scholarly journals Belasting op toegevoegde waarde: Gevolge van kliëntelojaliteits-programtransaksies vir verskaffers

2013 ◽  
Vol 6 (3) ◽  
Author(s):  
Sophia Brink
Keyword(s):  
South Africa ◽  
South African ◽  
Value Added ◽  
Common Phenomenon ◽  
Financial Loss ◽  
The South ◽  
Value Added Tax ◽  
Local Literature ◽  
Loyalty Programme

Client loyalty programmes are a common phenomenon in the South African market. Despite the fact that client loyalty programmes have been prevalent in South Africa since the 1980s, the South African Revenue Service has issued minimal guidance on the value-added tax treatment of client loyalty programme transactions. The main objective of the research was to determine whether South African client loyalty programme suppliers correctly account for client loyalty programme transactions for value-added tax purposes. In order to meet this objective, available local literature was analysed to determine the proposed value-added tax treatment of a client loyalty programme transaction. The proposed correct value-added tax treatment was compared with a survey circulated to a population of client loyalty programme suppliers in South Africa. The comparison indicated that in practice the Value-Added Tax Act 89 of 1991 is not always interpreted correctly. This incorrect tax treatment could result in financial loss to the client loyalty programme supplier as taxpayer

scholarly journals An evaluation of the income tax treatment of client loyalty programme transactions by South African suppliers

2015 ◽  
Vol 8 (1) ◽  
pp. 145-164
Author(s):  
Sophia Brink
Keyword(s):  
South Africa ◽  
South African ◽  
Income Tax ◽  
International Literature ◽  
Financial Loss ◽  
The South ◽  
The Past ◽  
Loyalty Programme

The popularity of client loyalty programmes has increased drastically over the past few years, with more than 100 suppliers in South Africa currently making use of them. Despite the fact that client loyalty programmes have been prevalent in South Africa since the 1980s, the South African Revenue Service has issued no specific guidance on the income tax treatment of client loyalty programme transactions. The main objective of the research was to determine whether South African client loyalty programme suppliers treat client loyalty programme transactions correctly for income tax purposes. In order to meet this objective, available local and international literature were analysed to determine the proposed income tax treatment of a client loyalty programme transaction expenditure incurred by supplier for purposes of the client loyalty programme. The proposed correct income tax treatment was compared with a survey circulated to a population of client loyalty programme suppliers in South Africa. The comparison indicated that in practice the Income Tax Act No. 58 of 1962 is treated differently from the proposed treatment. This incorrect tax treatment could result in possible financial loss to the client loyalty programme supplier as taxpayer.

scholarly journals Value-Added Tax On Virtual World Transactions: A South African Perspective

2012 ◽  
Vol 12 (1) ◽  
pp. 71
Author(s):  
Gregory Johnston ◽  
Sare Pienaar
Keyword(s):  
Electronic Commerce ◽  
South African ◽  
Virtual Worlds ◽  
Virtual World ◽  
Value Added ◽  
Consumption Tax ◽  
The South ◽  
Value Added Tax ◽  
Internet Age ◽  
African Perspective

The dawn of the internet age has brought about concepts such as electronic commerce, virtual worlds and digitized products. When consumption tax laws such as value-added tax (VAT) or goods and service tax (GST) were legislated, these concepts were not envisaged. The aim of this article is to determine whether the South African value-added tax (VAT) Act is applicable to transactions occurring in virtual worlds. The article critically analyses section 7(1) of the VAT Act to determine its applicability to transactions occurring in virtual worlds. The benefit of this article will be to highlight the deficiency in the South African VAT Act in dealing with electronic commerce transactions as well as transactions arising in virtual worlds. The study reported here concluded that the South African VAT Act in its current format does not appear to deal with transactions occurring in virtual worlds effectively. Consequently, amendments to existing law should be effected in order to deal effectively with the transactions.

scholarly journals DUTY FREE NOT VAT FREE Master Currency v CSARS (155/2012) [2013] ZASCA 17 (20 March 2013)

Obiter ◽  
2014 ◽  
Author(s):  
Carika Keulder ◽  
Thabo Legwaila
Keyword(s):  
South Africa ◽  
South African ◽  
Value Added ◽  
Value Added Tax ◽  
Free Zone ◽  
Goods And Services ◽  
Competitive Price ◽  
Zero Rate ◽  
The Republic ◽  
Free Area

In Master Currency v CSARS ((155/2012) [2013] ZASCA 17 (20 March 2013)) the court had to address the question of whether services supplied by Master Currency were subject to a zero rating. This case is of particular interest as it addresses the VAT implications of services supplied in a duty-free area of an airport. Hence, it was questioned whether a service rendered in a duty-free area will be subject to VAT.A duty-free area or zone is an area or zone within which goods and services may be supplied without being subject to customs duties. The IBFD International Tax Glossary defines “Duty-free zone” as follows: “[z]one usually next to an international port or airport where imported goods may be unloaded, stored and reshipped without payment of customs duties or other type of indirect tax, provided the goods are not imported” (140). The importance of this definition is that it specifically refers to “other type[s] of indirect taxes” also not being leviable in the duty-free area. It is important to note that the Customs and Excise Act (91 of 1964) does not define “duty free” or “duty-free area”.The South African value-added tax (hereinafter “VAT”) is a tax on the consumption of goods and services in the Republic of South Africa. Accordingly, the Value-added Tax Act 89 of 1991 (hereinafter “the Act”) and, accordingly, references to sections in this note are to sections of the Act, unless otherwise expressly stated, provides for three instances where goods and services will be considered to be consumed in South Africa and thus be subject to VAT. The first instance will be when a vendor supplies goods or services in the course or furtherance of an enterprise in South Africa. The second instance is when goods are imported into South Africa by any person, and lastly when imported services are supplied to any person in South Africa. The supply of domestic goods and services is taxable in terms of section 7(1)(a) of the Act. Imported goods and services are subject to VAT firstly because they are destined for consumption in South Africa. Moreover, it is essential for these goods and services to attract VAT consequences, otherwise imported goods and services would enjoy a competitive price advantage over equivalent local goods and services as the latter would be subject to VAT in terms of section 7(1)(a). Thus the taxation of imported goods and services creates an equal competitive footing with the domestic goods and services. Bearing in mind that VAT is a tax on consumption it follows that exportation of goods and services from South Africa are subject to tax at a zero-rate as the consumption will not take place in South Africa. As a general matter, the supply of these goods is taxable in the country where they are destined to be consumed. The zero-rating ensures that no double taxation ensues in that an exporter will not be taxed in South Africa and again in the export country (“export country” refers to any place that is outside South Africa).

scholarly journals "Pay Now, Argue Later" Rule – Before and After the Tax Administration Act

2017 ◽  
Vol 16 (4) ◽  
pp. 124
Author(s):  
Carika Keulder
Keyword(s):  
South African ◽  
Value Added ◽  
Prima Facie ◽  
Tax Administration ◽  
Constitutional Court ◽  
The South ◽  
Value Added Tax ◽  
Significant Difference ◽  
The Right ◽  
Right Of Access

The South African Revenue Service (SARS) is entrusted with the duty of collecting tax on behalf of the South African government. In order to ensure effective and prompt collection of taxes, the payment of tax is not suspended pending an objection or an appeal, unless directed otherwise. This is also known as the "pay now, argue later" rule, and, for value-added tax purposes, is provided for in terms of section 36 of the Value-Added Tax Act 89 of 1991. The "pay now, argue later" rule in terms of section 36 of the Value-Added Tax Act prima facie infringes on a taxpayer's right of access to the courts as envisaged in section 34 of the Constitution. This is due to the fact that a taxpayer is obliged to pay tax before being afforded the opportunity to challenge the assessment in a court. In Metcash Trading Ltd v Commissioner for the South African Revenue Service, the Constitutional Court held the "pay now, argue later" rule in terms of section 36 to be constitutional. Olivier, however, does not agree with the court on several matters. Amongst the problems she indicates are that the taxpayer does not have access to the courts at the time the rule is invoked, and that the court did not consider the fact that there might be less invasive means available which would ensure that SARS's duty is balanced with the taxpayer's right of access to the courts. Guidelines were also issued which provide legal certainty regarding the factors SARS may consider in determining whether the payment of tax should be suspended or not. These guidelines also evoked some points of criticism. Since 1 October 2012, the "pay now, argue later" rule has been applied in terms of section 164 of the Tax Administration Act 28 of 2011. The question arises whether this provision addresses the problems identified in respect of section 36 of the Value-Added Tax Act and the guidelines. In comparing these sections, only slight differences emerged. The most significant difference is that section 164(6) of the Tax Administration Act stipulates that the enforcement of tax be suspended for a period when SARS is considering a request for suspension. Section 164(6) does not provide a solution to the problems identified regarding section 36 of the Value-Added Tax Act. It is even possible that this section could give rise to further problems. Therefore, the legislature has failed to address the imbalance between the duties of SARS and the right of a taxpayer to access the courts.

scholarly journals The value-added tax implications of the temporary change in use adjustments by residential property developers: an international comparative study

2019 ◽  
Vol 18 (3) ◽  
pp. 46-65
Author(s):  
H Du Preez ◽  
A E Klein
Keyword(s):  
South Africa ◽  
New Zealand ◽  
South African ◽  
Cash Flow ◽  
Value Added ◽  
Residential Property ◽  
Value Added Tax ◽  
Residential Properties ◽  
International Comparative ◽  
Property Developers

Residential property developers sometimes struggle to dispose of newly built residential premises, because of an oversupply of residential property in the market and decreased sales in recent years. Many developers have switched from speculation (when residential properties are built to be sold) to investment (when properties are retained to generate rental income). Some developers only lease out newly constructed dwellings temporarily in anticipation of selling them later at a more favourable price. Units may be held with the ultimate goal of selling them, creating taxable supplies. In South Africa, these changes in the use of residential property have value-added tax (VAT) consequences that result in a negative cash flow. In the 2010 Budget Speech, amendments to the harsh VAT legislation were proposed. 6This study examined the South African VAT legislation applicable to property developers during the period when residential properties are let out. The findings suggest that the current South African VAT legislation relevant to changes in the use of residential properties is harsher than that in New Zealand or Australia, but that the proposed amendments offer some degree of relief. However, even with these amendments, there is insufficient relief, and another possible solution is proposed.

scholarly journals Exploring The Incidents Of Strikes In Post-Apartheid South Africa

2014 ◽  
Vol 13 (3) ◽  
pp. 553
Author(s):  
Genius Murwirapachena ◽  
Kin Sibanda
Keyword(s):  
South Africa ◽  
Labour Market ◽  
South African ◽  
Minimum Wage ◽  
Common Phenomenon ◽  
The South ◽  
Labour Relations ◽  
Stakeholder Relations ◽  
South African Constitution ◽  
The Right

Since the right to strike was recognised in the South African Constitution, strike actions have been a common phenomenon in the country. Causes of strikes in South Africa are multifaceted and their effects detrimentally catastrophic. This paper explored the incidents of strikes in post-apartheid South Africa and it analysed newspaper and other published articles to track down the occurrence, causes, and effects of strikes in South Africa. In this paper, it was established that the main causes of strike actions range from poverty, inequality, and unemployment to union rivalry and the undemocratic nature of the labour relations. It also established the effects of strike actions which are both social and economic. To achieve labour market stability, this paper recommended the democratisation of labour relations, the creation of sound stakeholder relations, turning employees into employers through indigenisation policies, and the implementation of a national minimum wage.

scholarly journals Inkomstebelastinghantering van kliëntelojaliteitsprogram: Transaksies in Suid-Afrika

2012 ◽  
Vol 5 (2) ◽  
pp. 437-458
Author(s):  
Sophia M. Brink ◽  
Herman A. Viviers
Keyword(s):  
South African ◽  
Income Tax ◽  
Case Law ◽  
International Literature ◽  
Common Phenomenon ◽  
The South ◽  
Related Case ◽  
Consumer Benefits ◽  
Gross Income ◽  
Loyalty Programme

Client loyalty programmes are a common phenomenon in the South African market and, although prevalent in South Africa since the 1980s, the South African Revenue Service has issued no guidance on the income tax treatment of client loyalty programme transactions in the hands of the consumer. Benefits received in the form of goods, services or discounts from a client loyalty programme are currently not subject to normal South African income tax. The main objective of the research was to investigate whether the existing provisions in the Income Tax Act and related case law provide the basis for taxing client loyalty programmes in the hands of the consumer as natural person. In order to meet this objective local and international literature was analysed to determine the correct income tax treatment and it was found that points or miles received by a consumer meet all the requirements of the “gross income” definition and as a result should be taxable.

Foreigners' Rights to Work and Fair Labour Practices in South Africa: A Review of the South African Labour Legislation and Jurisprudence

2020 ◽  
Vol 35 (1) ◽  
Author(s):  
Andre Mangu
Keyword(s):  
South Africa ◽  
Human Rights ◽  
South African ◽  
Bill Of Rights ◽  
The South ◽  
Legislation And Jurisprudence ◽  
Foreign Nationals ◽  
Lay Persons ◽  
Democratic State ◽  
Labour Legislation

After several decades of apartheid rule, which denied human rights to the majority of the population on the ground of race and came to be regarded as a crime against humanity, South Africa adopted its first democratic Constitution in the early 1990s. The 1996 Constitution, which succeeded the 1993 interim Constitution, is considered one of the most progressive in the world. In its founding provisions, it states that South Africa is a democratic state founded on human dignity, the achievement of equality, the advancement of human rights and freedoms. The Constitution enshrines fundamental human rights in a justiciable Bill of Rights as a cornerstone of democracy. Unfortunately, in the eyes of a number of politicians, officials and lay-persons, the rights in the Bill of Rights accrue to South African citizens only. Xenophobia, which has been rampant since the end of apartheid, seems to support the idea that foreigners should not enjoy these rights. Foreign nationals have often been accused of posing a threat to South African citizens with regard to employment opportunities. In light of the South African legislation and jurisprudence, this article affirms the position of the South African labour law that foreign nationals are indeed protected by the Constitution and entitled to rights in the Bill of Rights, including the rights to work and fair labour practices.

The Engagement of Beneficiaries in Farm Governance of Restituted Land through the Communal Property Association Model: The Ideal Versus the Reality of Beneficiary Farms in South Africa

2019 ◽  
Vol 16 (2) ◽  
Author(s):  
Mokoko Piet Sebola ◽  
Malemela Angelinah Mamabolo
Keyword(s):  
South Africa ◽  
South African ◽  
Land Reform ◽  
Farm Management ◽  
The South ◽  
African Government ◽  
Communal Property ◽  
Farm Ownership ◽  
Land Restitution ◽  
Communal Property Associations

The purpose of this article is to evaluate the engagement of farm beneficiaries in South Africa in the governance of restituted farms through communal property associations. The South African government has already spent millions of rands on land restitution to correct the imbalance of the past with regard to farm ownership by the African communities. Various methods of farm management to benefit the African society have been proposed, however, with little recorded success. This article argues that the South African post-apartheid government was so overwhelmed by political victory in 1994 that they introduced ambitious land reform policies that were based on ideal thinking rather than on a pragmatic approach to the South African situation. We used qualitative research methods to argue that the engagement of farm beneficiaries in farm management and governance through communal property associations is failing dismally. We conclude that a revisit of the communal property associations model is required in order to strengthen the position of beneficiaries and promote access to land by African communities for future benefit.

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