the administrative burden of such a tax, certain economic consequences of allowing gambling losses as a tax deduction and the possible social consequences thereof. These findings mean that the article provides a meaningful contribution by critically assessing the proposed tax with the aim of informing policy development and future quantitative studies on a tax on gambling winnings.

scholarly journals Tax Instruments Applied In Selected Developing Countries To Reduce Emissions From Electricity Generation Recommendations For South Africa

2015 ◽  
Vol 14 (3) ◽  
pp. 485
Author(s):  
Mareli Dippenaar
Keyword(s):  
South Africa ◽  
Developing Countries ◽  
South African ◽  
Electricity Generation ◽  
Tax Incentives ◽  
South African Government ◽  
African Government ◽  
Brics Countries ◽  
Reduction Of Emissions ◽  
Reduce Emissions

The objective of the study was to compare the tax instruments (both incentives and disincentives) applied in selected developing countries (four BRICS countries, namely South Africa, China, Brazil and India) to reduce their emissions from electricity generation, in an attempt to identify areas for possible improvement or expansion in South Africa. Increased renewable energy, energy efficiency and research and development relating to these fields can contribute to the reduction of emissions resulting from electricity generation. A number of similar tax incentives were identified in the countries, the majority of which appear to be more beneficial in the comparative countries than in South Africa. It could be worth considering improving some of the existing incentives in South Africa to be more beneficial to taxpayers. In addition, a number of tax instruments that are applied in some of the comparative countries, were identified and suggested for consideration by the South African government.

scholarly journals Tax Incentives for Innovative Development of Industrial Production on the Basis of Foreign Best Practices Analyses

2019 ◽  
Vol 12 (4) ◽  
pp. 121-131 ◽  
Author(s):  
L. I. Goncharenko ◽  
N. G. Vishnevskaya
Keyword(s):  
Best Practices ◽  
National Economy ◽  
Tax Incentives ◽  
Innovative Development ◽  
Tax Incentive ◽  
Technological Gap ◽  
Incentive Model ◽  
Tax Relief ◽  
Tax Benefits ◽  
Tax Deduction

The urgency of the research is determined by the necessity to assess the latest changes in the mechanism of providing profit tax relief and to confront the net effect with the orientation to innovative development of the economy. The subject of the investigation is the tax incentives mechanisms in leading and developing world economies. The purpose of the work is to suggest ways to increase the effectiveness of the tax incentive tools employed to close the economic and technological gap between Russia and the world leaders. In conditions of national economy instability determined by both global and internal factors, as well as by the international sanctions related to Russia, the opportunity of fast development of national economy high-technological sectors is of particular importance. In this respect, foreign experience of tax incentives for research and innovations appears very interesting. The authors present the analysis of foreign best practices of tax benefits evolution that stimulate investments into innovative activities. In result, the experience of tax credit that is the basic tool of tax incentives for research-and-development activities is summarized and classified. This made it possible to systemize and classify the existing in Russia investment tax deductions. Comparison of the Russian tax incentive model with the generalized foreign practices demonstrated a variety of problems. It is concluded that there is nothing to compensate for the abolition regional investment tax benefits with reduced tax on profit rate in 2023 in the regions where investment tax deduction is not introduced, which can influence investment climate in the country in a negative way. To solve this problem, the authors suggest introducing investment tax deduction all over the country for investments into modern equipment.

A case study on the implementation of green building construction in Gauteng province, South Africa

2020 ◽  
Vol 31 (3) ◽  
pp. 602-623
Author(s):  
Thendo Masia ◽  
Kahilu Kajimo-Shakantu ◽  
Akintayo Opawole
Keyword(s):  
South Africa ◽  
Energy Efficiency ◽  
South African ◽  
Qualitative Data ◽  
Green Building ◽  
Green Buildings ◽  
Water Efficiency ◽  
The South ◽  
Content Type

PurposeGreen building is a relatively new concept with limited applications in property development in South Africa. The objectives of this study are therefore threefold: identify key green building principles considered by property developers, establish the benefits of implementing the principles and determine the barriers to its applications.Design/methodology/approachThe study adopted a case study of two Green Star South Africa (SA)-certified buildings in Sandton, Johannesburg. These are Alexander Forbes building, and Ernst & Young Eris Towers. The two certified buildings were purposefully selected because of the insightful information they provide regarding application of green building principles. The main themes investigated in the cases are environmental awareness, green building principles applications, as well as benefits and barriers of green building. A total of six interviewees from the contractors', property developers', environmental/green building consultants' and sustainability consultants' organizations who were involved in the implementation of green building principles in the two cases provided the qualitative data for the study. The qualitative data were supplemented with data relating to the two case studies obtained from the ‘Earth Works for a Sustainable Built Environment’. The interviews were arranged over a period of two months, and each interview took between 20 and 30 minutes. Analysis of the data was done through a phenomenological interpretation of the qualitative opinions expressed by the interviewees.FindingsKey green building principles comprising energy efficiency, water efficiency, resource efficiency, occupants' health and well-being and sustainable site development were implemented in the two cases. The fact that the buildings were rated 4-star enabled inference to be drawn that the implementation of the principles was less than 60 per cent. Energy efficiency of 35 per cent indicated in Case I suggests that the level is consistent with the South African green building standard of 25 per cent to 50 per cent. However, the energy and water efficiency assessment of the building were based on projections rather than on ongoing monitoring and evaluation of the buildings' performance. Moreover, perceived saving in operational cost was identified as dominant driver to green building principles implementation. Conversely, lack of government incentives and absence of reliable benchmarking data regarding performance of green buildings were major barriers to its full implementation.Practical implicationsThe findings of this study provide important implications to the developers and government on the application of green building principles. In the first place, the evidence that initial high cost premium could be off settled by long- term saving on operational costs as a result of use of local materials, energy and water savings as well as use of recycled material, as implemented in the two case projects, would improve investment decision in green building by developers. The understanding of the drivers and barriers to implementation of green building principles also has implications for guiding government policies and programmes towards green building.Originality/valueThe significance of this study stems from the fact that limited studies, especially in the South African context, have indicated the drivers and barriers to the implementation of green building principles. The case study approach adopted gave a novelty to the study by providing hands-on information from the stakeholders who were known to have played specific roles in the application of green building. The findings indicated that initial high cost premium was not a consideration in developers' choice of green building which justifies the possibility of a costlier product when factors such as environmental sustainability benefit is considered to be ultimate. The study thus suggests further research involving larger cases on energy efficiency, water efficiency and costs of green buildings compared to the conventional type to bring the findings to a broader perspective and assist to benchmark data for green building assessment.

scholarly journals Linking energy efficiency legislation and the agricultural sector in South Africa

2017 ◽  
Vol 13 (1) ◽  
Author(s):  
Joseph N. Lekunze ◽  
Angwe R. Lekunze
Keyword(s):  
South Africa ◽  
Energy Efficiency ◽  
South African ◽  
Agricultural Sector ◽  
Operational Performance ◽  
Review Of Literature ◽  
Energy Needs ◽  
Definition Of ◽  
Local Levels ◽  
Reducing Energy

There are different ways of measuring energy efficiency. Although there is no generally agreed definition of the concept, it should, however, always be approached according to particular circumstances and contexts. As such, technological, operational, performance and equipment efficiencies should be taken into consideration. Generally, energy utilisation in most sectors of the South African economy is inefficient. This requires more energy needs to be generated in order to cater for losses. An increase in generation causes environmental problems at global, regional and local levels. A review of literature on energy efficiency was undertaken and a gap identified between legislation and efficiency in the agricultural sector. This article seeks to suggest ways of implementing an energy legislation in this sector in South Africa. Such implementation will address concerns in terms of harnessing, generating and utilising energy in different sectors in South Africa. Legislation is vital in reducing energy consumption in the agricultural sector. It also ensures efficient use of energy and the maintenance of current levels of production.

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