scholarly journals SELECTED CHALLENGES AFFECTING THE RETROACTIVE TRANSFER PRICING ADJUSTMENTS OF IMPORTED GOODS IN SOUTH AFRICA

Obiter ◽  
2021 ◽  
Vol 42 (3) ◽  
Author(s):  
Howard Chitimira ◽  
Oratile Maselwa
Keyword(s):  
South Africa ◽  
Multinational Enterprises ◽  
Transfer Pricing ◽  
Policy Makers ◽  
Overview Analysis ◽  
Regulatory Challenges

The article analyses selected challenges associated with retroactive transfer pricing adjustments of imported goods under the Customs and Excise Act 91 of 1964 (Customs and Excise Act). This is done in order to examine the regulatory challenges affecting retroactive transfer pricing adjustments and customs valuation processes of imported goods under the Customs and Excise Act. Thus, the enforcement of retroactive transfer pricing adjustments of imported goods for Multinational Enterprises (MNEs) is scrutinised in terms of the Customs and Excise Act. To this end, the article provides an overview analysis of selected regulatory and related challenges affecting retroactive transfer pricing adjustments and actual valuation processes of imported goods within different MNEs in South Africa. Accordingly, the article explores selected challenges in order to recommend possible remedies and measures that could be employed by policy makers to enhance the regulatory and enforcement framework under the Customs and Excise Act.

scholarly journals OVERVIEW OF THE ROLE-PLAYERS IN THE INVESTIGATION, PREVENTION AND ENFORCEMENT OF MARKET-ABUSE PROVISIONS IN SOUTH AFRICA

Obiter ◽  
2021 ◽  
Vol 34 (2) ◽  
Author(s):  
Howard Chitimira ◽  
Vivienne A Lawack
Keyword(s):  
South Africa ◽  
Public Policy ◽  
Financial Services ◽  
General Public ◽  
Policy Makers ◽  
Market Abuse ◽  
Role Players ◽  
Overview Analysis

This article analyses the role and effectiveness of selected key role-players primarily dealing with the investigation, prevention and enforcement of the market abuse prohibition in South Africa in order to increase awareness on the part of the general public, policy-makers and other relevant stakeholders. To this end, the article provides an overview analysis of selected role-players as well as their distinct functions in the investigation, prevention and combating of market-abuse practices in South Africa. This is done by discussing the roles of the Financial Services Board, the Directorate of Market Abuse and the Enforcement Committee.

scholarly journals Transfer pricing as strategic planning tool for multinational enterprises in a post-isolation South Africa

2002 ◽  
Vol 5 (3) ◽  
pp. 683-710
Author(s):  
Petri Schutte ◽  
Jozua Loots
Keyword(s):  
South Africa ◽  
Multinational Enterprises ◽  
Transfer Pricing ◽  
Import Substitution ◽  
Global Market ◽  
Trade Liberalisation ◽  
Global Competitiveness ◽  
National Regulation ◽  
Length Standard ◽  
National Tax

Political and trade liberalisation leads to irrevocable change, exposing South Africa to the demands of the dynamic global market, driven by a deluge of competitive forces, demanding world-class, global competitiveness. The challenge facing South African organisations is to successfully transform in an economy undergoing structural change, moving away from import substitution to global competitiveness. Historically, stringent exchange controls prevented profits to emigrate from South Africa. Trade liberalisation necessitates the introduction of transfer pricing legislation to protect the national tax base. Application of transfer pricing in practice is complex, information constraints compel the use of foreign comparables in determining a reward consistent with the arm's length standard, challenging objectiveness and risk adjustment. Strategic opportunities exist if transfer pricing is not entrenched in national regulation compliance.

The fight against international transfer pricing abuses: a recommendation for Mauritius

2019 ◽  
Vol 61 (1) ◽  
pp. 205-231 ◽  
Author(s):  
Ambareen Beebeejaun
Keyword(s):  
South Africa ◽  
Multinational Enterprises ◽  
Transfer Pricing ◽  
Tax Avoidance ◽  
Legal Framework ◽  
Content Type ◽  
Legal Provisions ◽  
Transfer Prices ◽  
To Come ◽  
A Minor

Purpose One of the most common forms of international tax avoidance is transfer pricing by multinational enterprises. The research will investigate on the factors that contribute to transfer pricing abuses. At present, there is no substantial and extensive transfer pricing rule in Mauritius. This paper aims to analyse the legal approaches to tackle transfer pricing issues that are undertaken by some countries whose taxation regime is similar to Mauritius. The selected countries are South Africa and UK. The objective behind the comparative study is to come up with the appropriate preventive and corrective measures for Mauritius. Design/methodology/approach The methodology adopted for this research consists of a critical analysis and comparative legal review of the relevant legislation, case law and literature. A minor quantitative analysis of the transfer pricing problem in Mauritius will be conducted, in terms of which interviews will be conducted with officials from different institutions in Mauritius. Findings The study will conclude that the absence of explicit formal rules on transfer pricing allows businesses to use the country to manipulate transfer prices to avoid paying taxes. Therefore, an amendment to Mauritius laws and regulatory framework is required to dissuade multinationals to engage in transfer pricing abuses. The study will conclude that the scope and application of the arm’s length principle needs to be formally set out in legislation and also, the use of Advance Pricing Agreements will also be recommended. Originality/value The research is among the first studies that compare Mauritius legal provisions on transfer pricing with that of South Africa and UK. The research is unique as it intends to provide fruitful recommendation to stakeholders in Mauritius to enhance the existing legal framework on the subject.

scholarly journals SELECTED CHALLENGES IN THE SOUTH AFRICAN ANTI-MARKET ABUSE ENFORCEMENT FRAMEWORK IN RELATION TO SOME ASPECTS OF THE FINANCIAL MARKETS

Obiter ◽  
2014 ◽  
Author(s):  
Howard Chitimira
Keyword(s):  
South Africa ◽  
Financial Markets ◽  
Crisis Management ◽  
South African ◽  
Global Financial Crisis ◽  
Accounting Standards ◽  
The South ◽  
Policy Makers ◽  
Market Abuse ◽  
Overview Analysis

The objective of this article is to provide an overview analysis of the challenges and/or flaws in the current anti-market abuse-enforcement framework in relation to some selected specific aspects of the financial markets in South Africa. This is primarily done to increase awareness on the part of the policy makers and other relevant stakeholders and to innovate possible solutions to such flaws in order to enhance the enforcement of the market-abuse prohibition in South Africa. Moreover, this is done to investigate whether the current South African anti-market abuse-enforcement framework is robust enough to deal with some market abuse-related challenges that manifested during the recent global financial crisis. In relation to this, the article seeks to explore this and other enforcement-related concerns by, first, taking a closer look at the adequacy of the South African anti-market abuse-enforcement framework with regard to remuneration structures and crisis management. Secondly, the adequacy of the South African anti-market abuse-enforcement framework with regard to management of risk will be discussed. Lastly, the adequacy of the aforementioned enforcement framework will be examined in relation to accounting standards.

An Analysis of the Link between Water Infrastructure Financing and Water Provision South Africa

2018 ◽  
Vol 10 (3(J)) ◽  
pp. 74-83
Author(s):  
Lerato C. Bapela ◽  
Collins C. Ngwakwe ◽  
Mokoko P. Sebola
Keyword(s):  
South Africa ◽  
Quantitative Research ◽  
Secondary Data ◽  
P Value ◽  
Unique Contribution ◽  
Water Infrastructure ◽  
Control Variables ◽  
Policy Makers ◽  
Infrastructure Finance ◽  
Water Provision

This paper evaluated the relationship between water infrastructure financing and water provision in South Africa. The research followed a quantitative research design; secondary data for water infrastructure financing and water provision in South Africa was obtained from the Trans - Caledon Tunneling Agency (TCTA) and the World Bank for the period 1994 - 2014 . The regression results indicated two separate findings which offers unique contribution to the current literature; results from water asset finance as a single independent variable on water provision showed a significant relationship. However, an addition of two control variables , corruption and violence, neutralised the effectiveness of water asset finance on water provision to the extent that water asset finance became less significant with a P value of 0.05. The paper makes a nuance contribution from the findings, which specifically is that finance alone may not deliver target water provision if corruption and violence is left unbridled. The paper thus recommends the need for public policy makers to control the rate of corruption and violence to enable effective application of water infrastructure finance in water provision. The paper also recommends the need for further research on other government departments to integrate corruption and violence as control variables. 

Taxes, Transfer Pricing, and The Multinational Enterprise

2009 ◽  
Author(s):  
Lorraine Eden
Keyword(s):  
United States ◽  
Multinational Enterprises ◽  
Transfer Pricing ◽  
Multinational Enterprise ◽  
The United States ◽  
International Taxation ◽  
Complex Issue ◽  
Daunting Task ◽  
National Governments

For more than ten years now, transfer pricing has been the top international taxation issue faced by multinational enterprises (MNEs). This article aims to outline, for the reader, the complex issue of transfer pricing, as seen by MNE managers and by governments faced with the daunting task of taxing business profits. The article is organized as follows. First, it briefly discusses transfer pricing from the MNE's perspective and the problems that this raises for national governments. It then reviews the basic rules of international taxation as they apply to MNE profits. The specific rules and procedures that apply to transfer pricing, as practiced in the United States and recommended by the OECD, are then outlined. It concludes with a discussion of unresolved problems that are likely to plague transfer pricing over the next few years.

scholarly journals Seawater desalination as an option to alleviate water scarcity in South Africa: the need for a strategic approach to planning and environmental decision-making

2014 ◽  
Vol 4 (4) ◽  
pp. 287-293 ◽  
Author(s):  
G. O. Schreiner ◽  
R. C. van Ballegooyen ◽  
W. Osman
Keyword(s):  
South Africa ◽  
Water Policy ◽  
Large Scale ◽  
Water Security ◽  
Bulk Water ◽  
Policy Makers ◽  
Environmental Decision Making ◽  
Strategic Approach ◽  
Seawater Reverse Osmosis ◽  
National Water

In the last decade, seawater reverse osmosis (SWRO) has come to be seen by policy-makers as a novel technology that will significantly advance water security in South African coastal regions. Water purveyors, from the private sector, local/district municipalities and provincial authorities, are undertaking studies to explore the feasibility of SWRO to meet growing demand and relieve mounting pressure on current bulk water supply infrastructure. With this in mind, it is suggested that national strategic planning should be introduced to present the opportunities and constraints of the desalination option within the national water and energy policy. In absence of this, piece-meal decisions will be made at local authority levels and the construction of SWRO plants will be determined by regional circumstances (e.g. drought) as opposed to national water policy agenda. This paper explores the value of such a strategy by considering the drivers of SWRO in South Africa, the risk of unplanned large-scale SWRO implementation (with a focus on environmental impacts) and the initial steps that could be taken toward a Strategic Environmental Assessment for SWRO in South Africa.

scholarly journals Corporate Income Shifting in an Era of Tax Multilateralism: The Impact of Exchange-of-Information Agreements

2021 ◽  
Vol 69 (2) ◽  
pp. 357-389
Author(s):  
Devan Mescall ◽  
Paul Nielsen
Keyword(s):  
Multinational Corporations ◽  
Multinational Enterprises ◽  
Transfer Pricing ◽  
Empirical Studies ◽  
Annual Reports ◽  
Income Shifting ◽  
Exchange Of Information ◽  
Pricing Rules ◽  
Using Data ◽  
The Impact

Using data from the annual reports of over 100,000 subsidiaries of multinational enterprises (MNEs) from 55 countries between 2003 and 2012, the authors of this article investigate the impact of exchange-of-information agreements ("EOI agreements") on tax-motivated income shifting. Transparency created by the signing of EOI agreements is expected to reduce the tax-motivated shifting of income by multinational corporations. Whether such agreements affect the income-shifting behaviour of multinational corporations is an unanswered question. The authors find evidence that, on average, EOI agreements do have an impact on tax-motivated income shifting. Additionally, they find that more advanced, modern EOI agreements are associated with a larger decrease in tax-motivated income shifting compared to the impact of early EOI agreements. This evidence challenges the prevalent assumption in empirical studies that EOI agreements are homogeneous. Supplemental analyses suggest that factors that affect the information asymmetry between MNEs and tax authorities, such as corporations with high levels of intangibles and tax authorities with strong transfer-pricing rules and enforcement, can diminish or enhance the effectiveness of EOI agreements in moderating tax-motivated income shifting. The evidence provided by this study shows that consideration of the tax authorities' information environment and the substance of an EOI agreement is essential when assessing the impact of such an agreement on the tax behaviour of sophisticated taxpayers such as multinational corporations.

scholarly journals Dynamics of Health Among Adults in South Africa

2020 ◽  
Author(s):  
Usengimana Shadrack Mutembereza
Keyword(s):  
South Africa ◽  
Social Determinants Of Health ◽  
Health Inequality ◽  
Social Determinants ◽  
National Income ◽  
Determinants Of Health ◽  
Health Campaigns ◽  
Health Selection ◽  
Policy Makers ◽  
The Poor

Abstract BackgroundThis paper estimates trend of health mobility in South Africa using National Income Dynamic Study (NIDS) and investigate whether the patterns of health mobility differs within socioeconomic groups created by income and gender. Health is measured by SRHS, which correlates with mortality and morbidity; thus, it is the best measure of health. MethodsUsing five waves of NIDS and various econometric models, this research estimates health mobility in the period between 2007 and 2017. This study will use transition matrix as descriptive analysis of health mobility and Conditional Maximum Likelihood Estimations to analyse health mobility, trend of health mobility and relationship between health mobility and health inequality within NIDS. ResultsThe study shows that, among poor males, health mobility neither follows a health selection or health constraint mobility trend; the high health mobility with ambiguous trends has not decreased health inequality. Among the poor females, a negative health mobility trend is observed; this research also found that health inequality has not creased. Among the non-poor males, it is found that health mobility follows a gradient constraint trend which has decreased health inequality. Among non-poor females, it is found that health mobility follows a health selection trend which has not decreased health inequality. The results suggest that policy makers should target both social determinants of health and health campaigns to deal with health inequality among the poor males. ConclusionsThe trend of health mobility among poor females suggest that policy makers should target the social determinants of health to combat health inequality. The trend of health mobility among the non-poor males suggests that health mobility will eliminate health inequality. Lastly, the trend of health mobility suggests that policymakers should target health campaigns to deal with health inequality.

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