Investigating a new wealth tax in South Africa: Lessons from international experience
- Arendse, Jacqueline A, Stack, Elizabeth M
- Authors: Arendse, Jacqueline A , Stack, Elizabeth M
- Date: 2018
- Subjects: To be catalogued
- Language: English
- Type: text , article
- Identifier: http://hdl.handle.net/10962/69434 , vital:29536 , https://jefjournal.org.za/index.php/jef/article/view/175/193
- Description: In recent years, there has been an increasing focus on new sources of taxation, including wealth tax. In South Africa, two phenomena have driven the focus on wealth tax. Firstly, the need for additional tax revenue to fund an ongoing and growing budget deficit, exacerbated by a prolonged period of low economic growth, rising government debt and a very small base of individual taxpayers. Secondly, the fact that South Africa has one of the most unequal societies in the world. The dual demands of increased tax revenue and economic inequality have converged around wealth tax as a possible panacea to both problems. Although South Africa has a long history of wealth transfer tax in the form of estate duty and donations tax, there has never been a tax on the net wealth holdings of individuals during their lifetime. Internationally, numerous countries have used wealth tax in various forms, including inheritance tax, gift tax, recurrent wealth tax and non-recurrent wealth tax. This study examines some of the international experiences with these three categories of wealth tax, seeking lessons and experiences that can inform the debate around the viability of a new wealth tax in South Africa.
- Full Text:
- Date Issued: 2018
- Authors: Arendse, Jacqueline A , Stack, Elizabeth M
- Date: 2018
- Subjects: To be catalogued
- Language: English
- Type: text , article
- Identifier: http://hdl.handle.net/10962/69434 , vital:29536 , https://jefjournal.org.za/index.php/jef/article/view/175/193
- Description: In recent years, there has been an increasing focus on new sources of taxation, including wealth tax. In South Africa, two phenomena have driven the focus on wealth tax. Firstly, the need for additional tax revenue to fund an ongoing and growing budget deficit, exacerbated by a prolonged period of low economic growth, rising government debt and a very small base of individual taxpayers. Secondly, the fact that South Africa has one of the most unequal societies in the world. The dual demands of increased tax revenue and economic inequality have converged around wealth tax as a possible panacea to both problems. Although South Africa has a long history of wealth transfer tax in the form of estate duty and donations tax, there has never been a tax on the net wealth holdings of individuals during their lifetime. Internationally, numerous countries have used wealth tax in various forms, including inheritance tax, gift tax, recurrent wealth tax and non-recurrent wealth tax. This study examines some of the international experiences with these three categories of wealth tax, seeking lessons and experiences that can inform the debate around the viability of a new wealth tax in South Africa.
- Full Text:
- Date Issued: 2018
Rewarding tax compliance: taxpayers’ attitudes and beliefs
- Bornman, Marina, Stack, Elizabeth M
- Authors: Bornman, Marina , Stack, Elizabeth M
- Date: 2015
- Subjects: To be catalogued
- Language: English
- Type: article , text
- Identifier: http://hdl.handle.net/10962/61039 , vital:27931
- Description: In a society the tax climate is determined by the interaction between taxpayers and tax authorities. In a ‘service and client’ climate, taxpayers do not expect authorities to automatically suspect them of being tax evaders. Evidence suggests that recognising good tax behaviour with strategies of rewards has a positive effect on voluntary tax compliance. Principles derived from the cognitive evaluation theory predict that when feelings of competence are affirmed and this is accompanied by a sense of autonomy it can enhance the intrinsic motivation for an action. The present research surveyed the attitudes and beliefs of taxpayers involved in small business on being rewarded for tax compliance. Results were corroborated with the principles of the cognitive evaluation theory and it was found that that the principles of the theory are applicable to rewarding tax compliance behaviour.
- Full Text:
- Date Issued: 2015
- Authors: Bornman, Marina , Stack, Elizabeth M
- Date: 2015
- Subjects: To be catalogued
- Language: English
- Type: article , text
- Identifier: http://hdl.handle.net/10962/61039 , vital:27931
- Description: In a society the tax climate is determined by the interaction between taxpayers and tax authorities. In a ‘service and client’ climate, taxpayers do not expect authorities to automatically suspect them of being tax evaders. Evidence suggests that recognising good tax behaviour with strategies of rewards has a positive effect on voluntary tax compliance. Principles derived from the cognitive evaluation theory predict that when feelings of competence are affirmed and this is accompanied by a sense of autonomy it can enhance the intrinsic motivation for an action. The present research surveyed the attitudes and beliefs of taxpayers involved in small business on being rewarded for tax compliance. Results were corroborated with the principles of the cognitive evaluation theory and it was found that that the principles of the theory are applicable to rewarding tax compliance behaviour.
- Full Text:
- Date Issued: 2015
Specific rewards for tax compliance: responses of small business owners in Ekurhuleni, South Africa
- Bornman, Marina, Stack, Elizabeth M
- Authors: Bornman, Marina , Stack, Elizabeth M
- Date: 2015
- Subjects: To be catalogued
- Language: English
- Type: text , article
- Identifier: http://hdl.handle.net/10962/145325 , vital:38428 , https://heinonline.org/HOL/Page?handle=hein.journals/ejotaxrs13anddiv=35andg_sent=1andcasa_token=andcollection=journals
- Description: The literature reviewed documents the positive effects of rewards in encouraging desired behaviour, but rewards may have a crowding-in effect, strengthening intrinsic motivation, or a crowding-out effect, weakening it. External interventions may therefore be perceived as supportive, fostering self-esteem and self-determination, while those perceived as controlling may have the opposite effect. A number of countries have adopted a strategy of rewarding tax compliance. The rewards range from certificates awarded to compliant taxpayers, to privilege cards providing opportunities for discounts or special treatment, to lotteries in which compliant taxpayers can participate. The reward strategies are often accompanied by publicity programmes. Two such hypothetical strategies were presented to participants in a survey conducted amongst small business owners in Ekurhuleni, South Africa, to gauge their responses.
- Full Text:
- Date Issued: 2015
- Authors: Bornman, Marina , Stack, Elizabeth M
- Date: 2015
- Subjects: To be catalogued
- Language: English
- Type: text , article
- Identifier: http://hdl.handle.net/10962/145325 , vital:38428 , https://heinonline.org/HOL/Page?handle=hein.journals/ejotaxrs13anddiv=35andg_sent=1andcasa_token=andcollection=journals
- Description: The literature reviewed documents the positive effects of rewards in encouraging desired behaviour, but rewards may have a crowding-in effect, strengthening intrinsic motivation, or a crowding-out effect, weakening it. External interventions may therefore be perceived as supportive, fostering self-esteem and self-determination, while those perceived as controlling may have the opposite effect. A number of countries have adopted a strategy of rewarding tax compliance. The rewards range from certificates awarded to compliant taxpayers, to privilege cards providing opportunities for discounts or special treatment, to lotteries in which compliant taxpayers can participate. The reward strategies are often accompanied by publicity programmes. Two such hypothetical strategies were presented to participants in a survey conducted amongst small business owners in Ekurhuleni, South Africa, to gauge their responses.
- Full Text:
- Date Issued: 2015
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