scholarly journals Addressing the small business tax compliance burden: Evidence from South Africa

2013 ◽  
Vol 6 (2) ◽  
pp. 263-284
Author(s):  
Sharon Smulders ◽  
Gelishan Naidoo
Keyword(s):  
South Africa ◽  
Small Business ◽  
South African ◽  
Small Businesses ◽  
Tax Compliance ◽  
Compliance Cost ◽  
Record Keeping ◽  
Business Tax ◽  
Cost Studies ◽  
First Time

Small businesses have the potential to grow the economy, generate jobs and reduce poverty, but they face many constraints including high tax compliance costs and burdens. A comparison of the findings and recommendations made in small business tax compliance cost studies conducted in South Africa with initiatives introduced by the South African Revenue Service (SARS), substantiated by consultations with a SARS and a South African Institute of Chartered Accountants official, reveals that SARS has, in most cases, attempted to address the tax compliance burdens identified in these studies. However, SARS has only partially addressed the complexity of the tax law, the lack of software to assist small businesses with their record-keeping and the compliance burden associated with provisional tax. SARS has failed to address the need for a threshold below which no small business tax return is required to be submitted, the inclusion of tax in the school syllabus, the requirement for first-time offenders to attend courses instead of raising penalties and the need for a reduction in the rates of interest and penalties raised by SARS. These initiatives should be considered by SARS and it is recommended that further research into the success and effectiveness of all the initiatives already introduced by SARS be performed.

scholarly journals Addressing the small business tax compliance burden: Evidence from South Africa

2013 ◽  
Vol 6 (1) ◽  
pp. 33-54 ◽  
Author(s):  
Sharon Smulders ◽  
Gelishan Naidoo
Keyword(s):  
South Africa ◽  
Small Business ◽  
South African ◽  
Small Businesses ◽  
Tax Compliance ◽  
Compliance Cost ◽  
Record Keeping ◽  
Business Tax ◽  
Cost Studies ◽  
First Time

Small businesses have the potential to grow the economy, generate jobs and reduce poverty, but they face many constraints including high tax compliance costs and burdens. A comparison of the findings and recommendations made in small business tax compliance cost studies conducted in South Africa with initiatives introduced by the South African Revenue Service (SARS), substantiated by consultations with a SARS and a South African Institute of Chartered Accountants official, reveals that SARS has, in most cases, attempted to address the tax compliance burdens identified in these studies. However, SARS has only partially addressed the complexity of the tax law, the lack of software to assist small businesses with their record-keeping and the compliance burden associated with provisional tax. SARS has failed to address the need for a threshold below which no small business tax return is required to be submitted, the inclusion of tax in the school syllabus, the requirement for first-time offenders to attend courses instead of raising penalties and the need for a reduction in the rates of interest and penalties raised by SARS. These initiatives should be considered by SARS and it is recommended that further research into the success and effectiveness of all the initiatives already introduced by SARS be performed.

scholarly journals Do South African Small Businesses Prefer Conservative Tax Advice To Aggressive Tax Advice?

2012 ◽  
Vol 11 (6) ◽  
pp. 697
Author(s):  
Melissa Lubbe ◽  
Gerhard Nienaber
Keyword(s):  
South Africa ◽  
Small Business ◽  
South African ◽  
Tax Evasion ◽  
Small Businesses ◽  
Tax Compliance ◽  
Rural South ◽  
Tax Practitioners ◽  
Tax Relief ◽  
Compliance Behaviour

Taxpayers relationship with tax practitioners may influence tax compliance behaviour. International research has been inconclusive on whether taxpayers prefer conservative tax approaches or more aggressive approaches. There has been only limited research on taxpayers preferences in South Africa. Several tax relief measures are available to South African small businesses as growing enterprises, but such entities may lack skilled tax staff and they therefore rely on tax practitioners. The first objective of this study is to determine whether such taxpayers prefer conservative or aggressive tax advice from practitioners. The second objective is to determine whether small business taxpayers would continue to use their tax practitioners services if they disagree with a suggested tax approach. Questionnaires were sent to 50 small businesses in a rural South African town. The data showed that most participating small business taxpayers prefer conservative advice but will agree with the tax practitioner, irrespective of the type of tax advice offered. As long as the advice does not involve tax evasion, they prefer to retain a tax practitioners services irrespective of the type of advice and their (dis)agreeing with it.

scholarly journals The perception of sponsorship usefulness among South African small business owners

2014 ◽  
Vol 11 (4) ◽  
pp. 475-488
Author(s):  
Catherine Mpolokeng Sephapo ◽  
Johannes Arnoldus Wiid ◽  
Michael Colin Cant
Keyword(s):  
South Africa ◽  
Small Business ◽  
South African ◽  
Small Businesses ◽  
Brand Image ◽  
Business Owners ◽  
Small Business Owners ◽  
Web Based ◽  
Marketing Tool ◽  
Marketing Budgets

Sponsorship is a powerful marketing tool that organisations in South Africa are embracing. From the evaluation of the sponsorship growth over the years, the industry in South Africa has developed from a R63 million industry in 1985 to the value of just under R7 billion in 2011 (City Press, 2012). Small businesses in South Africa are faced with the challenge of effectively reaching target segments. These small businesses are restricted in terms of limited marketing budgets and therefore need alternative ways of improving their brands in the eyes of the consumer. Theoretically, sponsorship is considered to improve the brand image of an organisation and ultimately improve sales. However, the question that this study aims to answer is whether small business owners perceive sponsorship to be a useful tool that even they can utilise. The study made use of a quantitative approach whereby a web-based questionnaire was distributed to small business owners. The findings indicated that the general attitude towards sponsorship as a marketing tool is positive. The correlation between sponsor sincerity and sponsorship usefulness was found positive; however, average in strength. Although sponsorship is seen as a useful tool, 15.4% of the respondents indicated that they would not consider using this marketing tool. This response may provide an opportunity for further research to be conducted which may shed some light on the strategies small business owners perceive to be most effective for their unique circumstances

scholarly journals A critical analysis of the barriers to entry for small business owners imposed by Sections 12E(4)(a)(iii) and (d) and paragraph 3(b) of the Sixth Schedule Of The Income Tax Act, No. 58 of 1962

2012 ◽  
Vol 5 (2) ◽  
pp. 527-546
Author(s):  
Leonard C. Willemse
Keyword(s):  
Small Business ◽  
South African ◽  
Small Businesses ◽  
Income Tax ◽  
Tax Compliance ◽  
Business Owners ◽  
Small Business Owners ◽  
Barriers To Entry ◽  
Tax Relief ◽  
Explanatory Memorandum

According to National Treasury’s Explanatory Memorandum on the Revenue Laws Amendment Bill, 2008, small businesses in South Africa are instrumental in the growth of the South African economy as they are a source of job creation and a counter to poverty. Research, however, indicates that small businesses face many obstacles, such as relatively high tax compliance costs. It was, therefore, proposed in the 2008 Budget Review that a turnover tax system be implemented for micro businesses with a turnover of up to R1 million per annum to simplify the tax compliance process. Similarly, section 12E was introduced earlier in the Income Tax Act No. 58 of 1962 to offer additional income tax relief to small business owners. Sections 12E(4)(a)(iii) and (d) and paragraph 3(b) of the Sixth Schedule, however, prevent certain small business owners from making use of these concessions. This article investigates these barriers to entry and explores possible solutions to the problems presented by them.

scholarly journals Sustaining small businesses in emerging economies: an examination of the pre and post startup ramifications

2017 ◽  
Vol 15 (1) ◽  
pp. 227-236 ◽  
Author(s):  
Chux Gervase Iwu
Keyword(s):  
South Africa ◽  
Small Business ◽  
South African ◽  
Small Businesses ◽  
Structured Interview ◽  
Small Business Owners ◽  
Business Startup ◽  
Growth Constraints ◽  
Small Business Growth ◽  
Almost All

Set in the Western Province of South Africa, this study is centred on a group of small business owners who received financial support from a leading South African business developer. The main aims were to obtain from the recipients what they envisaged as their main challenges, and to compare those challenges at a later stage to get a better understanding of the real challenges of small business pre and post startup. The ultimate benefit will be to report on these to inform practitioners and researchers so that every stakeholder can have a fresher insight into this phenomenon with the hope that much more concrete discussions and interventions may emerge. This longitudinal study adopted the mixed method, specifically the use of a questionnaire and a semi-structured interview schedule. This method enabled the researcher to gain a better understanding of the issues at play with respect to first time recipients of funds, as well as engage intimately with them in order to obtain salient information regarding challenges of small business pre and post business startup. Interestingly, most participants indicated that almost all the items in the questionnaire were major challenges. This study should not only generate the necessary discussions among practitioners and scholars on small business growth constraints in South Africa, but, at the same time, uncover through such discussions, some of the undocumented challenges of small businesses in emerging markets so that the chances of survival of small businesses beyond the 2-3 year mark are improved.

scholarly journals The importance of human resources management for small businesses in South Africa

2016 ◽  
Vol 14 (3) ◽  
pp. 232-238 ◽  
Author(s):  
Yu-Ting Hung ◽  
Michael C. Cant ◽  
Johannes A. Wiid
Keyword(s):  
South Africa ◽  
Small Business ◽  
Human Resources ◽  
South African ◽  
Human Resource ◽  
Small Businesses ◽  
Human Resources Management ◽  
Business Owners ◽  
Small Business Owners ◽  
Resources Management

The majority of SMEs fail in the first five years of operation (Cant and Ligthelm, 2003). Human resource management (HRM) has been identified as a crucial key success factor for SMEs in today’s world. This research study investigates small business owners’ perception of the importance of HRM. The objective of this paper is to determine the perceived importance of human resources (HR) among South African SMEs and the management of it. A questionnaire was constructed and judgement sampling was used to gather the responses of 88 small business owners. The research revealed that the majority of SMEs have HR practices of some sort in place, as well as areas to improve on HR practices. The challenge now is to further increase the adoption of HR management and practices among small businesses in South Africa to ensure their success, as they play a vital role in the South African economy. Keywords: South African SMEs, developing countries, human resource functions, human resources management, HR, HRM. JEL Classification: M19

scholarly journals Small business barriers to occupational health and safety compliance

2019 ◽  
Vol 11 (1) ◽  
Author(s):  
Elriza Esterhuyzen
Keyword(s):  
South Africa ◽  
Occupational Health ◽  
Small Business ◽  
South African ◽  
Small Businesses ◽  
Health And Safety ◽  
Occupational Health And Safety ◽  
Well Being ◽  
Business Owners ◽  
Small Business Owners

Background: The Constitution of South Africa indicates that all people have the right to an environment that is not harmful to their health and well-being. This right is reiterated in the Occupational Health and Safety Act 83 of 1993. However, small business owners and/or managers experience specific barriers to occupational health and safety (OHS) compliance. The study was conducted in Gauteng, KwaZulu-Natal and the Western Cape provinces of South Africa, as these three provinces account for 82% of active businesses in South Africa.Objective: This article discusses barriers to OHS compliance as perceived by South African small business owners and/or managers.Method: A total of 350 small business owners and/or managers from the three above-mentioned provinces participated in a questionnaire survey, with one section focussing on barriers to OHS compliance. Participants rated 11 predetermined barriers to OHS compliance and could indicate and rate additional barriers. Descriptive and inferential statistics were used to report on these perceived barriers.Results: Results indicated that the perceived barriers to OHS compliance can be categorised as human and resource barriers.Conclusion: South African small business owners and/or managers experience barriers to compliance that prevent them from full compliance with OHS directives, which can be costly. Small business owners and/or managers need to take cognisance of applicable OHS directives as well as identified barriers to compliance. These barriers need to be addressed to allow small businesses to comply with OHS directives and to enhance the sustainability of small businesses. The question is not whether small businesses can afford OHS compliance, but if they can afford not to overcome barriers and comply.

scholarly journals COVID-19 pandemic and the South African township economy

2021 ◽  
Vol 10 (2) ◽  
pp. 370-381
Author(s):  
Solomon Omonona ◽  
Olabanji Oni ◽  
Joseph Oluwole
Keyword(s):  
South Africa ◽  
Small Business ◽  
South African ◽  
Small Businesses ◽  
Sampling Technique ◽  
The South ◽  
Cross Sectional Survey ◽  
Cross Sectional ◽  
The Impact ◽  
South African Township

This paper aims to assess the relationship between COVID-19 pandemic and the South African township economy in King William’s town, South Africa. The research methodology utilized a descriptive cross-sectional (survey) design. The population included micro and small business owners and or managers in King Williams Town, South Africa. Random sampling technique was used to sample 210 participants. The data were collected from owners/managers of micro and small businesses using a questionnaire method. The average age of the participant was 29 years (SD = 1.12), 37.6% were males while 62.4% were females. The findings of this study revealed the impact of the pandemic on micro and small businesses in the township area and that COVID-19 pandemic negatively affected micro and small business performance. The study therefore concludes that South Africa's lockdown measures introduced to contain the virus have had a significant economic impact on the township economy, particularly on micro and small businesses, which account for the majority of the township economy.

scholarly journals Multiple tax amnesties and compliance in South Africa

2014 ◽  
Author(s):  
◽  
Sachin Vir Junpath
Keyword(s):  
South Africa ◽  
Small Business ◽  
Small Businesses ◽  
Quantitative Research ◽  
Structural Changes ◽  
Tax Compliance ◽  
Research Approach ◽  
Tax Amnesty ◽  
The Government ◽  
New Democracy

South Africa has seen tremendous changes since 1994, from the introduction of a new government to structural changes in tax administration; one of the challenges the government faced in the new democracy, was the restructuring of the tax system. Multiple tax amnesty programs were thus introduced between 1995 and 2010 to provide immunity for limited periods to citizens and small businesses for past non-compliance without being subjected to additional tax, interest, penalties or prosecution. Although extensive research conducted abroad has illustrated the potential problems and complexities that could arise from multiple amnesties, very little research has been conducted in South Africa to evaluate the viability of offering repeated amnesties. The emphasis in this study was therefore on the Small Business Tax Amnesty of 2006, and its primary purpose was to explore the effects that multiple tax amnesties have on compliance and whether it is possible for tax compliance to improve if further tax amnesties are introduced. This study used a quantitative research approach to gather data from 146 respondents from an Audit firm database containing information about taxpayers qualifying as small business who applied for amnesty and taxpayers that did not apply for amnesty between 1 August and 30 June 2007. Analysis of the data revealed that tax amnesties in South Africa should not be offered on a frequent basis to non-compliant taxpayers as it causes non-compliant taxpayers to anticipate further amnesties which could impact negatively on tax compliance as a whole. The findings also indicated that educating taxpayers about tax issues could result in better tax compliance thus contributing to the development of a fair and equitable society. Based on the findings, this study makes recommendations to government, the tax authority and policy makers regarding the effects of multiple tax amnesties.

Implications for the age of South African Devonian rocks in which Tropidoleptus (Brachiopoda) has been found

1983 ◽  
Vol 120 (1) ◽  
pp. 51-58 ◽  
Author(s):  
A. J. Boucot ◽  
C. H. C. Brunton ◽  
J. N. Theron
Keyword(s):  
South Africa ◽  
North America ◽  
South African ◽  
Early Carboniferous ◽  
Fossil Plants ◽  
Geological Time ◽  
Marine Sedimentation ◽  
History Of ◽  
Near Shore ◽  
First Time

SummaryThe Devonian brachiopod Tropidoleptus is recognized for the first time in South Africa. It is present in the lower part of the Witteberg Group at four widely separated localities. Data regarding the stratigraphical range of the genus elsewhere, combined with information on recently described fossil plants and vertebrates from underlying strata of the upper Bokkeveld Group, suggest that a Frasnian or even Givetian age is reasonable for the lower part of the Witteberg Group. The recognition of Tropidoleptus in a shallow water, near-shore, molluscan association, at the top of the South African marine Devonian sequence, is similar to its occurrence in Bolivia, and suggests a common Malvinokaffric Realm history of shallowing, prior to later Devonian or early Carboniferous non-marine sedimentation. It is noteworthy that Tropidoleptus is now known to occur in ecologically suitable environments around the Atlantic, but is absent from these same environments in Asia and Australia. Tropidoleptus is an excellent example of dispersal in geological time — first appearing in northern Europe and Nova Scotia, then elsewhere in eastern North America and North Africa, followed by South America and South Africa, while continuing in North America.

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