scholarly journals A Framework For The Income Tax Deductibility Of Intellectual Property Expenditure Incurred By South African Taxpayers

2013 ◽  
Vol 12 (3) ◽  
pp. 373
Author(s):  
Rudi Oosthuizen
Keyword(s):  
South Africa ◽  
Intellectual Property ◽  
South African ◽  
Income Tax ◽  
Case Law ◽  
Recent Case ◽  
Tax Legislation ◽  
Tax Deductions ◽  
The Right ◽  
The Cost

Taxpayers who use intellectual property (such as patents and trademarks) in their trade in the production of income may obtain the right of such use in a number of different ways. The nature of the transaction granting the taxpayer the use of intellectual property items determines the tax treatment thereof. Taxpayers may be able to claim deductions for the cost of using these items in terms of specific income tax sections or the general deduction formula as outlined by the Income Tax Act 58 of 1962. There are also a number of other sections in the Act which may affect the timing and extent of the deductions allowed. This article investigates the various income tax deductions which may be available to taxpayers in South Africa who make payments in respect of intellectual property. It considers the effect of important recent case law and changes to tax legislation on the timing and extent of these deductions and suggests a framework which can be applied to assist the taxpayer in understanding the structure of such deductions.

scholarly journals Benhaus - a landmark decision, one less hoop for contract miners but a clarion call for an overhaul of the South African mining regime

2020 ◽  
Vol 120 (8) ◽  
Author(s):  
K. Thambi
Keyword(s):  
South African ◽  
Value Chain ◽  
Income Tax ◽  
Mining Industry ◽  
Third Party ◽  
Mining Activities ◽  
The South ◽  
Mining Operations ◽  
Tax Legislation ◽  
The Right

SYNOPSIS The mining industry has evolved, such that the means of production that were once in the hands of major players or power houses have become equally accessible to smaller entrants, i.e. junior mining companies and contract miners. Contract mining involves contractual relationships between mine owners or mineral right holders and third parties to conduct mining activities on behalf of the right holders. The current mining income tax legislation has been a considerable obstacle to contract miners. Under its terms, they have been viewed as mining on behalf of third-party mineral rights holders. As such, expenditure incurred in relation to contract mining activities was often disallowed by the South African Revenue Service (SARS). However, the recent judgement of the Supreme Court of Appeal, Benhaus Mining (Pty) Ltd v CSARS 2020 (3) SA 325 (SCA) (Benhaus), rightfully or wrongfully, appears to provide clarity regarding the fate of contract miners' involvement in the mining value chain. The taxpayer, a contract miner, was held to be conducting mining operations within the meaning of S15(a) read with si of the Income Tax Act 58 of 1962 (the Income Tax Act). This paper looks at how contract mining has traversed the mining tax landscape, the implications of the Benhaus judgment, and stresses the necessity for clear policy reform to the mining tax regime and equally to legislation framed to give effect to these policies. Keywords: Contract mining, owner mining, tax, DMRE, mining regime reforms.

scholarly journals An Employer's Recourse to Lock-Out and Replacement Labour: An Evaluation of Recent Case Law

2017 ◽  
Vol 20 ◽  
pp. 1-31
Author(s):  
Monray Marsellus Botha ◽  
Motsoane Lephoto
Keyword(s):  
South Africa ◽  
Collective Bargaining ◽  
South African ◽  
Industrial Relations ◽  
Case Law ◽  
Recent Case ◽  
Economic Power ◽  
Rights And Interests ◽  
State Of Affairs

South African labour affairs are in a volatile state. Conflicting rights and interests as well as the balancing of these rights and interests are contributing to this state of affairs. In recent years, the contentious issues of workers' right to use their economic power to put pressure on employers and employers' recourse to lock-out and replacement labour have come under the spotlight again. Prolonged, violent and unprotected strikes have raised the question whether our industrial relations framework should be revisited, and have complicated matters even further. The question whether employers may use replacement labour and have recourse to lock-outs when an impasse exists during wage negotiations has come to the fore again and is evaluated in the context of the adversarial collective bargaining framework in South Africa.      

scholarly journals Religious Freedom and Equality as Celebration of Difference: A Significant Development in Recent South African Constitutional Case-Law

2017 ◽  
Vol 12 (4) ◽  
pp. 9 ◽  
Author(s):  
Lourens Du Plessis
Keyword(s):  
South Africa ◽  
South African ◽  
Significant Contribution ◽  
Case Law ◽  
Constitutional Court ◽  
Significant Development ◽  
Cultural Rights ◽  
Kwazulu Natal ◽  
Minority Religion ◽  
The Right

This contribution focuses on the way in which the South African Constitutional Court has, since 1997, been dealing with the (seemingly) eccentric claims of (assumedly) idiosyncratic 'religious Others'. Developments in this regard have, for the time being at least, culminated in the Constitutional Court's landmark judgment in MEC for Education: KwaZulu Natal v Pillay 2008 (2) BCLR 99 (CC), 2008 (1) SA 474 (CC)(hereafter Pillay). Constitutional Court judgments since 1997 manifesting the adjudication of such unconventional claims are assessed, eventually getting to Pillay as benchmark. This remarkable judgment, dealing with a deceptively mundane issue, has played a considerable role in fleshing out a jurisprudence of difference, putting an adherent of a vulnerable, minority religion in the right. This is not just a high point in the adjudication of constitutional entitlements of the religious (and cultural) Other in South Africa, but also a significant contribution to the growth of a jurisprudence sensitive to the predicaments and constitutional entitlements of unconventional, 'non-mainstream' claimants of religious (and cultural) rights. Finally Pillay illustrates that the constitutional guarantee of the right to freedom of religion, conscience, belief and opinion (entrenched in section 15(1) of the Constitution of Republic of South Africa 1996) can be crucially dependent upon due effect being given to the proscription of unfair discrimination on the grounds of religion, conscience, belief and opinion elsewhere (namely in section 9(3)) of the Constitution.

An interpretation of the deeming provisions in legislation in the context of a good tax system - a South African perspective

2021 ◽  
Author(s):  
◽  
Tarita Mostert
Keyword(s):  
South African ◽  
Income Tax ◽  
Positive Relationship ◽  
Theoretical Perspective ◽  
Tax Compliance ◽  
Case Law ◽  
Tax System ◽  
Related Case ◽  
Legal Principles ◽  
Tax Legislation

The goal of this thesis is to analyse the relationship between deeming provisions in legislation and the principles of a good tax system. The need for a positive relationship between deeming provisions and the principles of a good tax system is demonstrated in the thesis. The research explains the historical development of deeming provisions, legal principles relevant to the interpretation of tax legislation, as well as the principles of a good tax system. Approaches to the interpretation of legislation are then described and illustrated by means of case law. Following this, the research focuses on a selection of provisions in the South African Income Tax Act, 58 of 1962, to determine whether the deeming provisions included in the Act reflect the application of the principles of a good tax system. In addition to the analysis of the selected statutory provisions, related case law is discussed, again in relation to the deeming provisions. A discussion of deeming provisions in two publications of the Organisation for Economic Co-Operation and Development (OECD) – the OECD Model Tax Convention and the OECD Multilateral Convention to Implement Tax Treaty Measures to Prevent Base Erosion and Profit Shifting – follows, with an analysis of two related deeming provisions in the Income Tax Act, to illustrate the international approach to deeming provisions and the principles of a good tax system. Finally, the administration of tax legislation is discussed, together with organisations whose mission is to promote the principles of a good tax system in tax administration. The research is qualitative in nature and follows a legal doctrinal research methodology. This methodology is both reform-oriented and theoretical and focuses on understanding the application of the legal concepts: deeming provisions, legal principles and principles of a good tax system. The research concludes that, from a theoretical perspective, a positive relationship exists between deeming provisions in the Income Tax Act and the OECD Model Tax Convention and the principles of a good tax system, and therefore creates a positive environment for tax compliance.

scholarly journals Constitutionalising The Right to Legal Representation at CCMA Arbitration Proceedings: Law Society of the Northern Provinces v Minister of Labour 2013 1 SA 468 (GNP)

2017 ◽  
Vol 16 (4) ◽  
pp. 396
Author(s):  
Koboro J Selala
Keyword(s):  
South Africa ◽  
Case Law ◽  
Job Security ◽  
Recent Case ◽  
Labour Law ◽  
Legal Representation ◽  
High Court ◽  
The Common ◽  
The Right ◽  
Administrative Justice

Recently, the issue of legal representation at internal disciplinary hearings and CCMA arbitrations has been a fervent topic of labour law discourse in South Africa. While the courts have consistently accepted the common law principle that there is no absolute right to legal representation at tribunals other than courts of law, a study of recent case law reveals that the majority of court judgments seem to be leaning in favour of granting legal representation at disciplinary hearings and CCMA arbitrations than denying it. In the recent case, Law Society of the Northern Provinces v Minister of Labour, the High Court struck down the rule of the CCMA which restricted legal representation at CCMA arbitration as unconstitutional on grounds of irrationality. The High Court considered that the impugned rule was inconsistent with section 3(3)(a) of the Promotion of Administrative Justice Act, which was specifically enacted to give effect to the right to administrative justice entrenched in the Constitution. In so deciding the High Court considered the importance of job security and the possible loss of job by an employee as a serious matter. This case note aims to analyse critically the court’s judgment in Law Society of the Northern Provinces v Minister of Labour and to consider its implications for dispute resolution in South Africa. It is asserted that although the right to legal representation is not absolute at labour proceedings, in light of the court’s decision in Law Society of the Northern Provinces v Minister of Labour it is not easy to identify the circumstances that would provide justification for the infringement of the right at CCMA arbitrations and probably at disciplinary hearings as well. Here, an argument is made suggesting that the court in the Law Society case has taken the right to legal representation too far.

scholarly journals Die reg van die homoseksuele ouer om beheer en toesig oor 'n kind te verkry in die lig van die bepalings van die Grondwet

2017 ◽  
Vol 2 (2) ◽  
pp. 1
Author(s):  
Antoinette Kotze
Keyword(s):  
South Africa ◽  
South African ◽  
Case Law ◽  
Constitutional Protection ◽  
Homosexual Orientation ◽  
Foreign Law ◽  
Custody Disputes ◽  
Access Rights ◽  
The Republic ◽  
The Right

The problematic nature of the right of a homosexual parent to vest custody over a child is biarticulated: the nature and extent of custody disputes as well as the issues of discrimination based on sexual orientation are relevant. Homosexual orientation is emotional and controversial, all the more when it is accompanied by custody disputes. In this context the constitutional protection given to human rights and the constitutional provisions containing constitutional values are of paramount importance. The contents of these provisions have direct consequences for custody disputes and homosexual parenthood. In the pre-constitutional dispensation, the court gave judgement in Van Rooyen v Van Rooyen 1994 2 SA 325 (W) on the awarding of access rights to a homosexual parent. With regard to the provisions of the Constitution of the Republic of South Africa 108 of 1996 and trends in relevant foreign law, the decision in the Van Rooyen case is subjected to criticism. Since the commencement of the Constitution of the Republic of South Africa 200 of 1993, no South African court has given judgement on this issue. The aim of this contribution is to set out an autochthonous frame of reference considering the provisions of the Constitution, case law and comparative foreign law in an attempt to resolve the issue under discussion.

scholarly journals An evaluation of interest deduction limitations to counter base erosion in South Africa

2018 ◽  
Vol 21 (1) ◽  
Author(s):  
Pieter Van der Zwan ◽  
Daniel P. Schutte ◽  
Waldo Krugell
Keyword(s):  
South Africa ◽  
South African ◽  
Income Tax ◽  
The South ◽  
Profit Shifting ◽  
Present Evidence ◽  
Tax Legislation ◽  
Tax Returns ◽  
The Mean ◽  
Using Data

Background: The Organisation for Economic Cooperation and Development (OECD) made a number of recommendations in relation to interest deduction limitations as part of the Base Erosion and Profit Shifting (BEPS) project. In 2016 the South African National Treasury indicated that the interest deduction limitations contained in the Income Tax Act would be reviewed in the light of these recommendations. Aim: This paper aimed to describe funding structures of companies in South Africa liable for tax and how this relates to other characteristics, including ownership, of the companies. Setting: The research was performed using data from tax returns submitted by companies liable for income tax in South Africa. Methods: This paper reports on descriptive analyses of the research conducted. Results: The results showed that the mean interest-to-earnings before interest, taxes, depreciation, and amortisation (EBITDA) ratio for certain foreign-owned entities differed significantly from that of domestically owned entities. Conclusion: The results may present evidence of profit-shifting activities. They also highlight trends in interest-to-EBITDA ratios that may be of relevance for future legislative developments. Further related research is required if interest deduction limitations in the South African tax legislation are to be reviewed in light of the OECD proposals.

scholarly journals Some Drastic Measures to Close a Loophole: The Case of Pienaar Brothers (PTY) LTD v Commissioner for the South African Revenue Service (87760/2014) [2017] ZAGPPHC 231 (29 May 2017) and the Targeted Retroactive Amendment of Section 44 of the Income Tax

2018 ◽  
Vol 21 ◽  
pp. 1-36
Author(s):  
Stephanus Phillipus Van Zyl ◽  
Liezel Gaynor Tredoux
Keyword(s):  
Mergers And Acquisitions ◽  
South African ◽  
Income Tax ◽  
Specific Reference ◽  
The South ◽  
Peace Of Mind ◽  
Tax Legislation ◽  
The Law ◽  
The Right

A taxpayer has the right to arrange his tax affairs within the constraints of the law to his best advantage to pay the least amount of tax. Coupled with this right is the taxpayer's right to certainty, which entails that the time of payment of taxes, the manner of payment, and the amount of payment must be clear and plain to the taxpayer and to any other person. Accordingly, a taxpayer must have peace of mind that revenue laws will not be amended arbitrarily, retrospectively, and with the effect that the taxpayer's position is affected negatively. The South African tax legislation allows the deferral of tax liability when amalgamation transactions, asset for share transactions, and mergers and acquisitions are embarked upon by a taxpayer. This article analyses the judgment in Pienaar v Commissioner: South African Revenue Services (87760/2014) [2017] ZAGPPHC 231 (29 May 2017) critically with specific reference to amalgamation transactions, the taxpayer's right to tax certainty, and the application of retroactive amendments to completed transactions

Victim Participation in Parole Proceedings in South Africa

2019 ◽  
Vol 34 (1) ◽  
Author(s):  
Jamil Mujuzi
Keyword(s):  
South Africa ◽  
Criminal Justice ◽  
Criminal Justice System ◽  
South African ◽  
Justice System ◽  
Criminal Procedure ◽  
Prison Inmate ◽  
Parole Board ◽  
Victims Of Crime ◽  
The Right

South African law provides for circumstances in which victims of crime may participate in the criminal justice system at the investigation, prosecution (trial), sentencing and parole stages. In South Africa, a prison inmate has no right to parole although the courts have held that they have a right to be considered for parole. In some cases, the victims of crime have a right to make submissions to the Parole Board about whether the offender should be released on parole. Section 299A of the Criminal Procedure Act 51 of 1977 provides for the right of victims of crime to participate in parole proceedings. The purpose of this article is to discuss section 299A and illustrate ways in which victims of crime participate in the parole process. The author also recommends ways in which victims’ rights in section 299A of the Criminal Procedure Act could be strengthened.

scholarly journals The transition to general management in South Africa

2017 ◽  
Vol 15 (0) ◽  
Author(s):  
Stephen J. Mallaby ◽  
Gavin Price ◽  
Karl Hofmeyr
Keyword(s):  
South Africa ◽  
South African ◽  
Personal Characteristics ◽  
Structured Interviews ◽  
General Manager ◽  
General Management ◽  
General Managers ◽  
Managerial Implications ◽  
Effective Development ◽  
The Right

Orientation: Understanding the nature and challenges of making the transition from a functional role to a general management role in South African organisations.Research purpose: The objective of this study was to gain insight into the obstacles that affect the transition from functional to general management and identify steps that may be taken to overcome these challenges.Motivation for the study: One of the most difficult crossroads for a manager is making the shift from being a functional specialist to becoming a general manager. New competencies and behaviours are required, as well as a more strategic mind set. If the transition is not made successfully, the manager and the organisation suffer.Research design, approach and method: A qualitative design was used consisting of in-depth, semi-structured interviews, with 19 senior business leaders who had successfully made the transition. The interviews were used to gather insights into the challenges they faced during their transitions, and how these were overcome.Main findings: To make the transition successfully, functional managers need to gain relevant experience to prepare them for the broader scope of a general management role. They need to develop appropriate skills, attitudes and personal characteristics. Mentoring is an effective development process. Newly appointed general managers need to learn to let go of control while maintaining ownership, build relationships and strike the right balance between strategic thinking and execution. There are unique aspects of being a general manager in South Africa, such as dealing with Black Economic Empowerment and challenges of race and identity, given the country’s history.Practical and managerial implications: Specific interventions are suggested which are directed at both aspiring general managers and organisations seeking to assist middle managers to make the transition to general managers.Contribution: This study contributes to knowledge concerning the skills and attributes required by potential general managers, and the practical steps to be taken by South African organisations to facilitate the development of general managers. 

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